Choice Hotels Competition
Now Viewing Choice Hotels's competition in: Hotel and Motel - Lodging (primary)
Recent Developments
Federal Funds Bypass Travel Industry - Unlike other sectors of the economy, the travel and lodging industry does not stand to benefit from the economic stimulus package passed by Congress in February 2009. Additionally, TARP (Troubled Assets Relief Program) funds specifically excluded spending on business travel for recipients. Travel and lodging companies would have welcomed government aid. Some 200,000 jobs in the travel industry were lost in 2008, and the industry predicts similar losses for 2009, according to the American Hotel & Lodging Association.
Canadian Hoteliers Remain Pessimistic - Hotel operators in Canada expect to see lower room rates and bookings for 2009, according to the Business Conditions Survey from Statistics Canada. Two-thirds of the more than 1,400 businesses surveyed said that the number of booked room nights would be lower in the first quarter of 2009 than for the same period in 2008. Two-thirds also expected fewer corporate travelers.
Hotels Turn to Web for Hiring - Hotel chains are setting up websites to handle large volumes of applications. Human resources leaders at companies including Four Seasons and Fairmont Hotels say that online application sites attract tech-savvy potential employees, enable automated analysis of resumes, and streamline the application process when hiring for a new hotel. However, other potential employees could be intimidated by the online process, so personnel officers will continue to take staff referrals into consideration when making hiring decisions.
Competitive Landscape
Business and tourist travel drive demand and are closely linked to the health of the economy. The profitability of individual companies depends on efficient operations, because many costs are fixed, and on effective marketing. Large companies have advantages in economies of scale in operations, can more easily raise capital, and have strong name recognition. Small companies can compete effectively in favorable locations and by providing specialty services. A hotel business requires large amounts of capital, but operations are labor-intensive: average annual revenue per employee is less than $65,000.
Hotel and Motel - Lodging Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US hotels, rooming houses, camps, and other lodging is forecast to grow at an annual compounded rate of 1 percent between 2008 and 2013. Data Sourced: December 2008
Hotel, Lodging Services Growth Levels After Dip
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Industry Growth Rating
The First Research Industry Growth Rating reflects the expected industry growth relative to other industries, based on INFORUM's forecasted average annual growth for the combined years of 2009 and 2010.
- Demand: Depends partly on business travel
- Need efficient use of low-cost labor
- Risk: Slow economy cuts business travel
Industries Where Choice Hotels Competes
- Leisure
- Lodging
- Mid-Priced Hotels & Motels (primary)
- Budget & Economy Motels
- Extended Stay & Business Suite Hotels
- Lodging