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Hotel  industry in the U.S. - statistics &  facts

What are the most popular hotel companies in the u.s., u.s. hotel industry key performance indicators (kpis), key insights.

Detailed statistics

Hotel room revenue in the U.S. 2019-2023

Selected cities with the highest hotel rates in the U.S. as of September 2023

Number of hotel jobs in the U.S. 2019-2022

Editor’s Picks Current statistics on this topic

Current statistics on this topic.

U.S. hotel and motel industry market size 2012-2022

Most valuable hotel brands worldwide 2023, by brand value

Revenue per available room of the U.S. hotel industry 2001-2022

Related topics

Recommended.

  • Hotel industry worldwide
  • Hotel industry in the UK
  • Hotel industry in China
  • Hotel market in Central and Eastern Europe
  • Hotel industry in the Benelux

Recommended statistics

Industry overview.

  • Premium Statistic U.S. hotel and motel industry market size 2012-2022
  • Premium Statistic Hotel room revenue in the U.S. 2019-2023
  • Premium Statistic Number of hotel jobs in the U.S. 2019-2022
  • Premium Statistic Hotel generated state and local tax revenue in the U.S. 2019-2023
  • Basic Statistic Selected cities with the highest hotel rates in the U.S. as of September 2023

Market size of the hotel and motel sector in the United States from 2012 to 2022 (in billion U.S. dollars)

Hotel room revenue in the United States from 2019 to 2022, with a forecast for 2023 (in billion U.S. dollars)

Number of hotel jobs in the United States from 2019 to 2022, with a forecast for 2023 (in millions)

Hotel generated state and local tax revenue in the U.S. 2019-2023

Direct state and local tax revenue generated from hotels in the United States from 2019 to 2021, with a forecast for 2022 to 2023 (in billion U.S. dollars)

Selected cities with the most expensive hotel rates in the United States as of September 2023 (in U.S. dollars)

Key players

  • Premium Statistic Most valuable hotel brands worldwide 2023, by brand value
  • Premium Statistic Sales of biggest global hotel and resort companies 2023
  • Premium Statistic Most positively viewed hotel brands in the U.S. Q3 2023
  • Premium Statistic American Customer Satisfaction Index for hotel companies in the U.S. 2008-2023
  • Premium Statistic Highest-rated luxury hotel brands in North America 2023
  • Premium Statistic Highest-rated upper upscale hotel brands in North America 2023
  • Premium Statistic Highest-rated upscale hotel brands in North America 2023
  • Premium Statistic Highest-rated upper mid-scale hotel brands in North America 2023
  • Premium Statistic Highest-rated mid-scale hotel brands in North America 2023
  • Premium Statistic Highest-rated economy hotel brands in North America 2023

Leading hotel brands based on brand value worldwide in 2023 (in billion U.S. dollars)

Sales of biggest global hotel and resort companies 2023

Leading hotel and resort companies worldwide in 2023, by sales (in billion U.S. dollars)

Most positively viewed hotel brands in the U.S. Q3 2023

Hotel brands that the public view the most positively in the United States as of Q3 2023

American Customer Satisfaction Index for hotel companies in the U.S. 2008-2023

American Customer Satisfaction Index scores for hotel companies in the United States from 2008 to 2023

Highest-rated luxury hotel brands in North America 2023

Highest-rated luxury hotel brands in North America as of May 2023

Highest-rated upper upscale hotel brands in North America 2023

Highest-rated upper upscale hotel brands in North America as of May 2023

Highest-rated upscale hotel brands in North America 2023

Highest-rated upscale hotel brands in North America as of May 2023

Highest-rated upper mid-scale hotel brands in North America 2023

Highest-rated upper mid-scale hotel brands in North America as of May 2023

Highest-rated mid-scale hotel brands in North America 2023

Highest-rated mid-scale hotel brands in North America as of May 2023

Highest-rated economy hotel brands in North America 2023

Highest-rated economy hotel brands in North America as of May 2023

Key performance indicators (KPIs)

  • Premium Statistic ADR of hotels in the U.S. 2001-2022
  • Premium Statistic Occupancy rate of the U.S. hotel industry 2001-2022
  • Premium Statistic Revenue per available room of the U.S. hotel industry 2001-2022

ADR of hotels in the U.S. 2001-2022

Average daily rate of hotels in the United States from 2001 to 2022 (in U.S. dollars)

Occupancy rate of the U.S. hotel industry 2001-2022

Occupancy rate of the hotel industry in the United States from 2001 to 2022

Revenue per available room (RevPAR) of hotel industry in the United States from 2001 to 2022 (in U.S. dollars)

  • Premium Statistic Forecast ADR of hotels in the U.S. 2022-2024
  • Premium Statistic Forecast occupancy rate of the U.S. hotel industry 2022-2024
  • Premium Statistic Forecast revenue per available room in the U.S. hotel industry 2022-2024

Forecast ADR of hotels in the U.S. 2022-2024

Forecast average daily rate of hotels in the United States from 2022 to 2024 (in U.S. dollars)

Forecast occupancy rate of the U.S. hotel industry 2022-2024

Forecast occupancy rate of hotel industry in the United States from 2022 to 2024

Forecast revenue per available room in the U.S. hotel industry 2022-2024

Forecast revenue per available room (RevPAR) of hotel industry in the United States from 2022 to 2024 (in U.S. dollars)

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From idea to execution: 10 sections to include in your hotel business plan

Stay up to date with the latest trends, insights and technology for hoteliers.

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Lana Cook

By Lana Cook

Do you love connecting with people from all over the world who share your passion for travel? Don’t want to work a typical 9-5 job and instead want to build a business where every day is different, and you own your schedule?

Starting a hotel business is a dream many entrepreneurs have, but it can be a daunting venture to start. A hotel business plan is a critical first step for business owners to turn their dreams into reality. A strategic plan allows one to study the hotel industry, identify their hotel’s unique point of view, and outline how exactly they will reach their goals.

Read on to learn more about the ten sections to include in your hotel business plan, tips for creating an effective plan, and key things you need to start your new hotel business.

Ready to get started creating your plan? Download our hotel business plan template.

What is a hotel business plan?

A hotel business plan is a detailed document that identifies your business’s goals, objectives, and strategies for success. It includes market research and a roadmap for building and operating your business.

hotel and tourism business

Why do you need a hotel business plan?

Studies show that entrepreneurs who finished their business plan were twice as likely to succeed in growing their business than those with no plan. A hotel business plan:

  • Helps you identify whether you have a viable business idea
  • Provides a detailed roadmap on what you need to accomplish and why
  • Gives potential investors insight into your business idea and confidence that you can be successful
  • Keeps you on track as you start to execute the different tactics outlined in your plan
  • Identifies critical milestones for you and your team to reach

Your plan does not have to be static and should change over time as your business grows and evolves. Your first draft is a starting point to help guide your strategy and instill confidence in potential investors.

10 sections to include in your hotel business plan

Whether you’re starting a small boutique hotel, a cozy B&B, or a 5-star resort, you will need to address the following sections in your hotel business plan.

1. Executive summary

An executive summary is the most essential part of your business plan. It should concisely explain the purpose of your business and why it will be a success.

Include your mission statement explaining why your hotel exists and its overall goal. For example, Capella Hotels & Resorts ’ mission is to combine tradition, discovery, individuality, and twist of the unexpected to create the perfect stay for each guest.

You should also include your vision statement that clearly describes your hotel’s purpose for being in a single sentence. For Capella Hotels, its vision is to embody excellence in the craft of hospitality.

We recommend writing your executive summary as the final stage, as it should summarize the goals and objectives laid out in your plan.

2. Company analysis

Your company analysis is where you can dive into your hotel’s competitive advantage. Ask yourself what makes your hotel unique . Why would guests want to stay with you instead of your competitors?

In this section, identify your brand’s identity and the goals and objectives you want to accomplish. Outline how many rooms and room categories your property will have. For example, will you offer a hybrid hospitality model with dorms, single rooms, and suites? Explain what ancillary revenue sources you’ll offer, like in-room food and beverage options, welcome drinks, or airport shuttles.

Use storytelling to communicate your excitement and passion and make it clear what your hotel will bring to the hospitality industry that hasn’t been done before.

3. Industry analysis

As a business owner, you must be prepared for forces outside your control. You will need to conduct a market analysis that looks at the hospitality industry to identify micro and macro trends that may impact your business. Look at:

  • Economic trends
  • Environmental trends
  • Political trends
  • Global health trends
  • Technology trends

For each trend, identify how it will impact your business and ways to mitigate risk or take advantage of opportunities.

For example, digital check-in technology has increased across the hotel industry with the rise of tech-savvy guests, new innovative software providers, and labor challenges. Therefore, consider what guest experience solution you’ll include at your hotel.

In addition to trends, look at the history of the hospitality industry, its current size, and how it’s expected to grow in the short and long term. This research will impact the rest of your plan, especially your marketing and financials.

4. Customer analysis

What type of hotel guests do you want to attract? It’s impossible to please every kind of guest, which is why it’s important to identify your target market . Once you know who you want to stay at your property, you can develop amenities, services, and marketing materials to attract these guests and deliver exceptional experiences .

Ask yourself:

  • What type of guests do I want? Business or leisure travelers? Retirees or Gen-Z?
  • What demographics? Age, gender, marital status, etc.
  • What are my target market’s interests? Water sports, hiking, relaxation, museums, etc.
  • What does my target market value? Sustainability, contactless technology, personalized service, localized experiences, etc.

This section will help you formulate the guest experience to ensure that expectations meet reality .

5. Competitive analysis

The competition you face will vary depending on where your hotel is located. In this section, you should conduct in-depth competitor research to understand how your hotel will compare. Identify your five major competitors — ideally, three direct competitors you will be competing with upon opening and two aspirational competitors you can emulate as you grow your business.

Conduct a SWOT analysis based on your competitors to look at:

  • Strengths . Where does your property excel in comparison to competitors? Why would travelers pick you? Price, amenities, location, technology, etc.
  • Weaknesses . Where does your property fall short in comparison to competitors? Price, amenities, location, technology, etc.
  • Opportunities . What industry trends can you take advantage of? What local events or partnerships can you capitalize on?
  • Threats . What are the biggest threats facing your property? War, travel restrictions, recession, etc.

A thorough analysis can help solidify your competitive advantage and develop a contingency plan for how you will deal with your weaknesses and threats.

6. Marketing plan

Without demand, there is no business. A hotel marketing plan outlines the channels you’ll use to reach your target audience to drive bookings. Your marketing strategy should include three key channels:

1) Paid media . Paid advertising to promote your property and drive bookings. This includes online travel agencies (OTAs) , search engine marketing (SEM), retargeting, and metasearch advertising.

2) Owned media. The content  you create, like your hotel website , social media channels, blog posts, and SEO.

3) Earned media. User-generated content created by third parties like media coverage or online reviews.

Hotel marketing plan templates

7. Operations plan

How do you plan to run your day-to-day operations? This section of your plan will outline all of the key tasks and responsibilities of your team and what exactly your hotel will offer. Consider:

  • The number of staff and supervisors required
  • Job descriptions and responsibilities
  • Your service standards (check out our downloadable SOPs for some inspiration)
  • How you’ll manage your inventory
  • What hotel technology solutions will you need? PMS, channel manager, booking engine, payment terminal, revenue management tools, guest engagement software, etc.
  • What services and amenities do you want to offer? Room service, bar, restaurant, pool, spa, wellness center, etc. 

Detail your short and long-term operational plans and the stakeholders involved for each area.

8. Management team

Whether or not you’ve hired your team yet, this is one of the most important sections potential investors will look at. Make sure to outline the key personnel you will require and their roles. 

In general, these are the following roles you’ll want to outline:

  • Hotel management (general manager, front office manager, housekeeping manager, maintenance manager, revenue manager)
  • Hotel sales team
  • Housekeeping staff
  • Front office staff
  • Maintenance

Depending on the size of your hotel, your team will vary. Identify the team members you need to open and your hiring plans over the next five years.

9. Strategic plan

Hoteliers must be strategic in optimizing occupancy rates across seasons to maintain revenue. As part of your strategic plan, identify how you will manage:

  • Pricing – what room types will you offer, and how will the pricing vary?
  • How will you maintain consistent occupancy throughout the high and low seasons? Will you adapt your pricing and marketing strategies?
  • How will you conduct revenue management ? What type of rules/alerts will you use to adjust rates? Will you use technology to help with revenue management?
  • What will your online reputation management strategy be? How will you collect and respond to online reviews?
  • What will your distribution mix look like? How will you drive reservations across a variety of channels?

10. Financial plan

Your financial projections are the most challenging but arguably the most crucial part of your hotel business plan. In this section, you should include the following:

  • Start-up costs. How much money will you need from lenders to operate your hotel? Consider business licenses, furniture, down payments, etc.
  • Operating costs . How much money will you need to keep your business running? Consider staffing costs, guest acquisition costs, mortgage payments, utilities, SaaS payments, etc.
  • Income statement . What will your revenue, expenses, and profit be over the first 3-5 years of business?
  • Cash flow projections . How will cash flow in and out of your business? Show what capital investment you’ll need to start.
  • Balance sheet . Identify your assets, liabilities, and equity.

If you’re looking for a potential investor, your financial plan will be the section they care about most. Here, you must prove how your business will provide a return on investment. Don’t forget to include an Appendix that shows more detailed reporting and financial figures.

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8 tips for creating an effective plan

1. Start with the section that excites you the most! Covering all the topics outlined above can feel overwhelming, so don’t feel pressured to go in order.

2. Reach out to a business owner you admire. No matter what type of business you’re starting, getting advice from another business owner is always helpful. Reach out to a successful local business owner to see if they’d be willing to share some insights they learned along the way.

3. Be concise. While there’s a lot to cover, you must be concise in each section of your plan. Include any additional research or documentation in the appendix to keep your business plan clean.

4. Try to avoid industry jargon. Depending on what type of investor is reading your plan, they may find jargon irrelevant and distracting.

5. Ensure you have a clear competitive advantage. You should be able to state in one sentence what makes your property unique. This unique selling point (USP) will be prominent in all of your marketing materials.

6. Set SMART goals. Setting specific, measurable, achievable, relevant, and time-bound goals is important to stay organized and on track to reach milestones.

7. Don’t forget about your plan. You will have spent hours developing your plan, so make sure you use it! Reference your plan as you build and grow your business , and remember that it’s ok if things change.

8. Illustrate your passion. Communicate why you want to be a part of the hospitality industry. Passion is contagious and gives investors more confidence that you will work hard to achieve your dreams.

hotel and tourism business

What do you need to start a hotel business?

Ok, so you’ve read through this article and are now wondering — what’s next? Ensure you have the following items on your radar to start your business.

  • A vision. Know exactly what kind of business you want to build (a quaint bed and breakfast is very different from a large-scale resort).
  • A business plan. Stay on track with a well-developed business plan.
  • A location. Decide if you want to build a new property or renovate an existing hotel.
  • Capital. Do you need to raise an upfront capital investment? Remember that new businesses usually aren’t profitable for the first few years and will need cash flow to pay for expenses.
  • Business licenses & permits. Depending on the type of property and its services, you’ll need an occupancy permit, alcohol license, food service license, sales tax license, etc.
  • Technology. Choose technology to help streamline operations and earn more revenue.
  • Furniture & equipment. You must furnish your property with the proper furniture, electronics, appliances, etc.
  • Staff. Take time hiring staff you can trust and who understand your hotel’s brand and vision.

Final thoughts

Your business plan provides the foundation for your new business and outlines the next steps in the journey. Ensure you fully understand the market and competitive landscape to enter the industry prepared for the future. Start slow and invest in the right people and technology to support the growth of your business.

Looking to start a hotel? Download the technology guide. Download now

About Lana Cook

Lana Cook is a Content Writer at Cloudbeds where she is able to combine her love of writing and passion for travel. She has spent the last few years writing about all things technology and the ways in which it can be used to help businesses thrive. When she’s not busy writing, you can find her checking out the latest movie or searching for a new TV show to binge.

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What to Know About Hospitality and Tourism Management Degree Programs

Hospitality management degrees are designed to train future leaders in the hospitality industry.

How to Study Hospitality Management

Businessman with just arrived a hotel room opening door.

Getty Images

Running a company in any segment of the hospitality industry requires not only financial and marketing prowess, but also an understanding of how to create an inviting environment for guests.

The art and science of hosting strangers is an essential skill for people working in many kinds of businesses, including airlines, casinos, cruise ships, festivals, hotels and restaurants.

Running a company in any segment of the hospitality industry requires not only financial and marketing prowess, but also an understanding of how to create an inviting environment for guests. Cultivating that marketable skill set is the goal of associate, bachelor's and graduate programs in hospitality management.

What a Hospitality Management Degree Is and What Classes It Requires

The goal of any course of study in hospitality management is to train people to create and maintain spaces where others will immediately feel at home.

“Understanding how to take care of the customer is a foundational aspect of the hospitality discipline,” Angela Ramsey, senior director of communication at the University of Nevada—Las Vegas William F. Harrah College of Hospitality, explained in an email.

Hospitality management degrees are, foremost, degrees in business, says Michael Sabitoni, chair of the food and beverage management department and the international travel and tourism studies department at Johnson & Wales University in Rhode Island. They include classes in accounting, finance, human resources, law and technology, he says.

