Accommodating times: Revenue has grown due to rising domestic and international tourism

Strong growth in international arrival numbers, particularly from countries in the Asia-Pacific region such as China, has boosted the Hotels and Resorts industry's revenue over the past five years. Rising domestic business travel, which is a major revenue stream for larger hotels, has further supported the industry over the period. Despite strong demand from domestic, inbound and business tourists, hotels and resorts have faced intense competition from other forms of accommodation over the past five years. In particular, competition from serviced apartments has limited industry revenue growth. Industry revenue is expected to grow at an annualised 2.4% over the five years through 2018-19, to $8.4 billion. This includes anticipated growth of 1.9% in the current more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Hotels and resorts face strong competition from serviced apartments and Airbnb
  • Increasing inbound tourism has benefited industry players over the past five years
  • International arrival numbers from China are projected to keep growing over the next five years
  • Industry Report - Industry Investment Chapter

    Capital intensity has remained at a moderate level in the Hotels and Resorts industry over the past five years. For every dollar spent on capital, an estimated $6.43 is spent on wages. Like other industries in the accommodation sector, the operation of hotels requires numerous labour functions in almost all areas of operation, from management and front-of-the-house personnel like porters and concierge service, to back-end activities, including cleaning and maintenance. Labour functions may be significantly more intensive for five-star luxury hotels, which offer a substantially higher level of service to differentiate them from lower star-rated hotels. High-end hotels also invest heavily in capital items, such as spas, to boost service...purchase to read more.

    Additional Insights for the Hotels and Resorts Industry

    IBISWorld has determined the most important Key Success Factors for the Hotels and Resorts are:

  • Having a loyal customer base
  • Proximity to key markets
  • Access to multiskilled and flexible workforce
  • IBISWorld analysts also discuss how external factors such as Domestic tourist visitor nights and Business tourist visitor nights in the Hotels and Resorts industry impact industry performance..

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    What's in this report

    What is the Hotels and Resorts Industry?

    The industry includes hotels and resorts that have more than 15 rooms. Hotels and resorts are establishments that are licensed to operate a public bar and provide accommodation on a room or suite basis, with a bath or shower (but only limited cooking facilities) in most guest rooms. The industry also includes revenue earned from providing food and beverages. Hotel and resort accommodation provided by casinos is not included in the industry.

    Industry Products
  • Five- and four-star accommodation
  • Other accommodation
  • Food and beverages
  • Other products and services
  • Industry Activities
  • Hotel operation
  • Hotel management
  • Resort operation
  • Resort management
  • 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
  • Business tourist visitor nights
  • International tourist visitor nights
  • Real household discretionary income
  • Consumer sentiment index
  • International travel by Australians

  • Current Performance
  • Profitability
  • Travel trends
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Growing tourism
  • Profit and competition
  • Industry structure
  • Table: Hotels and Resorts Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hotels and Resorts Industry Lifecycle vs The Economy

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

  • Key Selling Industries
  • Construction
  • Dairy Produce Wholesaling
  • Fish and Seafood Wholesaling
  • Liquor Wholesaling
  • Meat, Poultry and Smallgoods Wholesaling

  • Products & Services
  • Five- and four-star accommodation
  • Food and beverages
  • Other accommodation
  • Other products and services
  • Chart: Hotels and Resorts Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Domestic leisure tourists
  • International leisure tourists
  • Domestic and international business travellers
  • Other visitors
  • Chart: Major Market Segmentation for the Hotels and Resorts 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 Hotels and Resorts

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hotels and Resorts Industry

  • Industry Globalization
    AAPC Limited,
  • Table: AAPC Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hotels and Resorts 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 Hotels and Resorts 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
    Inbound Tourism
  • The act of a non-resident visiting Australia.
  • Management Agreement
  • Contract agreements with hotel building owners to manage a hotel on their behalf with guaranteed returns to owner and manager.
  • Outbound Tourism
  • The act of an Australian resident visiting another country.
  • Rack Rate
  • Advertised room rate or tariff.
  • Tariff
  • A full schedule of fees for the use of accommodation amenities. It includes a disclosure of room rates and other rate information such as taxes and fees.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hotels and Resorts market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Hotels and Resorts:
    • 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 Hotels and Resorts 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 Hotels and Resorts, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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