Accommodation & Travel

Australia's accommodation businesses generated $8 billion in income during 2003-04, according to figures released by the Australian Bureau of Statistics (ABS).

Businesses providing accommodation services ranged from motels to student residences. Just under two-thirds (66%) of total income was generated from takings from accommodation. Takings from meals accounted for 15% of all income with the sale of liquor and other beverages 6%.

Accommodation businesses reported an operating profit before tax of $780m, which represented an operating profit margin of 10% during 2003-04.

Accommodation businesses were predominantly small with most (74%) employing fewer than 10 people. These businesses generated 18% of all income and had an operating profit before tax of $230m.

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Cheap Hotel Deals in Australia

Many bargain-seeking travellers are suspicious of bundled holidays, believing they will get a better deal if they hunt around and book each component separately. By teaching consumers to shop around for internet bargains, the online agencies have perhaps shot themselves in the foot. Cheap Hotel Deals in Australia

A new entrant to the online travel market is out to challenge another trend that is entrenched in the Australian market: a tendency to book air fares well in advance but hold out until the last minute for cheap accommodation deals. www.Stay247.com is offering discount hotel rates up to four months out, while most of its competitors are focusing on last-minute sales of unsold hotel rooms. Managing director Brent Cooper says the strategy will bring online hotel bookings in line with advance-purchase discount air travel and will broaden the discount travel market.

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In contrast, businesses employing 50 or more people accounted for just 5% of all businesses in Australia, but generated nearly 60% of all income. The operating profit before tax of these businesses was $310m.

The Accommodation Services survey also found that at the end of June 2004:

• There were 5,700 accommodation businesses operating in Australia.

• Over one-third (38%) of accommodation locations were motels.

• One fifth of accommodation locations were caravan parks.

• There were 90,000 people working in accommodation businesses, nearly half (45%) worked as casuals. Women made up over half (60%) of all employed.

• Expenses totalled $7 billion during 2003-04. The single largest expenditure item was labour costs (35%).

• New South Wales accounted for roughly one-third of accommodation businesses, employment and total income in Australia (33%, 31% and 32% respectively).

• Queensland accommodation businesses comprised just over a quarter (26%) of all businesses, 29% of all employment and 31% of all income.
  

Source: Australian Bureau of Statistics