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

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.

A recent article by the Motley Fool analyzes why “the ‘big three’ cruise lines,” Carnival Corporation, Royal Caribbean Cruises, and Norwegian Cruise Line, saw increases of over 25% in their stock prices in the first half of 2017. The article suggests current trends in the hospitality and travel industry, such as “lower fuel prices, higher consumer spending in developed countries, and burgeoning travel demand among Asian tourists" as possible factors. However, the article also explores another trend in consumer purchasing patterns: “a penchant among millennials to spend their earnings on experiences instead of material products.”


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