Brief Excerpt from Industry Overview Chapter:
Companies in this industry operate hotels, motels, resorts, casino hotels, and bed and breakfast inns, along with RV parks, recreational camps, and rooming and boarding houses. Major companies include Hilton, Las Vegas Sands, Marriott, and MGM Resorts (all based in the US), as well as Accor (France), InterContinental (UK), and SJM Holdings (Hong Kong).
Business and leisure travel drive demand. Both are affected by the strength of the economy. The profitability of individual companies depends on efficient operations and effective marketing. Large companies have advantages in economies of scale in operations, can more easily raise capital, and have strong name recognition. Small companies can compete by offering personalized service and a unique customer experience. The US industry is fragmented: the top 50 companies account for about 45% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major industry product lines and services are hotel room fees; meeting room and conference facility fees; and sales of food and drinks. In the case of RV parks, companies earn revenue from campground, cabin, or cottage rentals; groceries and meals; and membership fees. Casino hotels may earn revenue from casino games, restaurants, retail stores, and live entertainment, in addition to hotel rooms. Bed and breakfast inns (B&Bs) primarily offer guest rooms, typically in a converted private home, with breakfast services in a common dining area.
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