Living large: Industry players are constructing new hotels to cater to rising demand

IBISWorld’s Luxury Hotels 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.


Industry Analysis & Industry Trends

Significant increases in inbound tourism have buoyed operators in the Luxury Hotels industry over the past five years. Rising numbers of international visitors to Australia have supported increased demand for luxury hotels, which has stimulated industry growth over the past five years. The depreciation of the Australian dollar since 2013-14 has made it cheaper for overseas travellers to visit Australia, and the expanding middle classes in several Asian countries have encouraged rising inbound tourism. In particular, inbound Chinese tourists have driven growth in tourism expenditure, far outpacing tourist numbers from other markets such as the United States, United Kingdom and New Zealand over the past five years. Industry revenue is expected to grow by an annualised 4.1%...

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What is the Luxury Hotels industry?

The Luxury Hotels industry exhibits moderate barriers to entry and this is expected to have remained largely unchanged over the past five years. The development of luxury hotels requires significant investment for land purchase, construction and outfitting costs. However, the initial capital outlay can be reduced by entering into a lease or management agreement with hotel builders and owners. These agreements provide a more affordable way of entering the industry than constructing and setting up a new hotel.

Competition among industry participants is fierce, and many luxury hotels are located close to one another in major capital cities or tourist areas. The existing operators and their extensive networks can act as a deterrent for new entrants. Est...

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Additional Insights for the Luxury Hotels Industry

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

  • Having a loyal customer base
  • Access to multiskilled and flexible workforce
  • Receiving the benefit of word of mouth recommendations
  • IBISWorld analysts also discuss how external factors such as International travel to Australia and Domestic tourist visitor nights in the Luxury Hotels industry impact industry performance..

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    Products & Brands

    Major products in this industry
    Four-star hotel accommodation
    Five-star hotel accommodation
    Food and beverages
    Other products and services
    Examples of brands in this Industry
    Accor Asia Pacific
    The Sebel

    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
  • International travel to Australia
  • Domestic tourist visitor nights
  • International travel by Australians
  • Real household discretionary income
  • Consumer sentiment index

  • Current Performance
  • Inbound tourism
  • Domestic tourism
  • Profit and structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Inbound tourism
  • Domestic tourism
  • Table: Luxury Hotels Industry Revenue Outlook

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

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

  • Key Selling Industries
  • Construction
  • Cosmetics and Toiletry Wholesaling
  • Household Appliance Wholesaling
  • Liquor Wholesaling

  • Products & Services
  • Four-star hotel accommodation
  • Five-star hotel accommodation
  • Food and beverages
  • Other products and services
  • Chart: Luxury Hotels Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • International tourists
  • Domestic tourists
  • Domestic and international business travellers
  • Chart: Major Market Segmentation for the Luxury Hotels Industry

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

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Luxury Hotels Industry

  • Industry Globalization
    Major Companies
    AAPC Limited
  • Table: AAPC Limited - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Luxury Hotels 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 Luxury Hotels 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
    Jargon & Glossary
    Aggregator Website
  • An online and retail entity that collects and collates information on a range of accommodation options for potential guests.
  • Booking Platforms
  • Websites operated by industry participants and accommodation consolidators that facilitate hotel bookings.
  • Management Agreement
  • A contract agreement with hotel building owners to manage a hotel on their behalf.
  • 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 Luxury Hotels:
    • 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 Luxury Hotels 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 Luxury Hotels, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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