Industry Analysis & Industry Trends
The industry experienced decreases in revenue over the past five years as both consumers and businesses became more concerned about their finances and cut back on luxuries, which included travel and stays at hotels and resorts. Travel spending is projected to increase over the next five years as the world economy continues to improve and tourist dollars continue bolstering revenue for global hotels and resorts... read more
Starting a New Business
New firms are required to compete against well-established hotels and resorts that have strong branding, loyal customers and frequent-guest memberships.
Economies of scale relate to ways that hotel chains can reduce marginal costs trough the development and ownership of a greater number of hotels. There are a several major firms in this industry that operate on a global level and that are able to minimize marginal costs for management, advertising and brand-building to increase market share. This provides financial advantages for large existing firms, making it more difficult for new firms to enter the industry and establish a major presence... read more