Contemporary Hospitality Industry

This presentation discusses the PESTLE factors impacting the hospitality industry, including political, economic, social, technological, legal, and environmental factors. It also analyzes the strengths, weaknesses, opportunities, and threats of Inter Continental Hotels Group and Marriott International. Additionally, it explores the supply-demand dynamics and current/future trends in the industry.

CONTEMPORARY
HOSPITALITY INDUSTRY
Task 3 & Task 4

PESTLE Factors
Political Factor
 Political factor provides benefits in working with systems without changing any
operations of Inter Continental Hotels Group.
 This factor adversely impacts Marriott International due to changes in political systems
as well as interest rate of different countries which are difficult to consider and
implement within short time period.

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Economic Factor
 In order to acquire resources at low rates in pertaining economic system it impacts in
capital formation and determining abilities of Inter Continental Hotels Group to
achieve its strategic objectives and goals.
 Changes in economic cycle results in increasing inflation and taxation rates which
will impact on operating operations in different countries at high rates and decreases
funds of Marriott International and this will impact on financial position of such
hotel.

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Social Factor
 Customer preferences as well as changing attitude helps in understanding
perception of society towards the organisational products or services and impacts
of Inter Continental Hotels group to make necessary changes to satisfy customers
and retain them for longer time period.
 If perception of customers changes and shifts towards competitors products then
image of Marriott international will be affected in market and will impact in
market shares of such hotel.

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Technological Factors
 If there are new innovations of technology available in the market can result in
making the available technology obsolete and it affects Inter Continental Hotels
Group operations.
 Marriott International is required to understand the need to upgrade technologies
when it comes to online booking as it is one of the most suitable form of
technology that impacts on influence the customer.

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Legal Factors
 In context of Intercontinental Hotel Group, they need to ensure that they are
follow all of the legal laws like employment wages act, health and safety act 1974
etc. else heavy penalties will be charged.
 Frequent changes in various legislations impacts on efficiency as well as
productivity to provide products or services to potential customers in hospitality
industry which will results in decrease in sales and reputation of Marriott
International in competitive market place.

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Environmental Factors
 By complying with environmental legislations it impacts on Inter Continental
Hotels group to establish a good market image as well as attracting large number of
consumers.
 The respective factor impact on Marriott International in negative manner as
they are operating at worldwide level and almost each and every country has its
own environmental protection law. To follow all laws of different countries is not
possible for respective company.

SWOT Analysis
Strength of Inter Continental Hotels Group
 Global presence
 Loyalty services
 Programs
Strength of Marriott International
 Innovation
 Competitive advantage
 Maintains Prices

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Weaknesses of Inter Continental Hotels Group
 Poor management structure
 Leveraged financial position
 Overemphasis on standardisation
Weaknesses of Marriott International
 Spreads too much
 Still trying
 Low level employees

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Opportunities of Inter Continental Hotels Group
 Tie ups
 Technological advances
 New destinations
Opportunities of Marriott International
 Expansion
 Joint venture
 Attract investors

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Threats of inter Continental Hotels group
 Changes in rates
 Competition
 Government legislations
Threats of Marriott International
 Customer requirements
 Economic changes
 Recession

Analysis of Inter Continental Groups
Hotel SWOT framework
From the SWOT framework, it can be evaluate that selected hotel is operating business
at international level which results in attracting large segment of customers as well as
employees. Managers of Inter Continental Hotels Group provide products as well as
services as per the requirement of customers. The business is operated by
considering legal framework. Which provides several opportunities to expand
business in novel area and many more. The hotels has adopted new technological
advancements such as artificial intelligence in order to attract their customers.

Analysis of Marriott International SWOT
framework
By analysing the evaluation of Marriott International SWOT framework determines
various strength of respective company such as innovation and competitive
advantage. Along with this they also offer their products as well as services at cost
effective rate and they also have strong market at local marketplace. On the other
hand they also have several weakness which impact on their profitability ratio such as
low level of employees which says that employees are not highly skilled and
experienced . They also have various opportunities like they can expand business
globally, attract more investors and makes contract with joint venture.

Supply- Demand
The supply and demand both have a great relation with each other. Such as in the Inter
Continental Hotels Group there is mismatch between the supply and demand. This is
why because in the market, demand of their services is low but they have enough
supply.

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In the aspect of hotel Marriott international, there is higher demand of their services but
they are unable to meet the requirement. So overall demand is high and supply is less
which will affects in certain situations such as when they not able to fulfil
requirement of customers. This is so because it will directly as well as indirectly
impact on their customers base and goodwill of respective company.

Trend 1
In the trend 1 those trends are related to the futuristic trends. Such as use of “Robotic
technology”. It is a kind of technique which is associated to the completing the
operations with the use of robots. The Inter Continental Hotels Group and Marriott
hotels can apply this trend in future.

Trend 2
This trend relates to the current trend which is being used by the hospitality entities in
current scenario. Eventually, the current trend in the hospitality sector is the use of
technology such as online booking system.

Trend 3
In this trend those trends are included which are not in use in the hospitality sector. Such
as offline booking system in which customers are needed to visit the hotel for
booking.

Trend evaluation
On the basis of above mentioned trends of hospitality sector it can be evaluated that trend
one is most suitable and appropriate. This is so because it is related to the using of
robot service which can save time and cost of companies.

Current and future trends
Tech explosion- It is a kind of trend that is related to the use of technique that is
associated with the taking feedback from the customers through email.

References
Wang, C. J., 2014. Do ethical and sustainable practices matter? Effects of corporate
citizenship on business performance in the hospitality industry. International Journal
of Contemporary Hospitality Management. 26(6). pp.930-947.
Wang, Y. F., 2013. Constructing career competency model of hospitality industry
employees for career success. International Journal of Contemporary Hospitality
Management. 25(7). pp.994-1016.