Room service: A decrease in the number of foreigners visiting Canada will hurt the bottom lines of operators

The Hotels and Motels industry in Canada has grown substantially over the five years to 2019, encouraged by an increase in international tourism and hikes in per capita disposable income. Consistent economic growth over the past five years and relatively stable consumer confidence have boosted the ability of Canadians to take overnight domestic trips. Furthermore, hotels and motels, which rely on international travellers, have benefited from growing inbound international visitor numbers. Despite the prominence of large, well-known hotel chains, the industry has a low level of concentration and still has many small- to medium-sized independent operators. This has kept the industry highly competitive over the past five years...read more.

Industry Statistics & Market Size
Revenue
$19bn
Annual Growth 14-19
3.7%
Forecast Growth 19-24
Profit
Employment
189,336
Businesses
8,993
Market Share of Companies

Industry Threats & Opportunities

  • Revenue and profit growth are expected to slow down as consumer confidence and inbound international travel growth slow
  • Hotel profit margins have been steadily positive for operators
  • Higher-margin operations will assist improvements in profitability
  • Industry Report - Industry Locations Chapter

    Establishments in the Hotels and Motels industry in Canada are distributed geographically according to popular tourist destinations and important business locations of both domestic and international travellers.In general, domestic tourists are more important than international tourists for the industry’s bottom line, as domestic tourism travel accounts for most of industry revenue. Some provinces, such as British Columbia with 24.9% of establishments and Alberta with 13.8%, have much larger shares of industry establishments than their respective 13.5% and 11.6% shares of the population would suggest, mainly due to the large number of holiday destinations they have.International visitors are also important in the distribution of the industry. Thi...purchase to read more.

    Additional Insights for the Hotels & Motels Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hotels & Motels Industry are

  • Access to multiskilled and flexible workforce
  • Being part of a franchised chain
  • Receiving the benefit of word of mouth recommendations
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Consumer Confidence Index in the Hotels & Motels industry impact industry performance..

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    What's in this report

    What is the Hotels & Motels Industry?

    This industry provides short-term lodging in facilities known as hotels, motels, motor hotels and resort hotels. These establishments may offer food and beverage services, recreational services, conference rooms and convention services, laundry services, parking and other services.

    Industry Products
  • Three-star and less rooms
  • Four-star rooms
  • Five-star rooms
  • Food and beverage sales
  • Conference room rentals
  • Industry Activities
  • Providing short-term lodging for guests
  • Operating a bar and restaurant
  • Providing conference room facilities and event spaces
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Consumer Confidence Index
  • Inbound international travel
  • International trips by Canadian residents
  • Corporate profit

  • Current Performance
  • International visitors
  • Consolidation
  • Profit
  • Wages
  • Chart: Revenue Growth

  • Industry Outlook
  • International travel
  • Establishments
  • Profit
  • Table: Hotels & Motels Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hotels & Motels Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • International Airlines in Canada
  • Scheduled Air Transportation in Canada
  • Travel Agencies in Canada
  • Public Administration in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Beef & Pork Wholesaling in Canada
  • Beer, Wine & Spirits Wholesaling in Canada
  • Computer & Packaged Software Wholesaling in Canada
  • Dairy Wholesaling in Canada
  • Fish & Seafood Wholesaling in Canada
  • Fruit & Vegetable Wholesaling in Canada
  • Furniture Stores in Canada
  • TV & Appliance Wholesaling in Canada
  • Wine & Spirits Wholesaling in Canada

  • Products & Services
  • Four-star rooms
  • Five-star rooms
  • Food and beverage sales
  • Three-star and less rooms
  • Conference room rentals
  • Other
  • Chart: Hotels & Motels Industry Products and Services Segmentation

  • Demand Determinants
  • Domestic travel
  • Business travel
  • International tourism

  • Major Markets
  • Domestic leisure travellers
  • Domestic and international business travellers
  • International leisure travellers
  • Other
  • Chart: Major Market Segmentation for the Hotels & Motels Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    WagesPurchasesProfitDepreciationMarketingRentUtilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Hotels & Motels

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hotels & Motels Industry

  • Industry Globalization
    Marriott International Inc.,
  • Table: Marriott International Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hotels & Motels Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hotels & Motels Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Inbound international travel (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Computer Reservation Systems (Crs)
  • Computerized systems used to store and retrieve information and conduct transactions related to travel.
  • Revenue Per Available Room (Revpar)
  • A measurement that is calculated by multiplying a hotel's average daily room rate by its occupancy rate.
  • Room Rate
  • Actual published room tariffs.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hotels & Motels market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hotels & Motels:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hotels & Motels market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hotels & Motels, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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