No vacancy: Intense competition has left little room for revenue growth in the industry

IBISWorld’s Motels market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.


Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Annual Growth
2013 - 2018
Annual Growth
2018 - 2023

Industry Threats & Opportunities

  • Increasing international and domestic tourism has boosted demand for the industry's services
  • Rising demand for Airbnb has weakened demand for motels over the past five years
  • Motel operators are finding it hard to differentiate themselves in the accommodation sector

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    Industry Analysis & Industry Trends

    The Motels industry has struggled over the past five years. Intense competition from other forms of accommodation, such as hotels and serviced apartments, has constrained industry revenue growth over the period. Accommodation-sharing networks, such as Airbnb, have exerted further downward price pressure on motel operators over the past five years. However, rising inbound and domestic tourism, coupled with increasing business traveller numbers, has boosted demand for the industry's services over the past five years. Industry revenue is expected to grow by an annualised 0.4% over the five years through 2017-18, to reach $3.0 billion. This includes forecast growth of 0.4% in the current year...

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    Industry Report - Industry Products Chapter

    Industry operators primarily provide accommodation, usually in the form of suites or units with private facilities, though some facilities such as bathrooms may also be shared. Motels usually operate without liquor licences, but often provide meals. The term motel derives from ‘motor hotel', as this form of accommodation has traditionally catered to motorists. Consequently, many industry establishments are located near main roads or highways. Most motels are rated three or four stars. Star ratings were assessed by Star Ratings Australia, a division of Australian Motoring Services until July 2017 when the rating scheme was transferred to the Australian Tourism Industry Council. Star classification depends on the standard of facilities and services that the motel provides.


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    Additional Insights for the Motels Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Motels Industry are

  • Being part of a group buying, promotion and marketing scheme
  • Having a loyal customer base
  • Carrying out all necessary maintenance to keep facilities in good condition
  • IBISWorld analysts also discuss how external factors such as Domestic tourist visitor nights and Demand from hotels and resorts in the Motels industry impact industry performance..

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    Industry Products

    What is the Motels Industry?

    The industry includes motels and guesthouse businesses with 15 or more rooms. These establishments provide accommodation in the form of rooms or suites, and some provide food and beverages on the property. Most motels have direct access to an open parking area. Most guestrooms are equipped with a bath or shower, but have limited in-room cooking facilities.

    Industry Products
    Three-star accommodation
    Four-star accommodation
    Food and beverages
    Industry Activities
    Motel accommodation
    Motel management
    Guesthouse accommodation
    Guesthouse management

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Domestic tourist visitor nights
  • Demand from hotels and resorts
  • Real household discretionary income
  • Business tourist nights
  • International tourist visitor nights

  • Current Performance
  • Revenue and profitability
  • Competitive pressures
  • Inbound and domestic tourists
  • Other demand drivers
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Demand drivers
  • Increased competition
  • Table: Motels Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Motels Industry Lifecycle vs The Economy

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

  • Key Selling Industries
  • Construction
  • Furniture Retailing
  • Liquor Wholesaling
  • Meat, Poultry and Smallgoods Wholesaling

  • Products & Services
  • Three-star accommodation
  • Four-star accommodation
  • Food and beverages
  • Other
  • Chart: Motels Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Domestic leisure travellers
  • International visitors
  • Domestic business travellers
  • Other visitors
  • Chart: Major Market Segmentation for the Motels Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Rent
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Motels

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Motels Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Motels Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Motels Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
  • An online marketplace that allows consumers to list and rent accommodation for a processing fee.
  • Inbound Tourism
  • The act of a non-resident visiting a country. For example, a tourist from China who visits Australia is classified as an inbound tourist.
  • Outbound Tourism
  • The act of a resident visiting another country.
  • 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.
  • Why buy this report?

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

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