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
The economic landscape has changed drastically over the last year. While there have been severe hits to industries such as travel and retail, others have seen increased growth. One of these thriving markets is e-commerce, with leading digital retailers like Amazon, which has seen tremendous growth since the middle of March. Specific medical industries are also thriving, with healthcare IT and medical textiles becoming exponentially more important to deal with issues brought on by COVID-19. While it is understandable that digital and healthcare industries are growing, there is a niche industry that has seen a surprising uptick in interest during 2020. The demand for the purchase and rental of private islands has skyrocketed at a time when most travel opportunities have been restricted.
The coronavirus pandemic has brought about changes in lifestyle for populations around the globe. People are staying home and avoiding travel, whether by choice or due to government restrictions. International travel, in particular, has stopped in its tracks. As of March 31, the United States is under a Global Level 4 Health Advisory, with the state department recommending all citizens avoid international travel. Inevitably, travel-related industries have felt the impact of these changes. Let’s look at how airlines and other hospitality businesses have been affected by the coronavirus.
- SelectUSA (Date Accessed: 6/1/2017)