Hospitality industry: Definition and guide for hoteliers

What is the hospitality industry?

The hospitality industry is in the business of providing professional services across hotels, motels, resorts, restaurants, cafes, theme parks, tour companies, and the like, falling into the broader service industry.

Hospitality is a global industry that’s expected to grow from $3,953 billion in previous years to $4,548 billion in the upcoming years and reach over $6,715 billion within the next decade.

It is connected to travel and tourism but goes beyond the bounds of those areas. While the travel and tourism industry caters to holiday makers and those who have travelled away from their home, hospitality offers services to tourists, travellers, locals and anyone else who may be in the area.

This comprehensive guide gives you the framework, knowledge, insights, actionable tips and tools you need to win more bookings and perfect the guest experience in the hospitality industry.

Table of contents

Introduction to the hospitality industry

The hospitality industry is characterised by a dependence on discretionary spending, free time and interest of customers. As we’ve learnt in the era of COVID-19, it’s also influenced by our freedom to travel and move about our neighbourhoods freely.

The hospitality and tourism industry spurs economic growth, serves people and communities and provides employment for thousands of people around the world, with some of the most common jobs being:

Cafe and restaurant wait staff and managers
Retail managers and sales assistants
Bar attendants and baristas
Airline and travel employees
Hotel receptionists, staff and managers
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History and development of the hospitality industry

The evolution of the hospitality industry demonstrates how combining traditional values with modern innovations creates exceptional guest experiences that drive business success. Here is a brief overview of the history and development of the hospitality industry:

Ancient Times (Before 500 AD)

The concept of hospitality emerged in ancient civilisations, with Greeks and Romans considering it a sacred duty. Inns and taverns were established along trade routes, providing basic shelter and food for travelers, while in ancient Rome, hospitium (inns) and cauponae (taverns) served as early examples of commercial hospitality.

Medieval Period (500-1500)

Monasteries and religious institutions became the primary providers of hospitality, offering lodging to travelers and pilgrims as part of their religious duty. Coaching inns developed along major routes, providing accommodation and fresh horses for carriages.

Renaissance and Industrial Revolution (1500-1900)

The Renaissance saw the emergence of more sophisticated hospitality establishments catering to wealthy travelers and aristocrats. Grand hotels began appearing in major European cities, marking the beginning of luxury accommodation.

The development of railways revolutionised travel and led to the establishment of hotels near train stations. The first modern hotels emerged in major cities, and tourism began developing as a leisure activity for the middle class.

Modern Era (1900-2000)

Chain hotels emerged with Statler Hotels leading the way, introducing standardisation of services and amenities. Professional hospitality education programs were established, and hotel rating systems were introduced to maintain quality standards.

The rise of air travel and automobile tourism led to the development of airport hotels and motels. International hotel chains expanded globally, while the introduction of computerised reservation systems (CRS) and property management software (PMS) transformed operations.

Contemporary Age (2000-Present)

The digital revolution has brought mobile check-in, smart room controls, and AI-powered customer service to the forefront of hospitality. The sharing economy has disrupted traditional hospitality with platforms like Airbnb, while sustainability and personalised experiences have become key industry focuses.

Hospitality industry definition for hotels

Hotels are at the very heart of the hospitality industry, and have been for hundreds of years. The definition of a hotel – an establishment providing lodging and often meals, entertainment and other personal services for the public – aligns closely with the hospitality industry definition that we’ve explored above.

What is the hospitality industry meaning for hotels? It’s simply a term for the broader industry that hotels share with other types of pleasure and leisure-focused businesses, such as restaurants, ski resorts, day spas and tea houses.

Hotels provide their paying customers with a wide variety of enjoyable hospitality experiences – from room service to buffet breakfasts, massages to themed weekends away.

Image explaining hospitality industry

What does business in the hospitality industry mean?

Hospitality is a word which means “the friendly and generous reception and entertainment of guests, visitors, or strangers.” Any business that aims to make people feel welcome, often through comfort or entertainment, will generally be considered to be part of the hospitality industry.

Particularly, a hotel business is built around hospitality, and generally spans across several areas of the hospitality industry. Like all industries, the key to being successful starts with knowing the industry inside out.

