20-Year Prospect
It's safe to say that at any given time, some portion of the population will need to travel. That's good for the hotel biz. It's also safe to say that the economy fluctuates over the years. When the economy is booming, business is nice...but when the economy is at a low point, the tourism and travel businesses suffer.
During the lows of the economy, people generally have less money to blow, and one of the first things to take a hit is often the travel business. During the market crash of 2008, hotels around the U.S. reported a thirty-five percent decrease in profits (source).
Hopefully, the economy won't plummet like that again for a nice long while, but you can never be sure. Running a hotel chain amidst the threat of economic downturn is a little like juggling flaming chainsaws: if you're doing it, you probably know a little something about how to do it, but you could still meet a sticky end. One little mistake on your part, or someone else's, could cost you everything.
That's why it's so important for hotel chain owners to know how the market works...and to have lots of backup strategies for increasing sales during those low points when people aren't traveling much.