Living large: Industry revenue has grown due to rising tourism from overseas

Significant increases in inbound tourism have supported operators in the Luxury Hotels industry over the past five years. Rising numbers of international visitors to Australia have boosted demand for luxury hotels, which has stimulated industry growth over the five-year period. The depreciation of the Australian dollar over the past five years has made it cheaper for overseas travellers to visit Australia, and the expanding middle classes in several Asian countries have supported rising inbound tourism. In particular, inbound Chinese tourists have driven growth in tourism expenditure, outpacing other markets such as the United States, United Kingdom and New Zealand over the period. Industry revenue is expected to grow at an annualised 2.9% over the five years through 2017-18, to $3.7...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 13-18
2.9%
Forecast Growth 18-23
Profit
Employment
22,098
Businesses
93
Market Share of Companies

Industry Threats & Opportunities

  • Rising numbers of international visitors to Australia have increased demand for luxury hotels
  • Domestic tourists have declined as a share of industry revenue over the past five years
  • International travel to Australia is projected to continue growing, supporting the industry
  • Industry Report - Industry Locations Chapter

    The geographic spread of participants in the industry is closely correlated with the popularity of tourist destinations across Australia. Travellers typically visit cities or regions for particular tourist attractions and precincts. New South Wales has the largest share of industry operators, due to the high number of attractions in Sydney, such as the Opera House, the Harbour Bridge and the Darling Harbour, and Sydney's status as a major hub for international arrivals and departures. Consequently, many industry players have established locations close to these areas to capture demand from affluent consumers.Queensland and Victoria are also popular destinations for both domestic and international tourists. Que...purchase to read more.

    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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    What's in this report

    What is the Luxury Hotels Industry?

    Industry operators provide high-end accommodation, as well as other related services. Industry participants include hotels with a five-star rating and four-star hotels that offer a premium service.

    Industry Products
  • Four-star hotel accommodation
  • Five-star hotel accommodation
  • Food and beverages
  • Other products and services
  • Industry Activities
  • Five-star hotel operation
  • Four-star hotel operation
  • Food and beverage preparation
  • Hotel chauffeur services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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
  • Industry structure
  • Table: Luxury Hotels Industry Revenue Outlook

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

  • 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
    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
    AAPC Limited,
  • Table: AAPC Limited - financial performance

  • 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
    Table: Industry Data for the Luxury Hotels 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
    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.
  • What Our Customers Say

    Why buy this report?

    The Luxury Hotels market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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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