However, unlike a general business degree, a hospitality degree typically includes specialized coursework focusing on the hospitality industry, such as classes on food service business operations, event management principles, and hotel and resort leadership, Sabitoni says. An overview class about tourism is also typically included in hospitality management programs, and industry internships are often mandatory, he adds.

Many hospitality degree programs require students to participate in experiential learning by helping to operate a student-run hotel or restaurant. They may also contain classes on:

  • Eco-tourism or sustainable travel
  • Global tourism and special considerations involved with international trips
  • Customer service protocols
  • Assessing the quality of guest experiences
  • Specific types of hospitality establishments, such as country clubs, golf courses, resorts, stadiums, timeshares or theme parks
  • Nuances involved in planning certain kinds of events, such as conventions or weddings
  • Concerns that face certain demographics of customers, including women and people of color
  • Various types of tourism, including business trips and visits to cultural destinations or historical sites

Top Undergraduate Schools With Hospitality Management Majors

Many U.S. colleges and universities allow undergraduates to major in hospitality management, including multiple nationally renowned academic institutions. Cornell University of New York, an Ivy League college, has a school devoted to hospitality.

Exceptional hospitality programs are often based in major metropolitan areas that attract significant tourism. For example, New York University and Boston University in Massachusetts offer a hospitality management degree.

How to Know if a Hospitality Management Degree Is Right for You

An interest in the food and beverage sector, a love for travel or an interest in entertaining people may lead someone to consider pursuing a degree in hospitality management. But prospective students should be aware that the hospitality sector has leadership roles for people with all kinds of interests and personalities.

Though some managerial positions in the hospitality industry are customer-facing jobs that require significant people skills, there are also back-of-the-house managerial jobs that concentrate on logistics, Sabitoni says.

Significant cultural awareness and strong communication abilities are essential in hospitality. Foreign language skills are also valuable but not mandatory, Sabitoni says.

What You Can Do With a Hospitality Management Degree

Hospitality programs are designed to train future leaders in the sector.

“It can include anything within the hospitality vertical, from hotel investment companies to real estate firms to our big brands which are the Marriotts, the Hiltons, the Four Seasons, to data analytics companies to Googles to Amazons,” says Kate Walsh, dean of the Peter and Stephanie Nolan School of Hotel Administration at Cornell. “Anything that touches hospitality as a part of their business product is something where our students get involved.”

Real estate investment firms often invest in hotel buildings, so people with degrees in hospitality management sometimes find jobs in the real estate sector, Walsh says. Alumni of hospitality management programs sometimes become management consultants who concentrate on assisting companies in the hospitality industry, she adds.

Executive and director roles in the industry typically require at least a bachelor's degree. Many high-level leadership positions at U.S. hospitality firms pay annual salaries above $70,000, according to an article published by Monster.com, a job website.

In 2020, graduates of Cornell's Nolan School had an average base salary of slightly over $69,000 and an average bonus of nearly $15,000, according to the school's employment report .

Considerations for Potential Hospitality Students

Aspiring hospitality managers should be aware of trends that may affect them when they enter the industry, experts say.

This sector has severe labor shortages at hotels and restaurants, many of which laid off workers due to pandemic-related safety measures and now have struggled to replace those workers even after raising wages.

Because of these staffing concerns, many hospitality companies have introduced initiatives to recruit and retain talented staff, improve working conditions, increase job satisfaction and reduce employee turnover, Walsh says.

When comparing hospitality programs, prospective students should investigate whether those programs include experiential learning opportunities, experts say, noting that hands-on projects are one of the best ways to gain hospitality skills. It’s also optimal if hospitality schools offer courses on design, which can inform aesthetic choices about how a hospitality venue looks, according to experts.

“I think the industry needs innovative thinkers," Walsh says. "They need people who think big culturally, who are comfortable with different modes of work, so it’s a great time to join the industry. The industry is trying to be extremely intentional in providing compelling career paths.”

Searching for a grad school? Get our  complete rankings of Best Graduate Schools.

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  • BS in Hospitality, Travel and Tourism Management

BS in Hotel and Tourism Management Student at Roman Colosseum

Bachelor of Science (BS) in Hospitality, Travel and Tourism Management

If you are considering a hospitality major as your undergraduate program of study, the BS in Hospitality, Travel and Tourism Management, offered by the Jonathan M. Tisch Center of Hospitality prepares students for careers in hospitality, travel and tourism, tourism experience management, hotel and resort management, and hotel real estate development. The curriculum provides you with flexibility to explore career options way beyond what a typical hospitality and tourism degree might offer. As a student enrolled in this program, you’ll benefit immensely from earning your degree at NYU , home to more than 50,000 students from around the globe, while launching your career in New York City—a location defined by its world-class hotels and tourist attractions.

Degree Advantage

  • Curriculum  prepares students for hospitality and tourism jobs around the world
  • Provides an NYU liberal arts education
  • Concentrations  in Event Management , Hotel Real Estate Finance and Development , Marketing and Analytics , Leadership and Management , Travel and Tourism Development , and Entrepreneurship
  • Internships at leading NYC hotels, restaurants, tourism bureaus, online travel agencies, and promotional companies
  • Study abroad opportunities  and industry site visits
  • New Hospitality Innovation Hub for students, start ups, and industry partners

VIEW FULL CURRICULUM AND DEGREE REQUIREMENTS >

Who should earn the bs in hospitality, travel and tourism management.

If you have a passion for travel, love to interact with people, and have an innate curiosity to learn about different cultures, this degree provides the knowledge and skills needed for a hospitality career. The diversity of the Tisch Center student body and faculty members promotes a worldview that will be critical for your success in a field that is more globally interconnected than ever before.

Degree Overview

Learn from a faculty of world-renowned experts.

Faculty members are respected experts in the hospitality, hotel management, and travel and tourism sectors who share their knowledge, insights, experiences, and connections. They work directly with you to ensure that you identify and pursue the professional path that best fits your career goals and objectives. Their support and deep dedication is what makes earning a degree from the Tisch Center an experience unlike all others.

Gain Invaluable Experience Through Study Abroad

Study abroad opportunities abound for BS in Hospitality, Travel and Tourism Management students through Global Field Intensives (GFIs). These travel experiences provide international business experience while attuning students to the cultural, socio-economic, and political forces that influence the international hospitality, and travel and tourism industries. Recent GFIs include trips to: Abu Dhabi, Dubai, Prague, and Berlin.

Benefit from Unsurpassed Networking Opportunities

The BS in Hospitality, Travel and Tourism Management provides unsurpassed networking opportunities through the annual  NYU International Hospitality Industry Investment Conference , chaired by  Jonathan M. Tisch , chairman and CEO of Loews Hotels and Co. (left); the Grossinger-Bergman Distinguished Lecturer Series, which features hospitality leaders such as  David Marriott ; and fireside chats with the likes of famed chefs and restaurateurs  Daniel Boulud  and  Danny Meyer .

Internships and Job Opportunities

Through the Tisch Center of Hospitality and the NYU Wasserman Center for Career Development at NYU SPS, hospitality, travel and tourism management majors have the opportunity to complete a wide range of hospitality, and travel and tourism internships that provide the hands-on experience needed to accelerate their careers. Many of these internships evolve into permanent hospitality and tourism jobs. Our graduates go on to careers at top hotel chains, boutique hotels, travel organizations, tourism bureaus, media companies, restaurants, and food and beverage companies including:

  • Estee Lauder Companies
  • Four Seasons Hotels and Resorts
  • Loews Hotels
  • Marriott International
  • The Standard Hotels
  • Walt Disney World

FREQUENTLY ASKED QUESTIONS

How does this degree differ from a hospitality management degree.

The BS in Hospitality, Travel and Tourism Management differs from a hospitality management degree in its holistic approach to the hospitality, travel, and tourism sectors. While traditional undergraduate hospitality management degrees focus on hotels and restaurants, you will have the opportunity in this degree to also explore subjects like destination marketing, tourism development, and event management.

Will this degree prepare me for hotel management jobs?

The BS in Hospitality, Travel and Tourism Management will prepare you for a range of hotel industry jobs and career paths. You will have the opportunity to specialize in your field of interest, including hotel or tourism operations, sales and marketing, revenue management or hotel development. Our students secure internships and work at large multinational hotel chains as well as independent boutique hotels.

Is tourism management a growing field?

Tourism management offers a broad range of career options for those who are interested in pursuing tourism jobs. The tourism sector has experienced incredible growth in the past decades. with 1.8 billion tourists—just over one in five persons in the world—traveling around the globe by 2030 (UNWTO). The BS in Hospitality, Travel and Tourism Management provides students with the opportunity to secure internships at a broad range of tourism destinations including Walt Disney World.

Can an undergraduate hotel management degree help my career?

An undergraduate hotel management degree can help your career, because it will provide you with a wealth of business skills and the networking opportunities that can lead to a wide variety of hotel management jobs. The hospitality sector is vast and offers a wealth of career choices, but even if you decide to switch career paths, the business foundation you acquire will allow you to pursue a career in a variety of other professional sectors. In addition, earning an undergraduate degree at NYU will open the doors to job opportunities in New York City and around the world.

What are the advantages of earning a hospitality management degree in New York City?

The advantage of earning your hospitality management degree in New York City is that you will be studying in the hospitality capital of the world. New York City is home to top hotels, the finest restaurants, major tourist attractions and thousands of world-famous events. The City will become your professional base for exploring your interests in hospitality, travel and tourism management and for gaining the experience you need to secure a job in this growing field.

Reimagining the $9 trillion tourism economy—what will it take?

Tourism made up 10 percent of global GDP in 2019 and was worth almost $9 trillion, 1 See “Economic impact reports,” World Travel & Tourism Council (WTTC), wttc.org. making the sector nearly three times larger than agriculture. However, the tourism value chain of suppliers and intermediaries has always been fragmented, with limited coordination among the small and medium-size enterprises (SMEs) that make up a large portion of the sector. Governments have generally played a limited role in the industry, with partial oversight and light-touch management.

COVID-19 has caused an unprecedented crisis for the tourism industry. International tourist arrivals are projected to plunge by 60 to 80 percent in 2020, and tourism spending is not likely to return to precrisis levels until 2024. This puts as many as 120 million jobs at risk. 2 “International tourist numbers could fall 60-80% in 2020, UNWTO reports,” World Tourism Organization, May 7, 2020, unwto.org.

Reopening tourism-related businesses and managing their recovery in a way that is safe, attractive for tourists, and economically viable will require coordination at a level not seen before. The public sector may be best placed to oversee this process in the context of the fragmented SME ecosystem, large state-owned enterprises controlling entry points, and the increasing impact of health-related agencies. As borders start reopening and interest in leisure rebounds in some regions , governments could take the opportunity to rethink their role within tourism, thereby potentially both assisting in the sector’s recovery and strengthening it in the long term.

In this article, we suggest four ways in which governments can reimagine their role in the tourism sector in the context of COVID-19.

1. Streamlining public–private interfaces through a tourism nerve center

Before COVID-19, most tourism ministries and authorities focused on destination marketing, industry promotions, and research. Many are now dealing with a raft of new regulations, stimulus programs, and protocols. They are also dealing with uncertainty around demand forecasting, and the decisions they make around which assets—such as airports—to reopen will have a major impact on the safety of tourists and sector employees.

Coordination between the public and private sectors in tourism was already complex prior to COVID-19. In the United Kingdom, for example, tourism falls within the remit of two departments—the Department for Business, Energy, and Industrial Strategy (BEIS) and the Department for Digital, Culture, Media & Sport (DCMS)—which interact with other government agencies and the private sector at several points. Complex coordination structures often make clarity and consistency difficult. These issues are exacerbated by the degree of coordination that will be required by the tourism sector in the aftermath of the crisis, both across government agencies (for example, between the ministries responsible for transport, tourism, and health), and between the government and private-sector players (such as for implementing protocols, syncing financial aid, and reopening assets).

Concentrating crucial leadership into a central nerve center  is a crisis management response many organizations have deployed in similar situations. Tourism nerve centers, which bring together public, private, and semi-private players into project teams to address five themes, could provide an active collaboration framework that is particularly suited to the diverse stakeholders within the tourism sector (Exhibit 1).

We analyzed stimulus packages across 24 economies, 3 Australia, Bahrain, Belgium, Canada, Egypt, Finland, France, Germany, Hong Kong, Indonesia, Israel, Italy, Kenya, Malaysia, New Zealand, Peru, Philippines, Singapore, South Africa, South Korea, Spain, Switzerland, Thailand, and the United Kingdom. which totaled nearly $100 billion in funds dedicated directly to the tourism sector, and close to $300 billion including cross-sector packages with a heavy tourism footprint. This stimulus was generally provided by multiple entities and government departments, and few countries had a single integrated view on beneficiaries and losers. We conducted surveys on how effective the public-sector response has been and found that two-thirds of tourism players were either unaware of the measures taken by government or felt they did not have sufficient impact. Given uncertainty about the timing and speed of the tourism recovery, obtaining quick feedback and redeploying funds will be critical to ensuring that stimulus packages have maximum impact.

2. Experimenting with new financing mechanisms

Most of the $100 billion stimulus that we analyzed was structured as grants, debt relief, and aid to SMEs and airlines. New Zealand has offered an NZ $15,000 (US $10,000) grant per SME to cover wages, for example, while Singapore has instituted an 8 percent cash grant on the gross monthly wages of local employees. Japan has waived the debt of small companies where income dropped more than 20 percent. In Germany, companies can use state-sponsored work-sharing schemes for up to six months, and the government provides an income replacement rate of 60 percent.

Our forecasts indicate that it will take four to seven years for tourism demand to return to 2019 levels, which means that overcapacity will be the new normal in the medium term. This prolonged period of low demand means that the way tourism is financed needs to change. The aforementioned types of policies are expensive and will be difficult for governments to sustain over multiple years. They also might not go far enough. A recent Organisation for Economic Co-operation and Development (OECD) survey of SMEs in the tourism sector suggested more than half would not survive the next few months, and the failure of businesses on anything like this scale would put the recovery far behind even the most conservative forecasts. 4 See Tourism policy responses to the coronavirus (COVID-19), OECD, June 2020, oecd.org. Governments and the private sector should be investigating new, innovative financing measures.

Revenue-pooling structures for hotels

One option would be the creation of revenue-pooling structures, which could help asset owners and operators, especially SMEs, to manage variable costs and losses moving forward. Hotels competing for the same segment in the same district, such as a beach strip, could have an incentive to pool revenues and losses while operating at reduced capacity. Instead of having all hotels operating at 20 to 40 percent occupancy, a subset of hotels could operate at a higher occupancy rate and share the revenue with the remainder. This would allow hotels to optimize variable costs and reduce the need for government stimulus. Non-operating hotels could channel stimulus funds into refurbishments or other investment, which would boost the destination’s attractiveness. Governments will need to be the intermediary between businesses through auditing or escrow accounts in this model.

Joint equity funds for small and medium-size enterprises

Government-backed equity funds could also be used to deploy private capital to help ensure that tourism-related SMEs survive the crisis (Exhibit 2). This principle underpins the European Commission’s temporary framework for recapitalization of state-aided enterprises, which provided an estimated €1.9 trillion in aid to the EU economy between March and May 2020. 5 See “State aid: Commission expands temporary framework to recapitalisation and subordinated debt measures to further support the economy in the context of the coronavirus outbreak,” European Commission, May 8, 2020, ec.europa.eu. Applying such a mechanism to SMEs would require creating an appropriate equity-holding structure, or securitizing equity stakes in multiple SMEs at once, reducing the overall risk profile for the investor. In addition, developing a standardized valuation methodology would avoid lengthy due diligence processes on each asset. Governments that do not have the resources to co-invest could limit their role to setting up those structures and opening them to potential private investors.

3. Ensuring transparent, consistent communication on protocols

The return of tourism demand requires that travelers and tourism-sector employees feel—and are—safe. Although international organizations such as the International Air Transport Association (IATA), and the World Travel & Tourism Council (WTTC) have developed a set of guidelines to serve as a baseline, local regulators are layering additional measures on top. This leads to low levels of harmonization regarding regulations imposed by local governments.

Our surveys of traveler confidence in the United States  suggests anxiety remains high, and authorities and destination managers must work to ensure travelers know about, and feel reassured by, protocols put in place for their protection. Our latest survey of traveler sentiment in China  suggests a significant gap between how confident travelers would like to feel and how confident they actually feel; actual confidence in safety is much lower than the expected level asked a month before.

One reason for this low level of confidence is confusion over the safety measures that are currently in place. Communication is therefore key to bolstering demand. Experience in Europe indicates that prompt, transparent, consistent communications from public agencies have had a similar impact on traveler demand as CEO announcements have on stock prices. Clear, credible announcements regarding the removal of travel restrictions have already led to increased air-travel searches and bookings. In the week that governments announced the removal of travel bans to a number of European summer destinations, for example, outbound air travel web search volumes recently exceeded precrisis levels by more than 20 percent in some countries.

