How Big is the Hotel Industry?
The hotel industry supports more than one in every 25 U.S. jobs, according to a new Oxford Economics study. According to the study, 8.3 million U.S. jobs are supported by the industry, and 2.3 million of them are directly employed. In addition to these jobs, the industry directly employs another 160,000 people. Here are some interesting facts about the hotel industry… Read More About How Big is the Hotel Industry?
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Globally, the hotel industry generates $3.41 trillion in revenue
The hotel industry continues to grow and contributes to the global economy. Currently, the global hotel industry is worth USD 570 billion, with Marriott alone contributing $20.8 billion in revenue in 2018. The travel industry has grown in recent years thanks to the rise in purchasing power, increasing desire to travel, and the influence of digital technology. In the US, the hotel industry accounts for more than 1% of total jobs. On average, a hotel room can cost up to $100,000 a night.
It accounts for one out of every ten employment opportunities
The hospitality and travel industry supports approximately one in every ten employment opportunities worldwide. According to Oxford Economics, the U.S. hotel industry supported 8.3 million jobs in 2018. In addition, the industry directly employed 2.3 million people and indirectly employed 160,000 people. Aside from supporting the U.S. economy, the industry supports approximately $1.2 trillion in business sales annually. During the last year alone, the hospitality and travel industry supported $186 billion in taxes.
It generates 65% of revenue from rooms
Although the rooms department still accounts for the majority of the hotel’s revenue, the industry is focusing on other areas to increase its bottom line. Rooms comprise over 65% of the total revenue in full-service hotels. To improve the profitability of your hotel, you need to focus on other revenue-generating departments. Increasing costs of labor and sales through online travel agencies (OTAs) are making hoteliers more aware of their bottom line.
It has a 30% profit margin
Despite a large number of hotels, the average profit margin for US hotel operations is just 30%, which is very low compared to nearly every other industry. Interestingly, the profitability margin for the hotel industry will drop dramatically to 18 percent by June 2020, if current trends continue. Revenue from rooms and F&B make up around 65% of hotel revenue. Other sources of revenue, such as sales of souvenirs and other products, will make up the remaining 10%. The first hotel opened in New York City in 1794 and closed its doors in 1849.
It’s growing rapidly
There are many reasons for the rapid growth of the hotel industry. Millennials and millennial-aged travelers, for example, respond most favorably to imagery and informative content. In addition, boomers and baby boomers are also responsive to content and deals. The growth of digital media has changed the way hotel developers market their properties. With this, developers are now faced with new challenges and must be ready to adapt. Here are some of the most significant trends affecting the hotel industry.