“Accessibly written and thoughtfully edited, making it essential reading for those studying hospitality and embarking on a career in the industry.” - Peter Lugosi, Oxford School of Hospitality Management “This text is a fascinating read… Roy Wood has spent 25 years teaching, researching and writing on the hospitality industry - much of that learning is here in this book.” - Erwin Losekoot, Auckland University of Technology “All different aspects of the hospitality industry are elaborated on… All in all a wonderful course book for for our students!” - Claudia Rothwangl, ITM College This book covers the major concepts students are likely to encounter throughout their study within the hospitality management, giving a comprehensive and up-to-date overview as well as providing engaging everyday examples from around the world. A leading figure in the field, Roy Wood has successfully gathered international contributors with direct experience of hospitality management and the hospitality industry as a whole, ensuring the academic, geographical and practical integrity of the book. Key Concepts in Hospitality Management is written for undergraduate students and those studying short postgraduate or executive education courses in hospitality management, events management, tourism management and leisure management.
Chapter : Editor's Introduction
The Hospitality Finance Environment
See also: Income statements in hospitality finance; Industry structure and sectors in hospitality; Investing in hotels
There can be few industries that demonstrate such slavish devotion to the vagaries of the business cycle as the hospitality industry. As economic activity rises, so does occupancy and RevPAR (revenue per available room). Conversely when the economic climate becomes gloomier, then what is now deemed ‘non-essential’ expenditure is reduced and the hospitality sector suffers accordingly. Fluctuations in the business cycle are accompanied by wild swings in RevPAR, as evidenced [Page 55]by the three economic recessions of the 1980s, 1990s and late 2000s, each of which saw falls in RevPAR in the region of 10% (PriceWaterhouseCoopers, 2011b: 12–13).
This discussion examines the nature of ...