At your service: Rising leisure, business and international traveller numbers boost revenue

Operators in the Serviced Apartments industry have benefited from increased tourism activity in Australia over the past five years. The depreciation of the Australian dollar over the period 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 and has supported industry growth. Rising total business profit and an increase in business confidence have also supported industry growth through a rise in the number of business tourist nights. Industry revenue is expected to grow by an annualised 6.1% over the five years through 2017-18, to reach $3.4 billion. This includes projected growth of 2.9% in the current year...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
6.1%
Forecast Growth 18-23
Profit
Employment
19,619
Businesses
749

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 Products Chapter

    Operators in the Serviced Apartments industry primarily derive revenue from providing accommodation. Serviced apartments can be segmented by star ratings, which depend on the quality of rooms, facilities and services. For example, five- or four-star accommodation, usually situated in prime locations, has high room rates and generally provides 24-hour room service and reception, and high-quality furniture and fittings. Accommodation with three or fewer stars provides considerably fewer services and facilities, and is usually priced accordingly. Star ratings are assessed by the Australian Tourism Industry Council through Star Ratings Australia.Four-star accommodationThe industry's largest product segment is four-star accommodation. Thi...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
  • Proximity to key markets
  • Effective product promotion
  • IBISWorld analysts also discuss how external factors such as Domestic tourist visitor nights and Business tourist visitor 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 beverages
  • 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 visitor nights
  • Demand from hotels and resorts
  • International tourist visitor nights
  • Consumer sentiment index

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • 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 beverages
  • Other products and services
  • Chart: Serviced Apartments Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Domestic 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
    Includes:
  • 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
    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.
  • 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 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 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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