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
On Monday, October 3, 2021, global airlines within the lobby group International Air Transport Association (IATA) announced their plans of reaching net-zero emissions by 2050. “For aviation, net-zero is a bold, audacious commitment,” International Air Transport Association Director General Willie Walsh said, “but it is also necessary.” To many, this plan may seem unattainable due to limited solutions and resources.
Optimism for the end of the pandemic has steadily increased with the arrival of widespread vaccinations. No industry is more ready for a return to normality than the tourism industry. In 2019, the last normal year for travel, tourism provided $8.9 trillion to the global GDP. Through October of 2020, tourism revenue was down $935 billion. As we look forward to being able to travel again, let’s look at which cities and locations see the most visitors per year.
- SelectUSA (Date Accessed: 6/1/2017)