The case of Greece helps illustrate the importance of clear and consistent communication. Greece was one of the first EU countries to announce the date of, and conditions and protocols for, border reopening. Since that announcement, Greece’s disease incidence has remained steady and there have been no changes to the announced protocols. The result: our joint research with trivago shows that Greece is now among the top five summer destinations for German travelers for the first time. In July and August, Greece will reach inbound airline ticketing levels that are approximately 50 percent of that achieved in the same period last year. This exceeds the rate in most other European summer destinations, including Croatia (35 percent), Portugal (around 30 percent), and Spain (around 40 percent). 6 Based on IATA Air Travel Pulse by McKinsey. In contrast, some destinations that have had inconsistent communications around the time frame of reopening have shown net cancellations of flights for June and July. Even for the high seasons toward the end of the year, inbound air travel ticketing barely reaches 30 percent of 2019 volumes.

Digital solutions can be an effective tool to bridge communication and to create consistency on protocols between governments and the private sector. In China, the health QR code system, which reflects past travel history and contact with infected people, is being widely used during the reopening stage. Travelers have to show their green, government-issued QR code before entering airports, hotels, and attractions. The code is also required for preflight check-in and, at certain destination airports, after landing.

4. Enabling a digital and analytics transformation within the tourism sector

Data sources and forecasts have shifted, and proliferated, in the crisis. Last year’s demand prediction models are no longer relevant, leaving many destinations struggling to understand how demand will evolve, and therefore how to manage supply. Uncertainty over the speed and shape of the recovery means that segmentation and marketing budgets, historically reassessed every few years, now need to be updated every few months. The tourism sector needs to undergo an analytics transformation to enable the coordination of marketing budgets, sector promotions, and calendars of events, and to ensure that products are marketed to the right population segment at the right time.

Governments have an opportunity to reimagine their roles in providing data infrastructure and capabilities to the tourism sector, and to investigate new and innovative operating models. This was already underway in some destinations before COVID-19. Singapore, for example, made heavy investments in its data and analytics stack over the past decade through the Singapore Tourism Analytics Network (STAN), which provided tourism players with visitor arrival statistics, passenger profiling, spending data, revenue data, and extensive customer-experience surveys. During the COVID-19 pandemic, real-time data on leading travel indicators and “nowcasts” (forecasts for the coming weeks and months) could be invaluable to inform the decisions of both public-sector and private-sector entities.

This analytics transformation will also help to address the digital gap that was evident in tourism even before the crisis. Digital services are vital for travelers: in 2019, more than 40 percent of US travelers used mobile devices to book their trips. 7 Global Digital Traveler Research 2019, Travelport, marketing.cloud.travelport.com; “Mobile travel trends 2019 in the words of industry experts,” blog entry by David MacHale, December 11, 2018, blog.digital.travelport.com. In Europe and the United States, as many as 60 percent of travel bookings are digital, and online travel agents can have a market share as high as 50 percent, particularly for smaller independent hotels. 8 Sean O’Neill, “Coronavirus upheaval prompts independent hotels to look at management company startups,” Skift, May 11, 2020, skift.com. COVID-19 is likely to accelerate the shift to digital as travelers look for flexibility and booking lead times shorten: more than 90 percent of recent trips in China  were booked within seven days of the trip itself. Many tourism businesses have struggled to keep pace with changing consumer preferences around digital. In particular, many tourism SMEs have not been fully able to integrate new digital capabilities in the way that larger businesses have, with barriers including language issues, and low levels of digital fluency. The commission rates on existing platforms, which range from 10 percent for larger hotel brands to 25 percent for independent hotels, also make it difficult for SMEs to compete in the digital space.

Governments are well-positioned to overcome the digital gap within the sector and to level the playing field for SMEs. The Tourism Exchange Australia (TXA) platform, which was created by the Australian government, is an example of enabling at scale. It acts as a matchmaker, connecting suppliers with distributors and intermediaries to create packages attractive to a specific segment of tourists, then uses tourist engagement to provide further analytical insights to travel intermediaries (Exhibit 3). This mechanism allows online travel agents to diversify their offerings by providing more experiences away from the beaten track, which both adds to Australia’s destination attractiveness, and gives small suppliers better access to customers.

Government-supported platforms or data lakes could allow the rapid creation of packages that include SME product and service offerings.

Governments that seize the opportunity to reimagine tourism operations and oversight will be well positioned to steer their national tourism industries safely into—and set them up to thrive within—the next normal.

Download the article in Arabic  (513KB)

Margaux Constantin is an associate partner in McKinsey’s Dubai office, Steve Saxon is a partner in the Shanghai office, and Jackey Yu  is an associate partner in the Hong Kong office.

The authors wish to thank Hugo Espirito Santo, Urs Binggeli, Jonathan Steinbach, Yassir Zouaoui, Rebecca Stone, and Ninan Chacko for their contributions to this article.

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The magazine of Glion Institute of Higher Education

  • What is tourism and hospitality?

hotel and tourism business

Tourism and hospitality are thriving industries encompassing many sectors, including hotels, restaurants, travel, events, and entertainment.

It’s an exciting and dynamic area, constantly evolving and adapting to changing customer demands and trends.

The tourism and hospitality industry offers a diverse range of career opportunities that cater to various interests, skills, and qualifications, with positions available from entry-level to executive management.

The booming tourism  and hospitality industry also offers job security and career growth potential in many hospitality-related occupations.

What is tourism?

Tourism is traveling for leisure, pleasure, or business purposes and visiting various destinations, such as cities, countries, natural attractions, historical sites, and cultural events, to experience new cultures, activities, and environments.

Tourism can take many forms, including domestic, or traveling within your country, and international tourism, or visiting foreign countries.

It can also involve sightseeing, adventure tourism , eco-tourism, cultural tourism, and business tourism, and it’s a huge contributor to the global economy, generating jobs and income in many countries.

It involves many businesses, including airlines, hotels, restaurants, travel agencies, tour operators, and transportation companies.

What is hospitality?

Hospitality includes a range of businesses, such as hotels, restaurants, bars, resorts, cruise ships, theme parks, and other service-oriented businesses that provide accommodations, food, and beverages.

Hospitality is all about creating a welcoming and comfortable environment for guests and meeting their needs.

Quality hospitality means providing excellent customer service, anticipating guests’ needs, and ensuring comfort and satisfaction. The hospitality industry is essential to tourism as both industries often work closely together.

What is the difference between tourism and hospitality?

Hospitality and tourism are both related and separate industries. For instance, airline travel is considered as part of both the tourism and hospitality industries.

Hospitality is a component of the tourism industry, as it provides services and amenities to tourists. However, tourism is a broader industry encompassing various sectors, including transportation, accommodation, and attractions.

Transform your outlook for a successful career as a leader in hospitality management

This inspiring Bachelor’s in hospitality management gives you the knowledge, skills, and practical experience to take charge and run a business

hotel and tourism business

Is tourism and hospitality a good career choice?

So, why work in hospitality and tourism? The tourism and hospitality industry is one of the fastest-growing industries in the world, providing a colossal number of job opportunities.

Between 2021 and 2031, employment in the hospitality and tourism industry is projected to expand faster than any other job sector, creating about 1.3 million new positions .

A tourism and hospitality career  can be a highly rewarding choice for anyone who enjoys working with people, has a strong service-oriented mindset, and is looking for a dynamic and exciting career with growth potential.

Growth and job opportunities in tourism and hospitality

Tourism and hospitality offers significant growth and job opportunities worldwide. The industry’s increasing demand for personnel contributes to economic and employment growth, particularly in developing countries.

The industry employs millions globally, from entry-level to high-level management positions, including hotel managers, chefs, tour operators, travel agents, and executives.

It provides diverse opportunities with great career progression and skill development potential.

Career paths in tourism and hospitality

hotel and tourism business

There are many career opportunities in tourism management and hospitality. With a degree in hospitality management, as well as relevant experience, you can pursue satisfying and fulfilling hospitality and tourism careers in these fields.

Hotel manager

Hotel managers oversee hotel operations. They manage staff, supervise customer service, and ensure the facility runs smoothly.

Tour manager

Tour managers organize and lead group tours. They work for tour companies, travel agencies, or independently. Tour managers coordinate a group’s transportation, accommodations, and activities, ensuring the trip runs to schedule.

Restaurant manager

Restaurant managers supervise the daily operations of a restaurant. They manage staff, ensure the kitchen runs smoothly, and monitor customer service.

Resort manager

Resort managers supervise and manage the operations of a resort. From managing staff to overseeing customer service, they ensure the entire operation delivers excellence.

Entertainment manager

Entertainment managers organize and oversee entertainment at venues like hotels or resorts. They book performers, oversee sound and lighting, and ensure guests have a great experience.

Event planner

Event planners organize and coordinate events, such as weddings, conferences, and trade shows. They work for event planning companies, hotels, or independently.

vent planners coordinate all aspects of the event, from the venue to catering and decor.

Travel consultant

Travel consultants help customers plan and book travel arrangements, such as flights, hotels, and rental cars. They work for travel agencies or independently. Travel consultants must know travel destinations and provide superb customer service.

What skills and qualifications are needed for a career in tourism and hospitality?

hotel and tourism business

Tourism and hospitality are rewarding industries with growing job opportunities. Necessary qualifications include excellent skills in communication, customer service, leadership, problem-solving, and organization along with relevant education and training.

Essential skills for success in tourism and hospitality

A career in the tourism and hospitality industry requires a combination of soft and technical skills and relevant qualifications. Here are some of the essential key skills needed for a successful career.

  • Communication skills : Effective communication is necessary for the tourism and hospitality industry in dealing with all kinds of people.
  • Customer service : Providing excellent customer service is critical to the success of any tourism or hospitality business . This requires patience, empathy, and the ability to meet customers’ needs.
  • Flexibility and adaptability : The industry is constantly changing, and employees must be able to adapt to new situations, be flexible with their work schedules, and handle unexpected events.
  • Time management : Time management is crucial to ensure guest satisfaction and smooth operations.
  • Cultural awareness : Understanding and respecting cultural differences is essential in the tourism and hospitality industry, as you’ll interact with people from different cultures.
  • Teamwork : Working collaboratively with colleagues is essential, as employees must work together to ensure guests have a positive experience.
  • Problem-solving : Inevitably, problems will arise, and employees must be able to identify, analyze, and resolve them efficiently.
  • Technical skills : With the increasing use of technology, employees must possess the necessary technical skills to operate systems, such as booking software, point-of-sale systems, and social media platforms.

Revenue management : Revenue management skills are crucial in effectively managing pricing, inventory, and data analysis to maximize revenue and profitability

Master fundamental hospitality and tourism secrets for a high-flying career at a world-leading hospitality brand

With this Master’s degree, you’ll discover the skills to manage a world-class hospitality and tourism business.

hotel and tourism business

Education and training opportunities in tourism and hospitality

Education and training are vital for a hospitality and tourism career. You can ensure you are prepared for a career in the industry with a Bachelor’s in hospitality management   and Master’s in hospitality   programs from Glion.

These programs provide a comprehensive understanding of the guest experience, including service delivery and business operations, while developing essential skills such as leadership, communication, and problem-solving. You’ll gain the knowledge and qualifications you need for a successful, dynamic, and rewarding hospitality and tourism career.

Preparing for a career in tourism and hospitality

To prepare for a career in tourism and hospitality management, you should focus on researching the industry and gaining relevant education and training, such as a hospitality degree . For instance, Glion’s programs emphasize guest experience and hospitality management, providing students with an outstanding education that launches them into leading industry roles.

It would help if you also worked on building your communication, customer service, and problem-solving skills while gaining practical experience through internships or part-time jobs in the industry. Meanwhile, attending industry events, job fairs, and conferences, staying up-to-date on industry trends, and networking to establish professional connections will also be extremely valuable.

Finding jobs in tourism and hospitality

To find jobs in tourism and hospitality, candidates can search online job boards, and company career pages, attend career fairs, network with industry professionals, and utilize the services of recruitment agencies. Hospitality and tourism graduates can also leverage valuable alumni networks and industry connections made during internships or industry projects.

Networking and building connections in the industry

Networking and building connections in the hospitality and tourism industry provide opportunities to learn about job openings, meet potential employers, and gain industry insights. It can also help you expand your knowledge and skills, build your personal brand, and establish yourself as a valuable industry professional.

You can start networking by attending industry events, joining professional organizations, connecting with professionals on social media, and through career services at Glion.

Tips for success in tourism and hospitality

hotel and tourism business

Here are tips for career success in the tourism and hospitality industry.

  • Gain relevant education and training : Pursue a hospitality or tourism management degree from Glion to gain fundamental knowledge and practical skills.
  • Build your network : Attend industry events, connect with colleagues and professionals on LinkedIn, and join relevant associations to build your network and increase your exposure to potential job opportunities.
  • Gain practical experience : Look for internships, part-time jobs, or volunteering opportunities to gain practical experience and develop relevant skills.
  • Develop your soft skills : Work on essential interpersonal skills like communication, empathy, and problem-solving.
  • Stay up-to-date with industry trends : Follow industry news and trends and proactively learn new skills and technologies relevant to tourism and hospitality.
  • Be flexible and adaptable : The tourism and hospitality industry constantly evolves, so be open to change and to adapting to new situations and challenges.
  • Strive for excellent guest service : Focus on delivering exceptional guest experiences as guest satisfaction is critical for success.

Tourism and hospitality offer many fantastic opportunities to create memorable guest experiences , work in diverse and multicultural environments, and develop transferable skills.

If you’re ready to embark on your career in tourism and hospitality, Glion has world-leading bachelor’s and master’s programs to set you up for success.

Photo credits Main image: Maskot/Maskot via Getty Images

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How to Start a Hotel Business: Everything You Need to Know

close up of hotel exterior with sign

Wondering how to start a hotel business? You’re not alone. One of the first-ever hotels , as we’ve come to know them, was started in Exeter, England in 1768. Today, the industry has skyrocketed to be part of one of the largest in the world.  But dreaming of starting a hotel business and actually doing it are two completely different things. That's where we come in. 

In this guide, we’ll teach you how to start a hotel business with step-by-step instructions, expert advice, and actionable tips. Keep reading to discover the fundamentals all hotel businesses need to succeed.

The steps we cover in this guide:

  • Step 1: Find a market need
  • Step 2: Craft your strategic goals
  • Step 3: Run the numbers
  • Step 4: Review financing options
  • Step 5: Do your paperwork
  • Step 6: Hire and train your team
  • Step 7: Draft a marketing plan
  • Step 8: Launch your hotel business

Discover how to start a hotel business in 8 steps:

Step 1: find a market need..

The first and most important step when learning how to start a hotel business is to gain a thorough understanding of the hospitality industry worldwide, as well as in your location. To get started, find your favorite hotel news sources , then set aside time each day or week to stay informed. Once you have some familiarity with the industry, it’s time to dive into the market research for your hotel.

Let us help you start your hotel business

Cvent's resources library is a great place to start. It's where you can read the latest news, thought leadership, and best practices from a wide variety of industry experts. The goal of your industry research is to get a clear idea of whether you can be competitive in your market. Also, what characteristics your hotel will need in order to succeed. 

Rather than starting with an idea and making the research fit, try to find an area of need in your market. What audiences are underserved? Where is demand outpacing supply? What does your location need in terms of hospitality and accommodation?

To give you a good understanding of where you’ll fit in, your market research should include:

  • Property type. All hotels are not built the same. The industry is made up of resorts, spas, airport hotels, all-inclusives, hostels, boutiques, and many other property types. Determine what property type you plan to offer and what other options in that category exist in your location.
  • Hotel size. Closely related to your property type is the hotel size. How many guest rooms will you offer, and how does that compare to your competitors?
  • Star rating. What level of service and hotel amenities do you plan to offer?
  • Location. What region will you operate in? Is demand increasing in the area? What location amenities, like airports, beaches, or event venues , will you be in close proximity to?
  • Brand affiliation. Will you be a part of a larger brand’s umbrella? Being affiliated with a brand can help with marketing , business intelligence, pricing, and audience targeting.
  • Extra amenities. What services or amenities are important for hotels of your type and star rating in your location? Things like free Wi-Fi, meeting space, a pool, or wedding services  are all important, depending on your target audience.
  • Guest demographics. How would you define the types of guests who may frequent your location? What is the purpose of travel, and what are some common characteristics of these travelers? Knowing whether you are targeting business travelers, families, couples, solo travelers, retirees, or other demographic groups will help you to craft your marketing plan and hotel concept.

All of this research should give you a good idea of your main competitors and target audience. Those two pieces of information will determine everything else about your property, from budget and financing to marketing and daily operations. Spend time on this step to make sure you’ve found a true need in the market. You’ll be better prepared for success.

You can utilize tools like Cvent's Hotel Business Intelligence™ Software Solutions to provide you with the transformative business insights needed to conduct your market research and benchmark against the competition.

Step 2: Craft your hotel's strategic goals.

Once you have an understanding of market needs, you’ll need to create a smart solution to fill that gap. Your unique combination of amenities, concept, decor, marketing, location, and services can help you stand out from the crowd and capture market share if you approach it strategically.

Consider how you’ll approach pricing, revenue management , sustainability, customer satisfaction, events, and other market needs when crafting your goals. As with all goals, they should be S.M.A.R.T - specific, measurable, attainable, relevant, and time-based. According to the Naples Hotel Group , an expert hotel development firm, some of the best goals a hotel owner can focus on include: 

  • Measuring and increasing customer satisfaction.
  • Creating a solid revenue management system.
  • Building a strong online reputation.
  • Attending at least one hotel industry conference .
  • Considering working with a consulting firm to bypass the common roadblocks new hotel owners face.

