Industry Analysis & Industry Trends
The Global Hotels and Resorts industry is sensitive to a wide range of economic, social, demographic and geopolitical factors that affect domestic overnight travel within any country, for any purpose, as well as global international travel demand and patterns. Overall factors are expected to be positive in 2012, which will result in international tourism numbers increasing 4.1% to 1.02 billion people.
Due to solid growth in tourist numbers in 2012, industry revenue is expected to grow 1.6% to $580 billion. The industry is expected to comprise 540,600 enterprises that operate from 632,900 locations. The industry is estimated to employ about 4.08 million people in 2012, 1.9% more than in 2011. Consequently, total wages paid by the industry will rise 2.1% to $146.6 billion... read more
Starting a New Business
Entry barriers to an industry outline the factors that prevent or limit a new enterprise from entering an industry. Key factors used to assess the barriers to entry include economies of scale, capital intensity or licenses. 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... read more