Hospitality industry includes hotels, resorts and restaurants. Initially these industries incur high fixed cost which is why they are able to provide their services and hospitality facilities for a longer period of time. They have a low marginal cost as they have to just incur the cost of the utilities like food, room fresher, dryers, sprayers and sheets in the long run. The salaries of the temporary employees are included in variable cost. As the total variable cost is low this implies that the marginal cost is even low.