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Home » The Hospitality Industry is Way Bigger Than You Think

The Hospitality Industry is Way Bigger Than You Think

April 10, 2019 by Jeff Long

Hospitality Industry

The Hospitality and Travel industries have been a raise for a long time. Economic growth in Asia along with ease of access to travel thanks to digital booking tools as helped it grow considerably.

Combined the travel and tourism industry accounts for over 10% of the world’s GDP – 30% of which is generated by Asia alone. In the U.S along these industries generated $1.6 trillion dollars in economic output. In 2018, there were 1.401 billion international tourist arrivals worldwide, with a growth of 5.4% as compared to 2017.

Hospitality Industry Stats

  • In 2017, the travel and tourism industry in the US generated more than $1.6 trillion in economic output. This output represented 2.8% of the total gross domestic product.
  • Additionally, in 2017, the gross booking and revenue were $799 billion. This is a significant growth compared to $556 billion posted in 2009. (Deloitte, 2019)
  • To illustrate, all sectors of the travel industry grew by more than 4% CAGR from 2009 to 2017. (Deloitte, 2019)
  • Besides, according to a hospitality report, 81% of travelers want greater digital customer service from hotel brands. (PWC, 2019)
  • Also, the hospitality industry exports accounted for up to 11% of total US exports in 2017. Moreover, the industry exports accounted for 32% of total US services exports. 
  • Hospitality market data reveal that of all the sectors that make up the hospitality industry, airt travel, accommodation, and food services, contribute over 50% of the total output.
  • Asia accounts for more than 30% of the global $1 trillion business travel sector.
  • The travel and tourism sector is one of the fastest-growing industries, accounting for over 10% of the world’s GDP.
  • Apparently, large chains lose 10% to15% of total revenue as commission paid to third-party booking services. On the other hand, small chains and small hotels pay between 18% and 22% of their revenue as commission to third-party services. 
  • The US needs $4.5 trillion to improve travel infrastructure by 2025 to prevent it from impacting GDP and job growth.

Important Hospitality Employment Stats

  • Better still, at the height of the Great Recession, there were approximately 353,000 open positions in hospitality in the United States. As of 2018, the hospitality industry in the US had 1,139,000 job openings
  • Consequently, to attract new employees, hospitality industry players are forced to increase wages. As a result, wages now account for 25% to 30% of the total revenue.
  • More importantly, 10% of the total global workforce is employed by the tourism industry.
  • Immigrants account for 13% of the total US population. However, immigrants account for 31% of the total workforce in hotels and lodgings in the US. (Deloitte, 2019)
  • Also, between 12.3% and 23.7% of the total Uk hospitality industry employees are EU nationals.
RankDestinationInternational
tourist
arrivals
(2018)[1]
International
tourist
arrivals
(2017)[1]
Change
(2017 to
2018)
(%)
Change
(2016 to
2017)
(%)
1 France89.4 million86.9 millionIncrease 2.9Increase 5.1
2 Spain82.8 million81.9 millionIncrease 1.1Increase 8.7
3 United States79.6 million76.9 millionIncrease 3.5Increase 0.7
4 China62.9 million60.7 millionIncrease 3.6Increase 2.5
5 Italy62.1 million58.2 millionIncrease 6.7Increase 11.2
6 Turkey45.8 million37.6 millionIncrease 21.7Increase 24.1
7 Mexico41.4 million39.3 millionIncrease 5.5Increase 12.0
8 Germany38.9 million37.5 millionIncrease 3.8Increase 5.2
9 Thailand38.3 million35.5 millionIncrease 7.9Increase 9.1
10 United Kingdom36.3 million37.6 millionDecrease 3.5Increase 5.1

Largest Hotel Chains in the World

1Wyndham Worldwide8,092
2Choice Hotels6,429
3Marriott International5,974
4InterContinental Hotels Group5,070
5Hilton Worldwide4,727
6AccorHotels4,200
7Best Western Hotels4,196
8Jin Jiang International3,090
9Home Inns3,000
10Motel 61,330
11Carlson Rezidor Hotel Group1,112
12Vantage Hospitality1,090
13La Quinta Inns and Suites889
14Whitebread plc700
15Hyatt Hotels Corporation667

Forbe’s List if Largest Airlines by Revenue as of January 2020

RankAirlineCountryRevenueProfitAssetsMarket
cap.
Employees
(US$ billions)
1Delta Air Lines United States44.94.161.838.189,000
2American Airlines Group United States44.51.460.615.4128,900
3Lufthansa Germany42.32.644.412.1135,534
4United Airlines United States41.92.350.623.392,000
5Air France–KLM France/ Netherlands31.30.533.25.381,527
6IAG Spain/ UK28.83.432.014.463,531
7Southwest Airlines United States22.02.527.328.558,800
8China Southern Airlines China21.70.536.014.8100,831
9All Nippon Airways Japan18.60.923.612.033,719
10China Eastern Airlines China17.30.434.514.977,005

Filed Under: Business, Travel

About Jeff Long

Jeff Long is a Senior Editor at BusinessChew. He writes about trends in technology and business that impacting the world.

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