Challenges that Positively And Negatively Impact the Local Hotel Industry

Executive Summary

By evaluating this project, it can be easily formulated that the hotel industry of Australia is suffering from the excessive enlistment of the alternate accommodation facilities. In the past 2 years, the trend has been highly disruptive for the hoteliers to continue their service. The metropolitan cities of Australia affected much due to this issue. Due to the technological invention, the small property owner is also able to enlist their name and tiring to make a footprint into the market. In recent times the conventional hotels are engaging themselves to entitle their property to sustain in the market and they are availing the benefits which are provided by the tourism ministry of Australia.

Table of Contents

Executive summary


Main body

Alternative accommodation providers

Authenticity and Commodification

Distribution networks



Introduction to Global Hotel Landscape 

The island continent Australia is surrounded by the magnificent blue oceanic water. Geographically Australia is a multidimensional country where mountains, deserts and long seashores are visible. Just because of the presence in the southern hemisphere the climatic condition of this country is also very much different from others. Travelers all around the world come to this place to see the mesmerizing view of the places. Lots of tourist attraction spots are present from the north to south and east to west of the country. The places like the Great Barrier Reef are located on this island which is also recognized by the UNESCO world heritage site. There is no ideal season to visit Australia; tourists can come here at any time. It will be assessing how the hotel industry runs and their possible competitors. Due to the high presence of the travelers’ footprint, the accommodation business is quite flourishing day by day. From the cheap hotel to the luxurious hotel all are present by keeping their head high in the sector. In recent years the possibility in the hotel business raises high due to the new action plan which has been taken by the Tourism ministry of Australia to form a tourism niche. With the mass use of the internet and mobile application, visitors can book the hotels within a snap. But the recent trend sees that tourists are shifting their interest by having contemporary accommodations to the homestay or camping.

Main Body of Global Hotel Landscape 

Alternative accommodation providers

By stepping in the 21st century, the tour and travel industry has faced a drastic change. The visitors all over the world search facilities which have been provided by the hoteliers before engaging any sort of deals (Swig et al., 2020, 3). The impact of alternate accommodation on the hotel business can have multiple dimensions that are primarily featured by two sects positive and negative.

Accommodation is one of the most important fundamental factors in terms of the tourism sector. Tourists all over the world usually come to one place for exploring not only nature as well the cultural aspects of that place. The type, extent, and nature of accommodation can determine the possibility of tourism in a place. Australia is considered a developed country where the economy is strong enough to contribute to flourishing the hotel sector (CHATA. 2015, 1). In recent days, due to the development of technology visitors are well informed to use Airbnb, Make My Trip,

Expedia, etc. Every business has to be flexible enough to meet the needs of its customers by providing top-notch facilities. Airbnb and those similar peer to peer booking systems are very new in the market still their impact on the tourism industry is immense (Volgger et al., 2018, 16). These applications are providing a wide range of lodging facilities in the hotels as well as homestays. By including these facilities the conventional hoteliers also expand their wings to stay alive in the competitive market. Hotel Association of Australia has taken a lot of infrastructural initiatives to provide benefits to those who come to visit their place. This is a very common trend to be seen with hotel owners collaborating with online hotel providers. In this process, both service providers are generating money. Recently the hotel owners in Australia focus on the innovations which have been applied by the online service provider. The positive efforts have been taken by the hotelier are a welcoming move for the customers. Profit-sharing between the host and the service provider is a new whole concept here the hoteliers have to be more conscious (Swig et al., 2020, 12). To work simultaneously by providing a wholesome experience to the travelers Australia net income in this sector in nearly 44.6 billion US dollars.

