Hotels, Motels & Resorts
Brief Excerpt from Industry Overview Chapter:
Companies in this industry are engaged in providing short-term lodging in facilities known as hotels, motor hotels, resort hotels, and motels. Major companies include Choice Hotels, Hilton, Hyatt, Marriott International, and Wyndham (all based in the US), as well as Accor (France); IHG Hotels & Resorts and Whitbread (both based in the UK); Jin Jiang International (China); and NH Hotel Group (Spain).
Hotels, motels, and resorts are benefiting from global increases in tourist travel, but the incursion of short-term rental services such as Airbnb is disrupting the industry in markets around the world. Online travel agencies like Expedia have also influenced the competitive dynamic of the US industry by siphoning off revenue in the form of commissions that hotels must pay on each booking. Both of these trends disproportionately affect large hotel chains, which are fighting for stricter regulation of private rentals while negotiating more favorable contracts with third-party booking websites.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product lines are room accommodation, which accounts for about 80% of industry revenue. Sales of meals, snacks, and other food items account for about 10%, alcoholic beverages accounts for about 3%, and other services accounts for about 7%.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook