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
Starting a New Business
Economies of scale relate to ways that hotel chains can reduce marginal costs through the development and ownership of a greater number of hotels. There are a several major companies 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 companies, making it more difficult for new hotels to enter the industry and establish a major presence.
Before they can establish brand loyalty, new entrants must: set up operations by purchasing, developing or renting suitable premises, from which to run the business; hire and train staff; and organize licenses... read more