Making room: Intensifying competition from other accommodation providers has constrained revenue

Operators in the Bed and Breakfast (B&B) Accommodation industry have faced difficult trading conditions over the past five years. Rising competition from other types of accommodation, such as motels and backpacker hostels, has limited industry growth over the period. In particular, accommodation-sharing networks such as Airbnb have put significant pressure on B&B operators to reduce prices to remain competitive. In addition, an increased range of accommodation options has become available to book online through aggregator websites, which have improved the transparency of prices for consumers and put further pressure on operators to lower prices. Consequently, industry-wide profitability has declined over the past five years. Industry revenue is expected to grow by an annualised more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Rising competition from other types of accommodation has limited industry growth
  • The expansion of Airbnb and similar services has constrained revenue growth
  • Industry operators are anticipated to focus on increasing their online presence
  • Industry Report - Industry Locations Chapter

    The spread of bed and breakfast (B&B) establishments throughout Australia largely follows population density, and economic and tourist activity. The eastern seaboard states account for the vast majority of both population and tourism activity in Australia. Consequently, Queensland, New South Wales and Victoria are projected to collectively account for over 75% of industry establishments. Many B&Bs are located across the outer-city regions of these states, due to strong competition in inner-city locations from alternative forms of accommodation, such as hotels and motels.Western Australia and South Australia, while having substantially lower shares of industry establishments, are home to several highly successful B&Bs. Com...purchase to read more.

    Additional Insights for the Bed and Breakfast Accommodation Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Bed and Breakfast Accommodation Industry are

  • Having a good reputation
  • Proximity to key markets
  • Ensuring pricing policy is appropriate
  • IBISWorld analysts also discuss how external factors such as Domestic tourist visitor nights and International tourist visitor nights in the Bed and Breakfast Accommodation industry impact industry performance..

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    What's in this report

    What is the Bed and Breakfast Accommodation Industry?

    Industry establishments primarily provide short-term hosted accommodation, including breakfast but no other meals. These establishments are typically located in the private residence of the host. The industry does not include hotels, motels, hostels or serviced apartments. The industry also does not include private individuals without an ABN that rent or sublet private residences to consumers for short-term lodging.

    Industry Products
  • Accommodation
  • Breakfast
  • Laundry
  • Other services
  • Industry Activities
  • Providing bed and breakfast (B&B) accommodation
  • Providing meals, primarily breakfast
  • B&B laundry services
  • Providing information on tourist attractions
  • 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
  • Consumer sentiment index
  • Real household discretionary income

  • Current Performance
  • External competition
  • Tourism trends
  • Economic conditions
  • Participation and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Tourism outlook
  • Competitive pressures
  • Participation and profit
  • Table: Bed and Breakfast Accommodation Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Bed and Breakfast Accommodation Industry Lifecycle vs The Economy

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

  • Key Selling Industries
  • Furniture Retailing
  • House Construction
  • Multi-Unit Apartment and Townhouse Construction
  • Supermarkets and Grocery Stores

  • Products & Services
  • Accommodation
  • Breakfast
  • Other services
  • Laundry
  • Chart: Bed and Breakfast Accommodation Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Domestic holiday-makers
  • International holiday-makers
  • Other
  • Chart: Major Market Segmentation for the Bed and Breakfast Accommodation 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 Bed and Breakfast Accommodation

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Bed and Breakfast Accommodation 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 Bed and Breakfast Accommodation 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 Bed and Breakfast Accommodation 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
    Aggregator Website
  • An online and retail entity that collects and collates information on a range of accommodations, presenting them to potential tenants.
  • Airbnb
  • A website that enables people to rent and lease short-term lodgings to domestic and international tourists.
  • Inbound Tourism
  • Non-residents travelling to Australia from a country outside of Australia. For example, a Chinese traveller arriving in Australia can be classified as a form of inbound tourism.
  • Sublet
  • The lease of a property by a tenant to a subtenant, with the owner of the residence not involved in the transaction.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Bed and Breakfast Accommodation 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.

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    This report on Bed and Breakfast Accommodation:
    • 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 Bed and Breakfast Accommodation 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 Bed and Breakfast Accommodation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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