A: “…airlines and hotels are primarily providers of services such as transport and lodging, respectively, yet they both sell gifts, food, beverages and other items. These items are definitely considered goods, and these companies certainly have inventories of such goods. Both can list COGS on their income statements and claim them for tax purposes. Costs of goods sold include the direct cost of producing a good or the wholesale price of goods resold. Other potentially deductible costs include labor, if the labor was directly involved in the good's production process, supplies, shipping costs, freight in and directly related overhead.” Read more: What are some examples of industries that cannot claim cost of goods sold (COGS)? | Investopedia