Luxury Accommodation in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: July 2024
ANZSIC OD5484Revenue
$7.7bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
22,294
Businesses
340
Wages
$X.Xbn
Luxury Accommodation in Australia industry analysis
Luxury accommodation providers have weathered significant hurdles in the past few years, largely due to the COVID-19 pandemic, which impacted both international and domestic tourism traffic. Government restrictions drastically changed the industry's dynamics as it heavily relied on domestic tourism to sustain revenue and profitability. However, gradually easing restrictions brought about a promising recovery, as a swift recovery in international tourist numbers bolstered profit margins. The labour market also stabilised following unemployment surges, with industry employment rebounding above pre-pandemic benchmarks due to government aid and sector resilience.
Trends and Insights
- The Luxury Accommodation industry has recovered post-pandemic, bolstered by a surge in international tourism. Demand from domestic tourists has suffered from a nationwide cost-of-living crisis, as travellers have looked to budget accommodation options.
- The resurgence of leisure tourism has bolstered the luxury hotel and resort sector, which contributes over 65% of the industry's revenue. Despite serviced apartments performing well during the pandemic, hotels and resorts have recovered quickly since pandemic restrictions lifted.
- Queensland's attraction as a tourist destination bolsters its luxury accommodation sector. However, its revenue share is lower than its share of establishments, due to the predominance of more affordable beachside serviced apartments.
- Financial barriers to entry in the industry are high, as businesses must be able to access significant amounts of capital to invest in infrastructure. However, the industry's fragmented nature allows smaller players to compete on quality of service and pricing.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.4 % over the past five years, to reach an estimated $7.7bn in 2024.
Trends and Insights
Revenue for luxury accommodation fell sharply following the COVID-19 outbreak
- In late March 2020, the Federal Government banned all foreign travellers from entering Australia. Without access to inbound tourist traffic, luxury accommodation providers heavily relied on domestic tourist traffic to maintain revenue and profitability.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Wealthy inbound tourists will drive growth in the coming years
- International travel to Australia is continuing to pick up following the pandemic downturn. However growth rates are starting to slow as the number of tourists approaches normality.
Biggest companies in the Luxury Accommodation in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Accor Asia Pacific | 513.7 | |
Marriott International Management Company B.V. | 289.8 | |
Event Hospitality & Entertainment | 206.6 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Luxury hotels and resorts, Luxury serviced apartments and Other luxury accommodation. Luxury hotels and resorts is the largest segment of the Luxury Accommodation in Australia.
Trends and Insights
Recovery of inbound tourism has helped the luxury hotels and resorts segment rebound
- Hotels and resorts have traditionally been the preferred luxury accommodation option for high-income travellers. These establishments account for over 65.0% of the industry’s revenue.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Caravan Parks, Holiday Houses and Other Accommodation in Australia
- Bed and Breakfast Accommodation in Australia
Complementors
- Hotels and Resorts in Australia
- Motels in Australia
- Serviced Apartments in Australia
- Tourism in Australia
International industries
- Global Hotels & Resorts
- Boutique Hotels in the US
- Luxury Hotel Franchises in the US
- Hotels & Motels in Canada
- Hotels and Resorts in New Zealand
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Luxury hotel operationLuxury serviced apartment operationLuxury motel operationLuxury holiday park operationFood and beverage preparationValet parkingCompanies
Accor Asia PacificMarriott International Management Company B.V.Event Hospitality & EntertainmentPurchase this report to view all 4 major companies in this industry.
Related Terms
MANAGEMENT AGREEMENTBOOKING PLATFORMSINBOUND TOURISMOUTBOUND TOURISMIndustry Code
ANZSIC 4400 - Luxury Accommodation in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The Luxury Accommodation industry has recovered post-pandemic, bolstered by a surge in international tourism. Demand from domestic tourists has suffered from a nationwide cos...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The resurgence of leisure tourism has bolstered the luxury hotel and resort sector, which contributes over 65% of the industry's revenue. Despite serviced apartments performi...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Queensland's attraction as a tourist destination bolsters its luxury accommodation sector. However, its revenue share is lower than its share of establishments, due to the pr...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Financial barriers to entry in the industry are high, as businesses must be able to access significant amounts of capital to invest in infrastructure. However, the industry's...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Similarly to the broader accommodation sector, the Luxury Accommodation industry is fragmented. Accor Asia Pacific and Event Hospitality & Entertainment are among the industr...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Accor Asia Pacific's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Marriott International Management Company B.V.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Event Hospitality & Entertainment's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Accor Asia Pacific, and factors influencing its performance in the industry
- Description and key data for Marriott International Management Company B.V., and factors influencing its performance in the industry
- Description and key data for Event Hospitality & Entertainment, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The industry doesn’t receive much direct assistance. Tourism Accommodation Australia is the peak private body that represents the industry, while government-funded advertisin...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit margins for luxury accommodations have grown strongly since the end of the pandemic due to increased room prices and rising occupancy rates. An increasing number of af...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Luxury Accommodation industry in Australia in 2024?
The market size of the Luxury Accommodation industry in Australia is $7.7bn in 2024.
How many businesses are there in the Luxury Accommodation in Australia industry in 2024?
There are 340 businesses in the Luxury Accommodation industry in Australia, which has grown at a CAGR of 1.9 % between 2019 and 2024.
Has the Luxury Accommodation industry in Australia grown or declined over the past 5 years?
The market size of the Luxury Accommodation industry in Australia has been growing at a CAGR of 0.4 % between 2019 and 2024.
What is the forecast growth of the Luxury Accommodation industry in Australia over the next 5 years?
Over the next five years, the Luxury Accommodation industry in Australia is expected to grow.
What are the biggest companies in the Luxury Accommodation market in Australia?
The biggest companies operating in the Luxury Accommodation market in Australia are Accor Asia Pacific, Marriott International Management Company B.V. and Event Hospitality & Entertainment
What does the Luxury Accommodation in Australia include?
Luxury hotel operation and Luxury serviced apartment operation are part of the Luxury Accommodation industry.
Which companies have the highest market share in the Luxury Accommodation in Australia?
The company holding the most market share in Australia is Accor Asia Pacific.
How competitive is the Luxury Accommodation industry in Australia?
The level of competition is high and increasing in the Luxury Accommodation industry in Australia.