Make sure the needs of the market and your target audience, along with your business needs, help determine your goals. This will ensure that everything you do helps your customers, as well as your bottom line.

You can use a hotel business plan template to outline the results of your research and planning, including your competitive advantage, goals, and your plan to get those results.

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Step 3: Run the numbers.

With your goals and plan in place, it’s time to run the numbers to make sure you'll be profitable. Using your market research, you can estimate key factors like room pricing, vacancy rates, RevPAR (revenue per available room), and operating costs. A basic overview of hotel finances will help you hire the right revenue manager and sales team later on. The two key areas to focus on are profitability and any external factors that may affect your hotel business. You’ll also need to estimate initial costs for your hotel business. This includes startup and hiring costs, licensing, permits, construction, renovations, and your first year of operations.

Set up a few scenarios in your forecasting to see how key decisions affect the potential profitability of your business. For instance, do you want to buy or build? Buying into a franchise or taking over an existing hotel building has lower startup costs, unless you have to renovate extensively. But it also requires you to establish your new hotel identity, which can be a challenge depending on the current state of the business. On the other hand, building a hotel, while usually considerably more expensive upfront, can provide a solution to a lack of available buildings and can be more lucrative in the long run. 

Step 4: Review financing options for your hotel business.

Once you decide on the right financial plan for your business, you’re ready to fund it. There are a number of available options for financing your hotel business. Jim Pendergast, Senior Vice President and General Manager of altLINE , discussed this topic in a recent interview with Cvent.

“It's important to understand the full scope of financing options available for your hotel's funding," he said. "Generally, you have two commercial financing categories when opening your hotel: traditional credit or specialty credit.

With traditional credit lines, you receive financing based on long-term assets. These are things like real estate owned by your hotel as well as cash flow projections and calculations submitted during underwriting. Lenders review these assets before awarding your loan.

With specialty credit, you'll receive financing or credit lines based on near-term assets. This might be hotel equipment or invoices from accounts receivable. The idea is these backings are more liquid than what's needed in traditional lending.

Both traditional and specialty financing are appropriate vehicles for hotels depending on your capital needs. However, the larger and more established your hotel franchise, the more specialty lending could make ongoing sense. This is because large hotels manage significant account receivables operations. 

Consider the amount of credit card transactions that must be administered. Also, hospitality-related vendor operations happening within the establishment. The larger your AR activities, the more something like AR-based asset lending and similar specialty lending might benefit you.”

Step 5: Do your paperwork.

There are many important legal, regulatory, and insurance requirements to fulfill in order to establish any new business. Your hotel business is no different. 

Consult with your legal, insurance, accounting, and operations teams to determine the requirements for your location. At a minimum, you’ll need to set up a business structure and get business insurance. You will also likely need building or renovation permits, hotel licensing, and licensing for serving food and alcoholic beverages. There will also be a number of health and safety requirements as you complete your building or renovation process. 

All of this paperwork is not the motivating factor for getting into the hospitality industry, but it is important. Work with your team to check requirements at the local, state, and federal level. Additionally, keep on top of the process throughout so you don’t have to repair costly mistakes later.

Modern hotel management begins here

Step 6: Hire and train your hotel team.

A business is only as good as the team members that contribute to its success. By hiring great employees at all levels, you’ll set yourself up to deliver value to your guests and become a market leader.

Many hotels opt to hire for executive and departmental positions first, setting the tone and direction. These leaders can then identify what they want to see within their teams and how many staff members they need. Each team should identify the roles and skills they’re looking for, as well as developing a plan to reach and source great new hires.

Make sure that your application and interview processes are easy for candidates so that you don’t introduce needless friction. Find ways to communicate your core mission, values, and approach to this new business throughout the hiring process. This will help you attract candidates who share your vision.

Once you’ve hired a great team, take the time to onboard and train them. This is an incredibly important step that will help everyone in the long run. Any employees who will interact with guests should receive extra training on customer service and guest relations so that they’re ready to lend a helping hand, regardless of whether it’s in their job descriptions.

Focus from the beginning on becoming the employer of choice in your market. You’ll attract a stellar team that’s ready to help you become a market leader.

Step 7: Draft a marketing plan.

You’re now ready to share your hotel concept with the world. Well in advance of opening, you’ll need to spread the word and set yourself up for a profitable launch. 

Your hotel marketing plan is an important part of your overall business strategy. It guides your decision-making on decor, daily operations, communications, customer service, and more. 

Think back to the target audience that you identified in your market research. Using that initial audience, you can now conduct more in-depth customer research to determine who your customers are. Also, where you’ll find them, how you’ll communicate with them, and how they define value.

Hotel marketing made simple

Hotel marketing expert and Co-Founder of Saffron Key, Ben Weagraff, advises that there is no one-size-fits-all plan for new hotel businesses.

“There’s a number of strategies that can work very well,” he told SiteMinder . “But they depend on the hotel itself; its digital properties (including website , email relationships , the strength of social media channels ) and what exactly the hotel is trying to do.”

He goes on to note: “However, generally these techniques present a good repeatable path towards driving high-value customers. The greatest thing about content marketing is that it is low-cost, measurable, repeatable, and it builds upon itself. Once the foundation is in place, customers roll in at increasing rates.”

If you’re looking for ideas for inspiration, check out  Marriott’s marketing strategy . Also, be sure to check out all of Cvent's hotel marketing solutions  to help guide you throughout the process.

Step 8: Launch your hotel business.

At this point, you’ve put in the work to open a profitable and high-quality hotel business for your market. You’ve got the plan and the team to make your vision a reality. Now it’s time to launch.

The goal of your launch is of course to introduce your hotel to guests. But it’s also a great opportunity to introduce yourself to the local community, key stakeholders, influencers, and potential partners. Put your best foot forward with these audiences by planning a grand opening event that reflects your mission and values.

Use event planning and diagramming tools to create your layouts, collaborate with vendors, and assign tasks to team members. As long as you focus on building relationships with your community, investors, and potential clients, your grand opening will be a success. 

Now you know how to start a hotel business using proven strategies from across the industry.

Now that you know how to start a hotel business, it's time to start thinking about reputation. Read on for  hotel reputation management tips every hotelier should know.

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What Is Hospitality Management? Careers, Skills, Salaries, and More

Discover examples of jobs in the hospitality industry, needed skills and education, and hospitality courses you can take to advance your career.

[Featured Image] A businesswoman in a blazer sits outside at a cafe and considers a career in hospitality management.

Hospitality management involves all the tasks and aspects associated with managing a hospitality business. These businesses focus on welcoming customers and providing them with pleasant experiences, whether through dining, lodging, events, entertainment, or travel. 

Take a closer look at how hospitality management is different from hotel management and examples of hospitality management career paths. You'll also discover the skills and education you may need to succeed in this industry, the job outlook, and how to get started.

Hospitality management vs. hotel management

Hotel management has to do with the lodging industry only, and hospitality management involves a variety of industries. Hotel management is a type of hospitality administration. You'll find that most hospitality businesses fall under one of five key categories:

Food and beverage

Meetings and events

Travel and tourism 

Career paths in hospitality management 

A background in hospitality management may open a variety of job opportunities. Here are some of the career paths you can take.

*All salary data sourced from Glassdoor June 2022

Hotel general manager

Hotel general managers use business, management, and interpersonal skills to oversee the day-to-day operations of a hotel, motel, lodge, inn, or resort. The various hotel department heads report directly to them, and they must have knowledge of all areas of hotel management. Depending on size, the departments within a hotel might include:

Food and beverage services

Front office

Housekeeping

Human resources

Information technology

Kitchen and food production

Maintenance and engineering

Marketing and sales

The level of education needed for a hotel general manager depends on the size of the business. If you want to work for a full-service hotel, you'll likely need a bachelor's degree in hotel management or hospitality. Smaller hotels will often hire general managers with an associate degree. Luxury hotels may require you to have a master's degree in hospitality management. 

Average annual salary (US): $67,918

Property operations manager 

In addition to mechanical and engineering knowledge, property operations managers need good organizational skills, a knack for time management, and an ability to work well individually. This position may also be referred to as a property maintenance manager. 

As a property operations manager, you'll conduct regular inspections on properties such as resorts or hotels. Inspections help ensure that the property’s appearance is up to standard and that all parts of the property are operating normally. You will either do maintenance and repairs yourself or supervise your maintenance staff members. 

You can take a few routes to get a job as a property operations manager after graduating from high school. Consider getting an apprenticeship, going to trade school, or getting a bachelor's degree in industrial engineering.

Average annual salary (US): $51,004

Restaurant manager

Restaurant managers perform all the tasks that ensure a restaurant runs smoothly, such as:

Hiring restaurant staff

Setting schedules

Dealing with customer problems

Overseeing food prep and plating

Ordering food and restaurant supplies

Special skills that might benefit you in this job include the ability to work under pressure, flexibility with your schedule, and good communication skills. 

To become a restaurant manager, you can get a high school diploma and work your way up to the position in a restaurant, or you can get a degree. Many restaurant management positions call for at least an associate degree in restaurant management or hospitality management.  

Average annual salary (US): $49,789

Front office manager

Front office managers are responsible for the operation of a front office. In the hospitality industry, this might be the front office of a hotel, a casino, an event company, or an eco-adventure business. Some duties may include:

Overseeing the front office staff

Record keeping

Answering phone calls

Interacting with customers 

Some workplace skills you'll need include an ability to communicate in person and in writing, good supervisory skills, and the capacity to work well under pressure. 

You'll need at least a high school diploma or the equivalent to become a front office manager and some experience working in a front office. Or, you can get an associate or bachelor's degree in communications, business management, or human resources .  

Average annual salary (US): $42,740

Director of housekeeping

A director of housekeeping is in charge of the housekeeping department in a business that provides lodging like a hotel or resort. Some duties include:

Hiring and training housekeeping staff

Managing staff schedules

Overseeing housekeeping needs for regular business and events

Helping out with cleaning tasks 

To get a position as a director of housekeeping, you might only need a high school diploma or a GED and significant housekeeping experience. However, some housekeeping director positions require an associate degree in hotel management or hospitality management.

Special skills needed for this job include:

The ability to work well alone or with a team

Superior customer service

Good time management skills

Average annual salary (US): $55,266

Sommeliers have a deep knowledge of wine and understand how to recommend and serve it to customers. Their knowledge of wine might include:

Types of grapes used to make wines

Where wine grapes are grown

Select wine regions around the world

The proper way to taste wine  

To become a sommelier, it helps to have experience in a fine dining restaurant as a front-of-house attendant. It's possible to work your way up to a sommelier position, but an educational program designed specifically for sommeliers can be an efficient way to learn what you need to know. Examples of two institutions that offer sommelier education programs include the Wine & Spirit Education Trust (WSET) and the Court of Master Sommeliers (CMS). The time it takes to get these certifications typically spans from about 18 months to three years.

Average annual salary (US): $60,908

Catering assistant

Catering assistants work for catering companies, which prepare and serve meals for events. Special skills needed for this position include knowledge of food preparation, food service, and food safety. You'll also need good time management and customer service skills . 

Catering assistant duties include:

Loading and unloading food and catering supplies

Washing, cutting, and peeling foods

Preparing salads and sauces

Setting up dining areas and buffets 

To become a catering assistant, you'll usually need a high school diploma or the equivalent and some experience working in the food industry. 

Average annual salary (US): $32,671

Travel agent

Travel agents plan different aspects of trips for travelers. Duties typically include conducting research and consulting with customers. They’re also responsible for booking flights, cruises, car rentals, hotels, tours, restaurant reservations, and event tickets. Special skills useful to travel agents include good verbal communication, time management, and the ability to work under pressure.  

To become a travel agent, you'll need a high school diploma or the equivalent and at least a few courses in travel planning from a community college or a vocational school. 

Average annual salary (US): $39,189

As a tour guide, you'll provide visitors or travelers with information about a particular place or a group of places. Examples include museums, government buildings, historic sites, parks, neighborhoods, and whole towns or cities. Additional job duties might include:

Collecting fees

Providing maps and brochures

Translating for foreign visitors

Giving briefings on safety procedures

Special skills that benefit tour guides include:

An engaging personality

Comfortable at public speaking

The ability to stay organized

Foreign language skills 

Average annual salary (US): $33,312

Event planner

When you're an event planner, you're responsible for the activities that ensure an event goes smoothly. Your duties often include:

Booking event sites 

Hiring caterers, entertainment, photographers, and other vendors

Consulting with customers

Overseeing staff

Negotiating vendor contracts

Supervising event setup and breakdown 

Important event planner skills include time management, the ability to work under pressure, and attention to detail.

While some event planning jobs require an associate or bachelor's degree in hospitality management. Several certifications may also help you qualify for more positions. A few examples include Certificate in Meeting Management (CMM) or Certified Special Events Professional (CSEP). 

Average annual salary (US): $41,189

Hotel marketing manager

As a marketing manager at a hotel, you're responsible for maximizing profits by boosting customer awareness and satisfaction. Duties typically include:

Managing hotel marketing staff 

Promoting the hotel through print, radio, video, and online marketing

Conducting market research to determine the needs of customers 

Building good customer relations 

To become a hotel marketing manager it's common to have a bachelor's degree in marketing or hotel management and have some experience in sales or marketing.   

Average annual salary (US): $54,579

Do you need a degree to work in hospitality management?

Whether or not you need a degree to work in hospitality management depends on the job. While a tour guide may not need a college degree, a hotel general manager often requires a master's degree. 

What skills do you need to work in hospitality management?

Having good communication skills, attention to detail, and proficiency in the technical skills specific to your job may help you succeed in hospitality management. Here's a look at the workplace skills and technical skills you will typically need.  

Workplace skills

Since jobs in the hospitality industry focus on giving customers enjoyable experiences, certain people skills are valuable. These often include:

Communication

Time management

Ability to multitask

Attention to detail

A positive attitude

Problem-solving

Flexibility

Technical skills

The types of technical skills you'll need for a job in the hospitality industry depend on the particular job. For instance, if you have a position as a front office manager, you may need to be good with numbers and have familiarity with accounting software. For an event planning position, you'd want to know about design, and as a hotel marketing manager, you would benefit from having a strong grasp of social media.

Read more: Hard Skills vs. Soft Skills: What’s the Difference?

What is the job outlook for hospitality management?

The coronavirus pandemic greatly affected the leisure and hospitality industry. In April 2020, jobs in the industry decreased by 48 percent, but employment has steadily risen since January 2021 and the industry has made a significant rebound to recover almost all of that employment loss as of March 2022 [ 1 ]. This is especially true for the private industry, as opposed to government employers. Therefore, the job outlook appears relatively bright.  

To pursue your interest in a career in hospitality management, here are a few ways to get started:

Consider an internship or an entry-level job in the hospitality industry to determine if it's a good fit for you.

Identify if you have special knowledge or skills that would transfer to a hospitality management position.

Get a better understanding of the industry by taking a few hospitality courses. 

If you're interested in being a general manager, front office manager, or marketing manager in a hotel, check out this hotel management specialization offered by ESSEC Business School on Coursera. If the travel and tourism industry is more to your liking, you might be interested in a course on sustainable tourism from the University of Copenhagen. 

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Article sources

1. US Travel Association. " Leisure and Hospitality Employment Update , https://www.ustravel.org/sites/default/files/2022-03/leisure-hospitality-employment _march-2022-update.pdf." Accessed March 30, 2022.

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This content has been made available for informational purposes only. Learners are advised to conduct additional research to ensure that courses and other credentials pursued meet their personal, professional, and financial goals.

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Hospitality and Tourism Management Major

White Lodging-J.W. Marriott, Jr. School of Hospitality and Tourism Management

Consistently ranked as one of the leading hospitality and tourism management programs, both globally and nationally, Purdue’s hospitality and tourism management program will immerse you in the fast-paced hospitality industry and prepare you to work in a variety of management positions. Hospitality is internationally relevant and a powerful economic driver, and Purdue’s hospitality and tourism management major equips you with valuable skills to create memorable experiences for consumers.

Coursework is challenging and relevant to today’s workforce needs, and you’ll learn from faculty who bring years of industry experience into the classroom. To prepare you to be a well-rounded hospitality business professional, courses explore accounting, marketing, lodging, food service, tourism, human resource management, law and more. The major also offers a strong foundation of management classes. Additionally, the program’s hands-on learning experiences will prepare you to work in any facet of the industry, from food service to lodging to tourism and beyond. You’ll also participate in a 320-hour hospitality and tourism management paid internship that aligns with your professional career goals. 

Through a tremendous partnership with White Lodging — a relationship that is unique to Purdue — students are also provided with opportunities and support from a leading hospitality company that is second to none. The White Lodging LAUNCH Hospitality Immersion Program provides hospitality and tourism students the opportunity to work on campus at the Union Club Hotel , part of Marriott’s Autograph Collection of brands. These world-class facilities provide an exceptional learning laboratory for students, and is the only luxury student-run hotel of its kind.

