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
In the past few decades, there has been a steady increase in the number of international tourists everywhere, both inbound and outbound. As connections increase due to globalization and advanced technology, more people are traveling for leisure than ever. This increase has shaped a new industry with high growth potential. In recent years, tourists' spending is increasing at a surprising speed, contributing to countries GDP and shaping many travel policies.
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.
- SelectUSA (Date Accessed: 6/1/2017)