Hospitality and tourism: Value chain, from upstream to the customer
Hotels, restaurants, airlines, attractions and booking sites serving travellers
Value chain, from upstream to the customer
Criticality to the chain: 5 · Chokepoint 4 · Critical 3 · Important 2 · Supporting 1 · Commodity service Stage 1 SuppliesSupply fresh produce, meat, dairy, packaged food and drinks to hotels, restaurants, airlines and cruise lines, often on daily delivery.
Why supporting: Food supply is competitive with many local and national vendors, so a kitchen can change supplier within weeks. Technologies Cold-chain distribution Central kitchens Flight and institutional catering Procurement platforms Depends on Commodities Ri RiceWh WheatPy PoultryMk Milk & dairyCf CoffeeTea TeaSu SugarPp Pepper & spices Chemicals Fd Food and feed additives Energy PCM Latent heat and cold storageICV Combustion road vehicles Industries Food and beverage processingTransport and logisticsExamples: Sysco, Gate Group, TajSATSFurnish rooms and public areas with beds, furniture, linen, towels and guest toiletries, and refresh them in renovation cycles.
Why commodity service: Many manufacturers compete and items are standard, so substitutes are available quickly. Technologies Contract furniture manufacturing Commercial-grade textiles Bulk amenity dispensers Fire-retardant finishes Depends on Commodities Ct CottonTm Timber Chemicals PU Polyurethanes (MDI, TDI, polyols)PSF Polyester fibreFR Flame retardantsSrf Surfactants Energy EmE Embodied energy trade Industries FurnitureTextiles and leatherHousehold and personal careExamples: Godrej Interio, Welspun Living, Sheela Foam (Sleepwell)Buy land, build and own hotels and resorts, and finance them with bank debt, REITs or private equity, while contracting brands to run them.
Why important: Capital is available from many sources, but a new hotel takes years to build, so room supply lags demand. Technologies Asset-light management and franchise contracts Hotel REITs and InvITs Green building design Revenue-per-room modelling Depends on Commodities Cem CementSt SteelCu CopperAl Aluminium Chemicals Pnt Paints and coatingsCon Construction chemicals Energy HP Heat pumps, air conditioning and refrigerationBld Energy in buildings Industries Real estateConstruction and infrastructureFinance: banking, insurance, marketsExamples: Host Hotels & Resorts, Chalet Hotels, SAMHI Hotels, BrookfieldRun the reservation, inventory and fare distribution systems that link airlines and hotels to travel agents, and the property management systems hotels run on.5
Why critical: Three GDS firms (Amadeus, Sabre, Travelport) handle almost all (85-95%) GDS bookings worldwide and about 90% of agency airline bookings pass through a GDS, so airlines must contract with all three, and switching a reservation system takes years. Technologies Global distribution systems Airline passenger service systems Hotel property management systems Channel managers NDC and direct-connect APIs Depends on Energy DC Data centres Industries Software and IT servicesData centres and cloudExamples: Amadeus, Sabre, Travelport, Oracle Hospitality, IDS NextSell flights, hotels and holidays to travellers through apps and websites, earning commissions and advertising fees from suppliers.6
Why critical: In Europe Booking.com took 66% of OTA hotel bookings in 2026 and Booking plus Expedia about 85%, so commissions of these two groups are a large cost that independent hotels can hardly avoid. Technologies Search and price comparison Dynamic packaging Payment and fraud systems AI trip planners Depends on Energy DC Data centres Industries Software and IT servicesFinance: banking, insurance, marketsAI and digital platformsExamples: Booking Holdings, Expedia Group, Trip.com, MakeMyTripFly travellers to and between destinations and run the airports, terminals and slots they use.
Why critical: Many airlines compete, but there is no substitute for flying on long routes, and airport slots and aircraft deliveries from two main makers (Airbus and Boeing) are constrained for years. Technologies Narrow-body and wide-body fleets Airport slot and gate management Revenue management Sustainable aviation fuel blending Depends on Commodities Oil Crude oil Chemicals HVO Renewable diesel and SAF Energy Jet Aviation propulsionRef Refining and reformingOP Oil and product pipelines Industries Transport and logisticsVehicles, ships, rail, aircraftFinance: banking, insurance, marketsExamples: IndiGo, Air India, Emirates, Adani Airport Holdings, GMR AirportsCarry travellers by train, bus, ship and hired car or taxi for intercity trips, transfers and sightseeing.
Why important: Operators are numerous for road travel, but rail and cruise capacity is concentrated in a few operators per route. Technologies Online seat reservation Ride-hailing apps Cruise ships Electric buses and cabs Depends on Commodities Oil Crude oil Energy Rail Rail tractionICV Combustion road vehiclesShp Ship propulsion Industries Transport and logisticsVehicles, ships, rail, aircraftExamples: IRCTC, Uber, Carnival Corporation, HertzClean rooms, launder linen, and collect and recycle the food and packaging waste that hotels and restaurants generate.
Why commodity service: Many contractors compete and most hotels can bring these services in-house. Technologies Industrial laundries Food waste digesters Waste segregation and recycling Water recycling plants Depends on Commodities H₂O Water Chemicals Srf SurfactantsCl2 ChlorineH2O2 Hydrogen peroxide Energy Blr Boilers, furnaces and stovesCBG Biogas and biomethane Industries Household and personal careWaste and recyclingWater and sanitationExamples: ISS, Veolia, EcolabRun hotels under their brands, either owning them or managing and franchising them for owners, and sell rooms, food and events to guests.
Why important: Several global and national brands compete for owners, though brand switches need a renovation and a new distribution set-up. Technologies Loyalty programmes Revenue management systems Mobile check-in and digital keys Energy management systems Depends on Commodities H₂O Water Chemicals HFC Fluorochemicals and refrigerants Energy Dist Distribution grids, mini-grids and interconnectorsHP Heat pumps, air conditioning and refrigerationLPG CNG, LPG and biogas distributionICE Internal combustion engines and gensets Industries Food and beverage processingSoftware and IT servicesFinance: banking, insurance, marketsExamples: Marriott International, Hilton, Accor, Indian Hotels Company (Taj), OYOPackage trips, guide tours and run theme parks, heritage sites and restaurants that give travellers reasons to visit and spend.
Why supporting: Thousands of small operators compete, though unique sites such as national monuments cannot be replaced. Technologies Online ticketing and timed entry Package holiday systems Restaurant point-of-sale Crowd management Depends on Energy ICV Combustion road vehiclesBld Energy in buildings Industries Transport and logisticsFood and beverage processingMedia and entertainmentExamples: TUI, Thomas Cook India, Walt Disney Parks, Jubilant FoodWorks