There are some adverse effects that can be seen by the excessive reliance on the online service provider. Due to the exponential growth of Airbnb in different parts of Australia, owners can offer rent a room or entire dwelling for the customers. An individual can entitle their property over there. By a single click, multiple properties are getting enlisted and exposed to the market. From the big cities like Sydney, Melbourne, Queensland the individual property owners have started this business. Through this process, the market has expanded its competitiveness (Volgger et al., 2018, 29). The new age millennial customer usually likes a cheap homestay rather than a hotel. Airbnb comes up with multiple options like size and price whereas the conventional hotels are unable to match up with this. To establish a hotel it is mandatory to have a license and money to invest whereas Airbnb and the order alternative accommodation providers give benefits not also to the host but also to the customers for availing their service. Day by day the competition between them is intensifying. The graph of the short term alternative accommodation facilities is skyrocketing in the major Australian cities. These alternate accommodation providers are gaining much more than normal hoteliers (Wilson-Mah and Westcott, 2015, 1).

Authenticity and Commodification

To flourish the tourism in any country is to be fortified that not only in terms of the political division it is also very much important to look after the social and cultural aspects of the country as well (Lee et al., 2019, 23). Culturally Australia is somehow the same as the British culture. Aborigines’ people of Australia arrived a million years ago. Due to the variations of different cultures, visitors all over the world come here to witness that. Australia is home to the oldest surviving civilization in the world; there are almost 650000 indigenous people which are one of the most attractive for the tourists. Australia is a member of the UNESCO world heritage committee due to this they are privileged by tons of heritage places. Like the Great Barrier Reef, blue mountain, and the magnificent Sydney opera house. This opera house is the main attraction of visitors which is quite unique in its architecture. On the eve of the New Year, people gather around the house to witness the fireworks. Australia is considered as the third most boozed country in the world (De, 2017, 3). The cities like Sydney, Queensland the tourist footprint is much higher than the order areas. Australia having multiple no ports and harbors by which exports are imports can be made. The coal mining of New South Wales is one of the greatest explorations of the Australian due to these lots of people usually visited to this place which can directly help the tourism sector of the country. Australia is also considered a sports-loving country. Different types of sports activities usually commence throughout the year which is one of the most important parts to generate income in the tourism sector. In recent times different types of benefits are also provided by the government to invest the commons in the tourism sectors like by restructuring land policy, tax benefits, and FDI policies (Ye et al., 2018, 14).

The eastern and southeastern parts of the country are basically crowded areas where maximum no the development is visible. The tours sector beyond the cuties is not that prominent due to less availability of the facilities. The maximum no of heritage sites of the country is generally found in the southern and southeastern parts of the country. The skilled staff is not likely to come to the less famous place which is somehow giving a negative impression of the tourism of the country. The prices of the land in the cities are much higher than the outskirts which restrict the owner to invest. Alternative accommodation providers such an Airbnb provided rooms for the millennial to a great extent. Penetration of Airbnb is much stronger than the others (Dye, 2019, 1). Travelers are looking for a wholesome approach to book not only the hotel but also for the local transport. Tourists are well versed by using all those technologies. Due to this mismatch the hotel industry Australia is in turmoil. The northern territory of Australia is not known for tourism due to the shortage of labor.

Distribution networks

Due to the over-reliance on the online unconventional accommodation service provider by the customer, conventional hotels are desperate to stay alive in this market (Stangl et al., 2016, 4). The hotels around the country are facing many problems to set up a customer-oriented online platform where all the hotels will be enlisted. To deliver good quality facilities the hotels need to tie up with the online platforms like Trivago and make my trip where they can advertise their hotels. To form this sort of setup all the hoteliers need to be united and honest. There are different types of issues which can be the obstacles for them

1) Investment: To enlist their name on an online platform the owner of that hotel should be free in terms of the investment (Stangl et al., 2016, 29). Online investment can give much more exposure to them.

2) Less Tech knowledge: this particular point is one of the most important where the hotelier has to be conscious of their surroundings. Minimum knowledge of technology is mandatory to maintain the continuous flow of customers. Hotels must enroll their business through an OTA.