Career Opportunities

Students who majored in hospitality and tourism management have a 98% job placement rate, finding successful careers at Amazon, Disney, Hilton Hotels and Resorts, Marriott International, White Lodging Services, and more. The following are notable career paths for hospitality and tourism management majors:

  • Account executive
  • Airline operations manager
  • Catering director
  • Convention/event planner
  • Corporate recruiter
  • Corporate travel manager
  • Country club manager
  • Director, convention and visitors bureaus
  • Entrepreneur
  • Events services manager
  • Event planner
  • Facilities manager (casino, healthcare, resort, sports venue, etc.)
  • Food and beverage director
  • Food service manager
  • Hotel general manager
  • Hotel operations director
  • Human resources recruiter
  • Marketing associate
  • Product/equipment supplier
  • Property manager
  • Reservations coordinator
  • Restaurant designer
  • Restaurant owner/manager
  • Revenue manager
  • Sales representative
  • Travel agency manager

Career Resources

  • The  HTM Career Center  provides career planning services and coordinates more than 700 interviews each year.
  • HTM Career Day  brings representatives from the industry to campus each fall for a career fair, keynote address and reception for employers and students.
  • The  Center for Career Opportunities offers additional career fairs and assistance.
  • The Certificate in Entrepreneurship and Innovation can complement your hospitality and tourism management degree without the need to take additional credits.

Learning Experiences

  • Connect all your hospitality and tourism management knowledge in the capstone course as you build your own hospitality business with a team of classmates.
  • Complete two mandatory  paid internships .
  • Immerse yourself in a world-class hotel learning experience right on campus at the Union Club Hotel when participating in White Lodging’s LAUNCH Hospitality Immersion Program . 
  • Train in the school’s two  restaurants : the John Purdue Room (fine dining) and the Boiler Bistro (quick service).
  • Complete an optional six-month paid internship at a Shangri-La Hotel in China, or  study abroad  at various destinations around the world.
  • Join  HTM student organizations that are mentored by our award-winning faculty, including the HTM Society, which organizes the annual  Black Tie Dinner fundraising event.
  • Enhance your plan of study by completing the event and meeting management minor or a certificate in the White Lodging-J.W. Marriott, Jr. School of Hospitality and Tourism Management.
  • Participate in research activities to explore of a variety of topics within hospitality and tourism management.

Program Quick Facts

Degree Type: Bachelor’s

Location: West Lafayette

Department/School: White Lodging-J.W. Marriott, Jr. School of Hospitality and Tourism Management

White Lodging logo

Concentrations

Environmental Sustainability

The optional environmental sustainability concentration examines issues related to sustainability in the hospitality and tourism industry. Courses cover sustainable tourism and responsible travel, environmental ethics, environmental policy and more.

Hospitality Facilities Design and Management

The optional hospitality facilities design and management concentration allows you to focus on the systems, technology and architectural components of the hospitality industry. Courses cover mechanical and electrical systems, technology systems, construction management, facility design, project management and more.

Marketing and Sales

The optional marketing and sales concentration is designed for individuals interested in the process of generating revenue for hospitality and tourism businesses. Courses cover public relations, advertising, relationship selling, marketing, consumer behavior and more.

The optional finance concentration allows you to gain in-depth knowledge of managing financial affairs and financial decision-making in the business world. Courses cover investment management, corporate finance, international finance and more.

“Growing up as a part of a military family, I have moved many times. When it came time to select a university, I was living in Germany and had no idea where I wanted to go, but I knew I wanted to become an event management professional. After doing my research, I chose Purdue because of its highly esteemed HTM program!” — Claire

Hometown:  Fayetteville, North Carolina Major:   Hospitality & Tourism Management   Why Purdue:  Growing up as a part of a military family, I have moved many times. When it came time to select a university, I was living in Germany and had no idea where I wanted to go, but I knew I wanted to become an event management professional. After doing my research, I chose Purdue because of its highly esteemed HTM program! Favorite Place at Purdue:  My favorite place at Purdue is either the Marriott atrium or Mackey Arena. So many fun memories in both of those locations! Advice for an Incoming Freshman:  Don’t be afraid to change! College is all about finally having the chance to become someone you’ve always wanted to be. Seek out exciting opportunities to learn and grow, and trust me, these four years go by so fast, and you don’t want to waste a minute of it! I’m the president of HTM Society’s   Black Tie Dinner , if you have questions about anything please contact  [email protected] . Instagram:  @purdueblacktie

Other Hospitality and Tourism Management Majors

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16 Chapter 16 Hospitality & Tourism

Richard Parsons; Stephen Skripak; Anastasia Cortes; Anita Walz; and Gary Walton

Learning Objectives

  • Understand what tourism is: definition, components, and importance.
  • Understand the economic, social and environmental benefits and costs of tourism.
  • Define hospitality and the pineapple tradition.
  • Identify the types of hotel categories and how they are determined.
  • Examine the different categories of food service operations.
  • Understand the different types of events, meetings and conventions.

A photograph of a postcard rack, with seven different types of postcards on it. Each postcard shows different scenery. The main postcard in focus in the middle of the picture. It shows a red building to the left with a bridge over water to another building to the right, with a yellow boat in the foreground.

The tourism industry is often cited as the largest industry in the world, contributing 10% of the world’s GDP. In 2016 there were over 1.2 billion international tourists: that’s a substantial economic impact and movement of goods and services! 1 Tourism is also considered an export and is unique in that the consumers come to the product where it is consumed on-site. Before we dig any deeper, let’s explore what the term “tourism” means.

Definition of Tourism

There are a number of ways tourism can be defined. The United Nations World Tourism Organization (UNWTO) embarked on a project from 2005 to 2007 to create a common glossary of terms for tourism. It defines tourism as follows:

A social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors (which may be either tourists or excursionists; residents or non-residents) and tourism has to do with their activities, some of which imply tourism expenditure. 2

In other words, tourism is the movement of people for a number of purposes (whether business or pleasure). It is important to understand the various groups and constituencies involved in this movement. Of course it includes the tourist, but also the vast array of businesses providing goods and services for the tourist, the government and political structure of a destination, and the local residents of the destination community itself. Each of these components are necessary parts of a successful tourism destination and operate within private and public sectors, the built environment, and the natural environment. All these come together to create the processes, activities, and outcomes of tourism.

If it all seems a little overwhelming, it might be helpful to break tourism down into broad industry groups, each of which will be covered in this chapter:

Accommodation and Lodging

  • Food and Beverage Services (F & B)

Recreation and Entertainment

  • Convention & Event Management

Travel Services

  • Private Clubs

Benefits and Costs of Tourism

Tourism impacts can be grouped into three main categories: economic, social, and environmental. These impacts are analyzed using data gathered by businesses, governments, and industry organizations. Some impacts gain more attention than others. It is also important to recognize that different groups and constituencies are impacted differently.

Economic Impacts of Tourism

The tourism industry has a huge economic impact that continues to expand to new markets and destinations. According to the UNWTO, in 2016 “The total export value from international tourism amounted to US$ 1.5 trillion.” 3  Regions with the highest growth in terms of tourism dollars earned (2016 vs 2015) are Africa, Asia and the Pacific, the Americas Europe. Only the Middle East posted negative growth at the time of the report. As well, the UNWTO’s Tourism 20 3 0 Vision report predicts that international arrivals will reach nearly 1.8 billion by 2030. 4 Figure 16.2 provides additional information about the impact of tourism worldwide.

Four smaller circles arranged vertically in a half circle surround a larger circle with the text “The impact of global tourism. Circles and content listed from top to bottom: 1) A globe with the words “10% GDP.” 2) A person with one hand on their stomach and the other hand waving with the words “Provides 1 of every 11 jobs worldwide.” 3) Two stacks of cash with the words “6% of global exports.” 4) A small desk bell with the words “30% of global services exports.”

Positive impacts from this economic boom include robust foreign exchange, increases in income, and GDP growth. Tourism can also offer diverse employment opportunities, can be developed with local products, and is often compatible with other economic activities within a destination. Tourism often injects money into the community that leads to secondary economic development as well. For example, successful resorts may create the need for a commercial laundry facility or a pet boarding business.

However, there are also negative impacts. Property values may increase to the point of unaffordability for local residents, and the seasonality of the tourism industry may create a feast-or-famine economy. As with any economy, if too many resources are focused on just one industry, communities may be vulnerable to any unexpected economic, social, or environmental changes. One example is the New Jersey shore after the devastation of Hurricane Sandy in 2012. The tourism industry was severely impacted, leaving no economic fallback for local residents.

Social Impacts of Tourism

In addition to the economic benefits of tourism development, positive social impacts include an increase in amenities (e.g., parks, recreation facilities), investment in arts, culture, heritage and tradition, celebration of indigenous communities, and community pride. Tourism also has the potential to break down language, socio-cultural, religious, and political barriers. When developed conscientiously, tourism can, and does, contribute to a positive quality of life for residents and promotes a positive image of the destination.

However, as identified by the United Nations Environment Programme, negative social impacts of tourism can include: change or loss of indigenous identity and values; culture clashes; changes in family structure; conflict within the community for the tourism dollar; and ethical issues, including an increase in sex tourism, crime, gambling, and/or the exploitation of child workers. 5

Environmental Impacts of Tourism

Tourism relies on, and greatly impacts, the natural environment in which it operates. In some destinations, there is a great appreciation of the environmental resources as the source of the tourism industry, and as such there are environmental protection policies and plans in place. Tourism has helped to save many delicate ecosystems and their flora and fauna. Preservation of these important resources benefits not only the tourist but also the local residents as well.

Even though many areas of the world are conserved in the form of parks and protected areas, tourism development can still have severe negative economic impacts. According to The United Nations Environment Programme, these can include the depletion of natural resources (water, forests, etc.), pollution (air pollution, noise, sewage, waste and littering), and physical impacts (construction activities, marina development, trampling, loss of biodiversity, and spread of disease). 6

The environmental impacts of tourism can reach beyond local areas and have an effect on the global ecosystem. One example is increased air travel, which is often identified as a major contributor to climate change.

Whether positive or negative, tourism is a force for change around the world, and the industry is transforming at a staggering rate.

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The Hospitality Industry

When looking at tourism it is important to consider the term hospitality. Some define hospitality as “the business of helping people to feel welcome and relaxed and to enjoy themselves.” 7 Simply put, the hospitality industry is the combination of the accommodation and food and beverage groupings, collectively making up the largest segment of the industry.

A photograph of the Shirley Plantation, shown from the front with a path leading up to the house. The house is three stories tall, with five windows on each story. A porch on the front of the house is two stories high. Trees are lined up on either side of the house, with a blue sky in the background.

The pineapple has long been the symbol of hospitality. The Caribs, indigenous people of the Lower Antilles in the Caribbean, first used it as such a symbol. The Spaniards knew they were welcome if a pineapple was placed at the entrance to the village. This symbolism spread across Europe and North America where it became the custom to carve the shape of a pineapple into the columns at the entrance of the plantation. 8 Charles Carter added a three and a half foot wooden pineapple to the peak of the roof at Shirley Plantation, the first plantation in Virginia. 9 It is now common to see the image of the pineapple as a sign of welcome, warmth and hospitality.

The types of employees and resources required to run an accommodation business — whether it be a hotel, motel, or even a campground — are quite similar. All these businesses need staff to check in guests, provide housekeeping, employ maintenance workers, and provide a place for people to sleep. As such, they can be grouped together under the heading of accommodation and lodging . Figure 16.4 summarizes the various groupings within the industry.

Hotel Types

Hotels are typically referred to by hotel type or other classifications. Hotel type is determined primarily by how it will function and what amenities will be included within the property. Size, location, service levels and type of business or targeted market segments are additional classifications. Industry also classifies hotels by chain scale…separating hotels into categories determined by their average daily rates. Various ownership structures and brand affiliations also differentiate hotels.

Classifications

Hotels may be classified on a number of different variables. Type of Hotel : There are numerous classifications by hotel type including all-inclusive hotels, all-suite properties, B&B/Inns, boutique, convention/conference centers, condo hotels, resort, extended stay, full service, casino, limited service and timeshare properties. Size and Complexity: A hotel can be classified by the number of guest rooms it has; hotel sizes can range from a small boutique hotel with fewer than 50 rooms to a large resort hotel with more than 1,000 rooms. The complexity of the hotel is determined by the volume and number of additional revenue generating functions such as the square feet of available conference space, number of F&B operations and additional services and amenities like pools, fitness centers, spas, golf, etc. Location: The location of a hotel can also determine the type of guest served. An airport hotel may be very different from a city-center property in an urban environment, or a remote island resort or a small quaint bed and breakfast located on top of a mountain. Hotels that specialize in conferences, may locate near entertainment destinations like Las Vegas or Disney theme parks to provide pre-post conference activities for attendees. Service Level: The level of service provided is also a key variable, ranging from an inexpensive budget or economy hotel, (Limited or Focused Service Hotels) which may have limited services and amenities, to upscale and luxury hotels (Full Service Hotels) with many services and a wide range of amenities. Market Segmentation: Figure 16.5 on the next page outlines the characteristics of specific hotel types that have evolved to match the needs of a particular traveler segment. As illustrated, hotels adapt and diversify depending on the markets they desire and need to drive occupancy levels and generate revenues. Some hotels will specialize in a specific market segment, but in today’s competitive environment, most hotels will target a combination of these segments.

There are several other industry related organizations, such as Forbes and AAA which provide Consumer Ratings for individual hotels….another form of classifying a property. Forbes has traditionally awarded 1 to 5 “Stars” and AAA, 1 to 5 “Diamond” ratings. Additionally, many social media applications like Trip Advisor offer hotel property ratings to consumers.

Chain Scale: Smith Travel Research (STR) is an organization that provides the lodging industry with global data benchmarking, analytics and marketplace insights. STR classifies the lodging industry into six chain scale segments according to their respective brand Average Daily Rate (ADR). The six segments are defined as Luxury ; Upper Upscale ; Upscale ; Mid-Scale with F&B ( Upper Mid-Scale ); Mid-Scale without F&B ( Mid-Scale ) and Economy . Through STR’s 30 –plus years of service to the hospitality industry, they have developed vital benchmarking performance solutions, established market trend transparency and provided data used by the investment community to support hotel development projects. Their core product, the STAR report, provides hotel owners and operators with comparative performance data between their property and a defined set of market competitors and allows you to follow trends in hotel occupancy, average daily rate (ADR) and revenue per available room (RevPar). Developers, investors, industry analysts, hotel brands and management companies all utilize STR data when determine what type of hotel to build and what location would provide maximum opportunity for success.

A pie chart of segments of the hotel market. In order from largest percentage to smallest percentage: Upper Upscale, 41.5%; Upscale, 22.3%; Luxury, 15.4%; Upper Midscale, 10.0%; Midscale, 6.2%; Economy, 4.6%.

The type of ownership, brand affiliation and management are also very important variables in the classification of hotels. Owners may manage their own hotels independently but in today’s competitive environment, they would likely sign a Franchise Agreement with a nationally recognized brand as well as a Management Contract with a hotel management company to manage the property. A hotel chain such as Marriott, Hilton, Hyatt or IHG (Intercontinental Hotel Group) is comprised of multiple brands: Marriott, following their recent merger with Starwood currently has 30 different hotel brands, with each name representing a different level of price, service or targeted market segments.

Branding Decision

Selecting a brand affiliation is one of the most significant decisions hotel owners must make. 10 The brand affiliation selected will largely determine the cost of hotel development or conversion of an existing property to meet the standards of the new brand. The affiliation will also determine a number of things about the ongoing operation including the level of services and amenities offered, cost of operation, marketing opportunities or restrictions, and the competitive position in the marketplace. For these reasons, owners typically consider several branding options before choosing to operate independently or to adopt a brand affiliation.

Franchise Agreements

Another managerial and ownership structure is franchising. A hotel franchise enables individuals or investment companies (the franchisee) to build or purchase a hotel and then buy or lease a brand name to become part of a chain of hotels using the franchisor’s hotel brand, image, loyalty program, goodwill, procedures, cost controls, marketing, and reservations systems. 11

A franchisee becomes part of a network of properties that use a central reservations system with access to electronic distribution channels, regional and national marketing programs, central purchasing, revenue management support, and brand operating standards. A franchisee also receives training, support, and advice from the franchisor and must adhere to regular inspections, audits, and reporting requirements.

Selecting a franchise structure may reduce investment risk by enabling the franchisee to associate with an established hotel company. Franchise fees can be substantial, and a franchisee must be willing to adhere to the contractual obligations with the franchisor. 12 Franchise fees typically include an initial fee paid with the franchise application and continuing fees paid during the term of the agreement. These fees are usually a percentage of revenue but can be set at a fixed fee. The total percentage of sales ranges significantly for hotels from 3.3% – 14.7% with a median of 11.8%. 13

A photograph of the San Diego cityscape at night, lit up with lights. The San Diego Marriott in the foreground, a large, arch shaped skyscraper. Water is to the right of the Marriott, with lighted docks extending into the water. A highway is to the left, lined with streetlights. Other buildings are in the background, including two other skyscrapers to the left and two in the distance.

