Contemporary Hospitality Industry

Contemporary
Hospitality Industry

Table of Content
 Introduction
 The impact of external environment
 SWOT Analysis
 Implication of current and potential trends
 Conclusion
 References

Introduction
Hospitality industry is one of the very broad concept in the service
industry as it provide services to customers and also satisfy their needs.
In the following assignment will study about the impact of internal and
external factors on the hospitality industry. At last the implications of
current and potential trend in the hospitality industry is discussed.

The impact of external environment on
hospitality Industry
In order to know about the impact of macro environmental factors on
the hospitality industry , company uses PESTEL analysis. It is a tool
which is used in order to analyse the impact of external environment
on an organisation. Below is the PESTEL analysis of Holiday Inn:

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Political factors: These are the factors which involves government
intervene. The factors include here are government policy, foreign
trade policy, tax policy and many more. The UK government is making
some of the policies and strategies for the development of hospitality
industry which results in a positive impact.
Example 2: The impact of this factor can be clearly seen on the operation
of Hotel Hilton as act of Terrorism in London in the year 2005 has
reduced the number of visitors in London and UK and has a negative
impact on the performance of Hilton.

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Environmental factors: These are the factors whose main concerned is
over using the means of environment in such a way that does not impact
the environment.
Example 2: For Hilton it is required make proper use of the resources and
for this reason only the Hilton started using renewable technology.
Moreover regular involvement of government towards the environmental
agencies are adding to the cost of Hilton worldwide. Thus they started
working toward recycling of resources and minimising the wastage.