Serviced Apartments in Australia Industry Market Research Report Now Updated by IBISWorld
Melbourne, Australia (PRWEB) September 23, 2013 -- The Serviced Apartments industry in Australia has been the strongest performer in the Accommodation subdivision over the past decade. Other accommodation providers, including hotels and motels, have struggled in the wake of declining domestic tourism, a high Australian dollar and global economic uncertainty. According to IBISWorld industry analyst Ryan Lin, “the Serviced Apartments industry has gained market share and grown revenue in all but one of the past 10 years”. In the five years through 2013-14, IBISWorld expects revenue will increase by an annualised 3.1% to $3.0 billion.
While the Serviced Apartment industry is strongly placed among accommodation competitors, the industry has battled a strong Australian dollar and cheap international airfares for much of the past five years. These factors are driving Australian tourists overseas at the expense of the domestic tourism market, meaning serviced apartment operators in Australia's traditional getaways, such as the Gold Coast and Sunshine Coast in Queensland, are struggling relative to capital city markets. “Alleviating the dearth of domestic tourists has been strong demand from business travellers, which is contributing to high occupancy rates and growing room rates in Australia's capital cities,” says Lin. In 2013-14, industry revenue growth is projected to be positive, with a fall in the strength of the Australian dollar and increasing number of inbound tourists and domestic tourism activity contributing to a 4.7% rise in revenue. The Serviced Apartments industry in Australia is expected to exhibit a low level of market share concentration based on revenue generated by the major industry players, which include Mantra Group Holdings I Pty Ltd, QSA Group Pty Ltd, and Oaks Hotel & Resorts Limited.
Over the next five years, the supply of new rooms is expected to keep pace with demand as investment remains strong. Serviced apartments are the only feasible form of accommodation development in many areas and their flexible financing structure has contributed to the rapid growth in the number of serviced apartments over the past five years. The Serviced Apartments industry has the strongest fundamentals for growth in the travel-accommodation market. Demand from both international tourists and business travellers is expected to improve over the next five years, helped by an easing Australian dollar and improving global economic conditions. As Asian travellers begin to dominate the Australian tourism market, serviced apartment operators need to find a way to gain a greater share of this market. The industry has proven to be adaptable to consumer preferences in the past and should thrive on this challenge.
For more information, visit IBISWorld’s Serviced Apartments in Australia industry report page.
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IBISWorld industry Report Key Topics
The Serviced Apartments industry comprises establishments that operate self-contained apartments for short-term (one to six nights), medium-term (seven nights to one month) and long-term (longer than one month) stays. Serviced apartments contain a kitchen or kitchenette and usually have separate lounge or dining facilities. Serviced apartments are generally cheaper than equivalent hotel rooms due to fewer complex facilities and fewer daily services provided.
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About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.
Gavin Smith, IBISWorld, +61 396553838, [email protected]
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