PricingPricing in the Hospitality IndustryHospitality industry

The hospitality industry is wide and complex and includes a number of concepts and elements. The hospitality industry integrates travelling, lodging, resorts, ships and hotels. This area is related to the provision of all required facilities to customers, including accommodation and food. In 2015, one in ten enterprises in the European non-financial business economy belonged to the tourism industries. These 2.4 million enterprises employed an estimated 12.7 million people. Enterprises in industries with tourism-related activities accounted for 9.2 percent of the people employed in the whole non-financial business economy and 21.5 percent of persons employed in the services sector. The tourism industries’ shares in total turnover and value added at factor cost were relatively lower, with the tourism industries accounting for 3.8 percent of the turnover and 5.7 percent of the value added of the non-financial business economy. Figure 12.1 shows the travel arrivals in regions like North America, Europe, Asia-Pacific and the Middle East. It is visible that travelling is significantly increasing in all regions. Europe is still the leading country for tourists and travellers with a number of 710 million arrivals in 2018, followed by Asia-Pacific (348 million travellers), North America (143 arrivals) and the Middle East (61 million arrivals). As a result of an increased economic growth, it is visible that developing regions like Asia-Pacific are more attractive for travellers to travel to. In addition, as these regions are prospering economically, people from these regions also travel more. The major reasons are the increased wealth and the purchasing power from travellers (Mandal and Vong 2016).