# Hospitality and tourism: Value chain, from upstream to the customer Hotels, restaurants, airlines, attractions and booking sites serving travellers Source page: https://www.materialinsights.org/industries/hospitality_tourism/value-chain/ #### Value chain, from upstream to the customer **Criticality to the chain:** 5 · Chokepoint 4 · Critical 3 · Important 2 · Supporting 1 · Commodity service Stage 1 **SuppliesFood, beverage and catering suppliers**2 · Supporting Supply 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 Rice](https://www.materialinsights.org/commodities/rice/)[Wh Wheat](https://www.materialinsights.org/commodities/wheat/)[Py Poultry](https://www.materialinsights.org/commodities/poultry/)[Mk Milk & dairy](https://www.materialinsights.org/commodities/dairy/)[Cf Coffee](https://www.materialinsights.org/commodities/coffee/)[Tea Tea](https://www.materialinsights.org/commodities/tea/)[Su Sugar](https://www.materialinsights.org/commodities/sugar/)[Pp Pepper & spices](https://www.materialinsights.org/commodities/spices/) Chemicals [Fd Food and feed additives](https://www.materialinsights.org/chemicals/food_additives/) Energy [PCM Latent heat and cold storage](https://www.materialinsights.org/energy/e_latent_heat/)[ICV Combustion road vehicles](https://www.materialinsights.org/energy/e_road_ice/) Industries [Food and beverage processing](https://www.materialinsights.org/industries/food_beverage/)[Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)**Examples:** Sysco, Gate Group, TajSATS **Furniture, linen and amenity suppliers**1 · Commodity service Furnish 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 Cotton](https://www.materialinsights.org/commodities/cotton/)[Tm Timber](https://www.materialinsights.org/commodities/lumber/) Chemicals [PU Polyurethanes (MDI, TDI, polyols)](https://www.materialinsights.org/chemicals/polyurethanes/)[PSF Polyester fibre](https://www.materialinsights.org/chemicals/polyester_fibre/)[FR Flame retardants](https://www.materialinsights.org/chemicals/flame_retardants/)[Srf Surfactants](https://www.materialinsights.org/chemicals/surfactants/) Energy [EmE Embodied energy trade](https://www.materialinsights.org/energy/e_embodied/) Industries [Furniture](https://www.materialinsights.org/industries/furniture/)[Textiles and leather](https://www.materialinsights.org/industries/textiles/)[Household and personal care](https://www.materialinsights.org/industries/household_care/)**Examples:** Godrej Interio, Welspun Living, Sheela Foam (Sleepwell) Stage 2 **Assets and capitalHotel owners, developers and lenders**3 · Important 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 Cement](https://www.materialinsights.org/commodities/cement/)[St Steel](https://www.materialinsights.org/commodities/steel/)[Cu Copper](https://www.materialinsights.org/commodities/copper/)[Al Aluminium](https://www.materialinsights.org/commodities/aluminum/) Chemicals [Pnt Paints and coatings](https://www.materialinsights.org/chemicals/paints_coatings/)[Con Construction chemicals](https://www.materialinsights.org/chemicals/construction_chemicals/) Energy [HP Heat pumps, air conditioning and refrigeration](https://www.materialinsights.org/energy/e_heat_pumps/)[Bld Energy in buildings](https://www.materialinsights.org/energy/e_buildings/) Industries [Real estate](https://www.materialinsights.org/industries/real_estate/)[Construction and infrastructure](https://www.materialinsights.org/industries/construction/)[Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/)**Examples:** Host Hotels & Resorts, Chalet Hotels, SAMHI Hotels, Brookfield Stage 3 **Technology and distributionGlobal distribution systems and hospitality software**4 · Critical Run the reservation, inventory and fare distribution systems that link airlines and hotels to travel agents, and the property management systems hotels run on.^[5](https://assets.publishing.service.gov.uk/media/5e8f17e4d3bf7f4120cb1881/Final_Report_-_Sabre_Farelogix.pdf) **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](https://www.materialinsights.org/energy/e_data_centres/) Industries [Software and IT services](https://www.materialinsights.org/industries/software_it/)[Data centres and cloud](https://www.materialinsights.org/industries/data_centres/)**Examples:** Amadeus, Sabre, Travelport, Oracle Hospitality, IDS Next **Online travel agencies and metasearch**4 · Critical Sell flights, hotels and holidays to travellers through apps and websites, earning commissions and advertising fees from suppliers.