Hospitality Industry Trends Analysis

This assignment delves into current trends shaping the hospitality sector. It utilizes SWOT and PESTLE analyses to examine internal strengths, weaknesses, opportunities, and threats, as well as external political, economic, social, technological, legal, and environmental factors impacting the industry. The analysis highlights the rise of medical tourism, the need for hotels to adopt new technologies, and the challenges posed by political and legal issues.

CONTEMPORARY HOSPITALITY
INDUSTRIES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Business Planning Report ...............................................................................................................3
1. PESTLE Analysis affecting the development of hospitality Industries..................................3
2. SWOT Analysis of hospitality industry..................................................................................6
Market Research Report..................................................................................................................7
1. Trend Analysis of Hospitality industry...................................................................................7
2. Ability of selected hotel chain to develop product and service to meet current trends...........8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic reports of Hospitality Industries provide extensive information regarding
customers' demands, trends in market, competitors capabilities and other internal assessments.
According to the statistics, the booking rate of the industries has been reached to $1.6 trillion in
2017. Also, the revenue of the hotels in US have been reached to $200 billion in 2018(Kuo and
et.al., 2016).
This study will contain the strategic documentation of the Ned Hotel, London which is a
five-star International hotel. It will also include PESTEL and SWOT analysis of hotel.
BUSINESS PLANNING REPORT
1. PESTLE Analysis affecting the development of hospitality Industries
Pestle Analysis supports the organization to accumulate information regarding its
external barriers that can be in terms of Political, economic, social, technological, legal and
environmental conditions.
Illustration 1: Pestle Analysis
Source: (PESTLE-ANALYSIS: 6 core variables, 2016)

Political: For a hospitality industry stability of these factors are important to increase the rate of
customers in the hotel/Industry. Issues like terrorism, addition of new governmental policies,
Trade and commerce instability etc. may hamper the growth of hotels.
 The political barriers regarding new taxation policies shatters budgetary of hotels.
 Trade instability becomes a hurdle in effective exports and imports.
 Terrorism and civil wars spread threats within other countries which directly influence
the rate of customer flow in hotels of that country.
The Ned hotel is highly luxurious and depends upon high profile customers. Under such
political disruptions the customers from other countries may don't prefer to travel which may
deliver it a loss. For The Ned Hotel, “government leadership” is a strong barrier because of
sudden rearrangement in taxation policies and other governmental rules and regulations.
Economic: Economy of country highly influence the growth rate of hospitality sector.
Along with inflation rates, these industries are extremely dependent upon the disposable income
of customers globally. High disposable income increases the opportunity of earning profits.
For a hotel like “THE NED”, economic disruptions like low inflation rate affects its
operation management and services of employees. Other issues like low disposable income of
customers do not provide it sufficient attraction and visitors which again influence profitability
of hotel business.
Social: These factors are highly considered within hospitality sector, as its services are
highly influenced by culture, attitude, preferences, lifestyle and other personal traits of visitors.
For instance, The Ned hotel do not prefer to present sufficient category of Indian or Asian
cuisine which may not retain Indian customers. Its services are expensive, which specifically
targets rich customers only hence, it is losing a large proportion of potential customers.
Technological: This era has become extremely fast due to advanced technologies and
software. These systems embedded within hospitality services to increase work effectiveness,
quality of services, on time delivery procedures, various business deals and CRM.
Hotel The Ned utilizes REVIT 3D design software to facilitate installations within its
premises. It is technologically advanced infrastructure to serve the customers as well as
workforce. Norman Disney and Young has given it effective communication systems to cater its
customers. It has sustainable installations to facilitate the environment.

Legal: Legal misconducts are highly punishable. Hospitality Industries must align with
proper license agreements like food and liquor licensing, safety and welfare of employees,
property agreements. A weak legal compliance delivers poor image to industry, hampers
customers loyalty and reduce profit margins (Wilson and et.al., 2015.).
The hotel follows all the applied legal obligations regarding the building safety laws, data
protection, privacy policy and other employment laws such as Equal Pay Act, 1963, Fair Labour
Standard Acts, 1938 etc. Legal Obligations in hospitality services are extremely necessary to
safeguard its market image.
Environmental: Environmental factors involve proper sustainable measure to safeguard
environmental issues. It involves proper implementation of strategies like environment
conservation policies, sustainable objectives to design a suitable, health and safety measures
(Wang and et.al., 2016). Hospitality services must recognize whether its services are
environment friendly or not. It must perform suitable actions to avoid environmental concerns
and increase sustainable growth.The Ned's Hotel building is energy efficient that deliver proper
operational excellence. The building is highly energy sensitized and thus adopt every possible
measure to save energy. It has low energy lightning and heat recovery ventilation system.
2. SWOT Analysis of The Ned's Hotel
SWOT Analysis helps to examine the internal abilities and inefficiency of a
Industry/Service/Product. It clearly defines strength, weakness, threats and opportunities for
strategic decision making (Lin, 2016).