From industry fundamentals to the latest technology, trends and tips, you need to know about the hospitality industry today – all from your unique perspective as a hotelier.

Career opportunities in the hospitality industry

Understanding the dynamic nature of the hospitality industry not only helps you stay competitive but also opens doors to diverse career paths and growth opportunities. Below are the most common job titles found across different segments of the hospitality industry.

Note that the following lists are examples only to give you a general overview. Specific positions and departments can vary considerably, depending on the property’s size, service level, brand standards, market positioning, and regional differences, among others.

Hotels and Accommodations

Front Desk Agent or Receptionist
Housekeeping Attendant
Housekeeping Supervisor
Guest Services Coordinator
Reservations Agent
Night Auditor
Front Office Supervisor
Housekeeping Manager
Revenue Manager
Rooms Division Manager
Director of Operations
Hotel Manager
General Manager
Regional Director
Vice President of Operations

Food and Beverage Operations

Server or Waiter
Bartender
Line Cook
Host or Hostess
Kitchen Staff
Bar Supervisor
Restaurant Supervisor
Kitchen Manager
Restaurant Manager
Catering Manager
Executive Chef
F&B Director
Regional F&B Manager
Director of Restaurants

Events and Conferences

Event Coordinator
Banquet Server
Audio-Visual Technician
Events Administrator
Wedding Coordinator
Banquet Captain
Events Manager
Conference Services Manager
Banquet Manager
Director of Events
Director of Catering
Convention Center Manager

Tourism and Travel Services

Travel Agent
Tour Guide
Tourism Information Officer
Booking Coordinator
Tour Coordinator
Product Developer
Tour Operations Manager
Destination Manager
Travel Product Manager
Tourism Development Director
Regional Tourism Manager
Destination Marketing Executive

Cruise and Maritime

Cruise Staff
Guest Services Officer
Entertainment Staff
Activities Coordinator
Shore Excursion Coordinator
Department Supervisor
Entertainment Manager
Shore Excursion Manager
Hotel Operations Manager
Cruise Director
Maritime Operations Director
Fleet Director

Specialised Service Sectors

Spa Therapist
Recreation Coordinator
Concierge
Club Attendant
Fitness Instructor
Wellness Coordinator
Casino Dealer
Golf Operations Supervisor
Spa Manager
Casino Manager
Wellness Director
Director of Guest Experience
Director of Leisure Services
Luxury Brand Director

Corporate Hospitality Management

Management Trainee
Corporate Sales Coordinator
Brand Coordinator
Account Manager
Area Manager
Brand Manager
Corporate Account Manager
Regional Sales Director
Director of Development
Vice President of Operations
Chief Operating Officer
Chief Executive Officer

The progression of careers in hospitality, while rewarding in established organisations, can lead many professionals to consider entrepreneurship as their ultimate goal. While the responsibilities and risks are greater, the potential for financial rewards is significantly higher than salaried positions.

Moreover, the satisfaction of building a successful enterprise from the ground up can be incredibly fulfilling. Transitioning from employee to business owner could represent the culmination of hospitality leadership and creative freedom.

Even SiteMinder founder, Mike Ford, was involved in a hospitality business before embarking on the journey of creating the only software platform that unlocks the full revenue potential of hotels. Watch the video below:

How to start a hospitality business

A business in the hospitality industry can take many different forms: starting a two-room bed and breakfast is a rather different prospect to starting a theme park, for example. So rather than go into the specific mechanics of starting a hospitality business, let’s instead look at some general tips and guidance for anyone who might be interested.

Some key qualities you need as a hospitality business owner include:

Good work ethic: Many hospitality businesses, such as hotels and resorts, never really close. Others, such as restaurants and bars, see you working evenings and weekends. You’ll need to be prepared to work hard and long at your business.
A customer focus: The hospitality industry is all about providing pleasure to customers. You need to focus on the elevating experience you offer, and you need to be open to changing your offering with customer tastes.
A deep passion: The best hospitality experiences are delivered by businesses who demonstrate an obvious passion for what they do – who are always looking to improve, and who are willing to try new things.

