Current Issues in the Australian Accommodation Industry

Student’s Last Name 1
Hospitality Management
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Student’s Last Name 2
Executive summary
The Australian accommodation industry comprises of over 4300 hotels, guest houses, and
serviced apartments. Majority of these are the small unbranded business in the regional parts of
Australia. The last major development cycle in the Australian accommodation sector was during
the 2000 Sydney Olympic that saw the addition of several thousand rooms mostly in the 5-star
category.
Among the current issues facing the industry include high development costs and low
financial returns which has made the expansion of the industry unviable. Other issues are the
emergence of online housing rental platforms such as Airbnb that has attracted some consumers
to renting of premises as opposed to hotel bookings. Digital disruptions have also affected the
Australian accommodation industry necessitating the hotel players to adopt new technologies.
The industry is also focusing on the individual needs of the consumer to get a niche in the
market.

Student’s Last Name 3
Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
The issue of Airbnb......................................................................................................................................4
Digital disruptions........................................................................................................................................5
Increased market segmentation..................................................................................................................6
Conclusion...................................................................................................................................................7
Bibliography................................................................................................................................................8