Industry Analysis & Industry Trends
Over the past five years, poor economic conditions have hindered the overall performance of the Hotels and Motels industry. Household wealth and corporate profit levels have fallen across the country and the rest of the world, meaning business travel budgets were slashed and highly indebted consumers found it increasingly difficult to finance holidays. This reduced domestic and international hotel demand from both consumer and business markets in the three years through 2010-11.
However, industry conditions improved in 2011-12 due to higher occupancy rates. The 2012 London Olympic Games are expected to have boosted industry revenue and help it rise by 5.2% during 2012-13. Despite these increases, IBISWorld estimates that industry revenue will drop at a compound annual rate of 0.3%... purchase to read more
Industry Report - Industry Investment Chapter
The industry is highly reliant on both labour and capital inputs. Being a service-orientated industry, there is a heavy reliance on customer service and satisfaction. This is because the quality and level of service that is provided plays a large role in the number of customers hotel and motel operators attract and retain. In addition to this, operators require a large capital base to establish and operate a hotel, particularly for buildings, equipment, vehicles and other assets. Investment in employing trained and experienced staff with excellent customer service skills is as important as the need to invest in capital inputs.
IBISWorld measures the industry's reliance on labour by comparing the level of expenditure on labour with that spent on capital needs... purchase to read more