Hotels - Australia & Oceania

Australia & Oceania

Highlights

Australia & Oceania is expected to witness a significant growth in the Hotels market revenue.
It is projected to reach US$7.98bn in 2024 with an annual growth rate (CAGR 2024-2029) of 4.00%, resulting in a projected market volume of US$9.70bn by 2029.
By 2029, the number of users is expected to increase to 19.17m users.
The user penetration is expected to rise from 35.1% in 2024 to 41.8% by 2029.
The average revenue per user (ARPU) is expected to be US$523.50.
It is estimated that by 2029, 87% of total revenue in the Hotels market will be generated through online sales.
In terms of global comparison, United States is expected to generate the most revenue (US$111bn in 2024).
Australia's hotel market has been significantly impacted by the pandemic, with many hotels forced to close or operate at reduced capacity.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Hotels market in Australia & Oceania is experiencing significant growth and development, driven by various factors that cater to the changing preferences of customers in the region.

Customer preferences: Customers in Australia & Oceania are increasingly seeking unique and immersive experiences when choosing accommodation options. They are looking for hotels that offer personalized services, eco-friendly practices, and authentic local experiences. Additionally, there is a growing demand for luxury hotels and resorts, as well as budget-friendly options that provide good value for money.

Trends in the market: In Australia, there is a trend towards boutique hotels and eco-friendly accommodations, reflecting the emphasis on sustainability and environmental consciousness in the country. These hotels often incorporate local design elements and support local communities, appealing to both domestic and international travelers. Additionally, the rise of digital platforms and online booking services has made it easier for customers to compare prices and find the best deals, driving competition among hotel providers.

Local special circumstances: Oceania, with its diverse landscapes and unique cultural heritage, presents a special opportunity for hotels to differentiate themselves and attract customers. Countries like New Zealand and Fiji are known for their stunning natural beauty and outdoor activities, leading to a demand for hotels that offer adventure packages and eco-tourism experiences. In Australia, cities like Sydney and Melbourne draw tourists with their vibrant food and arts scenes, creating a niche for boutique hotels that cater to urban explorers.

Underlying macroeconomic factors: The strong economy in Australia and Oceania, coupled with stable political environments, has contributed to the growth of the Hotels market in the region. Increasing disposable incomes, a growing middle class, and a rise in international tourism have all fueled the demand for hotel accommodations. Additionally, government initiatives to promote tourism and infrastructure development have further supported the expansion of the Hotels market in Australia & Oceania.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.