Accommodation and Food Services

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Accommodation and Food Services




The importance of the economic development of any country cannot be gainsaid as far as the sustainability and stability of the country is concerned. Indeed, it has a bearing on the overall wellbeing of the people of that country, as well as other sectors such as the healthcare, defense and even internal security among others, not to mention its ranking internationally among nations. Needless to say, countries are divided into different sectors and industries, all of which make varying levels of contributions to the economies of those countries. Nevertheless, the Accommodation and Food Services industry comes as one of the most fundamental in the United States.

Taking NAICS code 72, the Accommodation and Food Services sector is made up of establishments that offer customers with beverages, meals and snacks for immediate consumption, as well as lodging services (U. S. Census Bureau, 2012). It incorporates food and accommodation services establishments considering that the two activities are usually blended in the same establishment. However, this sector excludes social or civic organizations, theaters, recreation and amusement parks, as well as other entertainment or recreation facilities that offer beverage and food services (U. S. Census Bureau, 2012). Some of the key firms in this sector include Aban Offshore, Accor, Affinia Hotels, American Cruise lines, AmeriHost Inn, ARAMARK, Artisans of Leisure, Azari Hotels and Aztar.

The accommodation and food services industry has its roots in later 18th century, with fundamental changes being made as the industry faced the two World wars and the Depression among other social changes (Kalnins, 2006). Nevertheless, the current status of the industry took shape in early 1950s and 60’s resulting in the growth of the dynamic industry present today. In the medieval period, English travelers would be accommodated in Inns that were private homes while nobility stayed in monasteries. The renaissance period saw in increase in the demand for taverns and inns with the first hotel being built in 1788 (Kalnins, 2006). In the 18th century, New York had taverns, while Pennsylvania had inns, with southern colonies being left for ordinaries. The French Revolution and the New World saw a tremendous change in the culinary history. The 20th century saw the introduction of trans-Atlantic flights in 1958 with inner city lodging properties resurging in United States cities. From 1960 to-date, there has been increased growth in casual dining, increased hotel chains, as well as mergers and acquisitions (Kalnins, 2006).

Using the N-Firm ratios, it would be possible to determine the percentage of total market output that N-largest firms in a particular industry produce. This concentration ratio is primarily used to determine how much the market has been monopolized, where a market that has low N-firm concentration ratio value is deemed as more competitive than its counterparts with high values of this ratio. The 2007 data shows all firms to number around 634,361 establishment or (100%). Four of the largest firms in the same year had 2528 establishments and took up 5.8 percent, while 8 largest firms had 24,854 establishments taking up 10.1% (U.S Department of Commerce, 2007). On the same note, 20 largest firms had 36,936 establishments had 17.4%, while 50 largest firms had 49,387 establishments taking up 23.7% (U.S Department of Commerce, 2007). Ratios indicate that the market is not under the control of a few establishments, as well as the fact that the industry is highly competitive. However, the concentration of the establishments in the Accommodation and Food Services industry has always been dynamic especially considering the high level of competition among the varied players. Indeed, the top firms in the industry have to fight to maintain their positions at the top, while also ensuring that they keep in touch with their fundamental goals. Of particular note is the fact that diffe.............

Type: Essay || Words: 1259 Rating || Excellent

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