Market Data: The Hotel and Motel Industry

Discover the latest statistics and economic trends in the hotel and motel industry.
Sept 4, 2007



According to the Promotional Products Association Intl. (PPAI) , the hotel/motel industry ranked 15 and 19 in the 1996 and 2000 studies of promotional products buying markets, but rose to 12 in the 2003 study.

The U.S. travel industry overall sustains $1.3 trillion annually in total economic activity, employing 16 million people, according to the Travel Industry Association (TIA).
 
The TIA also maintains that travel is the top category in terms of spending for all products purchased online, with an estimated $75 billion spent in 2006. Up to 79 million Americans use the Internet to plan trips.

Five Basic Types of Hotels and Motels

1.    Commercial properties cater mainly to business people and tourists who need accommodations for a brief stay. These hotels and motels are usually located in cities or suburban areas and are open year-round. They can offer any number of services, including dining options (from coffee bars to formal dining), retail shops and fitness centers or health spas. Larger hotels and motels often have meeting or banquet rooms for conventions or receptions, which can be a major source of revenue.

2.    Resorts generally offer luxurious surroundings, focusing on recreational facilities such as swimming pools, golf courses and spas. They focus on planned social activities and entertainment and are usually located in vacation destinations. As such, their business may be seasonal, and they may solicit conventions and meetings to fill rooms during non-peak times.

3.    Residential hotels provide living quarters for permanent and semi-permanent residents. Accommodations are geared towards offering the comfort of apartment living with the convenience of hotel services.

4.    Extended stay hotels combine the features of a resort and residential hotel, usually for guests staying at least five consecutive nights. Rooms generally offer fully equipped kitchens and other amenities found at home, such as entertainment systems and adequate office space.

5.    Casino hotels provide lodging with a casino on the premises. The hotels most likely offer a full range of services and often have conference and/or convention facilities.

Source: Bureau of Labor Statistics