Standing apart: Operators have benefited from differentiating their apartments from hotels

The Serviced Apartments industry has grown strongly over the past five years. Growing domestic, inbound and business tourism have driven revenue increases over this period. The depreciation of the Australian dollar since 2013-14 has made it substantially cheaper to travel in Australia, boosting tourism in the country. Growing tourism activity over the past five years has increased demand for the accommodation sector as a whole, including serviced apartments. This has supported industry growth over this period. Rising total business profit and increased business optimism regarding finances, as indicated by positive business confidence since 2013-14, has been reflected in increased demand from domestic business travellers over the past five years, which also supported industry more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • The growing international visitors market has encouraged new players to enter the industry
  • Industry operators have increasingly hired part-time staff or subcontracted labour functions
  • Increased domestic, inbound and business tourism activity will support industry growth
  • Industry Report - Industry Investment Chapter

    The Serviced Apartments industry is moderately capital-intensive. For every dollar spent on capital, an estimated $4.00 is spent on wages. The industry requires staff for numerous functions such as management, front-of-house and back-end activities, including cleaning and maintenance. However, compared with hotels, serviced apartments operators spend less on wages as a share of revenue, as rooms are serviced less frequently and many serviced apartments do not have on-site restaurants, which are typically labour-intensive.Over the past five years, depreciation costs have slightly declined as a share of revenue, due to the growing number of industry players that are leasing and managing serviced apartments, and so are not subject to property-related depreciation. How...purchase to read more.

    Additional Insights for the Serviced Apartments Industry

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

  • Having a loyal customer base
  • Product is located in a high profile location
  • Effective product promotion
  • IBISWorld analysts also discuss how external factors such as Domestic tourist visitor nights and Business tourist nights in the Serviced Apartments industry impact industry performance..

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    What's in this report

    What is the Serviced Apartments Industry?

    The industry comprises establishments that operate self-contained apartments for short-term (one to six nights), medium-term (seven nights to one month) and long-term (more than one month) stays. Serviced apartments contain a kitchen or kitchenette, and usually have separate lounge or dining facilities. Serviced apartments are generally cheaper than equivalent hotel rooms as they have fewer complex facilities and fewer daily services provided.

    Industry Products
  • Food and beverage
  • Other products and services
  • Other star-rated accommodation
  • Four-star accommodation
  • Industry Activities
  • Operating self-contained apartments
  • Operating serviced apartments
  • 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 nights
  • Demand from hotels and resorts
  • International travel to Australia
  • Consumer sentiment index

  • Current Performance
  • Profitability and participation
  • Changing travel patterns
  • Substitute accommodation
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand outlook
  • Supply and competition
  • Table: Serviced Apartments Industry Revenue Outlook

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

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

  • Key Selling Industries
  • Construction
  • Furniture and Floor Covering Wholesaling
  • Textile Product Wholesaling

  • Products & Services
  • Four-star accommodation
  • Other star-rated accommodation
  • Food and beverage
  • Other products and services
  • Chart: Serviced Apartments Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Domestic holiday or leisure travellers
  • Domestic business travellers
  • International visitors
  • Other visitors
  • Chart: Major Market Segmentation for the Serviced Apartments Industry

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

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Serviced Apartments Industry

  • Industry Globalization
    QSA Group Pty Ltd, Mantra Group Limited,
  • Table: QSA Group Pty Ltd - financial performance
  • Table: Mantra Group Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Serviced Apartments 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 Serviced Apartments Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Inbound Tourism
  • The act of a non-resident visiting a given country, in this case Australia.
  • Management Agreement
  • Contract agreements with serviced apartment building owners to manage a group of serviced apartments on their behalf with guaranteed returns to owner and manager.
  • Serviced Apartment
  • A room with self-contained kitchenette and other guest facilities, including a separate lounge area.
  • Strata Scheme
  • An arrangement where individual parties can each own small proportions of a building.
  • Tariff
  • A full schedule of fees for the use of accommodation amenities. It includes a disclosure of room rates along with other rate information such as taxes and fees.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Serviced Apartments 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 Serviced Apartments:
    • 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 Serviced Apartments 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 Serviced Apartments, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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