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Different types of business within the hospitality industry (Categories of the hospitality industry)

Different types of business within the hospitality industry (Categories of the hospitality industry)

This article aims to explore different types of business within the hospitality industry. Hospitality is one of the biggest industries in the world and contributes immensely to the global economic output. It is an industry that connects different types of business with each other. Use of digital technologies by both businesses and consumers and, an increase in consumer purchasing power have propelled a rapid growth in the global hospitality industry.

There are different types of business within the hospitality industry. However, theses businesses usually fall under four broad categories i.e. accommodation, food and beverage, travel and tourism, and entertainment. The discussion that follows aims to explore these four types of hospitality businesses.

Accommodation in the hospitality industry

A broad sector of the hospitality industry is accommodation (lodging) comprising of different types of hotels and facilities that have the provisions of overnight accommodation for people in travelling.  Budget hotel, luxury hotel, spa hotel, hotel resort, boutique hotel, and bed and breakfast are some of the most important players in this industry.

According to the World Tourism Organization (cited in WorldAtlas, 2021), the total number of visitors visited France in 2019 is 89 million. In the same year, 83 million people visited Spain and 80 million visited the USA. Likewise, 63 million visited China and 36 million people visited the UK. Out of these so many great millions, only a small number of visitors stayed with friends and families. The rest stayed in hotels and similar facilities. It is worth noting that travellers spent more than $293 billion on accommodation in the USA in 2016, and the country is likely to receive 95.5 million international visitors annually by 2023 (ITA, 2021).

Food and beverage in the hospitality industry

Food and beverage is one of the largest sectors within the hospitality industry. Services within this sector range from preparing food to presenting it on the customer table. Fast food, fast casual, fine dinning, and casual dinning are some of the most popular types of restaurants in this sector.

McDonalds, Burger King, Subway, KFC, Five Guys, Chipotle Mexican Grill, Harvester, TGI Friday’s, Pollen Street Social, Dinner by Heston Blumenthal, and The Ledbury are some of the most famous restaurants in the USA, the UK, and indeed in many other countries. The articles SWOT analysis of McDonald’s and SWOT analysis of Subway provide the readers with detailed information concerning McDonald’s and Subway.

Travel and tourism in the hospitality industry

There are different types of business within travel and tourism sector that include but not limited to trains, airlines, cruise ships, and tour operators. Travellers spent approximately $270 billion on passenger air transportation services in the USA in 2017 (ITA, 2021). In fact, air transportation services support around 900,000 jobs in the USA. Likewise, travel and tourism has been one of the the fastest growing sectors in the UK in employment terms since 2010.

British Airways, American Airlines, Emirates Airline, Singapore Airlines, Air Canada, Air New Zealand, Lufthansa, and Qatar Airways are some of the most popular airlines in the world. The articles SWOT analysis of American Airlines and Marketing mix of Emirates Airline provide the readers with detailed information concerning American Airlines and Emirates Airline.

Entertainment in the hospitality industry

Entertainment is a significant part of travelling now-a-days. No wonder why many top tourism destinations offer zoos, museums, theme parks, theatres, marinas and many more that captivate and entertain tourists. Disneyland, Lego Land, Madame Tussauds, Magic Kingdom Park, Cedar Point, British Museums, Walt Disney World Resort, PortAventura, Ferrari World, Alton Towers, and Tivoli Gardens are some of the most popular entertainment choices of travellers.

We hope the article ‘different types of business within the hospitality industry’ has been helpful. You may also like reading Enclave tourism – definition and characteristics and Sustainable Tourism. Other relevant articles you may be interested in are:

Factors affecting tourism demand

Differences between tourism and hospitality

Introduction to the tourism industry in the UK

SWOT analysis of Air Canada

PESTEL analysis of the UK

PESTEL analysis of the USA

Marketing mix of McDonald’s

Impact of tourism

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Last update: 07 April 2021


ITA (2019) Travel, Tourism, & Hospitality Spotlight, available at: (accessed 07 April 2021)

WorldAtlas (2019) The World’s Most Visited Countries, available at: (accessed 07 April 2021)

Photo credit: Pixabay

Author: M Rahman

M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.

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