Industry and Market Analysis Essay Example | Topics and Well Written Essays - 500 words

Industry and Market Analysis - Essay Example (Bieber, Meurer, Surmann & Rassek, 2013) A telephone interview with the General Manager of The Surrey Hotel, a luxurious Manhattan hotel on the Upper East Side, Mr. Shan Kanagasingham, revealed that the hospitality industry is one that has great business opportunity in terms of profit margins. According to him, a lot of investors are fighting to have a ‘piece of the cake’ of the hospitality industry. He says that the pool of consumer demand is bigger now for the hospitality industry than it was a while back. People are more willing to spend money on leisure and entertainment. Business people are also opting for comfortable, luxurious and a first class experience regardless of the amount of money they spend, â€Å"value for money† is what they call it. Mr. Shan says that they can get an average of 500 guests in a day whether it is for boarding purposes, visiting the fitness centre or just having a meal in the restaurants or a business meeting in the conference rooms. He however states that the hospitalit y industry is a very cost conscious business. The most successful hotels are a joint venture from various investors who pull resources together in order to create the best hospitality experience for its consumers. One needs resources such as buildings or premises, a pool and qualified human capital that will facilitate the running of the hotel among other things. According to an interview carried out with the General Manager of New Intercontinental Dallas Mr. Scott Blakeslee, the likely revenue could average to $120.5 billion for the whole industry in the year 2012. The America Hotel and Lodging association has recorded an increase in revenue in the hospitality industry over the years. According to Mr. Blakeslee, there has been an increase in occupancy in the industry and thus makes the industry more profitable than other years. Room occupancy in most cases, is what determines the profit margins. However, he was quick to note that this