Industry Analysis & Industry Trends
The Global Hotels and Resorts industry experienced strong growth over the past five years. As a result of a steady rise in global travel rates, international tourism boomed over the period, as the number of global tourist arrivals increased. Moreover, the infusion of tourist dollars has benefited hotels and resorts, as room rates have also increased, causing industry revenue to also grow. Over the next five years, the industry is expected to continue its upward climb. This is because consumers will have more funds available for discretionary purchases due to consistent growth in per capita disposable income, which is expected to increase and boost industry revenue... read more
The Global Hotels and Resorts industry is subject to a low-to-moderate level of capital intensity. For every $1.00 the average restaurant in the industry spends on wages in 2015, it will spend an estimated $0.20 on the use and replacement of capital. Both labor and capital play an important role in the industry.
As a service-based industry, hotel and resort operators are highly dependent on direct labor input across all areas of operation, from front-desk service, reservations, room service and cleaning, food preparation, liquor and beverage service, and back of house operational management. Due to the service nature of the industry, many of these labor-intensive functions cannot be substituted by technology or machinery... read more