BCG Matrix of Hospitality Industry 

Hospitality and tourism industry focuses on establishing a relationship between guests and hosts and serving them with respect. The role of the hospitality and tourism industry is highly significant in the growth and development of the country. Today, we’ll discuss the BCG matrix of hospitality industry; focusing on the four growth market share quadrants; stars, cash cows, question marks, and dogs.

Unique Products and Brand Features of the Hospitality Industry

• Excellent customer service
• Quality food and dining area
• Great infrastructure different from others
• Offering stylish, memorable, and luxurious stays to the visitors
• Associating with the locally adopted cultural norms

Best Selling Categories and Brands Market Share of Hospitality Industry

• Marriott International – 21%

• Las Vagas Sands – 9.6%
• Loews Corporation – 13.4%
• Hyatt Hotels Corporation – 5.57%
• Caesars Entertainment – 10.29%
• Mgm Resorts International – 14%
• Parks Hotels and Resorts – 2.2%
• Wyndham Hotels and Resorts – 1.38%

Top Items with Increasing Growth Rate of the Hospitality Industry

• Entertainment
• Tourism
• Event and gathering
• Accommodation and luxury stay
• Food and drinks
• Travel and transport
• Attraction
• Parks and recreation

The BCG market of hospitality industry comprises of growth market share analysis of four quadrants stars, cash cows, question marks, and dogs.

• The star quadrant outlines the high market share and high growth rate
• Cash cow quadrants comprise high market share and lower growth rate
• Question mark quadrant means lower market share and higher growth rate
• Dog quadrants consist of lower market share and limited growth rate

Here’s the hospitality and tourism industry BCG matrix growth share analysis as follows;

BCG Matrix of Hospitality Industry 

Let’s discuss the growth market share elements involved in the four quadrants of the BCG matrix of hospitality industry as follows;

Stars of the Hospitality Industry

The star quadrant in the hospitality and tourism industry BCG matrix growth share analysis comprises those products and services that have higher market share and higher growth rate. The star products and services contribute significantly to the sales, revenue, and profitability of the company. However, some of the star products and services in the hospitality and tourism industry are as follows;

I-Tourism

The trend of traveling and tourism has been increasing consistently for the past years due to social media influence and adventurous lifestyles. The high growth rate in the tourism industry has amplified the growth rate and market share of the hospitality industry because it is complementary to the tourism industry.

II-Event, Meeting, Gathering

The 2020 crisis made people stuck in their houses. Now, life and other routine activities have gone back to normal; where they can have meetings and organize public gatherings. Increasing public meetings and gatherings have amplified the growth rate and market share of hotels and restaurants in the hospitality industry.

III-Entertainment

The entertainment sector has also been growing significantly for the past few years in the hospitality industry. People are spending a significant amount of capital resources to have quality time with friends and family and entertained.

Cash Cows of the Hospitality Industry

The cash cow quadrant in the hospitality and tourism industry BCG matrix growth share analysis consists of such hospitality products and services that have higher market share and limited growth rate. The cash cow services have reached the maturity stage and generate significant revenue and profitability for the company. However, some of the main products and services in the hospitality and tourism industry are as follows;

I-Transport & Travel

The travel and transport business has reached the maturity stage in the hospitality industry due to the increasing competition. The adventurous lifestyle has attracted the attention of people and they have a lot of traveling options. That’s why the growth rate is very slow in the travel and transport business in the hospitality industry.

II-Food & Drink

Food and drink are the main items in the hospitality and tourism industry. However, hotels and restaurants can’t charge high prices to a certain limit due to market saturation. If they do so, then people would move toward other cheaper options that are readily available.

III-Stay & Accommodation

 Travelers and visitors need to stay and want good accommodation in the hospitality industry. Hotels and restaurants are earning a significant amount of revenue and profit, but their growth rate is very slow due to high competition. It has offered customers a lot of accommodation options, and they could easily find new lodging relevant to their budget requirements.

Question Mark of the Hospitality Industry

The question mark quadrant in the hospitality and tourism industry BCG matrix growth share analysis outlines such products and services that have lower market share and higher growth rates. The question mark products and services have the potential to become next-star items if the company fixes some of the areas. However, some of the main products and services in the hospitality and tourism industry are as follows;

I-Technology

The trend of implementing tech equipment and tools has been increasing in the hospitality industry. However, it has a limited market share due to the high cost, risky investment, and people’s concerns about whether it is worth it or not. If the hospitality and tourism industry employs technological tools and equipment, then they could generate a significant amount of profit from it.

II-Parks & Recreation

Parks and recreation is the other highly growing area in the hospitality industry, and its market share is low due to the consistent carrying expenses and high maintenance cost. It involves a lot of risk because the investment in parks and recreation may or may not pay off. Hospitality businesses should keep in mind various factors relevant to their area before investing resources.

III-Attraction

Appearance and attraction matter in the hospital and tourism industry. High cost and limited tech and artistic capabilities have decreased its market share. If implemented correctly, then it has a great potential to amplify the sales and revenue of the company to a great extent.

Dogs of the Hospitality Industry

The dog quadrant in the hospitality and tourism industry BCG matrix growth share analysis consists of such products and services that have lower market share and lower growth rate. Instead of generating revenue and profit; they consume a lot of resources and profitability of the company. Some of the main hospitality products and services of the company are as follows;

I-Clubs & Casino

The clubs and casinos in the hospitality and tourism industry a highly risky business ventures. It is highly successful in some areas, but it won’t work in some areas due to cultural and moral issues. Limited growth and market share would put the club and casino business in the dog quadrants.

II-Travel Agency

The travel agency in the hospitality and tourism industry is highly fruitful and profitable in particular seasons. Its market share and growth rate are low for the rest of the year. However, if you are a travel agency, then it would consume a lot of resources for your business with very little return.

Conclusion: Hospitality & Tourism Industry BCG Matrix Growth Share Analysis 

After an in-depth study of the BCG matrix of hospitality industry; we have realized that the hospitality and tourism industries are the world’s top businesses. If you are learning about the hospitality and tourism industry BCG matrix growth share analysis; then you should keep in mind the abovementioned four quadrants; stars, cash cows, question marks, and dogs.