Industry Analysis & Industry Trends
The Serviced Apartments industry has been the strongest 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. However, the Serviced Apartments industry has gained market share and grown revenue in all but one of the past 10 years. In the five years through 2013-14, IBISWorld expects revenue will increase by an annualised 3.1% to $3.0 billion.
While the Serviced Apartment industry is strongly placed among accommodation competitors, the industry has battled a strong Australian dollar and cheap international airfares for much of the past five years... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity measures the industry's labour requirements compared to capital costs. IBISWorld estimates that operators require $0.27 worth of capital investment for every dollar paid as wages. The Serviced Apartments industry, like other industries in the hospitality sector, is quite labour-intensive. The industry requires significant levels of face-to-face service in all areas of operation, from management through to a range of front-of-house and back-of-house activities, including cleaning and maintenance. However, compared with hotels, motels and resorts, serviced apartments require less labour as rooms are serviced less frequently and many serviced apartments do not have on-site restaurants (which are typically highly labour intensive)... purchase to read more