Contemporary Hospitality Industry

This presentation provides an overview of the contemporary hospitality industry, including macro environment factors, SWOT analysis, factors affecting demand and supply, and current and potential trends. It also discusses the influence of SWOT analysis in decision-making and provides references for further reading.

Contemporary
Hospitality Industry

Content
 Introduction
 Macro Environment Factors
 SWOT analysis
 Factors effecting demand and supply
 Current and Potential Trends
 Conclusion
 References

Introduction
Hospitality industries is defined as the service industry which deliveries
number of facilities to its guest. The services which are included in
hospitality sector is event planning, lodging, theme parks, cruise lines and
many more services within the field of tourism industry. The main purpose
behind preparing this project is to give wider range of knowledge to the
student who are planning there career within the field of Hotels industry

Macro environment factors of
Whitbread & Intercontinental
A Pestle analysis is a tool used to examine the external environmental factor
that impacts the hospitality industry. This tool is used when a new hotel is
entering into industry or collaboration of two hotels to understand the
situation which is affected by internal and external factors (Hospitality
Industry Pestle Analysis, 2018). These factors are explained with broad
framework such a demographic, intercultural, ethical and ecological. Whit
bread uses Pestle to analysis detail about operating challenges which the
hotel will face other than competitive forces. The brief explanation of these
factor and impact on Whitbread Plc and Intercontinental has been explained
below.

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Political- This factor states that how much degree a government interface in the
economy or to certain industry. This include all the policies made by
government such as tax policy, foreign trade policy etc. It is important to
understand the factor which can impact long term profitability in a country.

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Whitbread is working in Travel & leisure in many countries and expand in
different political environment so to diversify the risk related to political
environment the aspects are taken into consideration which are Political
stability of that particular environment, level of corruption , legal
framework and property protection right etc (Minca and Oakes, 2012).
While talking about Intercontinental Hotel Group, the tax policies which has
been made by government has been helping them to perform well within
the market.

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Economic factor- These factors
determine the performance of
economy which are economic
growth, exchange rates, inflation
rates, disposable income of
consumers and unemployment.

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Whitbread use these economic factors to estimate growth rate of the
hospitality sector . The Factor which are required to take into
consideration are the type of economic system, exchange rates & stability,
efficiency of financial market, education level,skilled workforce. If growth
rate is high then the company can enter into that market.
As inflation and interest rate are increasing in a rapid speed it is very
important for Intercontinental that how they perform with in the market
because it reduce the number of customer of a company as their rates are
already expensive.

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Social Factor- These factors are
important to examine the
customers that are to be
targeted. The factors are
population growth rate, age
distribution, income
distribution, career attitudes,
safety emphasis and cultural
barriers. Society.

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Whitbread Plc examine customer by understanding belief and attitude of
customer to design the marketing message of company. The factors that
Plc analyse are demographic of population, class structure, education
level, culture, attitudes and leisure interest (Moutinho and Vargas-
Sanchez, 2018).
In terms of Intercontinental Hotel Groups, they are required to understand the
belief and culture of those customers who are attracted towards the hotel
as it will direct have the effect on sales of an organisation.

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Technological factors- Technology is growing rapidly. It is transforming
very fast that even no one is able to cope up with it.
Whitbread perform technological analysis to examine the speed of
technological transformation as slow speed will give time to cope with it.
Intercontinental Hotel Group is required to understand that they need to
upgrade there technologies when it comes to online booking as it is one of
the most suitable form of technology which is easily influence the
customer.

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Environmental Factors- Before entering in a market The analysis of
environment factors are needed for proper functioning. As different
market have different impact on profitability.
Whitbread analysis weather, climate change, laws & regulation and waste
management to operate in that market without any risk or enhancing
profitability.
In terms of Intercontinental Hotel Group they are required to comply with
each and every law related to health and safe environment and if they will
not be able to do then overall sales will automatically decrease.

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Legal Factors- The legal framework overlap with political factor. It contain
specific laws such as discrimination law, employment law, consumer
protection law, patent and copyright etc. which are requires to examine to
be aware about their importations.
Whitbread evaluate these factors to obtain competitive advantage. Their
primary focus on all these laws to gain leadership in the market.
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.

SWOT analysis
SWOT analysis is one the topic which tells that what are the current strength
and weaknesses of organisation and how they are required to work in
future so that better results can be achieved. In context of Whitbread, if
they can be able to find there actual weaknesses then they can easily work
on it through which they can enhance there performance. Below SWOT
analysis has been done on Whitbread Plc and Intercontinental Group.

