The hospitality industry is generally recognized as a section of the wider service industry, focusing on leisure rather than more basic needs. In this article, you will learn more about the nature of the hospitality industry, its various sectors, and its connections to the hotel and travel industries.

Table of Contents:

What Is the Hospitality Industry?

So, what is the Hospitality industry? First, defining what we mean by the hospitality industry is important. After all, it is a broad field. While most people have a basic idea of the types of businesses that count as hospitality brands, a far smaller number can provide a coherent and satisfactory explanation of what the industry is and is not.

The hospitality industry refers to various businesses and services linked to leisure and customer satisfaction. A defining aspect of the hospitality industry is that it focuses on ideas of luxury, pleasure, enjoyment, and experiences instead of catering to necessities and essentials. According to the Hospitality Global Market Report by Research and Markets, the global hospitality market is expected to reach $5.816 billion in 2027.

Video: Hospitality Industry Definition

The Difference Between the Hospitality Industry and the Travel Industry

The hospitality and travel industries are closely connected, but there are also some subtle differences to be aware of. On a basic level, the travel or tourism industry is concerned with services for people who have traveled away from their usual residence for a relatively short period.

By contrast, the hospitality industry is concerned with leisure and customer satisfaction services. This may well mean offering services to tourists. Still, it can also include providing services to people who are not tourists, such as locals enjoying their free time or people coming to an area for reasons other than tourism.

Table: Difference Between Hospitality and Travel Industry

Key Aspects Hospitality Industry Travel Industry
Primary Focus Providing accommodations, dining, and guest services. Facilitating travel experiences, including transportation, tours, and activities.
Scope of Services Focuses on guest experiences within specific establishments, such as hotels, restaurants, and resorts. Encompasses a broader range of services related to travel planning, transportation, and destination activities.
Revenue Sources Generates revenue from accommodations, dining, and on-site services. Earns revenue from transportation bookings, tour packages, and travel-related activities.

Sectors Within the Hospitality Industry

See below the key sectors within the hospitality industry.

1) Accommodation

What is the hospitality industry

The accommodation sector of the hospitality industry is concerned with providing customers with a place to stay temporarily. It is most commonly associated with the tourism industry, where people book holidays or trips and require lodgings. Still, the accommodation sector also caters to locals seeking a short break from their everyday routine or those who require temporary accommodation for almost any other purpose.

Bed & Breakfasts

Bed & breakfasts, or B&Bs, are small establishments offering overnight stays and breakfast in the morning. Most B&B owners live on the property, while guests are provided with a private room and, in most cases, will also have a private or en suite bathroom. However, bathroom facilities are sometimes shared.

Hotels

Arguably the most obvious form of accommodation in the hospitality industry, hotels cater to people who require overnight or longer-term stays. Aside from offering lodgings, they tend to provide various other services, including room service, housekeeping, and facilities for eating and drinking.

Motels

Motels are similar to hotels but are specifically designed for overnight accommodation by motorists. With this in mind, they are generally situated at the roadside and will have free car parking facilities. Unlike hotels, however, motels usually offer little in the way of additional services or amenities.

Hostels

Hostels are communal accommodations where multiple guests usually sleep in a shared room, with guests renting a bed effectively. Bathroom and kitchen facilities are usually shared, and hostels offer less privacy than hotels. Yet, they are usually significantly cheaper, making them a solid option for those with a low budget.

Resorts

A resort is similar to a hotel but will provide a wider range of facilities and amenities. This means that guests can access sleeping facilities, food and drink facilities, entertainment facilities, shopping facilities, and other amenities without needing to leave the resort. Many resorts also offer all-inclusive pricing.

Serviced Apartments

Another form of accommodation that shares similarities with hotels is that serviced apartments are self-contained units supplied for either short-term or long-term stays. These apartments will typically be fully furnished, contain a kitchen, and may include various hotel-like services, such as laundry and cleaning.

Time Sharing

Finally, time-shared accommodation is where ownership or usage rights are shared between multiple people. It may be a house, condo, or similar type of property, and each owner will typically be allocated a particular time of the year when they will have the right to use it.

2) Food & Drinks

Hospitality industry guide

While food and drinks are necessities, most food and drinks services also fall under the hospitality industry umbrella because they offer people a way of spending their leisure time and disposable income and an opportunity to socialize and enjoy an experience. Again, the food and drinks sector caters to many customers, including tourists, locals, ex-pats, and passers-by.

