Thinking of Buying a Boarding Kennel in Australia? Here Are 3 Vital Questions to Ask
The Australian boarding kennel industry is growing due to increasing pet ownership, travel demand, and the humanisation of pets.
In 2024, total industry revenue is projected to reach $1.218 billion, with an annualised growth rate of 5.05% from 2010 to 2024.
Revenue is expected to grow at 4.39% annually through 2030, driven by premium pet care services, urbanisation, and technological advancements.
Despite competition from in-home pet sitters and digital pet care platforms, opportunities exist in high-quality boarding facilities, premium dog care services, and technology-driven kennel management.
Buyers must assess financial performance, location advantages, and operational strategies to ensure long-term success in this evolving market.
1. Is the Business Financially Viable?
Why It Matters:
Profitability in the boarding kennel industry is influenced by revenue streams, occupancy rates, and cost management.
Industry-wide profit margins stand at 13.9%, with businesses generating revenue from standard boarding (42.2%), premium boarding (28.5%), and additional services (29.3%).
Successful operators increase profitability by offering luxury suites, training programs, pet wellness services, and retail pet products.
What to Check:
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Revenue sources: Does the business generate income beyond standard boarding, such as premium dog care services and retail pet products?
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Operating costs: How do labour, rent, and supply expenses compare to industry benchmarks (purchases account for 46.7% of revenue)?
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Occupancy rates and seasonal demand: What are the average occupancy levels throughout the year, and how does demand fluctuate with peak travel seasons?
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Profitability trends: Is the business maintaining or increasing its margins in line with the 13.9% industry average?
2. Does the Location & Market Position Support Growth?
Why It Matters:
A boarding kennel’s success is closely tied to its location, accessibility, and customer demographics.
Facilities near major cities, affluent suburbs, and travel hubs (such as airports) benefit from high-income pet owners and frequent travellers, who represent 47.7% of the target market.
Conversely, regional kennels may face lower overheads but require a loyal, local client base.
What to Check:
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Proximity to high-demand areas: Is the business located near urban centres, affluent communities, or high-traffic travel areas?
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Competitive landscape: Are there competing kennels, pet sitters, or digital pet boarding platforms (such as Mad Paws and Pawshake) in the region?
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Customer base segmentation: Do local pet owners prioritise premium pet care, or does the market lean toward budget-conscious boarding options?
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Accessibility and convenience: Is the facility easily accessible for drop-off and pick-up, particularly for travelling pet owners?
3. Is the Business Aligned with Industry Trends & Future Growth?
Why It Matters:
The boarding kennel industry is evolving, with increasing demand for premium services, digital integration, and advanced pet care solutions.
Luxury boarding suites, AI-enhanced monitoring, and customer-facing technology are reshaping the competitive landscape.
Facilities that embrace innovation, customer convenience, and service differentiation will maintain a strong market position.
What to Check:
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Premium and tech-driven services: Does the business offer luxury suites, stress-free environments, or digital enhancements such as live-streaming pet cams?
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Customer experience and retention strategies: Are there loyalty programs, personalised care options, or partnerships with veterinary clinics to enhance customer retention?
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Adaptability to market trends: Is the business positioned to expand into pet transport, VIP dog boarding, or additional wellness services?
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Regulatory compliance: Are licensing, animal welfare standards, and best practices aligned with Australian Veterinary Association (AVA) and RSPCA guidelines?
Ready to Invest in a Thriving Boarding Kennel Business?
With increasing consumer demand for premium pet care and strong industry growth projections, investing in a boarding kennel presents a lucrative opportunity.
Success depends on financial sustainability, competitive positioning, and alignment with emerging industry trends in luxury pet care and digital convenience.
Prospective buyers should conduct thorough due diligence to ensure long-term profitability and operational efficiency.
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