Industry Analysis & Industry Trends
The Serviced Apartments industry has been the steadiest performer in the Accommodation subdivision over the past decade. Other accommodation providers, including hotels and motels, have struggled in the wake of declining domestic tourism, a high Australian dollar and global economic uncertainty. In the five years through 2014-15, IBISWorld expects industry revenue to increase by an annualised 2.3% to $3.0 billion.
While the Serviced Apartments industry is well placed among accommodation service providers, it has had to contend with a strong Australian dollar and cheap international airfares for much of the past five years. These factors have been driving Australian tourists overseas at the expense of the domestic tourism market... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Serviced Apartments industry exhibits a low level of market share concentration based on revenue generated by the major industry players. IBISWorld forecasts that the industry's top four players collectively account for less than 40% of industry revenue. While there are many large chains that operate and manage a significant number of rooms through lease agreements, these operators earn comparatively less revenue than owner-operators. Owner-operators are typically independent establishments that earn more revenue than leased serviced apartment operators, who also tend to pay lease and/or franchise fees.
Market share concentration is expected to increase slightly over the next five years... purchase to read more