If you believe you have what it takes, a few key considerations when starting a hospitality business include:

Do you market research: Invest in research to verify whether there’s a market for your proposed business, or whether you’re confident you can create one.
Get advice from industry veterans: Talk to people who are already in the industry to gain an understanding of what it takes to succeed as a hospitality business owner.
Get hospitality industry insurance: Ensure you’re covered for whatever inherent risks your hospitality business faces by securing the appropriate insurance.

Hospitality industry problems and opportunities

The hospitality industry is susceptible to an array of outside influences. Over the last few years, the tourism and hospitality industry has been hit particularly hard by the pandemic, with restricted movements resulting in complex challenges across all areas of the industry.

As the industry recovers, it’s becoming increasingly obvious that it’s not “back to normal.” Instead, the latest trends are indicating the market looks a little different with new forces driving the behaviour of travellers and hoteliers alike.

Safety and hygiene

Cleanliness has always been valued by guests at hotels, and expectations have reached new levels following the pandemic. The push for social distancing, quarantining, hand sanitiser and masks has heightened awareness of the risks of poor hygiene. Falling ill while on holiday, being required to isolate while travelling or being subject to a lockdown are new, and powerful, considerations for people when booking a hotel.

Staff shortages

In the US, there were 300,000 fewer workers in the hotel industry compared with two years prior. Some hotels have responded by shifting housekeeping to a by-request-only model and cutting back on amenities such as room service. Finding staff, building a team and retaining your people has never been more important.

When the British government held a referendum on the United Kingdom’s potential withdrawal from the European Union, this caused a worry for hoteliers on the amount of staff being drawn from European migrants.

With a devalued pound and the potential for the government to introduce a new work scheme that would require employers to request permission from a central government authority to employ foreign national workers, migration from the EU slowed significantly.

Because public concern around immigration levels was one of the motivating factors for the Brexit vote, it may be difficult for the government to negotiate a new relationship with the EU to permit the free movement of workers.

This means there may have to be a conversation about EU nationals staying in their current roles and finding ways to reduce staff churn in the hospitality industry.

Keith Edwards, chief people & development officer at Soho House, believes the uncertainty is already making a difference:

“In the weeks and months since the Brexit referendum, we have noticed it becoming harder and more expensive to recruit and we expect that trend to continue. The drop in the value of sterling means that many of those from abroad who are working here have less money to send home, and the influx of those moving to the UK to seek work is slowing.”

Having staff troubles? Check out our staff management cheatsheet.

Bleisure travel

The pandemic has blurred work and life boundaries for many, with remote and hybrid working sticking around even as pandemic restrictions are lifted. This trend means the digital nomad is not the only type of person mixing work and play these days.

It might be a professional taking off on a Thursday to beat the rush to a destination and “working from anywhere” on a Friday before a weekend away.

Or someone who tacks on a weekend following a week-long conference since they haven’t been able to get away for so long. This hybrid of business and leisure travel, “bleisure travel”, is something all hoteliers should have on their radar.

Sustainability

Customers are increasingly demanding sustainable products and services, and data shows that people across all generations are willing to pay more for sustainable products.

For the hotel industry in particular, sustainability is becoming non-negotiable, with the sector depending on a healthy global ecosystem for its own survival. And when it comes to sustainability, it’s important hotels truly embed sustainability in their business rather than making a token effort.

Four keys to business success in the hospitality industry

There are many paths to business success as a hotelier, however most hotels that find prosperity as a hospitality business do these things:

1. Develop a strong brand

Research has shown that a strong brand is indeed critical for a successful hotel business. To develop that brand, start by looking at your competitors and your perceptions of their business. What are the things you like? And don’t like?

Also ask yourself:

What problems are you solving?
What makes your business stand out?
If your business was a person, how would you describe them?
What do clients love about your business?

Understanding how to build a great brand will help you move forward with confidence and build on your success.

2. Pay attention to the details

It’s the little details that can create excellent first impressions, build authenticity into your brand and add up to a memorable experience for guests. And it can also be those little details that – when overlooked – create disappointment or lead to disaster.

Develop your skills in this area by looking at things from your customer’s perspective, keeping on top of maintenance, and thinking about presentation in whatever you do. Good attention to detail will iron out any little issues before they become bigger problems and keep service flowing and customers smiling.