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Strengths Weakness
They have maintain the price of due to which
customers are easily attracted towards the
company.
They conduct various programs in which they
give loyalty through which various offers
can be avail.
There is poor communication system in
company .
Room and services which are offered to
customer are not well satisfying for
customer.
Opportunities Threats
They have the opportunity to expand their
business at greater platform.
They can do joint venture with some of the
renounce hotel through which they can
enhance their profit.
The biggest threats for the company is Crown
Plaza, Hilton as they are performing well in
the market.
Willingness of the customer changes in every
short period of time but Whitbread is unable
to adopt those changes.

SWOT of Intercontinental Hotel
Group
Strength Weaknesses
They have effective recruitment strategies
which help to select best candidate for
organisation.
They have huge global presence.
The company is performing well due to they
have huge profitability.
They have weak IT securities.
They are unable to maintain their position
within the market.
They are unable to provide economic
class of services.
Opportunity Threats
They can increase their technological
departments
They can focus more on international
tourist traveller.
They can try to enter into new market.
Dependent upon intermediaries.
Sharing economy class in hotel industry.
Competition from local hotel which
provide better services in cheap price.

Influence of SWOT in decision-
making
This will help organisation
to perform their task
easily and even this will
help them to improve on
all those week area from
which targets ca can be
easily accomplished.

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Influence of SWOT in decision-making: Here, each and every organisation
is required to conduct SWOT analysis so that better results can be
achieved. SWOT will be beneficial for the hotel because it will help them
to find all of those area in which they can improve and even ask for the
help expertise to perform better in future.

Factors effecting demand and
supply
Whitbread :The company is performing really well within the market due to
which they are able to perform well but still there are some of the factors
that is affecting the demand and supply of the company. The biggest factor
that is affecting is market presence because they are able to built strong
market presence due to which customers are not easily attracted towards
the hotel.

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Intercontinental Hotel Group: It has
been found that Intercontinental
Hotel Group is doing exceptionally
well but still the major problem with
them is cost and that is directly
affecting their demand and supply. It
is one of the reason that they moved
from first position to third in current
scenario.

Current And Potential Trends
Trend 1: The current trend of the hospitality sector is that the food and room
services which is required by the customer should be standardised and
even hotel industry is required to fulfil all of the demands which is needed
by traveller.
Trend 2: Tech explosion is also one of the most trending in hotel industry
because nowadays guests like to book and give review through means of
online media. Even all of the meetings are being conducted through online
media's.

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Trend 3: It is very important for any of the organisation that they must focus
on health and medical services and even hospitality sector is also required
to keep the team of health and safety department which can plays crucial
role in any of the emergency situation.

Trend Evaluator
All of this trend does plays crucial for hotel industries hotel because it tells
them that how they are required to perform and how they need to update
themselves. It is said that this trend does increase the overall cost the
organisation.

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Number of present and future trends are there which can can the overall structure of
the organisation and all those trend have been explained below:
Current trend
 Internet services – In this Whitbread Plc provide internet facilities to there
customer through which work customer is able to advice about the services
which is required to be improve.
Tech explosion: In this trend any of the customer do not want to disturb any of the
guest of hotel. It is one of the user friendly experiences which is being delivered
to customer

Future trends
Direct Booking – In many of the hotels direct booking is not possible but in
future it can be changed which will directly help customer.
Tracking facilities – In this, hotels will be able to deliver the services to
customer they will be able to track them up to that they in which they are
connected with company.

Conclusion
It can be concluded from the above file that hospitality sector is one of the most
advance industry which is being able to generate more number of job
opportunity for individual. Every year number of tourist are increasing due
to which this field is being able to achieve more success. Even hospitality
industry can easily conduct PESTLE and SWOT for the purpose of finding
internal and external impact on organisation through which different
problem can be created. Also, trends do changes on short period of time and
it is important that organisation must work as per the requirement of market
trends for future growth.

References
 McWha and et. al., 2016. Writing for the anti-tourist? Imagining the
contemporary travel magazine reader as an authentic experience
seeker. Current Issues in Tourism. 19(1). pp.85-99.
 Minca, C. and Oakes, T. eds., 2012. Real tourism: practice, care,
and politics in contemporary travel culture (Vol. 26). Routledge.

Thank You