Hospitality and Travel: Introduction
Companies in this segment operate short-term lodging facilities which include hotels, motels, and resorts.
In this segment, companies provide scheduled domestic and international passenger transportation.
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
- Efficient operations, because many costs are fixed
- Effective marketing
From the Blog
In the mid-to-late 2010s, a new trend emerged that caught the attention of many in the hospitality space: vacation rental homes becoming popular. The top players in this new market were Airbnb and Vrbo, and together they created a massive network of individual property owners who rented their space to travelers from around the world. Many believed that the world’s largest hotel chains would be forced to either adapt or be left behind by this revolutionary business model. But over 15 years after Airbnb’s founding, hotel chains continue to thrive and make profit in the hospitality market.
Subscriptions are the newest sales tactic for companies across all industries. Some of the earliest forms of subscriptions date back to the 1800s, when milkmen would deliver milk to residents weekly in the United Kingdom. Companies like Netflix, Amazon Prime, Spotify, and more have entire business models based on offering subscription services.
- SelectUSA (Date Accessed: 6/1/2017)