Room for growth: Rising international tourist numbers lead to a comfortable performance

Players in the Luxury Accommodation industry provide high-end accommodation options for domestic and inbound travellers. While hotels are the primary luxury accommodation option, the industry also contains high-quality serviced apartments and other five-star establishments. Significant increases in inbound tourism have supported industry operators over the past five years. Rising numbers of international visitors to Australia have boosted demand for industry establishments, which has boosted industry revenue over the period. The depreciation of the Australian dollar over the past five years has made it cheaper for overseas travellers to visit Australia. In particular, tourists from China are increasingly visiting Australia and staying in industry establishments...read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 14-19
5.5%
Forecast Growth 19-24
Profit
Employment
29,820
Businesses
327
Market Share of Companies

Industry Threats & Opportunities

  • Tourists from China are increasingly visiting Australia and staying in industry establishments
  • 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 Investment Chapter

    The industry is moderately capital intensive. For every dollar spent on capital, an estimated $5.29 is spent on wages. The industry is heavily reliant on both labour and capital to provide its services. Industry operators require a substantial amount of labour to deliver a luxury experience for their clients. This includes high-end customer service, the provision of bellboys and chauffeurs, room service attendants and well-known chefs for restaurants. While these labour functions typically attract a high wage, industry operators have increasingly integrated technology in operations, such as administrative systems and online bookings, to limit employee-related costs. As a result, industry-wide capital intensity has risen over the past five years...purchase to read more.

    Additional Insights for the Luxury Accommodation Industry

    IBISWorld has determined the most important Key Success Factors for the Luxury Accommodation 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 Accommodation industry impact industry performance..

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    What's in this report

    What is the Luxury Accommodation Industry?

    Industry operators provide luxury accommodation options for domestic and international guests. In addition to providing high-end accommodation, the industry also generates revenue through meals and other services.

    Industry Products
  • Luxury hotels and resorts
  • Luxury serviced apartments
  • Luxury motels and guest houses
  • Luxury holiday parks
  • Industry Activities
  • Luxury hotel operation
  • Luxury serviced apartment operation
  • Luxury motel operation
  • Luxury holiday park operation
  • Food and beverage preparation
  • Miscellaneous services, such as valet parking
  • 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
  • Industry profitability
  • Accommodation supply
  • Chart: Revenue Growth

  • Industry Outlook
  • Inbound tourism
  • Domestic tourism
  • Industry structure
  • Table: Luxury Accommodation Industry Revenue Outlook

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

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

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

  • Products & Services
  • Luxury hotels and resorts
  • Luxury serviced apartments
  • Luxury motels and guest houses
  • Luxury holiday parks
  • Chart: Luxury Accommodation 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 Accommodation Industry

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

  • Basis of Competition
  • Internal competition
  • External competition

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

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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Luxury 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 Luxury Accommodation Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Booking Platforms
  • Websites operated by industry participants and accommodation consolidators that facilitate hotel bookings.
  • Inbound Tourism
  • The act of a non-resident visiting Australia.
  • Management Agreement
  • A contract agreement with hotel building owners to manage a hotel on their behalf.
  • Outbound Tourism
  • The act of an Australian resident visiting another country.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Luxury Accommodation market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 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 Luxury 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 Luxury Accommodation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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