Industry Analysis & Industry Trends
The Global Hotels and Resorts industry has undergone a sustained recovery since the recent global economic downturn. Travel spending has picked up quickly and the number of global tourist arrivals has grown. As a result of increased demand for hotel and resort accommodations, room rates have increased, driving industry revenue. In the five years to 2019, the industry is expected to continue to excel, as the global economy continues to improve. Consumers will have more funds available for discretionary purchases due to consistent growth in per capita disposable income, and the industry's shift towards emerging economies will continue, taking advantage of improved tourism infrastructure in those regions... 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 organise licences... read more