Hospitality

The hospitality industry has been steadily recovering from the economic downturn due to the pandemic, and there has been consistent, steady growth since 2021. Travel and tourism continue to grow, bringing increased demand for accommodations. According to a report by IBISWorld, "Global Hotels & Resorts Trends," as of April 2023, there were more than 1.28 million global hotels and resorts that brought in $1 trillion in revenue.

Computer reservation systems or global distribution systems now assist in the reservation of airline tickets, rental cars, hotel rooms, and tours. They have changed how the hospitality industry operates, and they continue to impact how customers are served. Large hotel chains now have tighter control over their operations than ever before because they have their own computer systems that enable them to track guest reservations, provide guest services, and view room charges. The hospitality industry also uses industry metrics to track and report profits by retail sales, occupancy rates, average daily room prices (ADR), and revenue per available room (RevPAR). The RevPAR is calculated by multiplying a hotel’s occupancy rate by its average daily room rate.

The U.S. lodging sector of the industry, which serves both vacationers and business travelers, has shown an increase in revenue in recent years. The American Hotel & Lodging Association reported that U.S. hotels had a 9 percent increase in room occupancy in 2022 compared to the previous year, reaching nearly 63 percent. The report also highlighted the growth of "bleisure" travel, trips that combine business with leisure. Many companies responded to the pandemic by offering flexible remote work policies, which has given rise to digital nomadism. According to the AHLA, "the global bleisure tourism market was expected to reach $497.5 billion" by the end of 2022.

There are approximately 166,272 hotels and motels in operation in the United States, employing more than 2.2 million people. Most hotels are part of a chain, with the top companies holding a large percent of total market share. Major players include Marriott, Hilton, and Hyatt. Basic hotel operations revenue derives from room fees and sales of food, alcoholic drinks, and miscellaneous merchandise.

Fortune magazine conducts a thorough and comprehensive employee survey of hundreds of companies all over the world to determine which 100 companies are the best to work for. It turns out that, according to Fortune, some of the top companies to work for include the major players in the hospitality industry.

Hilton Hotels is considered a leader in the hospitality industry, and in 2023 was listed as number two in Fortune's 100 Best Companies to Work For. Fortune reported that the revenue for Hilton as of June 2023 was nearly $8.8 billion. Hilton has very recognizable hotels in every major city in the United States. Its brands include DoubleTree, Embassy Suites, Hampton Inn, and the prestigious Waldorf-Astoria. Hilton Hotels has a workforce of 159,000 employees worldwide who work for more 7,100 hotels, resorts, and timeshare properties. Employee benefits include healthcare, job security, options to work remotely, mental health resources, pensions, and wage increases.

Marriott ranked number 10 in Fortune's 100 Best Companies to Work For in 2023. This company operates more than 7,000 properties in 130 countries and territories. Its brands include the Fairfield Inn & Suites, Renaissance, and Ritz-Carlton. For fiscal year 2022, Marriott generated nearly $20.8 million in revenue, a roughly 50 percent increase in revenue compared to the previous year. The company employs about 109,405 people and ranks high for its innovation, use of corporate assets, and social responsibility. Among its employment benefits are subsidized childcare, options to work remotely; fully paid maternal, paternal, and adoptive leave days, and paid days off for volunteering.

Hospitality pioneer Kimpton Hotels & Restaurants ranked 37th on the Fortune list in 2023. InterContinental Hotels Group, the owner of the Holiday Inn brands, acquired Kimpton in January 2015, and has since expanded the brand globally. Today, the company has 4,962 employees, and operates more than 50 hotels and 60 restaurants, lounges, and bars across the United States. In March 2023, there were 1,148 job openings. Employment benefits include a mentorship program, compressed work weeks and opportunities to work remotely, paid maternal and paternal leave, mental health coverage, among other benefits.

While each city or region has its influential restaurants, on a national scale the major players in the industry are companies that own large chain restaurants with somewhat similar menus, prices, and casual family-style dining styles. The three major players in the casual dining sector are Darden Restaurants, Brinker International Inc., and Dine Brands Global (formerly DineEquity Inc.).

Darden Restaurants owns and operates full-service restaurants in the United States and Canada. It is the largest casual dining competitor in the market. Its brands include LongHorn Steakhouse, Bahama Breeze, The Capital Grille, Olive Garden, Ruth's Chris Steak House, Seasons 52, among others. Darden employs about 179,000 people and owns and operates about 1,850 restaurants. It earned $9.63 billion in revenue in fiscal year 2022, a nearly 34 percent increase over its 2021 revenue.

Brinker International Inc. owns and operates major chain restaurants such as Chili’s Grill & Bar, Romano’s Macaroni Grill, and Maggiano’s Little Italy. It comprises more than 1,600 restaurants all over the world. Brinker International is among the largest restaurant competitors in the market. Brinker International earned more than $3.8 billion in revenue in fiscal year 2022, a 10 percent increase over the previous year's revenue, and employs more than 62,000 people worldwide.

Dine Brands Global (formerly DineEquity Inc.) operates and owns the Applebee and International House of Pancakes (IHOP) restaurants. There are about 3,400 restaurants combined in 18 countries. Approximately 1,569 Applebee’s are located in the United States, and 109 Applebee's restaurants are located in 14 countries. There are 1,677 IHOP restaurants in 50 states, the District of Columbia, Puerto Rico, Guam, Saipan, Bahrain, Canada, Mexico, Guatemala, among others. In 2007 and 2012, DineEquity revamped their restaurants and made them franchises, and in 2018, its name was changed to Dine Brands Global. There are now 380 franchisees. Dine Brands Global earned more than $0.91 billion in 2022, a slight increase compared to the $0.90 billion revenue in the previous year, and major jump from its $781 million in revenue in 2018.