Management Contracts

It is common for ownership to utilize a management contract , which is a service offered by a management company to manage a hotel or resort for its owners. Owners have two main options for the structure of a management contract. One is to enter into a management agreement with an independent third-party hotel management company to manage the hotel. There are hundreds of these companies, but some of the large organizations include Aimbridge, Benchmark Hospitality, Crescent Hotels, Interstate Hotels, and White Lodging. A slightly different option is for owners to select a single company to provide both the brand and the expertise to manage the property. Marriott, Hilton, and Hyatt, are companies that provide this second option to owners.

A photograph of the front entrance of The Inn at Virginia Tech, shown from the front with a path leading up to the entrance. The building is rectangular and two stories high, with windows on each level. The front entrance features four stone columns, with three triangles forming the roof. A white car sits under the roof, where people are unloading bags.

Food and Beverage Services

A photograph of what appears to be two spring rolls, sitting on top of a layer of rice with green and orange sauce. Red flowers accent the spring rolls. The food sits on top of a white plate, on a white background.

The food and beverage sector is commonly known to industry professionals by its initials F&B. The F&B sector grew from simple origins to meet the basic needs for food and beverage services to increasing demand for unique experiences and broader options. As the interests of the public became more diverse, so too did the offerings of the F&B sector. The increasing awareness and demand for organic, sustainable, local or craft options as well as special dietary needs in food and beverage continue to challenge this industry. In addition, in order to better attract and serve a diverse array of diners, the F&B industry now consists of a variety of segments. The following is a discussion of each.

Quick Service Restaurants

Formerly known as fast-food restaurants, examples of  quick-service restaurants , or QSRs, include Chick-fil-A, Subway, and Pizza Hut. This prominent portion of the food sector generally caters to both residents and visitors, and it is represented in areas that are conveniently accessed by both. Brands, chains, and franchises dominate the QSR landscape. While the sector has made steps to move away from the traditional “fast-food” image and style of service, it is still dominated by both fast food and food fast; in other words, food that is purchased and prepared quickly, and generally consumed quickly as well.

A picture of a blue interstate sign, labeled “Food - Exit 44.” The sign features six different fast food logos in two rows, each row containing three logos. In order from left to right, starting with the first row: Blimpie, IHOP, KFC, McDonalds, Subway, and Romano’s Macaroni Grill.

Fast Casual Restaurants

Fast Casual restaurants focus on higher quality ingredients than QSR’s and provide made-to-order food in an environment that does not include table service. Customers usually queue and order at a counter. The seating area is more upscale and comfortable. Examples would include Chipotle Mexican Grill, Panera and Jason’s Deli.

A photograph of the outside of a Red Robin restaurant, as seen from the road. The Red Robin sign sits on top of the building, and shrubs sit in front of the building.

Full-Service Restaurants

Full-service restaurants  are perhaps the most fluid of the F&B operation types, adjusting and changing to the demands of the marketplace. Consumer expectations are higher here than with QSRs. 14 The menus offered are varied, but in general reflect the image of the restaurant or consumer’s desired experience. Major segments include fine dining, family/casual, ethnic, and upscale casual. Fine dining  restaurants are characterized by highly trained chefs preparing complex food items, exquisitely presented. Meals are brought to the table by experienced servers with sound food and beverage knowledge in an upscale atmosphere with table linens, fine china, crystal stemware, and silver-plate cutlery. The table is often embellished with fresh flowers and candles. In these businesses, the average check, which is the total sales divided by number of guests served, is quite high (often reviewed with the cost symbols of three or four dollar signs: $$ \$\$\$ or \$\$\$\$ $$.) Examples include the Inn at Little Washington, Ruth’s Chris Steakhouse and Capitol Grille.

A photograph of the inside of Le Procope. Four tables with white tablecloths are in the foreground, with wooden chairs around them. Behind them on the wall are mirrors and a display of glasses.

Casual restaurants serve moderately-priced to upscale food in a more casual atmosphere. Casual dining comprises a market segment between fast casual establishments and fine dining restaurants. Casual dining restaurants often have a full bar with separate bar staff, a larger beer menu and a limited wine menu. This segment is full of chains such as Chili’s, Outback, Red Robin and Cracker Barrel as well as many independent restaurants in regional or local markets.

Family restaurants  offer affordable menu items that span a variety of customer tastes. They also have the operational flexibility in menu and restaurant layout to welcome large groups of diners. An analysis of menus in family/casual restaurants reveals a high degree of operational techniques such as menu item cross-utilization, where a few key ingredients are repurposed in several ways. Both chain and independent restaurant operators flourish in this sector. Examples of chains in this category would be Golden Corral, Cici’s Pizza and Ponderosa Steakhouse.

Ethnic restaurants  typically reflect the owner’s cultural identity, Vietnamese, Cuban, Thai, etc. The growth and changing nature of this sector reflects the acceptance of various ethnic foods within our communities. Ethnic restaurants generally evolve along two routes: toward remaining authentic to the cuisine of the country of origin or toward larger market acceptance through modifying menu items. 15 Examples would be P.F. Chang’s, Tara Thai or Pei Wei.

Bars, Wineries, and Craft Distilling

The beverage industry continues to evolve as well with a strong focus on local craft beers, wines, cider and distilling. Wineries exist in almost every state, with over 250 in Virginia as of 2015. 16 Wine, bourbon, cider trails and brew pub crawls, etc. are used to generate awareness and create experiences for customers. Wineries often use event space or festivals to take advantage of the beauty of the winery and supplement their revenues.

Institutional Food Service

Institutional f ood s ervice is large scale and often connected to governmental (National Parks) or corporate level organizations. Often run under a predetermined contract, the institutional F&B sector includes:

  • Educational institutions
  • Prisons and other detention facilities
  • Corporate staff cafeterias
  • National Park restaurants and concessions
  • Cruise ships
  • Airports and other transportation terminals and operations

Examples of companies who focus on Institutional Food Service are Compass, Sodexho, Aramark.

A flow chart of the restaurant industry career path in six levels. The path begins at the bottom with Lead Cook. The next three levels split into two columns, one to the left and right. The left column, in order: Assistant Restaurant Manager; Restaurant Manager; Assistant General Manager. The right column, in order: Sous Chef; Executive Sous Chef; Executive Chef. Both columns combine for the next level, General Manager. The last level is Regional Manager.

Accommodation Food Service

This sector includes hotel restaurants and bars, room service, and self-serve dining operations (such as a breakfast room).  Hotel restaurants are usually open to the public and reliant on this public patronage in addition to business from hotel guests. Collaborations between hotel and restaurant chains have seen reliable pairings such as the combination of Shula’s Steakhouse and Marriott Hotels.

Restaurant Industry Profitability and Cost Control

According to the National Restaurant Association, QSRs have the highest pre-tax profit margin at 6.3%, while full-service restaurants have a margin of 4.7%. There will be significant variances from these percentages at individual locations, even within the same brand. 17

A number of costs influence the profitability of an F&B operation. Some of the key operating expenses (as a percentage of revenue) are detailed in Figure 16.16, above, where food cost and salaries & wages are the two major expenses, each accounting for approximately a third of the total. Other expenses include rental and leasing of venue, utilities, advertising, and depreciation of assets. These percentages represent averages, and will vary greatly by sector and location.

Cost control and containment is essential for all F&B businesses. Demanding particular attention are the labor, food, and beverage costs, also known as the operator’s primary costs. In addition to these big ticket items, there is the cost of reusable operating supplies such as cutlery, glassware, china, and linen in full-service restaurants.

Recreation can be defined as the pursuit of leisure activities during one’s spare time 19 and can include vastly different activities such as golfing, sport fishing, and rock climbing. Defining recreation as it pertains to tourism, however, is more challenging.

Let’s start by exploring some recreation-based terms that are common in the tourism industry. Outdoor recreation can be defined as “outdoor activities that take place in a natural setting, as opposed to a highly cultivated or managed landscape such as a playing field or golf course.” 20   This term is typically applied to outdoor activities in which individuals engage close to their community. When these activities are further away, and people must travel some distance to participate in them, they are often described as “adventure tourism”. According to the United Nations World Tourism Organization (UNWTO), adventure tourism is “a trip that includes at least two of the following three elements: physical activity, natural environment, and cultural immersion.” 21

A photograph of nine people in helmets and lifejackets, sitting in a raft in the water. The person in front has their hand raised in a wave toward the camera. In the background is a waterfall and greenery.

Ultimately, categorization is based on a combination of several factors, including manner of engagement in the activity (risk exposure, experience requirement, group or solo activity), the distance travelled to access the activity, and the type of environment (proximity to nature, level of challenge involved) in which the activity occurs.

A 2013 adventure tourism market study discovered that people who travel for adventure experiences tend to be well-educated, with 48% holding a four-year degree or higher credential. They value natural beauty and rank this factor highest when choosing a destination. The most cited reasons for their travel are “relaxation, exploring new places, time with family, and learning about different cultures.” 22

Globally, it is estimated that the continents of Europe, North America, and South America account for 70% of adventure tourism, or US$263 billion in adventure travel spending. 23

Entertainment

Entertainment is a very broad category which overlaps with many of the areas discussed elsewhere in this chapter, like hotels and accommodation. Two major types of entertainment that we’ll discuss here are gaming and theme parks.

Gaming has grown significantly in the U.S. and globally. The number of casinos in the U.S. has been growing since 2010, and in 2013, there were over 500 commercial casinos, as shown in Figure 16.16. Casinos are found all over the U.S. in major cities, riverboats, and on Native American lands. However, U.S. casino revenue has been relatively flat, while global gaming revenues have been on the increase, largely due to Asian market growth. Most casinos involve other facets of the Hospitality industry such as lodging, F&B, golf, entertainment, spas, etc., but they also have the added challenges of casino operations.

A combination chart of U.S. casino revenue and global casino revenue in bars, and the number of U.S. commercial casinos in a line. The x-axis shows the year from 2006 to 2013, in one year increments. The left y-axis shows industry revenues in billions of dollars from 0 to 180 in increments of 20. The right y-axis shows the number of casinos from 400 to 520, in increments of 20, corresponding to the line plot. The U.S. casino revenue bars begin in 2006 at 60, and stay relatively constant until 2013. The global casino revenue bars begin in 2006 at 100, and steadily increase to 160 in 2013. The number of U.S. commercial casinos line begins at around 460 in 2006, dips to a low point in 2010 at 440, then increases to over 500 in 2013.

Theme Parks

Theme parks have a long history dating back to the 1500’s in Europe, and have evolved ever since. Today, it is hard not to compare any amusement park destination to Disneyland and Disney World. Opened in 1955 in sunny California, Disneyland set the standard for theme parks. Theme parks outside of California and Florida are often highly seasonable operations challenged with significant staffing and training requirements each year.

A photograph of the Disney castle at night. The castle is lit up in purple lights. Two white fireworks have exploded behind the castle.

Convention and Event Management

A convention is a large meeting of people with similar interests who meet for a period of at least a few days to discuss their field. An  event  is a gathering at a given place and time, usually of some importance, often celebrating or commemorating a special occasion.

Both conventions and events can be extremely complex projects, which is why, over time, the role of meeting planners has taken on greater importance. The development of education, training programs, and professional designations such as CMPs (Certified Meeting Planners), CSEP (Certified Special Events Professional), and CMM (Certificate in Meeting Management) has led to increased credibility in this business and demonstrates the importance of the sector to the economy.

Meeting planners may be independent contractors hired to facilitate the planning process, work directly for the company full time to coordinate their meeting, or work for hotels, conference centers and event venues directly.

  • The various tasks involved in meeting and event planning include:
  • Conceptualizing/theming
  • Site inspection & selection
  • Logistics and planning
  • Human resource management
  • Marketing and public relations
  • Budgeting and financial management
  • Sponsorship procurement
  • Management and evaluation

Event Categories

Mega events.

A m ega-event is a large scale, highly prestigious event such as the Olympic Games, the FIFA World Cup, or a global economic summit. These events typically gain tremendous media coverage and have major economic impacts on the host location, both positive and negative. High levels of tourism (1 million+ visitors) associated with a mega-event brings revenue, but the revenue may be outweighed by substantial capital and social costs incurred by the host. The events are often awarded to host destinations through a bidding process and gain tremendous media coverage.

A photograph of the Beijing National Stadium at night, taken from across water. The National Stadium is lit up by yellow lights from within. A reflection of the stadium appears on the water.

Special Events

A special event is a one-time or infrequent specific ritual, presentation, performance, or celebration. Special events are planned and created to mark a special occasion, such as a presidential inauguration or the Queen of England’s 90 th birthday. Like mega-events, there may be significant media coverage and economic impact for the host city or destination.

Hallmark Event

A hallmark event is a unique event that is often identified with the location where it is held, like Carnival in Rio de Janeiro or Oktoberfest in Munich. Hallmark events contribute significant economic benefits and even can create a competitive advantage for the host city or destination that attracts tourists.

A photograph of a parade during Mardi Gras in New Orleans. The photograph is centered on a parade float shaped like a jester holding two smaller jesters. All three jesters have purple, yellow, and green hats. More identical jesters are in the background, along with a crowd of people and brick buildings.

A festival is a themed public celebration that conveys, through a kaleidoscope of activities, certain meaning to participants and spectators. Festivals are often celebrations of community or culture and feature music, dance, or dramatic performances. Examples include Lollapalooza, the Cannes Film Festival, and Junkanoo in the Bahamas.

Local Community Events

A local community event is generated by and for locals; although it may attract tourists, its main audience is the local community. The community may experience measurable economic impacts, as might happen at The Steppin’ Out Street Fair in Blacksburg (think hotel stays and eating out). Fundraisers and community picnics are also examples in this category.

Meetings and Conventions

The tourism industry also has a long history of creating, hosting, and promoting meetings and conventions that draw business travelers. In fact, Convention and Visitor Bureau’s (CVB’s) work hard to attract these meetings and conventions to their city to drive economic benefit for hotels, restaurants, entertainment venues, etc.

There are several types of such events.

Conventions  generally have very large attendance, and are held on a regular schedule but in different locations. They also often require a bidding process.  Political conventions are one such example.

Association M eetings or C onferences are held regionally and nationally for hundreds of associations or events focused on specific themes. Examples would be the National Restaurant Association Annual Convention, ComicCon, or the National Auto Show.

Corporate M eetings will vary significantly in size and purpose and include regional or national sales meetings, shareholder meetings, training sessions, or celebrations. The location will vary depending on the nature of the meeting. They may be held at an airport property, a traditional corporate meeting facility or even an upscale resort.

Trade S hows and T rade F airs  can be stand-alone events, or adjoin a convention or conference.

S eminars , W orkshops , and R etreats are examples of smaller-scale events.

As meeting planners have become more creative, meeting and convention delegates have been more demanding about meeting sites. No longer are hotel meeting rooms and convention centers the only type of location used; non-traditional venues have adapted and become competitive in offering services for meeting planners. These include architectural spaces such as airplane hangars, warehouses, or rooftops and experiential venues such as aquariums, museums, and galleries. 24

Transportation and travel services are another large element of the tourism industry. This area includes cruise ships, airlines, rail, car rentals, and even ride sharing such as Uber and Lyft. Each of these segments is impacted significantly by fuel costs, safety issues, load factors and government regulation.

If you’ve ever been on a cruise, you are in good company. According to CLIA (Cruise Lines International Association), 23 million passengers were expected to go on a cruise worldwide on 62 member lines in 2015. 25 The industry employs over 900,000 people. 26

Over 55% of the world’s cruise passengers are from North America, and the leading destinations (based on ship deployments), according to CLIA are: 27

  • The Caribbean (36%)
  • The Mediterranean (20%)
  • Northern Europe (11%)
  • Australia/New Zealand (6%)
  • Alaska (6%)
  • South America (3%)

A photograph of two cruise ships docked in a bay, Charlotte Amalie, in the Virgin Islands. On land beside the cruise ships are eight buildings with red roofs. Smaller boats are in the bay away from the cruise ships. A mountain range lies in the background.

The t ravel services sector is made up of a complex web of relationships between a variety of suppliers, tourism products, destination marketing organizations, tour operators, and travel agents, among many others. Under the North American Industry Classification System (NAICS), the travel services industry group includes “establishments primarily engaged in travel arrangement and reservation services. Examples … are tourist and travel agencies; travel tour operators and wholesale operators; convention and visitors’ bureaus; airline, bus, railroad and steamship ticket offices; sports and theatrical ticket offices; and airline, hotel and restaurant reservation offices.” 28 Tourism services support industry development and the delivery of guest experiences.

Travel Agencies

A travel agency is a business that operates as the intermediary between the travel industry (supplier) and the traveler (purchaser). Part of the role of the travel agency is to market prepackaged travel tours and holidays to potential travelers. The agency can further function as a broker between the traveler and hotels, car rentals, and tour companies. 29 Travel agencies can be small and privately owned or part of a larger entity.

Online travel agencies (OTAs)

Online travel agents (OTAs) are companies that aggregate accommodations and transportation options and allow users to choose one or many components of their trip based on price or other incentives. Examples of OTAs include Booking.com, Expedia.com, Hotwire.com, and Kayak.com. OTAs are gaining popularity with the travelling public; in 2012, they reported online sales of almost $100 billion 30 and almost triple that figure, upward of $278 billion, in 2013. 31 Over 40% of U.S. travelers booked flights online in 2014. 32

Tour operators

A tour operator packages all or most of the components of an offered trip and then sells them to the traveler. These packages can also be sold through retail outlets or travel agencies. 33 Tour operators work closely with hotels, transportation providers, and attractions in order to purchase large volumes of each component and package these at a better rate than the traveler could by purchasing individually.