Restaurants

Restaurants provide customers with food and drink services, with the food either being eaten in the establishment or taken away for consumption. This section of the hospitality industry includes fine dining restaurants, takeaway restaurants, fast food restaurants, and a variety of other restaurant types.

Catering

Catering services are food services provided within a particular site or in a more remote location, where food and drink are not necessarily the main service. Examples include catering provided at parks, arenas, stadiums, hotels, event venues, and certain forms of public transport.

Bars & Cafés

Bars and cafés offer customers options to socialize and enjoy food and drinks. They also tend to be a more casual option than most sit-in restaurants. Cafés generally focus on coffee, tea, and light snacks, while bars tend to prioritize alcoholic drinks and soft drinks and may also offer additional entertainment.

Nightclubs

Nightclubs are one of the main ways the hospitality industry caters to people searching for night-time entertainment. They serve alcoholic drinks, are kept open until late, and often emphasize music and dancing. Many nightclubs have specific themes, and they may cater to locals, visitors, or tourists.

Tea & Coffee Shops

Tea rooms and coffee shops provide a similar function to cafés, primarily serving varieties of tea and coffee, as the name suggests. With that being said, tea and coffee shops are often individual rooms within larger buildings, such as hotels, and they may also sell products to be taken away, such as tea bags and coffee beans.

3) Travel and Tourism

Hospitality segments

It is important to understand that the hospitality and travel industries are closely linked. Many of the services that are classed as travel industry offerings are also hospitality offerings because they are linked to leisure, customer satisfaction, pleasure, experiences, and disposable income. Importantly, the cross-over between the tourism and hospitality industries centers on services rather than end products.

Travel Agents

Essentially, travel agents serve to sell travel products to customers on behalf of suppliers. They will often receive a commission for successful sales and can be a convenient option for inexperienced travelers, providing them with advice on the best travel products for their particular needs.

Tour Operators

A tour operator offers a combination of travel and tour products, combining them into a package, which is then sold to customers. This might, for instance, include travel to a destination, transfers from a hotel or train station to a hotel, as well as several trips, activities, or experiences throughout the customer’s stay.

Online Travel Agencies (OTAs)

Online travel agents, or OTAs, perform many of the same functions as traditional travel agents, albeit over the Internet. However, using online platforms means customers often have access to a greater level of self-service, with the OTAs helping users search for the travel products that best suit their requirements. According to Companies Market Cap, Booking Holding is the largest travel company at a market cap of $130.4 billion in 2024.

Cruises

Cruises are voyages on cruise ships undertaken for pleasure rather than transportation. A cruise may have various stops, but passengers will spend most of their time aboard the ship, providing them with lodgings, entertainment, catering, and more.

Car Rental

Car rental services cater to customers who require short-term access to a car. In many cases, these services are used by tourists traveling to other parts of the world. However, some locals may also wish to rent a car, especially if they do not have regular access to one or if they require a larger number of passenger seats.

Casinos

Finally, a casino is an entertainment establishment that provides customers with opportunities to gamble. These gambling opportunities are predominantly offered via luck-based games. In addition to the gambling component, many casinos also stage live performances, offer food and drinks, and are connected to hotels.

The Latest Hospitality Trends

It is important for businesses operating within the hospitality industry to keep up with the latest hospitality trends to avoid being left behind. Furthermore, keeping pace with the wider industry is one way owners can help ensure their business delivers an excellent customer experience.

In the article “Hospitality Trends: The Latest Trends in The Hospitality Industry,” you can find the latest hospitality trends.

Hospitality Technology Trends

As in every industry, technology is also becoming tremendously important within the hospitality industry. It helps companies operating in the industry to innovate processes and customer experiences. Furthermore, guests are used to various technologies at home, so they also expect at least the same level when they are on holiday.

Keeping up with the latest technology is essential because the industry is extremely competitive. In the article “The Latest Technology Trends in the Hospitality Industry,” hospitality companies should know about the latest technology trends.

Hospitality Marketing Trends

Introducing the most effective hospitality marketing tools to your business is essential for attracting new customers and increasing your brand’s reputation. Marketing your business through digital platforms is a powerful way to gain maximum exposure.

