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

Subscriptions are the newest sales tactic for companies across all industries. Some of the earliest forms of subscriptions date back to the 1800s, when milkmen would deliver milk to residents weekly in the United Kingdom. Companies like NetflixAmazon PrimeSpotify, and more have entire business models based on offering subscription services.

Travel has been a delicacy over the past few years. Due to the ongoing pandemic, many previous flyers have been less frequent with their travel. With the recent merger of two major airlines, the world of traveling is in for a major change. The Spirit Airlines franchise and Frontier Airline franchise completed their merger over the weekend. The two franchises have been hit hard by the pandemic, and the merger can help with their recovery. These airlines have been major players in the low-cost flight industry in the United States and Latin America, including Puerto Rico, Mexico, Jamaica, and El Salvador. This move will help them grow and move past the pandemic. The union between Spirit and Frontier is expected to create enhanced values for shareholders of both airline industries and allow the companies to better compete with rival airlines.


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