Threat of New Entrants

Threat of New Entrants - ThreatofNewEntrants

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Threat of New Entrants Before the economic downturn, the Hotel Industry was heavily impacted by the  travel and tourism movement.  However, more recently, the demand for travel  has declined leaving the industry searching for new ways to generate demand  and create revenue.  As a result, the threat of New Entrants in the Hotel Industry  is relatively low. (Samadi)  Tourism is one of the dominant determinants of hotel  demand but during an ailing economy it is not critical for the consumer and hence  hotels are not a major commodity.  Furthermore, although business travel still  remains a substantial segment of the Hotel Industry (32% to consumer’s 46.5%)  (Datamonitor), it has also suffered immensely in recent years because of the  economy.  According to the trade magazine,  Travel Weekly , almost two-thirds of 
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This note was uploaded on 05/23/2011 for the course BUSINESS 1320 taught by Professor Noble during the Spring '11 term at Auburn University.

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Threat of New Entrants - ThreatofNewEntrants

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