Final answer:
The three major categories of costs for hospitality facilities are land, labor, and capital, which are critical for profitability and decision-making in location analysis.
Step-by-step explanation:
The three major categories of costs of hospitality facilities are traditionally land, labor, and capital. These are also known as the factors of production. Land represents the cost of acquiring the physical space or property needed for the facility. Labor involves expenses associated with employing staff to operate the facility. Lastly, capital pertains to the investment needed for the construction, equipment, and other assets essential for establishing and maintaining the facility.
The cost of each factor is critical to profitability and plays a significant role in decision-making, including the industrial site location analysis for new factories or other hospitality facilities, which can be a highly lucrative career path for economic geographers.