Destination marketing organizations (DMOs)

Destination marketing organizations (DMOs) include national tourism boards, state/provincial tourism offices, and community convention and visitor bureaus around the world. DMOs promote “the long-term development and marketing of a destination, focusing on convention sales, tourism marketing and service” 34 .

Country Clubs

Country c lubs are another part of the Hospitality industry with a very different service strategy focusing on serving members who will develop relationships with the staff compared to a more transactional service interaction in lodging, restaurants or airlines.

Country clubs do not focus as strongly on profit as they do on maximizing member satisfaction, retention and growth while maintaining an attractive fee structure. Country (or city) clubs, will typically have restaurant and bar operations, catered events and other amenities such as golf, tennis, pool, fitness facilities, etc. Depending on the type of club, family and youth events are important to maintain and grow membership.

Strong customer service, culinary, event management and general management skills are necessary to be successful in clubs.

A photograph of a very large, two-story Spanish style mansion on top of a hill, with trees in the background and in front of the mansion. Another smaller house with a red roof sits at the bottom of the hill.

Chapter Video

As in any other fast-moving industry, the landscape in Hospitality and Tourism is always changing. This video explores 10 of the more important current trends impacting the industry.

(Copyrighted material)

Key Takeaways

  • The Tourism industry is the largest industry in the world with significant benefit and costs to a region. The global competition for the tourism dollar is significant within the US and between countries.
  • Hotels vary significantly in size, quality, purpose, chain affiliation, and ownership. The complexity of the operation and leadership vary as well.
  • Food and Beverage is made up of a wide variety of restaurant types from QSR, Fast Casual, Fine Dining and Ethnic. Institutional food service in business , hospitals, education, parks and concessions are a significant part of the Food and Beverage industry.
  • The evolution of tastes and consumer expectations in food and beverage continue to provide opportunity and challenges in the industry for ethnic sustainable, organic, local, craft, and other unique experiences.

Chapter 16 References and Image Credits

Portions of this chapter were adapted from Westcott, Morgan (Ed)  Introduction to Tourism and Hospitality in BC.  CC BY 4.0  https://opentextbc.ca/introtourism  Available for free at:  http://open.bccampus.ca

Image Credits: Chapter 16

Figure 16.1: JackMac34 (2015). “Untitled.” Public domain. Retrieved from: https://pixabay.com/en/italy-burano-postcards-971575/

Figure 16.2: “The Impact of Global Tourism.” (2016) Data retrieved from: http://www2.unwto.org/content/why-tourism

Figure 16.3: Yellowute (2007). “Shirley Plantation.” Public domain. Retrieved from: https://commons.wikimedia.org/wiki/File:Shirley_Plantation_2006.jpg

Figure 16.6 “Example of a Hotel Market segmentation by STR’s chain scale” Author’s own work. Licensed CC BY 4.0 .

Figure 16.7: Christina Hsu (2009). “San Diego City and Bay at Night.” CC BY-NC-SA 2.0 . Retrieved from: https://flic.kr/p/6KZ5Cv

Figure 16.8: Anastasia Cortes (2016). “The Inn at Virginia Tech.” Public domain. Provided by author.

Figure 16.9: Dale Cruse (2014). “New Zealand langoustines at Troquet.” CC BY-NC-SA 2.0 . Retrieved from: https://www.flickr.com/photos/dalecruse/8551895022/

Figure 16.10: Imzadi1979 (2012). “An example of a typical American logo sign.” Public domain photograph. Retrieved from: https://en.wikipedia.org/wiki/Logo_sign#/media/File:Logo_Sign.svg

Figure 16.11: J. Winters (2008) “A Red Robin Restaurant in Tukwila, Washington.” Public domain photograph. Retrieved from: https://commons.wikimedia.org/wiki/File:Red_Robin_in_Tukwila,_Washington.jpg

Figure 16.12: “Le Procope.” © Michael Rys. CC BY-NC-SA 2.0 . Retrieved from: https://en.m.wikipedia.org/wiki/Restaurant#/media/File%3AInside_Le_Procope.jpg

Figure 16.13 “The restaurant industry career path” Author’s own work. Licensed CC BY 4.0 .

Figure 16 .15 : JohnSM (2013). “Rafting in Turkey.” Public domain. Retrieved from: https://pixabay.com/en/rafting-turkey-travel-1125213/

Figure 16 .16 : Graph data sources: Statista (2016). “ Number of commercial casinos in the United States from 2005 to 2013.” Retrieved from: http://www.statista.com/statistics/187972/number-of-us-commercial-casinos-since-2005/ and “ Global casino gaming revenue from 2006 to 2015 (in billion U.S. dollars).” Retrieved from: http://www.statista.com/statistics/271577/global-casino-gaming-market-revenue/ and “ U.S. casino gaming market revenue from 2004 to 2015 (in billion U.S. dollars) .” Retrieved from: http://www.statista.com/statistics/271583/casino-gaming-market-in-the-us/

Figure 16 .17 : Josh Hallett (2009). “ The ‘Big Bang’ at Wishes – Magic Kingdom – Walt Disney World .” CC BY-NC-SA 2.0 . Retrieved from: https://www.flickr.com/photos/hyku/3830182777

Figure 16.18: Peter23 (2011). “Beijing National Stadium.” CC BY- SA 3.0 . Retrieved from: https://en.wikipedia.org/wiki/Beijing_National_Stadium#/media/File:Beijing_national_stadium.jpg

Figure 16.19 : Skeeze (2014). “Mardi Gras in New Orleans.” Public domain. Retrieved from: https://pixabay.com/en/mardi-gras-new-orleans-festival-1176483/

Figure 16 . 20 : Roger W. (2012). “ Charlotte Amalie – Panorama (Postcard) ” CC BY-NC-SA 2.0 . Retrieved from: https://www.flickr.com/photos/24736216@N07/7170231567

Figure 16 . 21 : Dan Perry (2006). “Riviera Country Club in Pacific Palisades, California.” CC BY-NC-SA 2.0 . Retrieved from: https://en.wikipedia.org/wiki/Country_club#/media/File:Riviera_Country_Club,_Golf_Course_in_Pacific_Palisades,_California_(168828797).jpg

Video Credits: Chapter 16

Sisyanti, Ling Ling, Wasim Amsal,Ella Qiu, and Rebecca Catherine Stephany. “10 trends in Hospitality and Tourism Industry.” February 6, 2015. Retrieved from:  https://www.youtube.com/watch?v=SJ8Momwv7Qk 

References: Chapter 16

Chapter 16 Hospitality & Tourism Copyright © 2018 by Richard Parsons; Stephen Skripak; Anastasia Cortes; Anita Walz; and Gary Walton is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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hotel and tourism business

‘Overall cost of doing business is outrageous’: R.I. hospitality leader talks Washington Bridge fiasco, shoddy tourism budget, and more

R estaurant owners and hoteliers have had to face a tough few years that include a persistent staffing crisis, rising costs, a disastrous supply chain problem, changing tastes , and tricky red tape that can make owning and operating a business even harder.

Earlier this year, Rhode Island Hospitality Association president and CEO Dale Venturini announced she would retire after nearly four decades leading the trade group. Heather Singleton, the association’s chief operating officer, stepped up to serve as the association’s interim CEO in the meantime to speak about the challenges the restaurant and lodging industries face in 2024, legislative priorities, and her own future.

Q: At no surprise, the Washington Bridge has to be rebuilt. We know this is already decimating businesses . What is the association focused on?

Singleton: For a while, everyone was taking this “wait to see” what the results are approach. Now, we know it’s going to take a couple of years to get back to normal. We’ve started listening sessions with business owners to hear directly from them on what kind of help they’re really going to need over the next few years, and we plan on working with elected officials to help support those businesses. But immediately, RIHA is relaunching our employee relief fund , which is for employees that are currently facing an unexpected financial hardship. This fund initially came about because of COVID, but we still had some money left in that fund so we’re going to be reopening that.

How much could an employee receive from this fund?

It’s up to $1,000. The United Way of Rhode Island and the Rhode Island Foundation had helped us get that fund set up during the pandemic, and we received a lot of donations to continue feeding it. During COVID, these funds are what helped some employees who were laid off. When folks returned to work, we decided to turn it into a relief fund that has been used for emergencies.

What kinds of emergencies?

An employee from Connecticut was living and working in Rhode Island when her parents contracted COVID pretty badly and it was not a good situation. She just needed gas money in order to get back and forth from Rhode Island to Connecticut to help her parents. The relief fund was able to help with that.

Other than the bridge, what are the most pressing concerns your members face in 2024 in Rhode Island?

The overall cost of doing business is outrageous. Everything from business insurance, utilities, goods, transportation fees, labor, rent, and other expenses are all much more expenses. If sales are up, the money is just going out the back door. If sales aren’t up, businesses are having a hard time keeping up.

Most states spend an average of $20 million on tourism marketing. Ours is only $5 million, but much of our economy depends on the hospitality industry. What’s with the divide?

We work with all of the tourism regions in Rhode Island, and consider them the “front of the house” while the association is the “back of the house.” We’re focused on a lot of the advocacy, lobbying efforts, and workforce issues; the tourism regions are in charge of promoting the destination and bringing folks in. I know that $5 million is not a lot. We’re trying to bring in leisure travelers, business travelers, and people coming in to visit friends and family. That’s three different sectors of tourism. We need a lot more than $5 million.

What is the association planning to advocate for in front of lawmakers this year?

Everything is on the table. We’re tracking close to 150 pieces of legislation right now that has been introduced in this session. [For example, there are two pieces of legislation that have been introduced in the General Assembly that could force restaurants to stop charging service fees .]

Happy Hour was canceled in Rhode Island in 1985. Will it ever return? Should it?

We haven’t taken a position on this. We surveyed our membership and the results showed business owners were split right down the middle. Some were very supportive of it; others felt it wouldn’t help them.

Are you looking to serve as RIHA’s permanent CEO?

Yes, I’ve applied. I’ve been here for 26 years, and with Dale as my mentor and coach over the years, it’s always been my goal to lead the association.

If you were selected, what are your year-long goals for RIHA?

First thing is to deal with the crisis at hand: the Washington Bridge crisis. I’m only a few weeks into the job as interim CEO and the bridge is definitely going to be a major focus for us.

Outside of the bridge, I’d like to revaluate our current benefits and services that we’re offering members to make sure they are still valuable. I want to look out for new partnerships and expand membership. So many new places are coming up into the industry, and I need to meet and hear from them directly.

The Boston Globe’s weekly Ocean State Innovators column features a Q&A with Rhode Island innovators who are starting new businesses and nonprofits, conducting groundbreaking research, and reshaping the state’s economy. Send tips and suggestions to reporter Alexa Gagosz at [email protected] .

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‘Overall cost of doing business is outrageous’: R.I. hospitality leader talks Washington Bridge fiasco, shoddy tourism budget, and more

hotel and tourism business

Earlier this year, Rhode Island Hospitality Association president and CEO Dale Venturini announced she would retire after nearly four decades leading the trade group. Heather Singleton, the association’s chief operating officer, stepped up to serve as the association’s interim CEO in the meantime to speak about the challenges the restaurant and lodging industries face in 2024, legislative priorities, and her own future. Restaurant owners and hoteliers have had to face a tough few years that include a persistent staffing crisis, rising costs, a disastrous supply chain problem, changing tastes ,...

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  • Hospitality Industry

Hospitality Industry statistics to have on your radar 2024

hospitality industry statistics

November 01, 2023 •

11 min reading

The hospitality industry is a vast sector with many different categories that include recreation, lodging, entertainment, food and beverage which are constantly evolving. Due to the overwhelming amount of data available today, it has become increasingly challenging for industry players to gather all the necessary hospitality statistics to keep up with the latest trends. As a result, staying informed and up-to-date has become an impossible task.

Despite being an exhilarating career path with many avenues which demand a diverse skill-set , the hospitality industry is currently struggling to fill open positions. This is partly due to the changing nature of jobs and employee expectations. Customer needs and expectations have also evolved in recent times, largely off the back of the global pandemic of 2020 and 2021 which spurred a seismic shift in industry trends .

In the absence of access to data which tells a story, industry players are finding it increasingly challenging to optimize their social and digital strategies. This is especially problematic for hoteliers and destination marketers who are already overwhelmed with their day-to-day responsibilities.

In this comprehensive article, we have gathered a wealth of hospitality statistics and data that will equip you with the insights you need. Our goal is to empower you to harness the power of analytics in the hospitality industry to drive innovation, exceed customer expectations, and achieve remarkable value.

Numbers to take your business to the next level

Trends in the hospitality industry have always been in a state of flux because client demands are always shifting.

Understanding hospitality industry statistics allows you to properly equip yourself to handle your changed client needs for your business to grow rapidly in this new environment. They will help you know what you need to do to succeed and come up with strategies to take your business to the next level.

Current state of the Hospitality Industry

By examining general statistics, you can gain insights into the present condition of the hospitality industry and gain a glimpse into its future.

  • The travel industry is poised for a robust comeback
  • in 2024, bringing a ray of hope for hoteliers who have been eagerly awaiting positive signs. Room demand is set to reach an all-time high in 2024. STR, via (CoStar).
  • Hotel occupancy will increase 2.5% globally next year.
  • Hotel average daily rate (ADR) is projected to grow by 4.9% in the next 12 months. ( Siteminder).

The industry anticipates a steady growth rate

Industries such as hospitality, which were affected by COVID-19 safety measures, are seeing some impressive growth rates now that the restrictions are being relaxed worldwide. The statistics below indicate just how impressive the current and future growth rates are.

  • The hospitality industry experienced a remarkable growth from $4,390.59 billion in 2022 to $4,699.57 billion in 2023, achieving a compound annual growth rate (CAGR) of 7.0%. This significant expansion is a testament to the industry's resilience and ability to bounce back from the challenges posed over recent years. ( Hospitality Global Market Report 2023)
  • The projected growth of the global hospitality market is set to soar to a staggering $5,816.66 billion by 2027, with a remarkable compound annual growth rate (CAGR) of 5.5%. ( Hospitality Global market report 2022 )

Growth trends in specific sub-sectors

Due to changes in consumer expectations, preferences and the rapid advancement of technology (among other factors), some areas in the hospitality industry are seeing a bigger growth rate than others. The statistics below shed light on these areas.

  • The Online Food Delivery Market, which includes both Grocery Delivery and Meal Delivery services, experienced significant growth during the COVID-19 Pandemic. This market is projected to continue its upward trajectory with a compound annual growth rate (CAGR 2023-2028) of 11.47%. As a result, the market volume is expected to reach a staggering US$1.79tn by 2028. (Statista).
  • The bleisure market continues to rise —business trips which are extended for leisure purposed. The bleisure tourism market was estimated to be valued at nearly US$ 594.51 billion in 2023, and is predicted to continue to grow to $731.4 billion by 2032, with a CAGR of 8.9% from 2023 to 2032. ( Future Market Insights).
  • The global health and wellness market is estimated to reach almost seven trillion U.S. dollars by 2025. (Statista).

Key stakeholders' market share and consumer influence

Similar to the different growth rates in different areas in the same hospitality industry, not all players in the industry saw the same changes or are seeing the same growth rate. This is due to size, services, products and way of doing business. The statistics below highlight these differences.

  • Airbnb's market value reached $92.11 billion in U.S. dollars in 2023, representing a significant increase from $54.13 billion the previous year. However, it has experienced a decline from its peak valuation in 2021, surpassing a staggering $100 billion. (Statista).
  • Airbnb holds a commanding market share of over 20% in the vacation rental industry but it seems to be declining due to rising rental pricing and overwhelming choice of properties. ( HelpLama).
  • Booking.com is the most valuable travel and tourism brand in the world, with a market capitlization of $9B. ( Companies Market Cap).
  • As of 2023 Hilton is the most valuable hotel brand in the world, with a brand value of $11.7B in 2023, although the Wyndam group has the most properties. ( Brand Directory) .
  • It is estimated that a further 2,707 hotels will open their doors globally in 2024. ( Statista )

Jobs & employment in Hospitality & Leisure

It goes without saying that as travel died down during the pandemic, so did jobs in the hospitality industry. Whilst travel restrictions are firmly a thing of the past, the hospitality jobs market has been slow to bounce back and is still recovering now. Many of those laid off workers in 2020 found more reliable jobs with better perks and more sociable hours elsewhere. When should we expect a full recovery? The statistics answer these questions best.

  • The Travel and Tourism sector is expected to employ approximately 320 million individuals in 2023, showcasing a steady growth trend after experiencing a decline in numbers in 2020. This decline saw employment figures drop from 334 million in 2019 to 271 million. However, the industry is now on the path to recovery, with employment opportunities steadily increasing once again. ( Unilever ).
  • Discover the types of jobs available in this exciting growth sector.
  • Hotels will struggle with staffing shortages until 2025 when the industry is expected to make a true adjusted recovery. ( STR and Tourism Economics )
  • Only 28% of hospitality workers are on full-time hours. ( Labour Market Insights) .

