Hotels - Australia

Australia

Highlights

Australia's Hotels market is set to experience an upward trend in revenue, with a projected revenue of US$7.03bn by 2024.
The market volume is expected to increase to US$8.58bn by 2029, showing an annual growth rate (CAGR 2024-2029) of 4.06%.
The number of users is expected to reach 15.69m users by 2029.
The user penetration rate is projected to increase from 46.8% in 2024 to 56.1% by 2029.
The average revenue per user (ARPU) is expected to be US$563.50.
Moreover, online sales are expected to contribute significantly to the total revenue of the Hotels market, accounting for 87% by 2029.
In comparison to other countries, United States is projected to generate the most revenue in the Hotels market, with US$111bn in 2024.
Australia's hotel market is seeing a rise in eco-friendly accommodations, with an emphasis on sustainable practices and local sourcing.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Hotels market in Australia is experiencing a significant shift in consumer preferences and market trends, driven by various local special circumstances and underlying macroeconomic factors.

Customer preferences: Customers in Australia are increasingly seeking unique and personalized experiences when choosing hotels. They are looking for accommodations that offer more than just a place to stay, but also provide immersive experiences and a sense of connection to the local culture. This trend is pushing hotels to differentiate themselves by offering specialized services, such as eco-friendly initiatives, wellness programs, and local culinary experiences.

Trends in the market: One notable trend in the Australian Hotels market is the rise of boutique and lifestyle hotels. These smaller, independent properties are gaining popularity among travelers who value authenticity and individuality. Additionally, there is a growing demand for luxury hotels in major cities like Sydney and Melbourne, catering to high-end travelers looking for premium amenities and services. Another trend is the increasing use of technology in hotels, with mobile check-ins, keyless entry systems, and personalized digital concierge services becoming standard offerings.

Local special circumstances: Australia's unique natural landscapes and diverse wildlife play a significant role in shaping the Hotels market. Hotels located in picturesque locations such as coastal areas, rainforests, or vineyards are experiencing high demand from both domestic and international tourists seeking a retreat into nature. Additionally, the country's strong focus on sustainability and eco-tourism is driving hotels to implement green practices and offer environmentally conscious experiences to attract environmentally conscious travelers.

Underlying macroeconomic factors: The Hotels market in Australia is also influenced by macroeconomic factors such as population growth, disposable income levels, and government policies. The country's growing population, coupled with a stable economy and rising disposable incomes, is leading to an increase in domestic travel and tourism expenditure. Government initiatives to promote tourism, such as investment in infrastructure and marketing campaigns, are further supporting the growth of the Hotels market in Australia.

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.