Hospitality and Travel: Introduction
Segments
Accommodations
Companies in this segment operate short-term lodging facilities which include hotels, motels, and resorts.
Air Travel
In this segment, companies provide scheduled domestic and international passenger transportation.
Food Services
The food services segment is composed of companies that provide meals, snacks, and beverages to customers for either on-site or off-site consumption.
The Hospitality and Travel industry is Fragmented. The production in this industry is divided among a few different companies, however, no single firm has large enough share of the market to be able to influence the industry's direction or price levels.
Primary Demand Drivers
- Business and tourist travel
- Strength of the domestic economy
Profitability Drivers
- Efficient operations, because many costs are fixed
- Effective marketing
From the Blog 
As many people go around the world to travel and enjoy the scenery of various attractions, we are starting to see how the traveling industry has shifted towards getting a better understanding of what travelers want in their destination. The market size for tourism has been making a comeback over the last few years since the pandemic, regaining their sector amount from $0.8 trillion in 2020 back up to $2 trillion in 2024. On top of it, WTTC announced this year that the travel industry has put approximately $11.1 trillion toward the global GDP. Travel and tourism will take over 11.4% of the economy by 2034, leading to a $16 trillion contribution. But now the question is, what makes this industry appealing for travelers to visit various countries?
In recent years, Airbnb has emerged as a challenge to traditional hotels. It offers travelers unique and personalized accommodations in homes, apartments, and treehouses. This platform has transformed how people think about lodging. Its innovative business model, impact on pricing, and guest experiences challenge the dominance of hotel chains and ignite the question of the hotel industry's future.
Sources
- SelectUSA (Date Accessed: 6/1/2017)