Low confidence in accommodation pricing strategies among providers

By Susan Howarth, Head of Marketing

As part of our Effective Accommodation Strategies for 2025 webinar, a survey conducted ahead of the 2025 Refundable Accommodation Deposit (RAD) changes gathered insights from aged care providers across Australia, revealing a mix of concerns and priorities in adapting their accommodation strategies. The online poll, which included responses from 223 participants across 185 organisations – among them 86 executives, board members, and senior managers – underscored the challenges of aligning pricing strategies with market expectations and regulatory requirements.

The findings, gathered as part of the registration process for the webinar revealed that while some providers felt confident in their approach, many grappled with uncertainty, particularly around confidence in pricing strategy alignment.

Here’s a closer look at the survey findings:

Confidence in pricing strategy alignment: Only 9% of respondents are very confident that their current accommodation pricing strategy aligns with consumer expectations and market demand, while 39% are somewhat confident. A significant 43% remain neutral, and 7% lack confidence entirely.

These responses underscore the need for providers to review and refine their accommodation pricing strategies ahead of the 2025 RAD changes.

Biggest challenges in preparing for 2025 RAD changes: The top concern for 40% of respondents is understanding and complying with new regulatory requirements, followed by setting competitive and transparent pricing (22%). Forecasting market trends (18%) and assessing room features and amenities (12%) also pose significant hurdles.

Primary focus in reviewing accommodation strategies: Providers are prioritising financial sustainability (40%) and maintaining competitive pricing without compromising occupancy (42%). Other areas of focus include customer satisfaction (8%), budgetary constraints (6%), and immediate compliance needs (4%).

Key factors in future profitability beyond care funding: A resounding 62% of respondents believe that a combination of increasing consumer contributions, additional service revenue, and a portion of deposits retained by providers will be essential for financial viability.

Looking ahead: Strategic adaptation and data-driven decisions

In light of these challenges, it’s clear that aged care providers need to adopt strategic approaches and leverage data-driven insights to navigate the evolving regulatory landscape. This involves ensuring that pricing strategies are both competitive and compliant while developing more effective workforce strategies to manage the ongoing staffing challenges in the sector.

A well-thought-out approach to accommodation pricing and operational strategy will help providers stay ahead of the competition and continue to deliver quality care to older Australians, even as the industry adapts to changing regulations and market expectations.

How we can help

Ask us about our Capital Optimisation Strategy Workshop, designed to help providers like you maximise their non-care revenue to drive profitability and long-term sustainability. This comprehensive workshop will guide you through a three-step approach, beginning with assessing your current state – including your financial position and revenue streams—and identifying opportunities for non-care revenue growth. Next, we’ll define clear financial goals and strategic priorities for your organisation. Finally, we’ll develop a roadmap to bridge the gap between where you are now and where you want to be. Request a callback to find out more.

What’s next?

The full findings from this survey were explored our February webinar on Effective Accommodation Strategies. The webinar provided attendees with actionable insights to help navigate the 2025 RAD changes and make informed decisions about their accommodation strategies.