Making room: Heightened travel rates will bolster revenue for the industry

While the Hotels and Motels industry is highly susceptible to changes in the global economic environment, the industry has experienced robust growth over the five years to 2018. Increases in travel spending, corporate profit and consumer spending have driven industry revenue growth in each year since 2013. Strong economic growth during the latter half of the five-year period and rising domestic and international travel rates have provided boosts to industry performance. As a result, the Hotels and Motels industry has outperformed the broader economy over the past five years, driven by a combination of high demand from leisure and business travelers and international tourists...purchase to read more.

Industry Statistics & Market Size
Revenue
$194bn
Annual Growth 13-18
4.4%
Forecast Growth 18-23
Profit
Employment
1.7m
Businesses
91,620

Industry Threats & Opportunities

  • IBISWorld projects that the industry will continue expanding, albeit at a more moderate pace
  • Over the five-year period, the structure of the industry has started to change
  • A changing political climate may also have a lasting effect on tourism
  • Industry Report - Industry SWOT Analysis Chapter

    The Hotels and Motels industry is in the mature phase of its life cycle. As the industry is heavily dependent on tourism and aggregate consumption levels, overall increases in these drivers of demand have contributed to steady revenue growth over the long term. Over the 10 years to 2023, industry value added (IVA), which measures an industry's contribution to GDP, is forecast to grow at an annualized rate of 3.0%, above annualized GDP growth of 2.2% during the same period.Domestic travel growth is expected to continue over the next five years, although at a slower rate than international tourism, due to businesses' travel needs and consumers' increased leisure time and income. The...purchase to read more.

    Additional Insights for the Hotels & Motels Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hotels & Motels Industry are

  • Access to multiskilled and flexible workforce
  • Being part of a franchising chain
  • Receiving the benefit of word-of-mouth recommendations
  • IBISWorld analysts also discuss how external factors such as Domestic trips by US residents and Consumer spending in the Hotels & Motels industry impact industry performance..

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    What's in this report

    What is the Hotels & Motels Industry?

    Operators in this industry provide short-term lodging in hotels, motor hotels (motels) and resort hotels. Establishments may also offer food and beverage services, recreational services, conference room and convention services, laundry services, parking and other services. This industry excludes hotels that have casino facilities attached.

    Industry Products
  • Guest room rentals from properties with under 75 rooms
  • Guest room rentals from properties with between 75 and 299 rooms
  • Guest room rentals from properties with between 300 and 500 rooms
  • Guest room rentals from properties with over 500 rooms
  • Restaurants and Bars
  • Conference room and venue space rentals for events
  • Other services (meals for catered events, laundry services, parking)
  • Industry Activities
  • Operating short-term hotels
  • Operating short-term motor hotels
  • Operating short-term resort hotels
  • Operating short-term motels
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Domestic trips by US residents
  • Consumer spending
  • Inbound trips by non-US residents
  • Consumer Confidence Index
  • External competition for the Hotels and Motels Industry

  • Current Performance
  • Prevailing growth
  • Technological change and growth
  • Industry structure
  • Low vacancy, high profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Economic growth to boost demand
  • Investment abroad grows
  • People and profit
  • Table: Hotels & Motels Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hotels & Motels Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • International Airlines
  • Domestic Airlines
  • Travel Agencies
  • Tour Operators
  • Public Administration
  • Consumers

  • Key Selling Industries
  • Beef & Pork Wholesaling
  • Beer Wholesaling
  • Computer & Packaged Software Wholesaling
  • Dairy Wholesaling
  • Egg & Poultry Wholesaling
  • Fish & Seafood Wholesaling
  • Fruit & Vegetable Wholesaling
  • Furniture Stores
  • TV & Appliance Wholesaling
  • Wine & Spirits Wholesaling

  • Products & Services
  • Guest room rentals from properties with between 75 and 299 rooms
  • Guest room rentals from properties with under 75 rooms
  • Restaurants and Bars
  • Guest room rentals from properties with over 500 rooms
  • Guest room rentals from properties with between 300 and 500 rooms
  • Conference room and venue space rentals for events
  • Other services (meals for catered events, laundry services, parking)
  • Chart: Hotels & Motels Industry Products and Services Segmentation

  • Demand Determinants
  • Domestic travel
  • Business travel
  • International tourism

  • Major Markets
  • Domestic leisure travelers
  • International leisure travelers
  • Business travelers
  • Meeting, events and incentive travelers
  • Chart: Major Market Segmentation for the Hotels & Motels Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Hotels & Motels

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hotels & Motels Industry

  • Industry Globalization
    Marriott International Inc., Hilton Worldwide Holdings Inc., InterContinental Hotels Group PLC,
  • Table: Marriott International Inc. - financial performance
  • Table: Hilton Worldwide Holdings Inc. - financial performance
  • Table: InterContinental Hotels Group PLC - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hotels & Motels Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hotels & Motels Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Domestic Trips by US Residents (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Computer Reservation Systems (Crs)
  • Computerized systems used to store and retrieve information and conduct transactions related to travel.
  • Revenue Per Available Room (Revpar)
  • A measurement that is calculated by multiplying a hotel's average daily room rate by its occupancy rate.
  • Room Rate
  • Actual published room tariffs.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Hotels & Motels is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hotels & Motels:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hotels & Motels market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hotels & Motels, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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