3. Understand the numbers

You might understand the industry, the market and your clients, but how well do you know the numbers? Data and metrics are so important in driving strategy and making sound decisions. All hoteliers should have a good grasp of:

4. Follow the latest hospitality marketing tips

The hotel hospitality industry is dynamic and quickly evolving, so it’s important to be agile enough to score some quick wins with easy-to-action marketing ideas. Examples of these hospitality industry marketing tips include:

Ask departing guests to complete a quick feedback form. Direct your biggest fans to an online review platform – helping to bolster your brand reputation and drive more bookings.
Create an ambient and brand-aligned “selfie space” – encouraging guests to spread the word about your business online.
Audit your hotel website and ensure each page and post has a clear call to action – prompt those who are thinking things over to take the next step and create a booking.
Set up a Google Hotel Ads campaign to get immediate results by reaching people who are actively searching for a hotel like yours – AccorHotels lifted year over year bookings by 65% and grew revenue by 84% by using a strategy that delivered more traffic to emerging markets.
Consider partnering with travel-focused influencers on TikTok to target a younger market – 81% of users use TikTok to discover new products and brands.

Technology in the hospitality industry to help run your hotel

As the world moves online and technology gets increasingly “smart”, success in the hotel game is also about selecting the right tech solutions and tools to streamline processes, improve the customer experience and gain a competitive advantage in the market.

Technology in the hospitality industry, when we’re talking about hotel businesses, generally covers:

Online distributions
Direct bookings
Revenue management
Property management
Business intelligence
Websites and SEO
Customer service and guest-facing tech
Marketing

As tech has evolved, various and disparate systems have been brought in to solve the problems and dilemmas hoteliers face. That’s changing, though, as hotel commerce platforms – based on tech used by online giants like Amazon and Uber – provide a single place with everything accommodation providers need to sell, market, manage and grow their business.

Find out more about the flexible pathways to start with hotel commerce and the opportunities available to upgrade or scale your business through SiteMinder’s award-winning distribution and marketing technologies, 24/7 support and the largest ecosystem of best-in-class hotel technology integrations, apps and partners.

Over 1,250+ partner integrations and apps

Integrate your existing hotel systems with ease and increase revenue from streamlined operations.

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Future of the hospitality industry

New entrants might be surprised to find out how advanced technology in hospitality industry businesses already is. Artificial intelligence, for example, is already being used to enhance operations and customer experiences in a number of areas, including:

Customer service and concierge chatbots
Personalisation of customer experiences through data analysis
Streamlining operational efficiency
Managing and maximising revenue

Ultimately, hotel professionals should see AI in hospitality as an incredible opportunity to run the business better. Here are 4 more trends to keep an eye out for:

Rise of technology-enabled personalisation

While AI assists behind the scenes, the future of hospitality centers on using technology to drive higher levels of guest satisfaction. From customisable room environments to personalised digital concierge services, hotels are leveraging data and technology to provide unique experiences, while maintaining the human touch that defines hospitality.

Evolution of remote work integration

The permanent shift in work culture has created a new category of long-term hotel guests who combine work and travel. Hotels should consider redesigning spaces to include professional co-working areas, upgrading technology infrastructure for seamless connectivity, and developing extended-stay packages that cater to this growing market of digital nomads.

Some hotels even offer day-use rates, rent out kitchen facilities during off-hours, and monetise amenities like spa facilities or fitness centers through local memberships.

Development of regional tourism

Geopolitical tensions and changing travel patterns are driving the growth of regional tourism hubs. Hotels should adapt by developing stronger connections to local culture, creating destination-specific offerings, and building resilience through diverse market approaches that can weather global travel disruptions.

For example, properties can promote special weekend staycation packages for local residents, maintain competitive corporate rates for regional business travellers, and continue serving international corporate clients with flexible booking terms.

Enhanced focus on health and wellness

The heightened awareness of health and wellbeing is transforming hotel design and service offerings. Properties are incorporating advanced air filtration systems, touchless technologies, and expanded wellness facilities, while also developing comprehensive programs that combine fitness, nutrition, and mental wellness elements for guests.