|Last Quarterly Update:||5/20/2013|
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Companies in this industry operate short-term lodging facilities, including hotels, motels, and resort hotels. Major companies include Accor (France), InterContinental (UK), and NH Hoteles (Spain), as well as US-based international giants such as Hyatt, Marriott, Starwood, and Wyndham.
The global tourism industry, which includes spending on accommodations, transportation, and entertainment, generates about $1 trillion in sales, according to the United Nations World Tourism Organization. The most popular travel destinations include the US, Spain, France, China, and Italy.
The US hotel, motel, and resort industry consists of about 40,000 companies that operate about 50,000 properties with combined annual revenue of about $130 billion. Moderate growth is forecast for the next two years. Key growth drivers include consumer spending and growth in business activity.
Business and tourist travel drive demand. Both are affected by the strength of the economy. The profitability of individual companies depends on efficient operations, because many costs are fixed, and on effective marketing. Large companies have advantages in economies of scale in operations, can more easily raise capital, and have strong name recognition. Small companies, such as boutique hotels, can compete effectively in favorable locations and by providing specialty services. The industry is fragmented: the 50 largest companies generate about 45 percent of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major industry product lines are room fees and sales of food, alcoholic drinks, and merchandise. Room fees account for 75 percent of ...
Complement this Industry Profile by purchasing a Focus Profile. Hotels, Motels & Resorts has one Focus Profiles that can help you better understand this industry:
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