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Travel & Tourism

If 2022 was the year travel returned following the pandemic, 2023 was all about making up for lost time and ticking off bucket list items. In short, there's a healthy outlook to the travel and tourism sector in 2024 and beyond. To better understand the current changes and future of travel and tourism, we have compiled the statistics below.

General Travel & Tourism industry statistics

The general travel and tourism statistics below show the current and future state of the travel and tourism sector as a whole.

  • The projected market volume is set to reach an impressive US$1,063.00 billion by 2028, with revenue expected to display a steady annual growth rate (CAGR 2023-2028) of 4.42%. ( Statista ).
  • By 2028, online sales are projected to account for a staggering 76% of total revenue in the Travel & Tourism market. (Statista).

Growth trends in specific areas

The growth of the travel and tourism sector has been influenced by several factors including ease of access to information, an increase in the amount of paid leave, and rapid urbanization among others. Despite the pandemic slump, the industry is now doing well and is projected to do even better over the next few years, as indicated by the following statistics.

  • Global tourism expenditure is projected to reach USD2 trillion, surpassing previous records driven by the strong demand for leisure travel. ( Euromonitor International ).
  • As employees strive for a better work/life balance, the resurgence of business travel becomes a more intricate affair. In line with this shift, bleisure travel is poised to make a significant impact, with predictions indicating that it will soar to an impressive USD300 billion by 2024. This trend highlights the growing desire among professionals to combine work and leisure, creating a unique and enriching travel experience. ( Euromonitor International ).
  • These 5 countries will be the fastest growing tourism destinations in 2024: Tunisia, Mexico, Morocco, Dominican Republic, and Sri Lanka. (Travel Off Path) .

Domestic vs. international travel

The statistics below help to better understand the "new traveler" whos is most likely planning 2 domestic trips and 2 international trips in 2024.

  • International travel has rebounded post pandemic however going forward into 2024 it's clear that whilst consumer sentiment is very much in favor of international travel, domestic travel is much more budget friendly. ( Travel + Leisure ).
  • Global business travel will fully recover by 2024. It is forecast to increase by 14% in 2022, with the US and China seeing the largest growth (30% each). ( Leslie Josephs )

Air, cruise & ground transport

The widespread adoption of the internet as a source of information, the ease of mobility and increased awareness of new destinations have brought significant changes to how consumers travel. The statistics below show how much travel has changed and what to expect.

  • Global flight numbers were still below pre-pandemic levels at the end of 2023. According to the International Air Transport Association, global airlines anticipate that approximately 4.35 billion individuals took flights in 2023, a slight decrease from the 4.54 billion flyers in 2019.
  • In the global airline industry, it was anticipated that 2023 brought in net profits of $9.8 billion, although these profits will come with a razor-thin net profit margin of 1.2%. ( Mint )
  • Rail transport is set to experience exponential growth in 2024, emerging as the fastest-growing travel category worldwide with an impressive growth rate of 35.6% over the course of 2023-2024. ( Euromonitor International ).
  • According to some travel experts, fly-to-the-meeting and fly-back-from-the-meeting day trips will stop being popular as more people prefer multi-day bleisure trips. ( SAP Concur Study of Global Business Traveler )

Jobs & employment in Travel & Tourism

As it was with all other sectors and industries, the travel and tourism sector experienced a labor shortage in 2023, but will it continue?

  • Jobs in travel and tourism were still below pre-pandemic levels at the end of 2023 at a projected 320 million jobs. But with the growing demand for travel, jobs in this sector are set to rise to 430 million by 2033. ( Statista ).
  • Candidates for these open positions have different expectations and priorities compared to those before the pandemic. They expect flexible working arrangements, skills training, and diversity and inclusion. Hotels will have to adapt to fill open positions. ( AHLA )
  • New positions are opening up that are centred around digitalization, technology and sustainability .

Demographic statistics: Who's travelling in 2024?

Different segments play different roles in the travel and tourism industry. To fine-tune your digital strategy, you have to know your target market well and understand what they expect when they travel. Here are a few stats that show some key domgraphics that may be relevant to your business.

  • In the modern era, travel has become increasingly digitalized, with 67% of consumers projected to make their travel bookings online in the year 2024.
  • An interesting trend among post-pandemic travelers is the shift towards a younger demographic, with millennials (aged 30-44) comprising the largest portion of Wellness Worshippers, Leisure Seekers, Luxury Seekers, and Digital Travelers, as revealed by Euromonitor's Voice of the Consumer: Travel Survey. This highlights the changing preferences and behaviors of travelers in the modern era.
  • Luxury Seekers are most commonly found in countries across the Middle East and Asia Pacific, while Eco-Adventurers tend to be prevalent in both Asia Pacific and Europe. On the other hand, Cultural Explorers are predominantly found in various countries throughout Europe.
  • There is expected to be a 15% growth in sales of sports tourism packages sold through travel intermediaries from 2023 to 2024. ( Euromonitor International ).

Hospitality & Travel is evolving at speed

In 2024, the hospitality and travel sectors will be evolving at a rate of knots. Vacant positions and shifting consumer preferences define the landscape. Seamless online booking is now a necessity, just the beginning of a guest-centric approach. Elevating the experience means personalized on-site services, setting leaders apart.

Yet, beyond technology lies a deeper need—embracing diversity and inclusion as fundamental values. To cater to the evolving traveler, a blend of high-tech solutions and high-touch experiences aligning with their beliefs is vital. Statistics serve as signposts in this transformative journey. Adaptability is the key to survival, while a comprehensive guest journey and commitment to diversity steer success.

Amidst change, strategies demand recalibration. Embrace adaptability, shape a holistic guest experience, and embed diversity and inclusion into your brand. These principles navigate the industry toward leadership in the evolving hospitality and travel landscape of 2024.

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Book cover

International Scientific Conference on Architecture and Construction

ISCAC 2020: Proceedings of the XIII International Scientific Conference on Architecture and Construction 2020 pp 20–32 Cite as

Development of the Hotel Business as a Component of the Regional Tourism Industry

  • Valeria Provotorina   ORCID: orcid.org/0000-0002-4423-2538 9 ,
  • Lyudmila Kazmina   ORCID: orcid.org/0000-0003-0472-4789 9 ,
  • Antonina Petrenko   ORCID: orcid.org/0000-0002-4999-577X 9 &
  • Vadim Makarenko   ORCID: orcid.org/0000-0002-0733-8667 9  
  • Conference paper
  • First Online: 24 December 2020

677 Accesses

14 Citations

Part of the book series: Lecture Notes in Civil Engineering ((LNCE,volume 130))

This study is aimed at analyzing the hotel industry in the Rostov region, identifying its structure and condition, as well as its impact on the development of regional tourism. The paper substantiates the relevance and expediency of the development of accommodation facilities as a component of the regional tourism infrastructure of the Rostov region. The study summarized the experience of studying the development of the hospitality industry and analyzed scientific works on this topic. The hotel industry of the Rostov region and its structure in the studied region by categories and cost of living are also analyzed. The segmentation of the market of hotel services in urban districts of the Rostov region by categories has been studied, and the quantitative distribution of hotels in its cities and districts has been indicated. The paper analyzes the performance indicators of collective accommodation facilities in the city of Rostov-on-Don and the factors of uneven placement of hotel enterprises across the territory of the Rostov region. The dynamics of the hotel services market in the region for 5 year was also studied, on the basis of which the development trends of the regional market of hotel services were studied. The areas for events are designated as priority areas for the development of the hotel sector in the region. The paper presents an analysis of such events in various municipal entities and, on its basis, outlines the ways of balancing the territorial development of the hospitality industry. The thesis on the relationship between the hotel business and the tourism sector in the development of the regional economy has been substantiated.

  • Hotel industry
  • Tourism industry
  • Tourism infrastructure
  • Accommodation facilities
  • Regional tourism
  • Rostov region

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Don State Technical University, Gagarina Sq., 1, Rostov-on-Don, 344000, Russia

Valeria Provotorina, Lyudmila Kazmina, Antonina Petrenko & Vadim Makarenko

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National Research, Moscow State University of Civil Engineering, Moscow, Russia

Angela Mottaeva

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Provotorina, V., Kazmina, L., Petrenko, A., Makarenko, V. (2021). Development of the Hotel Business as a Component of the Regional Tourism Industry. In: Mottaeva, A. (eds) Proceedings of the XIII International Scientific Conference on Architecture and Construction 2020. ISCAC 2020. Lecture Notes in Civil Engineering, vol 130. Springer, Singapore. https://doi.org/10.1007/978-981-33-6208-6_3

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‘Overall cost of doing business is outrageous’: R.I. hospitality leader talks Washington Bridge fiasco, shoddy tourism budget, and more

Heather singleton is the interim ceo of the rhode island hospitality association, which advocates for restaurants and the lodging industry around the ocean state.

Easy Entertaining executive chef Ashley Vanessa, right, and prep cook, Keya Perry, discuss logistics for an upcoming order.

Restaurant owners and hoteliers have had to face a tough few years that include a persistent staffing crisis, rising costs, a disastrous supply chain problem, changing tastes , and tricky red tape that can make owning and operating a business even harder.

Earlier this year, Rhode Island Hospitality Association president and CEO Dale Venturini announced she would retire after nearly four decades leading the trade group. Heather Singleton, the association’s chief operating officer, stepped up to serve as the association’s interim CEO in the meantime to speak about the challenges the restaurant and lodging industries face in 2024, legislative priorities, and her own future.

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Q: At no surprise, the Washington Bridge has to be rebuilt. We know this is already decimating businesses . What is the association focused on?

Singleton: For a while, everyone was taking this “wait to see” what the results are approach. Now, we know it’s going to take a couple of years to get back to normal. We’ve started listening sessions with business owners to hear directly from them on what kind of help they’re really going to need over the next few years, and we plan on working with elected officials to help support those businesses. But immediately, RIHA is relaunching our employee relief fund , which is for employees that are currently facing an unexpected financial hardship. This fund initially came about because of COVID, but we still had some money left in that fund so we’re going to be reopening that.

How much could an employee receive from this fund?

It’s up to $1,000. The United Way of Rhode Island and the Rhode Island Foundation had helped us get that fund set up during the pandemic, and we received a lot of donations to continue feeding it. During COVID, these funds are what helped some employees who were laid off. When folks returned to work, we decided to turn it into a relief fund that has been used for emergencies.

What kinds of emergencies?

An employee from Connecticut was living and working in Rhode Island when her parents contracted COVID pretty badly and it was not a good situation. She just needed gas money in order to get back and forth from Rhode Island to Connecticut to help her parents. The relief fund was able to help with that.

Other than the bridge, what are the most pressing concerns your members face in 2024 in Rhode Island?

The overall cost of doing business is outrageous. Everything from business insurance, utilities, goods, transportation fees, labor, rent, and other expenses are all much more expenses. If sales are up, the money is just going out the back door. If sales aren’t up, businesses are having a hard time keeping up.

Heather Singleton is the interim CEO and president of the Rhode Island Hospitality Association.

Most states spend an average of $20 million on tourism marketing. Ours is only $5 million, but much of our economy depends on the hospitality industry. What’s with the divide?

We work with all of the tourism regions in Rhode Island, and consider them the “front of the house” while the association is the “back of the house.” We’re focused on a lot of the advocacy, lobbying efforts, and workforce issues; the tourism regions are in charge of promoting the destination and bringing folks in. I know that $5 million is not a lot. We’re trying to bring in leisure travelers, business travelers, and people coming in to visit friends and family. That’s three different sectors of tourism. We need a lot more than $5 million.

What is the association planning to advocate for in front of lawmakers this year?

Everything is on the table. We’re tracking close to 150 pieces of legislation right now that has been introduced in this session. [For example, there are two pieces of legislation that have been introduced in the General Assembly that could force restaurants to stop charging service fees .]

Happy Hour was canceled in Rhode Island in 1985. Will it ever return? Should it?

We haven’t taken a position on this. We surveyed our membership and the results showed business owners were split right down the middle. Some were very supportive of it; others felt it wouldn’t help them.

Are you looking to serve as RIHA’s permanent CEO?

Yes, I’ve applied. I’ve been here for 26 years, and with Dale as my mentor and coach over the years, it’s always been my goal to lead the association.

If you were selected, what are your year-long goals for RIHA?

First thing is to deal with the crisis at hand: the Washington Bridge crisis. I’m only a few weeks into the job as interim CEO and the bridge is definitely going to be a major focus for us.

Outside of the bridge, I’d like to revaluate our current benefits and services that we’re offering members to make sure they are still valuable. I want to look out for new partnerships and expand membership. So many new places are coming up into the industry, and I need to meet and hear from them directly.

The Boston Globe’s weekly Ocean State Innovators column features a Q&A with Rhode Island innovators who are starting new businesses and nonprofits, conducting groundbreaking research, and reshaping the state’s economy. Send tips and suggestions to reporter Alexa Gagosz at [email protected] .

Alexa Gagosz can be reached at [email protected] . Follow her @alexagagosz and on Instagram @AlexaGagosz .

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Belching Volcano and Flowing Lava Dent Tourism in Icelandic Region

In a country that relies heavily on visitors, hotels faced repeated evacuations, and one resort was temporarily shut.

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Large orange clouds loom above figures viewing a spewing volcano.

By Emma Bubola

Reporting from London

The Blue Lagoon resort in the south of Iceland is a scenic network of steaming azure pools surrounded by dark rocks, where tourists dip in the geothermal water, have spa treatments and enjoy what the resort advertises as “a universe of radiant well-being.”

But last week, a stream of radiant lava burst from a crater a few miles from the resort, forcing it to evacuate hundreds of guests, in yet another eruption of a volcano system in the Reykjanes Peninsula that had been dormant for 800 years.

The outbursts began in 2021, and the eruptions and earthquakes in the peninsula have destroyed some houses and forced villagers from their homes. One construction worker went missing in the town of Grindavik after falling down a crack caused by an earthquake.

The effects of the volcanic eruptions have rippled out beyond the peninsula, disrupting the tourism operations of a country that relies heavily on visitors.

Arnar Már Ólafsson, director general of the Icelandic Tourist Board, said that when a looming volcanic eruption led to the evacuation of Grindavik in November, it resulted in global anxiety that brought a drop in tourists.

“A spouting volcano doesn’t sound very inviting,” he said.

Icelandair, the country’s national airline, said it also saw a “significant negative impact on bookings” in the last months of 2023. And the low-cost Icelandic airline Play said that news of the eruption “cooled demand for Iceland as a destination.”

The tourism board did not release an estimate for the financial losses, and the airlines, while saying they experienced significantly slowed sales, did not quantify them.

Airline officials and the tourism board director stated emphatically in interviews and in the national news media that the reaction was unwarranted because the eruptions did not represent a direct threat to visitors or flights. They accused the news media of “alarmism.”

“In the international press, it just looks as if Iceland is ruined,” Birgir Jónsson, then Play’s chief executive, said in an interview published in December by a financial magazine.

Tourists used to flock to the Reykjanes Peninsula to watch the northern lights or bathe in the waters of the Blue Lagoon resort. But since the November earthquakes, the Blue Lagoon has had to close for some days . It said in a statement on Wednesday that it had also shut down from March 16 until at least Thursday and would continue to follow the authorities’ safety guidelines.

The Northern Light Inn, a family-run hotel, has also had to evacuate its guests four times since January and close for weeks, said Fridrik Einarsson, the inn’s owner. Now, they are compensating for the drop in tourists by serving lunches to the construction workers building protection walls in the area.

“If this continues for a long period of time, it will eventually be very, very challenging for us ,” Mr. Einarsson said.

Mr. Ólafsson said that any threat to the Blue Lagoon geothermal resort undermined a key component of Iceland’s tourism sector.

“Without the Blue Lagoon, it would be a different destination,” he said, “like Egypt without the pyramids or Paris without the Eiffel Tower.”

The resort is particularly popular with visitors from the United States, and every year, hundreds of thousands of people visit the spa, according to the Blue Lagoon’s website. The spa is now protected by barriers.

The resort owes its existence to the geothermal energy generated by the volcanic system, which heats up its waters. But that same system is also now its main threat.

That paradox, many say, is at the heart of Iceland’s identity as an adventure travel destination where tourists seek out untamed nature in the form of waterfalls, glaciers and hot springs. And 130 volcanoes.

During the volcanic eruptions last year, as tourists flocked to sites where they could see the glowing river of lava, the government had to warn people to steer clear of the area since the situation could turn dangerous.

Now, Icelandic tourism operators say, the anxiety has eased somewhat, and tourism demand has gone up again since January. But for those remaining in the peninsula, there seems to be no immediate end in sight to the disruption of their businesses.

Last week, as Mr. Einarsson, the inn owner, evacuated his guests to another hotel because of the volcanic eruption, he said they could see lava from the parking lot.

“It’s quite a magnificent experience, to see a volcano,” he said.

Mr. Einarsson called his relationship to volcanoes a “tricky love and hate situation.”

On one hand, he said, “people are understandably concerned to stay in a hotel next to an eruption site.” On the other, he said, people come to Iceland for its nature, and the nature would not be the same without the country’s volcanoes.

“And I would not be in the business,” he said.

Egill Bjarnason contributed reporting from Gran Canaria, Spain.

Emma Bubola is a Times reporter based in London, covering news across Europe and around the world. More about Emma Bubola

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