Industry Structure: Lodging
The US lodging industry is a sub-sector of an overarching industry called leisure and hospitality. This leisure and hospitality industry encompasses over ten other sectors. However, accommodation, restaurant & food services, and travel & tourism are the largest segments by revenue. Since lodging is under the accommodation sector, only restaurant & food services, and travel & tourism have been discussed below.
US Lodging Industry: Structure
- The US lodging industry is a sub-segment of the leisure and hospitality industry. The leisure and hospitality industry in the US "encompasses a wide range of services and activities such as lodging, restaurants, food services, hotels, travel & tourism, and convention centers."
- Accommodation - including lodging, has the largest share of the US leisure and hospitality industry, 19%. This is closely followed by the restaurant and food services segment, which accounts for over 16% of the industry.
- Currently, the US leisure and hospitality industry employs 16.8 million individuals. Up to 14,8 million of these employees are in production and non-supervisory roles.
- The leisure and hospitality industry has 873,535 establishments (does not include multiple locations of the same establishment) and an unemployment rate of 5.3% in the US.
Overarching Industry 1: Restaurants & Food Services
- By the end of 2019, the US restaurant and food services industry is expected to reach sales of $863 billion up from $825 billion in 2018. There are over a million restaurant locations in the country.
- The industry encompasses all quick service restaurants, full-service restaurants, and takeout services. Cafeterias, catering companies, and university dining halls are also included in this industry. Establishments within this industry sell food to people outside their homes.
- Current trends in the industry include an increase in the number of online orders, functional foods going mainstream, increased digitization, and the experimentation of dining experiences.
- Within this industry, quick service restaurants account for a substantial share. Some of the corporations dominating the market include Yum! Brands, McDonald's Corp, Burger King, Chipotle, and Starbucks.
Overarching Industry 2: Travel & Tourism
- The US travel & tourism industry encompasses services that are related to moving people from place to place. The industry includes buses, planes, trains, cabs, and ships used to move people around.
- The US is the world's largest travel and tourism economy as it contributes $8.8 billion to the global economy and $1.6 billion to the country's GDP.
- As of 2019, the US travel and tourism industry is worth over $500 billion.
- Roughly 80 million international visitors flock to the US annually, while 42 million US residents travel abroad.