To serve man: Growing domestic and inbound tourism activity has boosted industry 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 overall accommodation sector and supported industry growth. A rise in total business profit and positive business confidence have also supported industry growth by boosting the number of business tourist visitor nights. Industry revenue is expected to grow at an annualised 2.6% over the five years through 2019-20, to reach $4.6 billion. This increase includes anticipated growth of 1.1% in the current more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Industry growth has encouraged increased investment over the past five years
  • Industry operators have increasingly hired part-time staff or subcontracted labour functions
  • Increased domestic, inbound and business tourism activity is likely to support industry growth
  • Industry Report - Industry Locations Chapter

    Serviced apartments are spread across Australia and their distribution is dictated by tourism demand. Queensland has a substantial number of industry establishments due to its status as a major holiday destination, which attracts a higher number of leisure travellers. However, as a share of revenue Queensland is much lower than its share of serviced apartments. A high proportion of establishments in the state are classed as midscale or economy. In addition, the high number of serviced apartments in the area means that price competition is high.New South Wales and Victoria also have significant proportions of the total number of serviced apartments, due to the states being major international travel hubs for both leisure and business travellers. Bot...purchase to read more.

    Additional Insights for the Serviced Apartments Industry

    IBISWorld has determined the most important Key Success Factors for the Serviced Apartments 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 serviced apartments for short-term or long-term accommodation. 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 provide fewer daily services.

    Industry Products
  • Food and beverages
  • Other products and services
  • Upscale and upper midscale accommodation
  • Luxury and upper upscale accommodation
  • Midscale and economy accommodation
  • Industry Activities
  • 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
  • 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
  • International Consumers

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

  • Products & Services
  • Upscale and upper midscale accommodation
  • Luxury and upper upscale accommodation
  • Food and beverages
  • Midscale and economy accommodation
  • 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
  • Chart: Cost Structure Benchmarking – Sector vs Serviced Apartments

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

  • Industry Globalization
    AAPC Limited, QSA Group Pty Ltd,
  • Table: AAPC Limited - financial performance
  • Table: QSA Group Pty Ltd - 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 (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • 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 owners and managers.
  • Tariff
  • A full schedule of fees for the use of accommodation amenities. A tariff 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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