Melbourne, Australia (PRWEB) September 27, 2012
Hotels and resorts operate in a very competitive tourist accommodation market, with a variety of accommodation styles and quality available at a range of prices points to suit particular needs. Over the past five years, the Hotels and Resorts industry has contended with weak global economic conditions and increased competition from the Serviced Apartments industry. The Hotels and Resorts industry suffered large revenue declines in 2008-09 and 2009-10, when the global financial crisis wrought havoc on consumer sentiment and business confidence. According to IBISWorld industry analyst Andy Brennan, “industry revenue is estimated to decline by an annualised 0.4% over the five years through 2012-13, to total $5.77 billion”.
The Hotels and Resorts industry has responded well in the years since the financial crisis and has posted revenue gains in each of the past two years. Many hotel and resort operators reacted to the adverse economic conditions by cutting room rates and offering additional perks and services as part of packaged deals. Brennan adds, “while average takings per room remain low by historic standards, the industry's occupancy rate has reached a historic high of 72%”. On that back of the high occupancy rate, particularly in city markets, revenue is expected to increase by 1.6% in 2012-13. Market share concentration in the Hotels and Resorts industry is medium. Major players include AAPC Limited, IHG Hotels Management (Australia) Pty Limited, Amalgamated Holdings Limited and Hilton International Australia Pty Limited.
Domestic tourism has been weak over the past five years as Australians have taken advantage of cheap flights to Asia and a favourable exchange rate. Australians are spending less on domestic holidays in 2012 than they did ten years ago. However, the tourism slack has been picked up by international arrivals, especially from Asian countries like China. This has been the main contributor to the industry's growth over the past decade. The Hotels and Resorts industry is well positioned to take advantage of the tourism market's paradigm shift towards more Asian travellers. Industry revenue is expected to increase over the five years through 2017-18.
For more information, visit IBISWorld’s Hotels and Resorts report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry covers hotels and resorts that have more than 15 rooms. Hotels and resorts are establishments that are licensed to operate a public bar and provide accommodation on a room or suite basis, with a bath or shower and other facilities in most guest rooms. Cooking facilities, such as hot plates and a microwave, are not usually available in most guest rooms, although tea and coffee-making facilities are usually included.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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