Knowing how users plan and book their accommodations and tours online will help you utilize the most powerful marketing strategies. In the article “Latest Hospitality Marketing Trends” you will find the latest hospitality marketing trends.

hospitality industry - Trends

The Relevance of Revenue Management for The Hotel and Hospitality Industry

Every industry is competitive, and the hospitality industry is no different. An effective revenue management strategy can help to maximize profits, not just for the hotel sector but also for resorts, cruises, restaurants, casinos, and any other hospitality sector.

Revenue management utilizes a revenue optimization method that helps businesses in the hotel and hospitality industry exploit their full potential for higher profitability. Learn about the definition of revenue management and its importance in this article, ‘Revenue Management; clearly explained!’.

Find Travel Agencies to Generate More Bookings in the Hospitality Industry

People often turn to travel agencies for travel products or services online rather than visiting individual company websites. For this reason, the hospitality industry can potentially benefit from linking to a travel agency platform because the agency will be able to generate incremental bookings for you.

Read “Find Travel Agencies to Generate More Bookings,” and you will have access to a list of the main travel agencies to partner with and further information about why working with travel agencies is so important.

Hospitality Management

Hospitality is an industry that includes restaurants, hotels, casinos, amusement parks, events, cruises, entertainment, and other tourism-related services. As such, this industry isn’t just important to businesses but also to customers, employees, and economies.

Providing customers with excellent service is the primary goal of hospitality managers as they focus on creating high-standard services and environments to make their customers feel welcome at their establishments. ‘Hospitality Management: The Essentials About Hospitality’ is a comprehensive guide that explains how to kick-start your career in the hospitality sector.

Different Management Types Within the Hospitality Industry

Within the hospitality industry, there are several different management types to be aware of. In the sections below, you can find out what each role entails.

Restaurant Management

Restaurant management is the management of businesses or departments within the hospitality industry that allow customers to order and eat food on-site. It involves overseeing the day-to-day management of the business or department, managing employees, tracking and maintaining stock levels, managing reputation, and more.

Check out “Restaurant Management: Everything You Need to Know” for more on how restaurant management is defined, the core duties associated with the role, the qualities needed to succeed, and the value of the role.

Travel Management

Within the hospitality industry, travel management refers to the specialism of organizing and managing business travel. Typical tasks can include tracking expenditures, optimizing travel routes, booking flights and hotel stays, and devising strategies to minimize the negative impact of business travel on productivity, morale, and company finances.

Take a look at the “What is Travel Management?” article for an in-depth overview of travel management as a discipline, complete with a breakdown of the most important tasks, an evaluation of the benefits of travel management, and insights into the differences between in-house travel management and the use of a travel management company.

Hotel Management

Hotel management refers to hotels and similar businesses operating in the hospitality industry. Generally, hotel managers oversee daily operations, supervise departments when necessary, manage employees, recruit new staff, provide training, devise strategies, and more.

Read “Hotel Management: Everything You Need to Know About Managing a Hotel” for a more detailed analysis of the role of the hotel manager, the importance of effective management, and the core duties.

An Overview of Different Hospitality Careers

The hospitality industry is so diverse that those seeking hospitality careers have many different job roles to choose from. Whether you want to work in food and drinks service, a front office position, cleaning and maintenance, or a managerial role, it is vital to understand the options available.

Read “An Overview of Different Hospitality Careers” for a breakdown of the most common and important hospitality positions that are available, complete with a description of what each job actually entails.

Channels for Finding Hospitality Jobs

Employers in the hospitality industry advertise vacancies on several different platforms and channels. For this reason, if you are seeking hospitality jobs, you must combine these channels to avoid missing out on the ideal opportunity for your skill set and personal preferences.

Check out “Channels for Finding Hospitality Jobs” for an overview of some of the most popular and important channels to find and apply for jobs online, including hospitality job boards, social media sites, recruitment agencies, and hotel websites.

hospitality industry - hospitality jobs

Tips for Advancing Hospitality Management Careers

The hospitality industry is competitive by its very nature, and demand for hospitality management careers can be especially high. Whether you are looking to become a general or hotel manager, or the manager of a specific department, there are certain things you can do to maximize your chances of landing the role of your dreams.

Read “Tips for Advancing Hospitality Management Careers” and find a list of 10 tips that can help you find the right role, improve the quality of your application, and perform well in the interview.

Hospitality Management Jobs Offered By Hotel Chains

Within the hospitality industry, some of the biggest employers are major hotel chains, especially those that operate globally. These businesses offer several different types of hospitality management jobs and often advertise vacancies on their corporate websites, so it can be important to check those regularly.

