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Hospitality Industry: Growth & Future

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  • 0:00 What Is the…
  • 1:53 Growth of Hospitality
  • 4:09 Hospitality's Future
  • 6:05 Lesson Summary
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Lesson Transcript
Instructor: Brianna Whiting
Hotels, restaurants, and flights make up the bulk of the hospitality industry. In this lesson, we will learn how this industry has grown and what the predictions say about the future. Come along as we learn more about the hospitality industry.

What Is the Hospitality Industry?

Traveling is a large part of many of our lives. While traveling, we often stay in a hotel. But staying in a hotel is not the only part of our travel process that involves the hospitality industry. There is a flight or train ride to our destination. And, of course, we have to eat while traveling, which means spending time at restaurants. All are crucial pieces of the hospitality industry. While our continuous traveling helps the industry thrive, what does the future really look like for the hospitality industry? What changes will be made? How has it progressed over the years? In this lesson, we will look at the growth and future to better gauge the successfulness of the hospitality industry.

Before we go much further, let's take a moment to define what the hospitality industry is. Probably the most important aspect of the industry is service. Those in the industry provide a service to a guest, such as offering a room to stay in, a plane to ride on, or a restaurant at which to eat. The next aspect is satisfaction. Those that provide services want their guests to be happy. The more satisfied the guests are, the more likely they are to return.

Income and luxury are other characteristics of the hospitality industry. This is because it takes extra income to pay for things like a hotel room or a flight. And, often times, these are considered luxury items because not everyone can afford to purchase them. Some areas that often fall under the hospitality industry title include hotels, airlines, cruise ships, restaurants, and any other service that revolves around tourism.

Growth of Hospitality

Obviously, the world around us is in a continuous state of change. This is even true where the hospitality industry is concerned. Over the years, the industry has made huge leaps in growth. But how has the industry grown? Let's take a look.

Adjustments

Even when the economy was not doing that well, people continued to take part in the hospitality industry, helping to sustain its growth. While they may not have been able to afford a fancy trip to another country, people were still making adjustments to enjoy some fun. For example, instead of going to Europe for a vacation, they may have chosen a destination that was just a few states away. Or instead of spending a lot of money on doing expensive activities, they may just have enjoyed a nice local restaurant.

Categories

While not everyone can afford to spend hundreds of dollars on hotel stays, they may be able to afford a nice dinner. The option to partake in another less expensive category has helped the industry grow. The Bureau of Labor Statistics has projected that restaurants and drinking establishments will see a 6.2% growth in employment from 2014 to 2024, which indicates that people are projected to still enjoy a nice evening out, even if it isn't on a special expensive vacation.

Demographics

Baby boomers are projected to be in charge of a large portion of growth of the hospitality industry. In 2015, they were expected to be responsible for 40% of the nation's spending. They were also creating a trend of moving to college towns where there were more things to do, again, adding to the support of the hospitality industry.

Statistics

Finally, numbers don't lie, and growth is on the horizon. The World Travel and Tourism Council reported leisure spending in the U.S. was $660 billion in 2014. By 2025, this is expected to increase to over $1 trillion.

Hospitality's Future

So what does the future hold for the industry? Like many other parts of our lives, technology is expected to be in full force in the hospitality industry.

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