SWOT Analysis of “THE NED Hotel, London”
 Strength
 The strength of hotel lies in its services
in terms of customer support like
managing booking quest, queries, etc.
 It provides extremely customized
services such as head to toe grooming
options
 It has highly luxury rooms and delights.
 Its exquisite services added with variant
perks and
 It has attractive infrastructure based on
traditional and ancient culture of
London.
Weakness
 Its services are opted by highly rich and
upper-class customers only.
 Its services highly dependent on
suppliers
 Its services do not promote cultural
diversity.
 The surroundings are one of the
weakness for customers interested in
street food, vintage record shops.
Opportunity
 The opportunities for The Ned hotel
The Ned involve increasing demands of
luxurious premises to stay.
Threat
 Threats for the hotel are other luxurious
hotel brands with high strategic market
plan
Illustration 2: SWOT Analysis
Source: (What is SWOT Analysis, 2018)

 Increasing interest towards quality
rather than cost.
 Increasing young customers' Interests
in variant international cuisines is a
dynamic opportunity for The Ned
Hotel.
 Its dependency on a particular class of
customer can be a threat.
Impact of SWOT Analysis on decision making process
Strength of THE NED Hotel delivers strategic analysis of existing services, resulting in
decision making for improvement these services to develop its opportunities and customer
loyalty.
Its weakness provides it a greater extent and reach towards different alterations required
in services. It delivers proper decision of target and segmentation strategy to approach variant
class of customers.
Opportunities for this hotel influence decision-making process with regard to talented
workforce including Chefs, smart menu planning, efficient suppliers and logistics.
Threats of the hotel gives it a platform for making strategic decisions regarding advanced
market plan, business reports and researches. It acts as a driving force for the company to
continuously gather data of its competitors, strengthening customer loyalty and upgrading market
segmentation procedures.
MARKET RESEARCH REPORT
1. Trend Analysis of Hospitality industry
Digitalization, Luxurious demands, Medical Tourism, Era of Technology, Unique perks
are some relevant trends in hospitality sectors.
Digitalization facilitates hospitality industry in reaching to an advanced level in terms of
pre bookings, CRM, Business partnerships, promotions etc. The services of hotels and travel
agencies are highly accompanied by different business intelligence software (Brace, 2018).

For example, Hotel The Ned attract its customers through attractive vouchers and
delights on its websites. Sharing customer experience on its portal and achieving competitive
advantage and use various CRM systems to increase customer experience.
Luxurious demands and services are requirements of customers these days. Hence,
based on available resources and extending partnerships, hospitality industries increasing its
services with advanced customization (Ryan, 2015).
These demands are adequately fulfilled by The Ned Hotel as it provide luxurious and exquisite
services to its customers.
Compliance with Medical tourism is another interesting trend in Hospitality Industries
where patients visits different countries for surgeries, check-ups, treatments and explore different
tourists spot with the help of hospitality industries of particular region (Han and et.al.,2015).
For instance, to align with this trend, The Ned hotel need to provide its services at
affordable costs for Medical Tourists. This will help it in promotion, increase customers,
shareholders and partnership with different service sectors.
Unique perks to the customers increase their interest and loyalty towards the
industry/ hotel.
The Ned provides unique perks to its customers namely Sunday swing, Afternoon Tea,
DJs at Millie's lounge and various Sunday feasts to align with customers' demands and trends.
2. Ability of selected hotel chain to develop product and service to meet current trends
The Ned Hotel will attract its customers with distinctive services and innovative offers
according to changing trends. It will retain its customers by continuous quality and luxurious
services. The hotel will enhance its perks and beneficiaries according to the choice of customers
in near future. Its efficient forecasting regarding customers' demands may introduce its provision
for medical tourists in the future. The Hotel will be focus upon its market segmentation process
depending on the future trends and will continue to develop strategic and competitive
advantages.
CONCLUSION
The present study has summarized that the hotel industries need to meet the upcoming
trends to attain competitive advantage in the future. The external analysis have shown that the

industries are highly affected by the political and legal issues within its country. Their must be
proper strategic plan to tackle such issues.
Trend analysis of hospitality sectors have been explained that Medical tourism need to be
promoted by the hotels to increase the economy of respective countries. Though it is a well
known hotel chain, it has to develop its existing services to meet the future trends.

REFERENCES
Books and Journals
Robinson, P. and et.al., 2016. Operations management in the travel industry. CABI.
Lin, X., 2016. Strategy analysis of a boutique and lifestyle hotel: a SWOT analysis (Doctoral
dissertation, California State Polytechnic University, Pomona).
Brace, I., 2018. Questionnaire design: How to plan, structure and write survey material for
effective market research. Kogan Page Publishers.
Kuo, C.M. and et.al., 2016. SMART SWOT Strategic Planning Analysis: For Service Robot
Utilization in the Hospitality Industry. Consortium Journal of Hospitality &
Tourism, 20(2).
Ryan, C., 2015. Trends in hospitality management research: a personal reflection. International
Journal of Contemporary Hospitality Management, 27(3).pp.340-361.
Han, H. and et.al., 2015. Medical hotels in the growing healthcare business industry: Impact of
international travelers' perceived outcomes. Journal of Business
Research, 68(9).pp.1869-1877.
Wilson, R.H. and et.al., 2015. Dynamic pricing and minimum length of stay controls as a hotel
management practice: are there customer perception, ethical, and legal questions?. The
Journal of Hospitality Financial Management, 23(2).pp.107-123.
Wang, Y.S. and et.al., 2016. Factors affecting hotels' adoption of mobile reservation systems: A
technology-organization-environment framework. Tourism Management, 53.pp.163-
172.
ONLINE
PESTLE-ANALYSIS: 6 core variables. 2016. [ONLINE] Available through:
<http://www.mbahelp24.com/pestle-analysis-6-core-variables/>
What is SWOT Analysis. 2018. [ONLINE] Available through: <https://www.visual-
paradigm.com/guide/strategic-analysis/what-is-swot-analysis/>