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
Since 1912, hostels have been a centerpiece for teenagers and young adults traveling. They are overwhelmingly popular throughout the European continent, but also have a presence in most tourist-friendly countries around the world. They are a low-cost option for housing, eating, and provide an opportunity for social interaction. In an age where freelance work is becoming more common, hostels are playing an increasingly important role in travel and work abroad.
This year, the International Air Transport Association anticipates four billion people will engage in global travel. By the year 2036, it is expected to nearly double to 7.8 billion—half of which will solely be from people living in Asia. High rates of international travel indicate economic well-being, and increased globalization will continue to drive demand. Areas experiencing a spike in international travel will benefit from the influx of money from tourism, but not without enduring the consequences of expansion.
- SelectUSA (Date Accessed: 6/1/2017)