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The Outlook of the Australian Hotel Industry
The latest trends within the Australian hotel industry the increased growth
perspective, and the hospitality business is now characterized by enhanced confidence for a
number of reasons. The results of the previous 2015 year show, that the confidence is
predominantly based on the immense positive influence in terms of the property sector.
According to the interview with Mr. Burt, Colliers international representative, the optimistic
forecasts are to a great extent dependent on the Australian dollar depreciation, which is
referred to as the core factor for the hotel industry.
The favourable external environment has led to the foreign visitors increase of about 7
percent in contrast to the previous year. Due to the fact, that the Australian dollar maintains
its stability, the tourism is forecasted to sustain its strength in the context of domestic and
international visitors. Regarding the multifaceted external environment, the variety of
dimensions represent the advantages for further steady development (Geron, 2013).
Considering the legal sphere, it is deemed as benignant and does not bear serious obstacles
and restrictions. As far as the economic dimension is concerned, apart from the Australian
dollar depreciation, the country’s debt is liquid and cheap at the same time. 2015 the hotels
have increased their sales rates 107 percent in comparison to the 2014 fiscal year and the
dominant majority of the transactions are accounted for by overseas investments.
According to the official KPI predictions, the 4.4 percent average growth is expected
annually up to the 2023 fiscal year in major capital and secondary capital Australian cities. In
2017, the number of visitors is predicted to increase at 5.3 percent pace per annum (Anon,
2015). Assessing the overall Australian tourism industry potential, the 2020 strategy is
targeted at increased competition and growth within the sector. In this respect, Australia is
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focused on the reinforcement of the average occupancy rates and the country’s aviation
capacity.
AirBnb Differentiation Within the Market
Given the established circumstances, the Australian hotel industry is forecasted to
face massive investment inflows from Europe, United States, and the United Kingdom, which
will significantly increase the hotel prices. In this respect, AirBnb sees the Australian market
as an attractive environment with the ensured growth perspective. Furthermore, regarding
AirBnb competitive advantage, the unconventional and technology-driven approach applied
by the company is sure to acquire the dominant market share in the long run.
