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Market Analysis – Hotel Industry. By: Shuting Hu 4/10/2014. Introduction:. Industry Trends.

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Market Analysis-- Hotel Industry

UNWTO said that international tourist arrivals for business, leisure, and other purpose grew by 4% in 2012 to reach 1.035 billion.

The global industry is expected to reach almost $480 billion in 2015.

Figure 1

Market Analysis-- Hotel IndustryObjective

To study the overall quality of different services provided by the Hotel Industry.

Enhance the guest experience.

Figure 2

research methodology
Market Analysis-- Hotel IndustryResearch Methodology

Primary and Secondary Data



Random Sampling

Personal Interview

data analysis interpretation
Market Analysis-- Hotel IndustryData Analysis & Interpretation

A select sample of hotels that routinely offer gratis services to their guests spent an average of $723 per available room to provide complimentary food, newspapers, and cocktails. 

Figure 3

data analysis interpretation1
Market Analysis-- Hotel IndustryData Analysis & Interpretation

The data comes from an analysis of rooms department expenditures for Complimentary Services and Gifts at 1,600 properties in the Hotel Industry database. 

Figure 4

Market Analysis-- Hotel IndustryLimitation
  • Limited service hotels comprise the largest segment of property types that offer complimentary guest services.  
  • The number of properties that offer complimentary breakfasts and cocktail receptions. 
  • The time span for conducting market survey was short.
Market Analysis-- Hotel IndustryFindings
  • From 2008 to 2009, CSG costs declined 6.4% in the study sample.  
  • $1,251 PAR or $5.16 POR was spent at these properties.  This equates to 3.5% of total revenue.  
  • Extended-stay hotel managers spent an average of $808 PAR on Complimentary Services and Gifts, or 3.2% of total revenue.  
Market Analysis-- Hotel IndustryConclusion
  • Hotel guests are increasingly expecting complimentary breakfast, as well as other services not considered in our analysis (i.e. free WiFi)
  • The cost of Complimentary Services and Gifts in the future.
Market Analysis-- Hotel Industry

Figure 1:

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Figure 3 &Figure 4: