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 Blog RSS

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.

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.


  1. SelectUSA (Date Accessed: 6/1/2017)