Question

i need this to be summarized for 5 main points please.

Increases in travel spending, corporate profit and general consumer spending have driven industry revenue growth in each year since 2014. Strong economic growth during the five year period and rising domestic and international travel rates have provided boosts to industry performance. As a result, the industry has slightly outperformed the broader economy over the past five years, driven by high demand from leisure and business travelers as well as international tourists. Over the five years to 2019, IBISWorld expects industry revenue to grow at an annualized rate of 3.4% to $200.4 billion as consumer confidence and spending spike, raising revenue 3.6% in 2019 alone. 3.4% Growth in Industry Revenue 2014-2019 Over the past five years, rising external competition has increased pressures on many hotel and motel operators, leading to competitive room rates. While some operators have shifted to offering premium services and accommodations to increase their rates or diversify revenue streams, not all operators have been able to make this shift. This has led to declines in industry profit margins. However, the increased demand for travel and hotel rooms and the increased concentration of industry establishments have also enabled many operators to buy out smaller competitors. Many small operators have been heavily affected by increased competition and are unable to rebrand and capitalize on this period of premiumization. Nevertheless, overall establishment growth has remained strong during the five-year period, which is expected to keep competition high 2.5% Growth in industry employees by 2024 Over the five years to 2024, IBISWorld projects that the industry will continue to expand at a more moderate pace, with particularly strong growth in the extended-stay hotels, boutique hotels, spa and health retreats and resorts segments. As demand for these auxiliary services picks up, the number of industry employees is anticipated to rise at an annualized rate of 2.5% to 2.0 million workers by 2024, Industry players are also expected to continue expanding abroad into emerging economies such as Asia, Eastern Europe and South America. These foreign markets will somewhat detract from domestic investment, as they offer higher growth prospects for industry operators. Nonetheless, industry revenue is forecast to increase at an annualized rate of 2.3% to $224.5 billion over the five years to 2024 (til)

Answer 1

Summary

1. Over the 5 years to 2019, IBISWorld expects the industry revenue to grow to $200.4 billion at an annual rate of 3.4% due to rise in consumer confidence and spending. The main drivers of this growth are travel spending, corporate profit and general consumer spending.

2. Rising external competition during the last 5 years has lead to more pressure on hotel and motel operators leading to competitive room rates. While some owners have started offering premium services to increase rates and diversify revenues, others have not be able to follow suit and this has led to decline in industry profit margins.

3. Increased demand for travel and hotel rooms have led to concentration of the industry with large operators buying out the smaller operators as smaller operators are unable to handle this increased competition.

4. Over the next five years, IBISWorld projects the industry to grow at a moderate pace with particularly strong growth in extended-stay hotels, boutique, hotels, spa and other health retreat and resorts segment.

5. Industry players are also expected to expand abroad into emerging economies as demand for these auxiliary services grow and the number of industry employees is anticipated to grow to 2 million workers by 2024. Industry revenue is forecast to increase at an annual rate of 2.3% to $224.5 billion by 2024.