Hotel and Lodging Business Overview

Hotels and Lodgings in the Tourism Industry

• Hotels and lodgings are part of the broader tourism, hospitality, and service industries.
• The tourism industry includes:
  • Attractions
  • Lodgings
  • Food and beverage services
  • Retail shops
  • Tour operators
  • Transportation
  • Travel agencies

Importance of Lodgings

• Lodgings are essential because travelers need accommodation for overnight stays.
• Booking.com data indicates an average stay of 7.5 nights.

Characteristics of the Hotel Business

• Intangibility: Services cannot be evaluated before purchase through traditional senses.
• Inseparability: Production and consumption occur simultaneously.
• Variability: Service quality varies due to different service providers.
• Perishability: Services cannot be stored for later use; revenue is lost if not sold at the right time.
• Product-Service Mixed: Hotels offer both tangible products and intangible services.
• Operating 24/7: Hotels operate around the clock.
• Unusual Work Hours: Employees often work in shifts.
• Seasonality: Demand fluctuates based on the time of year.
• Teamwork: Requires coordinated effort from various staff.
• Guest Satisfaction: Focus on creating positive guest experiences.
• Dealing with Diverse People: Interacting with people from various backgrounds.

Market Offerings

• Hotels provide both products and services to the market.

Factors Affecting Demand for Travel & Lodging

• Economic factors
• Political & regulatory factors
• Social and demographic trends
• Environmental considerations
• Technology developments

Economic Factors

• Disposable income levels
• Exchange rates
• Price sensitivity
• Economic cycles
  • Example given: The cost of flying.

Political and Regulatory Factors

• Visa policies
• Travel advisories
• Taxation
• Labor regulations

Social and Demographic Trends

• Changing demographics
• Work-life balance shifts
• Health consciousness
• Cultural interests

Demographic Segmentation

• Income
• Age
• Education
• Gender
• Religion
• Family size
• Occupation
• Marital status

Technology Developments

• Online booking platforms
• Social media
• Mobile technology
• Smart hotel technology

Pros & Cons of Digital Technology in the Hotel Business

• Examples of online hotel booking platforms: Expedia, Airbnb, Booking.com, Cleartrip, Makemytrip, Agoda, Goibibo

Environmental Considerations

• Climate change impacts
• Sustainability practices
• Natural disasters
• Resource constraints
• Monitoring air and water quality.
• Reducing energy wastage.
• Waste reduction.

Current Situation of the Global Hotel Business

• Market Size: Approximately $570 billion in 2024$.
• Number of Hotels: Estimated $1.1 million$ properties worldwide as of $2024$.
• Employment: Approximately $55 million$ people were directly in the global hotel industry in $2024$.
• Occupancy Rates: Average global occupancy rate reached $68\%$ in $2024$.
• Major Players (by number of properties in 2024):
  • Marriott International: approximately $8,000$ properties
  • Hilton Worldwide: over $7,000$ properties
  • InterContinental Hotels Group (IHG): around $6,000$ properties

Situation of the Hotel Business in Thailand (2019)

• $24,269$ lodgings nationwide.
• $130.6 million$ guests (60% Thai, 40% foreigners).
• Total revenue: $224,363.3 million Baht$.

GDP Origination from Accommodation Sector

The chart on page 24 shows the GDP origination from the accommodation sector in Thailand: a sharp decline is visible between 2019-2021.

Share of Tourism Receipts

• In 2019: foreigners accounted for 65% of tourism receipts, while Thai tourists accounted for 35%.
• In 2021: foreigners accounted for 15%, while Thai tourists accounted for 85%.

Foreign Tourists to Thailand

The chart from 2013 - 2021 is presented on page 26.

Occupancy Rate of Accommodations in Thailand (2015-2023)

The occupancy rates are shown on page 27, with a low of 14.16% in 2021, and a high of 71.38% in 2017.