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HoReCa Services

HoReCa Services

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Executive summary

Operators in the Accommodation and Food Service sector provide consumers with basic lodging accommodations and prepare meals or other food services when consumers are away from home. This sector comprises 15 different industries within the US economy, encompassing all aspects of accommodation providers and food services operators. Despite basic commonalities, there are starkly different levels of service provided across the subsequent industries. For example, the Hotels and Motels industry (IBISWorld report 72111) provides very different services than the Fast Food Restaurants industry (72221a), though they both operate within this sector.
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industry revenue;

industry profit;

industry margin;

industry employment;

industry major players;

industry key external drivers;

industry product & structure segmentation;

industry key trends;

industry Life Cycle;

industry Geographic Breakdown;

industry Key Success Factors;

industry Key statistics for previous years;

forecast of industry Key statistics for the next 5 years;

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Reference Wordlist

High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for new companies to enter an industry.

Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor.
IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than $0.333 of capital to $1 of labor; medium is $0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of capital for every $1 of labor.

The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e. year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the "real" growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator.

Spending on industry goods and services within the United States, regardless of their country of origin. It is derived by adding imports to industry revenue, and then subtracting exports.

Colloquial Terminology

Establishments that share a single brand, central management and usually have standardized business methods
and practices.

An industry that includes restaurants, catering and fast-food establishments, bars and taverns and other establishments that provide food for guests.

Provides guests with sit-down meals that include table service by wait staff and meals are paid for after service.

Provides guests with meals that are typically ordered at a counter, served with little or no service and are paid for before eating.

A measurement that is calculated by multiplying a hotel's average daily room rate by its occupancy rate.


Over the five years to 2022, this sector experienced years of strong revenue growth prior to the COVID-19 (coronavirus) pandemic as consumers increased their appetites for services provided by sector industries. Since households and individuals account for more than 80.0% of the market for sector services, growth in consumer spending has contributed to steady growth in sector revenue. As the pandemic subsides and sector operators resume normal operations, sector revenue has expanded at an annualized rate of 5.2% to $1.4 trillion over the five years to 2022. The industry is expected to continue recovering with revenue growth of 33.9% in 2022 alone. Over the past five years, rising disposable income propelled travel during the period up until sharp declines in 2020 as travel restrictions were put in place in response to the pandemic. Despite strong revenue growth, the sector has been particularly damaged by the coronavirus pandemic as operators rely on travel and consumer spending. Due to the pandemic, profit for this sector has also declined over the past five years.

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