Accommodation services, 2022

Released: 2024-01-18

Accommodation services operating revenue in 2022 surpasses 2019 pre-COVID-19 pandemic level

Operating revenue for the accommodation services subsector climbed to a record $29.6 billion in 2022, a 52.0% increase over 2021. The subsector has now recovered from declines caused by the COVID-19 pandemic, with operating revenues 9.6% higher in 2022 compared with 2019. The bounce back in operating revenue was also fuelled by inflationary pressures that pushed traveller accommodation prices up by an unprecedented 29.3% from 2021 to 2022.

Among the provinces, Ontario posted the largest share of revenue (29.5%) in 2022, followed by British Columbia (23.4%), Alberta (17.2%) and Quebec (16.5%).

Operating expenses increased by 41.6% from 2021 to $24.4 billion in 2022. Salaries, wages, commissions and benefits (25.5%) contributed the most to expenses, followed by the cost of goods sold (14.1%).

The subsector's profit margin was 17.5% in 2022, a strong increase over the 11.5% profit margin seen the year before. It was also higher than the pre-pandemic level of 14.2% in 2019.

The accommodation services subsector comprises two industry groupings: hotels, motor hotels and motels; and other accommodation industries. The first industry grouping includes private short-term rentals that provide lodging, generally through online platforms. In 2022, the first industry grouping accounted for 81.1% of the subsector's operating revenue.

Hotels, motor hotels and motels

Operating revenue for hotels, motor hotels and motels rose by 61.7% to $24.0 billion in 2022.

The largest share of sales revenue in 2022 was generated by room or unit accommodation for travellers (72.5%), followed by meals and non-alcoholic beverages (10.6%).

The share of sales to individuals in Canada was 49.5% in 2022, a higher proportion than in 2019 (42.7%). Conversely, the share of sales to clients outside Canada was 14.6% in 2022, still below the 20.2% share seen in 2019. This is a sign that travel trends have not fully returned to normal, despite record operating revenue.

Operating expenses rose 47.1% to $19.5 billion in 2022, with 25.7% going to salaries, wages, commissions and benefits. With revenue growing more rapidly than expenses, the operating profit margin reached 18.9% in 2022, a notable increase over the 10.8% margin from 2021.

In 2022, e-commerce sales accounted for 30.7% of total sales.

Other accommodation industries

Operating revenue for other accommodation industries rose by 20.7% to reach $5.6 billion in 2022. Alberta accounted for the largest share of revenue (32.0%), followed by Ontario (24.0%), British Columbia (17.5%) and Quebec (14.8%).

Alberta led all provinces in this industry group because a significant portion of businesses in this grouping are workforce lodging companies that provide accommodation at isolated work locations. This is common among resource extraction operations, such as those found in northern Alberta. Overall, these companies have been among the best performers since the pandemic began, as they have been less affected by pandemic restrictions.

Operating expenses rose by 23.1% to $4.9 billion in 2022, with 24.6% of total operating expenses going to salaries, wages, commissions and benefits. The profit margin was 11.9% in 2022, down from 13.6% in 2021.

Contact information

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