^[6](https://www.travelextra.ie/booking-com-has-66pc-market-share-of-hotel-bookings/) **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](https://www.materialinsights.org/energy/e_data_centres/) Industries [Software and IT services](https://www.materialinsights.org/industries/software_it/)[Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/)[AI and digital platforms](https://www.materialinsights.org/industries/ai_platforms/)**Examples:** Booking Holdings, Expedia Group, Trip.com, MakeMyTrip Stage 4 **Transport to destinationsAirlines and airport operators**4 · Critical Fly 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](https://www.materialinsights.org/energy/crude_oil/) Chemicals [HVO Renewable diesel and SAF](https://www.materialinsights.org/energy/hvo_saf/) Energy [Jet Aviation propulsion](https://www.materialinsights.org/energy/e_aviation/)[Ref Refining and reforming](https://www.materialinsights.org/energy/e_refining/)[OP Oil and product pipelines](https://www.materialinsights.org/energy/e_oil_pipelines/) Industries [Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)[Vehicles, ships, rail, aircraft](https://www.materialinsights.org/industries/vehicles/)[Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/)**Examples:** IndiGo, Air India, Emirates, Adani Airport Holdings, GMR Airports **Rail, coach, cruise and car-rental operators**3 · Important Carry 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](https://www.materialinsights.org/energy/crude_oil/) Energy [Rail Rail traction](https://www.materialinsights.org/energy/e_rail_traction/)[ICV Combustion road vehicles](https://www.materialinsights.org/energy/e_road_ice/)[Shp Ship propulsion](https://www.materialinsights.org/energy/e_marine/) Industries [Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)[Vehicles, ships, rail, aircraft](https://www.materialinsights.org/industries/vehicles/)**Examples:** IRCTC, Uber, Carnival Corporation, Hertz Stage 5 **Support servicesLaundry, housekeeping and waste contractors**1 · Commodity service Clean 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](https://www.materialinsights.org/commodities/water/) Chemicals [Srf Surfactants](https://www.materialinsights.org/chemicals/surfactants/)[Cl2 Chlorine](https://www.materialinsights.org/chemicals/chlorine/)[H2O2 Hydrogen peroxide](https://www.materialinsights.org/chemicals/hydrogen_peroxide/) Energy [Blr Boilers, furnaces and stoves](https://www.materialinsights.org/energy/e_combustion_heat/)[CBG Biogas and biomethane](https://www.materialinsights.org/energy/biomethane/) Industries [Household and personal care](https://www.materialinsights.org/industries/household_care/)[Waste and recycling](https://www.materialinsights.org/industries/waste_recycling/)[Water and sanitation](https://www.materialinsights.org/industries/water_sanitation/)**Examples:** ISS, Veolia, Ecolab Stage 6 **Guest experienceHotel brands and operators**3 · Important Run 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](https://www.materialinsights.org/commodities/water/) Chemicals [HFC Fluorochemicals and refrigerants](https://www.materialinsights.org/chemicals/fluoro_intermediates/) Energy [Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[HP Heat pumps, air conditioning and refrigeration](https://www.materialinsights.org/energy/e_heat_pumps/)[LPG CNG, LPG and biogas distribution](https://www.materialinsights.org/energy/e_cng_lpg/)[ICE Internal combustion engines and gensets](https://www.materialinsights.org/energy/e_engines/) Industries [Food and beverage processing](https://www.materialinsights.org/industries/food_beverage/)[Software and IT services](https://www.materialinsights.org/industries/software_it/)[Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/)**Examples:** Marriott International, Hilton, Accor, Indian Hotels Company (Taj), OYO **Tour operators, attractions and restaurants**2 · Supporting Package 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 vehicles](https://www.materialinsights.org/energy/e_road_ice/)[Bld Energy in buildings](https://www.materialinsights.org/energy/e_buildings/) Industries [Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)[Food and beverage processing](https://www.materialinsights.org/industries/food_beverage/)[Media and entertainment](https://www.materialinsights.org/industries/media_entertainment/)**Examples:** TUI, Thomas Cook India, Walt Disney Parks, Jubilant FoodWorks ## Other sections - [Overview](https://www.materialinsights.org/industries/hospitality_tourism/index.md) - [Where ₹100 goes](https://www.materialinsights.org/industries/hospitality_tourism/cost-mix/index.md) - [Price links with suppliers](https://www.materialinsights.org/industries/hospitality_tourism/price-links/index.md) - [Example story](https://www.materialinsights.org/industries/hospitality_tourism/story/index.md) - [Linked industries](https://www.materialinsights.org/industries/hospitality_tourism/linked-industries/index.md) - [Materials drawn on](https://www.materialinsights.org/industries/hospitality_tourism/materials/index.md) - [Chokepoints and risks](https://www.materialinsights.org/industries/hospitality_tourism/risks/index.md) - [Sources](https://www.materialinsights.org/industries/hospitality_tourism/sources/index.md)