NAICS 721 - Accommodation
Industries in the Accommodation subsector provide lodging or short-term accommodations for travelers, vacationers, and others. There is a wide range of establishments in these industries. Some provide lodging only; while others provide meals, laundry services, and recreational facilities, as well as lodging. Lodging establishments are classified in this subsector even if the provision of complementary services generates more revenue. The types of complementary services provided vary from establishment to establishment.
The subsector is organized into three industry groups: (1) traveler accommodation, (2) recreational accommodation, and (3) rooming and boarding houses. The Traveler Accommodation industry group includes establishments that primarily provide traditional types of lodging services. This group includes hotels, motels, and bed and breakfast inns. In addition to lodging, these establishments may provide a range of other services to their guests. The RV (Recreational Vehicle) Parks and Recreational Camps industry group includes establishments that operate lodging facilities primarily designed to accommodate outdoor enthusiasts. Included are travel trailer campsites, recreational vehicle parks, and outdoor adventure retreats. The Rooming and Boarding Houses industry group includes establishments providing temporary or longer-term accommodations, which for the period of occupancy, may serve as a principal residence. Board (i.e., meals) may be provided but is not essential.
Establishments that manage short-stay accommodation establishments (e.g., hotels and motels) on a contractual basis are classified in this subsector if they both manage the operation and provide the operating staff. Such establishments are classified based on the type of facility managed and operated.
Industry trends:
The Accommodation industry (NAICS 721) has been witnessing significant qualitative trends shaped by evolving consumer preferences and advancements in technology. One notable trend is the increasing demand for unique and experiential stays. Guests are looking for more than just a place to sleep; they seek memorable experiences, whether it is boutique hotels with personalized services, eco-friendly accommodations, or properties offering local cultural immersions.
Moreover, sustainability has become a critical factor for both consumers and providers. Many establishments are implementing eco-friendly practices, such as reducing waste, conserving water, and utilizing renewable energy. This trend is driven by a growing environmental consciousness among travelers and the competitive advantage it offers in marketing to eco-savvy guests.
Technology integration is also reshaping the accommodation sector. Contactless check-ins, mobile keys, and personalized services powered by artificial intelligence are becoming standard expectations. These technologies not only enhance guest convenience but also strengthen health and safety measures, which have become paramount post-pandemic.
Looking ahead, the industry is expected to continue its recovery from the COVID-19 pandemic with steady growth, particularly as international travel resumes. However, market dynamics such as fluctuating demand, labor shortages, and inflationary pressures could present challenges. Adaptability and innovation will be crucial for businesses aiming to capitalize on the evolving market landscape in the near future.
This industry is comprised of:
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