In the article “Hospitality Management Jobs Offered By Hotel Chains”, you can find out more about ten of the biggest hotel chains in the world and use the information to seek out senior management roles online.

Job Boards for Finding Hospitality Manager Jobs

Many people in the hospitality industry aspire to work in a managerial role. Still, for this to be possible, the first step involves knowing where to look for advertised vacancies. Job boards represent one of the most useful channels for anyone looking to become a hospitality manager.

In “Job Boards for Finding Hospitality Manager Jobs,” you will be able to gain insight into the role of a hospitality manager and also find examples of job boards that advertise senior hospitality positions.

Video: Want to be a Hospitality Manager? Watch this!

Hospitality Course: An Overview of Hospitality Industry Education

The hospitality industry offers many job roles, and while some are entry-level positions, others require more advanced skills and knowledge. This means that there may be some career options that will require you to take a hospitality course first. Fortunately, there is a diverse range of options to choose from.

If you want to learn more about the hospitality courses, what they cover, how they can benefit you, and where you can find them, read “Hospitality Course: An Overview of Courses & Hospitality Educators”.

Free Online Guide on Revenue Management & Marketing Strategies

Excellent facilities, first-class service, the most comfortable rooms, and a great location may all be the highlights of your hotel. Still, the question is, are your potential customers aware of these? Having a perfect hotel without anyone knowing about it is useless unless you use the most effective hotel marketing strategies.

The ’Free Guide: Revenue Management & Hotel Marketing Strategies’ will show you how to market your hotel business effectively by utilizing some important strategies.

A Breakdown of the Key Hospitality Services

It is important to understand that the hospitality industry is vast. Within the broad fields of accommodation, travel and tourism, and food and beverages, you have hospitality services as diverse as hotels, restaurants, museums, cafes, nightclubs, inns, B&Bs, hostels, members’ clubs, event destinations, and casinos.

In the “Hospitality Services: A Clear Overview of All Hospitality Services” article, you will learn about over 50 different services so you can expand or fine-tune your understanding of what hospitality really means.

Hospitality Industry FAQs

The first sector is lodging which consists of hotels, motels, and resorts. The food and beverage industry includes bars, cafes, and restaurants. The travel and tourism industry includes travel agencies and tour operators. Entertainment encompasses casinos and amusement parks. Finally, recreation includes sports and cultural activities.

The food and beverage sector consists of restaurants, cafes, catering services, and bars. This wide scope of popular services means that it’s typically considered the largest within the hospitality industry as a whole. Likewise, these services are a necessity for multiple elements of a traveler’s life.

The hospitality industry aims to create great experiences for guests by giving them comfortable lodging, great meals, and high-quality service. People within the industry typically try to not just meet but exceed a customer’s expectations with every visit.

The hospitality industry is vast, to the point where it contributes to the larger global economy. Millions of people all over the world work in hospitality, and it is even a major factor in the GDP of many different countries.

It’s an incredibly competitive industry. All of the services overlap to some extent, with dining, travel, lodging, and more often tied to the same entities. A hospitality-related company needs to continually grow and innovate to attract and keep its guests.

Ultimately, the hospitality industry should be classed as a section of the service industry that focuses on leisure and customer satisfaction rather than necessities and end products. It is a broad industry containing multiple sectors and a wide range of different businesses and products.

Want to Learn More About Related Industries?

The hospitality industry is part of the travel industry, and the hotel industry is part of the hospitality industry. All these industries have in common that they are large service industries worldwide and increasingly important in the modern age. But what is the difference between the travel and tourism industry? And what are all hospitality sectors within the hospitality industry? In the following articles, you will learn more about related industries.

More Tips to Grow Your Business

Revfine.com is a knowledge platform for the hospitality & travel industry. Professionals use our insights, strategies and actionable tips to get inspired, optimise revenue, innovate processes and improve customer experience. You can find all hotel & hospitality tips in the categories Revenue Management, Marketing & Distribution, Hotel Operations, Staffing & Career, Technology and Software.

Submit an Article

This article is written by:

Martijn Barten

Hi, I am Martijn Barten, founder of Revfine.com. With 20 years of experience in the hospitality industry, I specialize in optimizing revenue by combining revenue management with marketing strategies. I have successfully developed, implemented, and managed revenue management and marketing strategies for individual properties and multi-property portfolios.