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 Investment Chapter
The Serviced Apartment industry exhibits a medium level of capital intensity. The industry requires high levels of face-to-face service in all areas of operation, from management through to a range of front-of-house and back-end activities, including cleaning and maintenance. However, compared with hotels, motels and resorts, serviced apartments require relatively less labour as rooms are serviced less frequently and many serviced apartments do not have on-site restaurants (which are typically labour-intensive). As a result, IBISWorld estimates that for every dollar paid as wages, operators are required to invest $0.28 in capital. Over the past five years, capital intensity has increased due to the ongoing developments of industry operators... purchase to read more