Industry Statistics and Trends
Market size and recent performance (2015-2030)
Industry revenue has grown at a CAGR of 1.8 % over the past five years, to reach an estimated $99.7m in 2025.
Trends and Insights
The pandemic shock has faded, but the recovery redistributed rather than restored demand
- Border closures and domestic restrictions during 2020 and 2021 devastated the Bed and Breakfast Accommodation industry, forcing many operators to shut doors temporarily or operate at minimal occupancy. Revenue fell sharply, with profitability plunging into negative territory in 2020-21 as fixed costs like utilities, mortgages and maintenance outpaced takings. Unlike larger hotels, which could pivot to quarantine contracts or corporate clients, bed and breakfasts (B&Bs) were almost entirely exposed to the collapse in discretionary tourism demand.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to grow over the next five years.
Trends and Insights
The industry’s profitability is set to stabilise despite sustained cost pressures
- Industry margins are projected to remain modest but positive over the next five years. Bed and Breakfast (B&B) operators have rebuilt occupancy from pandemic lows, and steady growth in domestic and inbound visitor nights is forecast to support revenue per booking. Tourism Research Australia forecasts a continued recovery in international arrivals through the late 2020s, providing a more substantial customer base for operators in regional destinations.
Biggest companies in the Bed and Breakfast Accommodation in Australia
| Company | Market Share (%)
2026 | Revenue
2026 |
|---|
There are no companies that hold a market share exceeding 5% in the Bed and Breakfast Accommodation in Australia industry.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Accommodation, Breakfast and Laundry. Accommodation is the largest segment of the Bed and Breakfast Accommodation in Australia.
Trends and Insights
Accommodation remains core but faces pressure from competition
- Accommodation is the industry’s largest service segment, covering overnight stays and cleaning and bed-making services provided by owners or staff. This function is fundamental to B&B operations and delivers the most revenue, but its dominance has gradually eroded.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Industry establishments primarily provide short-term hosted accommodation, with breakfast included. These establishments are typically located in the host’s private residence. The industry does not include private individuals without an ABN who rent or sublet private residences to consumers for short-term lodging.
What's included in this industry?
Products and services covered in the Bed and Breakfast Accommodation industry in Australia include Accommodation , Breakfast, Laundry services and Providing information on tourist attractions.Companies
Companies covered in the Bed and Breakfast Accommodation industry in Australia include .Purchase this report to view all major companies in this industry.
Related Terms
Related terms covered in the Bed and Breakfast Accommodation industry in Australia include airbnb, aggregator website, sublet and inbound tourism.Industry Code
ANZSIC 4400 - Bed and Breakfast Accommodation in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Although tourism volumes have rebounded since border closures, much of the benefit has flowed to hotels and short-term rentals. B&Bs remain squeezed between outbound travel, ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2015-2024) and forecast (2025-2030)
- Employees, including historical (2015-2024) and forecast (2025-2030)
- Businesses, including historical (2015-2024) and forecast (2025-2030)
- Profit, including historical (2015-2025)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Accommodation, breakfast and laundry services have contributed less revenue. Demand for other services, like barbecues and spas, has increased as B&Bs have attempted to diffe...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2025
- Product innovation level
Charts
- Products & services segmentation in 2025
- Major market segmentation in 2025
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Industry business concentration largely follows that of the Australian population. That’s why the eastern seaboard states of New South Wales, Victoria and Queensland account ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2025
Tables
- Number and share of establishments in each region in 2025
- Number and share of revenue each region accounts for in 2025
- Number and share of wages each region accounts for in 2025
- Number and share of employees in each region in 2025
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Industry businesses face competitive pressures from other B&B establishments and from other forms of accommodation, like motels. Competition in the industry has increased, pa...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2020-2025
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
There are no companies that hold a market share exceeding 5% in the Bed and Breakfast Accommodation in Australia industry.
Analyst insights
The industry has no major players. The majority of B&Bs are owner-operated, with the individuals who run the establishment owning and occupying the property.
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Bed and Breakfast Accommodation industry is moderately regulated. These regulations mainly relate to food and beverages, and fire safety and accessibility requirements.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2015-2030)
- Assistance historical data and forecast (2015-2030)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
B&Bs’ profit margins have rebounded from pandemic lows as operators restructure offerings and lift revenue per booking. However, rising labour, utility and purchase costs con...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2015-2030)
- Revenue per Employee (2015-2030)
- Revenue per Enterprise (2015-2030)
- Employees per Establishment (2015-2030)
- Employees per Enterprise (2015-2030)
- Average Wage (2015-2030)
- Wages/Revenue (2015-2030)
- Establishments per Enterprise (2015-2030)
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Bed and Breakfast Accommodation industry in Australia in 2025?
The market size of the Bed and Breakfast Accommodation industry in Australia is $99.7m in 2025.
How many businesses are there in the Bed and Breakfast Accommodation industry in Australia in 2025?
There are 753 businesses in the Bed and Breakfast Accommodation industry in Australia, which has grown at a CAGR of 1.4 % between 2020 and 2025.
How may import tariffs affect the Bed and Breakfast Accommodation industry in Australia?
The Bed and Breakfast Accommodation industry in Australia is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Bed and Breakfast Accommodation industry in Australia?
The Bed and Breakfast Accommodation industry in Australia is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Bed and Breakfast Accommodation industry in Australia grown or declined over the past 5 years?
The market size of the Bed and Breakfast Accommodation industry in Australia has been growing at a CAGR of 1.8 % between 2020 and 2025.
What is the forecast growth of the Bed and Breakfast Accommodation industry in Australia over the next 5 years?
Over the next five years, the Bed and Breakfast Accommodation industry in Australia is expected to grow.
What does the Bed and Breakfast Accommodation industry in Australia include?
Accommodation and Breakfast are part of the Bed and Breakfast Accommodation industry in Australia.
How competitive is the Bed and Breakfast Accommodation industry in Australia?
The level of competition is high and increasing in the Bed and Breakfast Accommodation industry in Australia.
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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