Backing away: Changes to working holiday visas are reducing backpacker visitor nights

The Holiday Houses, Flats and Hostels industry is highly fragmented, with most players being small in scale. Demand for industry accommodation has been mixed over the past five years. Demand for short-term rental holiday houses, apartments and units has grown over the period due to an increasing number of inbound tourists looking for cheaper accommodation options with more in-room facilities. Conversely, a decline in backpacker visitor nights has limited demand for backpacker hostels. Changes to working holiday visas over the past five years, such as classifying working holiday makers as non-residents for tax purposes since January 2017, have reduced the average length of time that backpackers are staying in the country. Industry revenue is expected to increase at an annualised more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Internal and external industry competition has intensified over the past five years
  • Online price aggregator websites have increased price transparency across the accommodation sector
  • Competitive pressure from serviced apartments is projected to reduce industry enterprise numbers
  • Industry Report - Industry Investment Chapter

    The Holiday Houses, Flats and Hostels industry has moderate capital intensity. For every dollar spent on capital, an estimated $3.08 is spent on wages. As an industry in the accommodation sector, labour is crucial. Labour functions are needed for face-to-face services, such as management, and back-of-house tasks, such as maintenance and cleaning. Players largely incur capital costs through upgrading facilities and improving computer booking systems. The industry’s capital intensity has risen over the past five years, as players have improved online booking systems to reduce staff costs...purchase to read more.

    Additional Insights for the Holiday Houses, Flats and Hostels Industry

    IBISWorld has determined the most important Key Success Factors for the Holiday Houses, Flats and Hostels are:

  • Being part of a group buying, promotion and marketing scheme
  • Proximity to key markets
  • Having a loyal customer base
  • IBISWorld analysts also discuss how external factors such as Domestic tourist visitor nights and International tourist visitor nights in the Holiday Houses, Flats and Hostels industry impact industry performance..

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    What's in this report

    What is the Holiday Houses, Flats and Hostels Industry?

    Industry players primarily rent out accommodation in houses and apartments, bed and breakfasts and backpacker hostels on a short-term basis. Individuals that rent out properties or rooms through accommodation-sharing platforms like Airbnb are not included in the industry.

    Industry Products
  • Bed and breakfast accommodation
  • Short-term rented holiday houses, apartments and units
  • Backpacker hostels
  • Industry Activities
  • Operating holiday houses, flats, apartments and units
  • Operating backpacker and youth hostels
  • Operating bed and breakfasts
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Domestic tourist visitor nights
  • International tourist visitor nights
  • International travel by Australians
  • Demand from hotels and resorts
  • Real household discretionary income

  • Current Performance
  • Mixed fortunes
  • Tourism activity
  • Airbnb pressures
  • Chart: Revenue Growth

  • Industry Outlook
  • Competition
  • Tourism trends
  • Backpackers
  • Table: Holiday Houses, Flats and Hostels Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Holiday Houses, Flats and Hostels Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Travel Agency and Tour Arrangement Services
  • Consumers
  • International Consumers

  • Key Selling Industries
  • Commercial Cleaning Services
  • Gardening Services
  • Laundry and Dry-Cleaning Services

  • Products & Services
  • Short-term rented holiday houses, apartments and units
  • Backpacker hostels
  • Bed and breakfast accommodation
  • Chart: Holiday Houses, Flats and Hostels Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Travellers aged between 35 and 55
  • Travellers aged over 55
  • Travellers aged under 35
  • Chart: Major Market Segmentation for the Holiday Houses, Flats and Hostels Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Holiday Houses, Flats and Hostels

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Holiday Houses, Flats and Hostels Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Holiday Houses, Flats and Hostels Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Holiday Houses, Flats and Hostels Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A person who spends at least one night in a backpacker establishment or hostel while travelling.
  • Hostel
  • Low-end accommodation that offers shared and individual accommodation, and specialises in servicing the backpacker market. People who stay in hostels are called hostellers.
  • Inbound Tourism
  • The act of a non-resident visiting a country, such as Australia.
  • Outbound Tourism
  • In this case, the act of an Australian resident visiting another country.
  • Tariffs
  • Prices charged for accommodation.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Holiday Houses, Flats and Hostels market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Holiday Houses, Flats and Hostels:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Holiday Houses, Flats and Hostels market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Holiday Houses, Flats and Hostels, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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