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Industries · Hotels and travel

Hotels and travel

How hotel owners, operators, and franchisors split the money, why RevPAR (occupancy times average daily rate) is the key hotel number, how online travel agencies earn commissions, and how tourism growth in the Gulf and Asia shapes hotel cases.

40 min3 lessons Last reviewed
Start lesson 1 How hotels and travel companies make money

Key takeaways

  • A hotel sells the use of a room for one night. A room left empty tonight can never be sold again, and most hotel costs are fixed.
  • RevPAR joins price and volume in one number: occupancy x ADR.
  • Tourism demand is set by things a single hotel cannot control: visas, flights, events, safety, and the economy.
By the end you will be able to
  • Explain the difference between hotel owners, operators, and franchisors, and how each earns money
  • Calculate occupancy, ADR, RevPAR, and the effect of a price change on hotel profit
  • Compare the cost of an OTA booking with a direct booking
  • Describe the main hotel groups and travel platforms and the tourism trends of 2024 to 2026

Lessons

1

How hotels and travel companies make money

Owners, operators, and franchisors; the travel value chain from airline to online agency; revenue streams; and an approximate hotel cost breakdown.

11 min
2

RevPAR and hotel economics

Calculate RevPAR, test a price increase, split a hotel's profit between owner and operator, and compare an OTA booking with a direct one.

15 min
3

Hotel and travel players, trends, and how to crack the cases

The main hotel groups and travel platforms, tourism in the Gulf and Asia from 2024 to 2026, regulation basics, and typical case prompts.

14 min

Worked cases in this module

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Key terms