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Hotels and travel
Lesson 3 of 3 Math checked Last reviewed 28 September 2026 14 min

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.

Industry brief, with a one-minute summary: Hotels and travel

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Key takeaways

  • Tourism demand is set by things a single hotel cannot control: visas, flights, events, safety, and the economy.
  • Common traps in hotel cases: Looking only at occupancy or only at price instead of RevPAR.
  • Global travel reached new highs. UN Tourism estimates about 1.52 billion international tourist arrivals in 2025, up about 4 percent on 2024.
  • Saudi Arabia is building a tourism economy.
  • The Gulf faced a shock in 2026. From 28 February 2026, a regional conflict closed airspace across parts of the Gulf, and major Gulf airlines suspended most scheduled flights for about a week.

Key idea

Tourism demand is set by things a single hotel cannot control: visas, flights, events, safety, and the economy. Start a hotel case by checking the demand outlook for the destination before you look at the hotel.

Examples of hotel groups and travel platforms (not a ranking)
Examples of hotel groups and travel platforms (not a ranking)
GroupExamplesSourced facts
Global hotel groupsMarriott, Hilton, IHG, Accor, Hyatt, WyndhamMarriott reported about 1.78 million rooms in 9,805 properties at the end of 2025, about two thirds of rooms franchised or licensed (Form 10-K)
Regional hotel groupsJumeirah and Rotana (Gulf), Indian Hotels Company (Taj) and ITC Hotels (India), Minor Hotels (Thailand)Strong in home markets, often growing through management contracts
Online travel agenciesBooking Holdings, Expedia, Trip.com, MakeMyTrip, AgodaBooking Holdings reported 1,235 million room nights in 2025, up 8 percent, with a shift toward the merchant model
Short-term rentalsAirbnb and local platformsCompete with hotels for leisure stays and face city rules

So-what

Brands and OTAs both want to own the guest relationship; the owner of the building often pays both.

Trends from 2024 to 2026 (checked September 2026)

  • Global travel reached new highs. UN Tourism estimates about 1.52 billion international tourist arrivals in 2025, up about 4 percent on 2024. Europe received about 793 million. Asia and the Pacific were still about 9 percent below 2019 levels, so its recovery continued.
  • Saudi Arabia is building a tourism economy. Ministry of Tourism figures reported by Skift show about 122 million visits in 2025 (domestic and inbound), up about 5 percent, against a Vision 2030 target of 150 million visits. Many new hotels, resorts, and events are under way.
  • The Gulf faced a shock in 2026. From 28 February 2026, a regional conflict closed airspace across parts of the Gulf, and major Gulf airlines suspended most scheduled flights for about a week. Dubai hotel occupancy averaged about 56 percent in the first half of 2026, about 30 percent lower than a year earlier, and in August the big full-service Gulf airlines were still flying about 20 to 25 percent less capacity than in 2025 (Gulf News, August 2026). Hotel occupancy and bookings in affected markets should be checked with current data before any case.
  • Regulators turned to travel platforms. The European Commission designated Booking as a gatekeeper under the Digital Markets Act in May 2024, which limits practices such as requiring hotels to offer the platform their best prices.
Regulation basics (general, check the country)

Hotels need operating licences and are often classified by stars under national tourism rules. Many cities charge a tourist tax per night. Visa policy decides who can come: easier visas often lift arrivals quickly. Many cities limit or register short-term rentals, and the EU adopted rules in 2024 on sharing short-term rental data with authorities. Competition law applies to OTAs and their contracts with hotels. Labour, fire safety, and food safety rules apply as in restaurants.

Hotel and travel case prompts: structure and the first driver to check
Hotel and travel case prompts: structure and the first driver to check
PromptCase typeStructure hintFirst driver to check
Should a developer build a 400-room resort on the Red Sea coast?Investment and capital project decisionsDemand, RevPAR ramp-up, build cost, operator choice, returnsVisitor demand forecast and access by air
A hotel chain in Thailand has falling profitsProfitabilityRevPAR (occupancy and ADR), other revenue, costs, feesRevPAR against the competitive set of nearby hotels
How many hotel rooms does a Gulf city need for a visitor target?Guesstimates and market sizingVisitors x nights x share in hotels / (365 x occupancy x guests per room)Average length of stay and target occupancy
Should a hotel group buy a regional brand?Mergers, acquisitions, and due diligencePipeline, fees, owner relationships, loyalty fitNumber of signed but not yet open hotels (the pipeline)
How do we reduce our dependence on OTAs?Revenue growth and growth strategyChannel mix, loyalty, website conversion, cost per bookingShare of repeat guests still booking through OTAs

So-what

Hotel cases start with demand for the destination, then RevPAR, then who takes which share of the profit.

See the Investment and capital project decisions module for payback and NPV, the Government and economic development case-type module for a worked case on hotel rooms for a Gulf visitor target, and Profitability for the RevPAR tree. The Airlines, airports, and aircraft leasing module covers the flights that bring the guests.

Market-sizing drill

A city in Saudi Arabia expects 3.65 million hotel guest nights a year. Hotels should run at 70 percent occupancy, with 1 guest per room on average. How many hotel rooms does the city need? Round to the nearest room.

Common traps in hotel cases

Looking only at occupancy or only at price instead of RevPAR. Forgetting that the owner, not the operator, pays for the building. Ignoring seasonality: a beach resort can run at 90 percent in winter and 40 percent in summer. Treating OTA commission as pure waste when OTAs fill rooms that would stay empty. Using 2025 Gulf travel data in 2026 without checking the effect of the conflict.

Check your understanding

Which number best compares the room performance of two hotels of different sizes?

Check your understanding

An operator earns a base fee plus an incentive fee on GOP. Why do owners like the incentive fee?

Check your understanding

A hotel in a new tourist destination opens at 45 percent occupancy. What is the best first question?

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