Hospitality - Introduction

The hospitality industry can be broadly divided into three primary subindustries:

1) Hotels and Resorts
2) Casinos
3) Cruise lines

Hotels and resorts span the range of classes from basic to luxury, and can include both single-facility hotels as well as major destination resorts. Additionally, many of the casinos in North America, especially those in Las Vegas, can be classified as resorts as well, since they are integrated into large hotels and other facilities.

Many casinos in parts of Asia Pacific are beginning to adopt this model as well, seeking to become major destinations in themselves.

Cruise lines make up perhaps the smallest industry segment but are a growing category of the hospitality industry, particularly in the United States and Europe.

The hospitality industry is strongly influenced by events and trends outside the industry itself. Political and cultural disputes, major weather events, general worldwide economic health and other external influences can all have significant impact on the hospitality industry as a whole. The recent problems the industry suffered as a result of the SARS scare, the Asian Tsunami, and the September 11-triggered recession in North America, all serve as a case in point.

Fortunately, after several recent years of downturn, the industry has largely recovered from these events. World economies are recovering, and the global hospitality industry has a healthy outlook with growth in both the commercial and leisure segments. In some regions, leisure is the key driver, while in others such as Asia Pacific, both business and leisure travel are strong.