3) Segregation between the hotels: the hotels around the country must be divided into multiple zones by their service quality. The budget hotels are keen to bear the cost because of their low-profit generation

4) Social issues: this can certainly make a huge difference in terms of running a business. The government and administration must work for hand by hand to ensure the security of the travelers (Aznar et al., 2017, 157). Many parts of Australia still face some issues related to security, labor, and natural resources.

As a whole, it can seem that the general network facilities between the hotels irrespective of their size and functionality, that are very poor to run the business in a profitable manner. Initially, this thing is not possible unless and until the government is not intervening in the situation (Aznar et al., 2017, 150). But now day by day the situation is changing due to different governmental policies.

Conclusion on Global Hotel Landscape 

From the above mentioned assignment it is to be concluded that the tourism sector of Australia is facing much distress to maintain its quality to the customers. From the past 5 years, the developmental process in terms of making a new hotel is almost invisible whereas on the other hand the multiple properties are getting enlisted in the online mode. The online platforms are providing an eye-catchy benefit not only to the host but also for the customers. The young age customer those who are capable enough to handle the online platform is they are leaning towards the unconventional mode to lodging. The metro cities of Australia the properties are enlisted are much higher than the other areas. Australia is rich in culture and natural resources which is the main attraction to people all around the world. The conflicts of interest between the hoteliers are the main barrier to flourish the hotel industry in the country. The hotel association is taking the initiative to educate the owner to compete with this enemy. Lack of proper infrastructure and development programs has been taken by the Australian government to give them a boost to retain them in the market. The homely atmosphere, value for money, local touch, and guest-host relationship is influencing the tourist to choose the alternate accommodation. It is to be recommended that the government should take more initiative by giving extra benefits to the hotel owners to grow the tourism sector in the country.

Reference for Global Hotel Landscape 

Aznar, J.P., Sayeras, J.M., Rocafort, A. and Galiana, J., 2017. The irruption of Airbnb and its effects on hotel profitability: An analysis of Barcelona’s hotel sector. Intangible Capital, 13(1), pp.147-159.

CHATA. 2015. The Rise Of Sharing Economy, Benefits And Responsibilities: An Analysis Of Alternative Accommodation - CHATA. [online] Available at: <> [Accessed 6 May 2020].

De Villiers, B., 2017. Airbnb in Western Australia: New Issues for Policy Makers Arising from a Disruptive Innovation. U. Notre Dame Austl. L. Rev., 19, p.1.

Dye, J., 2019. Regional tourism booms as Airbnb growth threatens motel industry. The Sydney Morning Herald, [online] p.1. Available at: <> [Accessed 6 May 2020].

Lee, Y.H., Low, S.Y. and Low, C.H., 2019. Authenticity and Commodification: A Visual Analysis of P2P Tourism Accommodation Listing Page. Asian Journal of Business Research, 9(1), p.21.

Stangl, B., Inversini, A. and Schegg, R., 2016. Hotels’ dependency on online intermediaries and their chosen distribution channel portfolios: Three country insights. International Journal of Hospitality Management, 52, pp.87-96.

Swig, R., Hennessey, S., Conley, C., Jones, B. and Watkins, E., 2020. THE IMPACT OF THE SHARING ECONOMY ON HOTELS. [online] Available at: <> [Accessed 6 May 2020].

Volgger, M., Pforr, C., Stawinoga, A.E., Taplin, R. and Matthews, S., 2018. Who adopts the Airbnb innovation? An analysis of international visitors to Western Australia. Tourism Recreation Research, 43(3), pp.305-320.

Wilson-Mah, R. and Westcott, M. (Ed.), 2015. Introduction To Tourism And Hospitality In BC. 1st ed. Victoria: BCcampus, p.Chapter 3.

Ye, S., Xiao, H. and Zhou, L., 2018. Commodification and perceived authenticity in commercial homes. Annals of Tourism Research, 71, pp.39-53.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Hospitality Management Assignment Help

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