The trend is not just in the supply chains.
Data released by the Australian Taxation Office (ATO) this week shows that hotels are becoming more efficient with the use of hotel suppliers.
“The supply chain of hotels is becoming more integrated,” ATO assistant chief tax officer Mark Oakes said.
“As hotels get more efficient, we expect this will drive prices down.”
The ATO has a database that tracks the supply chain across the hospitality sector, with hotels being the most important supply chain for many businesses.
“We are seeing a trend that hotels will become more efficient as supply chains become more integrated with the industry,” Oakes told Business Insider Australia.
“For example, we have seen a very high number of hotel chains becoming more and more efficient through the use or the use-by-date of their supply chains.”
The new data also shows that supply chains have become more agile, with many hotels now being able to respond to changing demand for hotel accommodation.
“It’s an opportunity for a hotel to become more competitive with its supply chain in the way that they supply it,” Oates said.
Oakes explained that the data showed that the supply of hotels was becoming increasingly fragmented.
“Hotels supply is now divided into a number of different supply chains and there is no single supply chain that all of Australia’s hotel supply is built on,” he said.
The Australian Tax Office has also released data showing that the proportion of hotels in Australia that are privately owned fell from 41% to 30% between 2011 and 2016.
The ATOs latest data shows hotel supply chain efficiency was only 10.4% between 2009 and 2016, down from 23.9% in 2011.
It’s expected to continue to fall further.
The latest data also showed that many hotels were moving into the online space, as they were able to reduce their costs by leveraging their supply chain and by using social media.
“Online demand has increased hotel supply costs, especially for hotels,” Oaks said.
Many hotels have started using Airbnb and other booking services to get more out of their guests.
The trend has also seen the number of guests moving into hotels grow.
Oates also noted that the increase in the number and type of rooms in hotels has been slowing.
“In Australia we are seeing hotels being able take more rooms off the ground,” Okes said.
It will be interesting to see if the supply and demand trend continues to continue and if there will be a return to the days of the hotel as a retail business.