Question 1

Is the hospitality market actually growing enough to justify new digital investment?

Accepted Answer

The sector is expanding at a 3% CAGR in venue growth, supported by a 55% real increase in household spending on meals away from home since 1984. This growth underpins a total market turnover of A$56.5bn, creating a significant addressable market for digital platforms.

Question 2

How quickly are venues moving away from legacy hardware?

Accepted Answer

Technology adoption in the sector is growing at a 5% CAGR, with 85% of the 71,008 Australian venues expected to utilize POS systems by FY21. Traditional legacy solutions are being rapidly displaced by cloud-based and mobile alternatives that integrate payments and loyalty.

Question 3

What is the total scale of the digital payment opportunity in this sector?

Accepted Answer

Digital payments in Australia are forecast to reach a value of A$1.9bn by 2020 as venues transition to cashless operations. This shift is driving a requirement for integrated service bundles that combine payments, accounting, and Big Data utilization.

Question 4

What are the primary risks for service providers entering this space?

Accepted Answer

The market is characterized by high volatility, evidenced by a 15% exit rate for cafes and restaurants in the 2015 financial year. ICT providers must deliver high-value, integrated solutions that improve operational efficiency to survive this high-churn environment.

Disruption In: Hospitality

Abstract

Key Takeaways

Frequently Asked Questions

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Key Takeaways

Frequently Asked Questions

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