Much of the growth in the industry will depend on the ability of individual business owners to market their services, particularly via the internet.
Melbourne, Australia (PRWEB) November 08, 2013
Demand for services offered by the diverse and highly fragmented Holiday Houses, Flats and Hostels industry in Australia has been mixed over the past five years. The industry consists of three main service segments: backpacker accommodation, bed and breakfast accommodation, and short-term house and apartment rentals. While backpacker and bed and breakfast accommodation have both suffered from historically weak domestic and international tourism markets, demand for rented houses and apartments has been strong. According to IBISWorld industry analyst Ryan Lin, "the house and apartment rental segment, which includes privately owned houses and apartments that are rented out on short-term bases, has benefited from the increased use of the internet throughout society and the segment's positioning towards the budget end of the tourism accommodation market." IBISWorld expects the industry to generate revenue of $1.0 billion in 2013-14, up 1.7% on 2012-13.
While revenue growth has improved over the past two years, the industry was negatively affected during the global financial crisis, when demand from key markets, including Europe and the United States, dried up. Over much of the past five years, the high Australian dollar made long trips to Australia from the Northern Hemisphere uneconomical for many travellers. However, inbound travel is expected to benefit as the Australian dollar relaxes in 2013-14. "The international traveller market has also been boosted by growing demand from the Asian middle class," says Lin. For these reasons, industry revenue is expected to grow at an annualised 0.9% over the five years through 2013-14. The industry exhibits a low level of concentration, with no operators holding a significant market share.
The outlook for the next five years appears brighter. The domestic tourism market (meaning revenue garnered from Australians travelling domestically) is expected to continue to recover from the depths of 2010-11. Despite the high value of the Australian dollar over much of the past five years, the dollar is expected to ease and remain at parity over the coming years. Much of the growth in the Holiday Houses, Flats and Hostels industry will depend on the ability of individual business owners to successfully market their services to holiday makers, particularly via the internet, which has become the main platform for small accommodation providers to advertise.
For more information, visit IBISWorld’s Holiday Houses, Flats and Hostels report in Australia industry page.
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IBISWorld industry Report Key Topics
Enterprises in this industry operate rented houses and apartments, bed and breakfast accommodation and backpacker hostels and other accommodation for short-term rental. The industry excludes hotels, resorts, serviced apartments, motels, caravan parks and camping grounds.
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
About IBISWorld Inc.
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