STHM 1113 Lecture Notes - Lecture 44: Hilton Worldwide, Marriott International, Airbnb
7 May 2018
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• Hospitality Industry Overview
o The ordial ad geerous reeptio of guests. A ide rage of usiesses, eah
of hih is dediated to the serie of people aa fro hoe.
(Dictionary.com)
o Guests input is used continuously throughout the day as opposed to traditional
businesses
o Perishability of product
o Sells an experience or a feeling
o The Big 3:
▪ British Co. Intercontinental Hotel Group: 4,800 hotels worldwide
▪ Hilton Worldwide: 4.278 hotels worldwide
▪ Marriott International: 4.424 hotels worldwide
▪ Source: https://www.statista.com/topics/1102/hotels/
o Metrics, Stats, and Facts
▪ Performance metrics
• Average Daily Rate (ADR)
• Revenue per Available Room (RevPAR)
• Occupancy rates
▪ Occupancy rates:
• Asia-Pacific Region – 68.7% in Feb. 2017
• U.S. – 54.1% in Jan. 2017 (lowest in world)
▪ Highest ADR and RevPar rates
• Middle East & Africa
• Most expensive US cities for hotel rates???
▪ Other Measures of Success:
• Booking lead time, Length of stay, Day of weeks stay, &
Cancellation percentage, No show ratio
o Segments of Industry
▪ Accommodations
• Hotels, Bed & Breakfasts, Hostels, RV Parks, Airbnb
▪ Food & Beverage
• Largest % of hospitality marketplace
• Restaurants, fast food, catering, clubs & club mgmt., food
processing, retail & distribution
▪ Travel & Tourism
• Transportation: planes, trains, cruises (floating hotels?)
o Challenges & Trends in Hospitality
o Economy: Remember disposable income rates matter!
▪ “trog eoo…ill ta uts atter???
▪ Hoteliers managing against online privatization flooding the marketplace
with new inventory
▪ Labor Deals & Oil prices
▪ External event risks: terrorism, cyber, & food safety
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