
Demand in the accomodation and food services industries is highly elastic, meaning that sales strongly correlate with disposable income. This bodes well for the industries in a healthy economy but necessitates creativity when times are tight. These industries disproportionately demand low-skill, low-wage workers and are uniquely adept at combating wage growth, able to increase supply at lower costs. Domestic and international travel habits significantly influence this industry. Recreational travelers routinely consider exchange rates when determining travel arrangements, so the strength of the dollar can be a deciding factor. This industry requires planning for all stages of the economic cycle.
Industry InsightsRestaurants: Ready to Serve Restaurants: Will Legislation Feed Additional Contraction Domestically? Lodging: Supply Far Outweighs Demand |
SuccessesAccelerated Depreciation Saves Hotel Development Group $750,000 in Federal Income Taxes |