Contemporary Hospitality Industry

This presentation provides an overview of the contemporary hospitality industry, including PESTLE analysis, SWOT analysis, and current trends. It also discusses the future trends and opportunities in the industry. The focus is on Intercontinental hotels and Travel-lodge as case studies.

Contemporary
Hospitality Industry

Table of Content
Introduction
PESTLE Analysis
SWOT Analysis
Hospitality Trends
Conclusion
References

INTRODUCTION
Hospitality industry is essential for an economy in order to accommodate the
guests and travellers of other countries for ensuring their good experience
and satisfaction. The hospitality industry consist of different businesses such
as pubs, hotels, restaurants etc. which are formed for providing different
services and facilities to the customers. Hospitality industry also works with
travel industry in order to provide combined services and facilities. Taken
firm for this assessment is the Intercontinental hotels which is a hotel chain
based in Denham, UK.

PESTLE Analysis
PESTLE is a strategic planning method through which an
organisation predict the market environment before
entering in other country. This task cover PESTLE
analysis of travel-lodge

Political factor
Intercontinental hotel- These factors includes the stability of government,
political conditions, policies of government etc. which varies with the
governments. Due to the Brexit, organisations are facing issues in UK as the
government policies are changing for reducing the impact caused by Brexit.
Travel lodge- The another company is travel-lodge which also operate their
business in hospitality industry. As they are operating their business at global
level therefore it is essential for them to create positive relations for the
government.

Economical
Intercontinental hotel- Such factors includes labour costs, interest rates, taxes
etc. The present tax rate of UK is 20% which is comparatively less then some
other countries in which intercontinental hotel is performing its operations.
This is positively impacting the firm as reduced tax rates means more profit
for the firm.
Travel lodge- Brexit impact on all industries that are operating their business
in UK specifically on its operation due to which their monetary aspects also
impacted such as profits, revenue, price etc. Example- Travel-lodge decreases
prices of their packages which helps them to attracts customers so they again
earn sufficient amount of profit.

Social
Intercontinental- These factors includes the taste, preferences and behaviour
of customers which impact their purchasing habits. People of UK are
educated and technically skilled due to which they gather the information
before taking services from hotels.
Travel lodge- The per capita income of society individuals that spend their life
in UK is high it determines that spend their income on luxury items also.
Example- UK individuals spend their income for visiting different
countries in order to gain knowledge of different culture and country.

Technological
Intercontinental- Such factors includes the advancement in technology,
innovation, invention etc. The UK is a technologically advanced company due
to the level of education among the citizens. The intercontinental hotels relies
on technology for monitoring their different operations such as logistics,
delivery of services etc.
Travel lodge- Travel-lodge is expanding their business at global level to gain
positive result such as increase in sale of their products and to create loyal
customer for their services. Example- Travel-lodge invest money to adopt new
technology to perform their operations quickly. It results that they are leading
player of their industry in present scenario.

Environmental
Intercontinental- These factors includes protection of environment,
conservation of natural resources, eliminating the wastage etc. Government of
UK is strict regarding the exploitation of natural resources and environment
due to which various laws are formulated by government.
Travel lodge- Management of travel-lodge implement different laws inside the
organisation in order to protect natural resources of country. It also helps them
to increase their brand image in the society by organising different CSR
activities.

Legal
Intercontinental factor- Such factors includes the laws and regulations
developed by government of UK for protecting their citizens and
employees from malpractices. Intercontinental hotels are following several
laws such as fair compensation act, anti discrimination act etc.
Travel lodge- In this an organisation there are different goals through which it
is easy for them to accomplish their goals in ethical approach. Example-
Management of travel-lodge formulate strict laws inside the organisation
that helps them to complete their operation through ethical approach.

SWOT analysis
Strength of travel lodge and intercontinental
 Intercontinental hotels are operating at different countries due to which brand
image of hotel is high.
 The company is having a large number of brand due to which revenue of the
company is good then the competitors.
 The room rates of travel-lodge are affordable.
 Effective and efficient services helps them to gain loyal customers for their
services.

Continue....
Weakness of Intercontinental and travel-lodge
 Travel lodge deal in budget hotels so they does not equip whole range of
products.
 Product and service range that is provided by travel-lodge is short and
limited.
 Intercontinental hotel was involved in credit-card stealing malware due to
which company was criticised for weak IT security.
 Also the company failed in providing loyalty points to their customers
through their Holiday Inn Priority Club and IGH Rewards Club which is
also a weakness.

Continue....
Opportunities of Intercontinental and travel-lodge
 Company is planning to expand the operations in India and China through
partnership as these countries has huge number of population.
 Stable cash flows are opening opportunities for company to expand into
other segments.
 Travel-lodge has option to expand their business in inter-national countries.
It increases number of potential customers.
 They need to participate with reputed hotel that enhance their brand image.

Continue....
Threats of Intercontinental and travel-lodge
 High competition exists in UK hotel industry. So travel-lodge faces stiff
competition from local and inter-national hotels.
 Travel industry is increasing with rapid speed so they create negative factor
for travel-lodge.
 Increasing competition from firms such as Marriott, Hilton, Hyatt are major
threat for the company.
 Shortage of skilled workers in hospitality industry is also a threat for
company as company could not able to perform their work properly.

Current trends in hospitality industry
 Internet services- It is one of the fast growing trend in hospitality industry.
With the help of this trend customer's can easily get review of the hotel in
which they are planning to visit. Facilities and services offered by the hotel
can also be checked by customer's and plans can be made to visit the hotel
or not.
 Tech explosion- The customer's of hospitality industry are becoming tech-
savy. This means they do not want to disturb the staff of hotel for solving
their problems and doubts. So keeping this factor in mind user friendly
technology is being launched for the customer's.

FUTURE TREND
Direct Booking- Inter- continental can focus on providing direct booking
facility for its potential customer's. With the help of this satisfaction level
of customer's can be increased and enhanced.
Tracking facility- With the help of this facility exact location of customer's
can be tracked so that they do not face any problem in the future.

CONCLUSION
From the above report, it is concluded that Hospitality industry is
segmented among different types of business such as tourism, F&B, Lodging,
etc. The major focus of each sector is to enhance the customer satisfaction by
hiring skilled and talented individuals for the different operational and
functional departments. There are various roles in hospitality firms which are
performed by the employees in order to achieve the organisational goals and
objectives effectively. The organisations need to determine the skills gap
among the employees so that the weak skills can be improved.

References
Cooper, C., 2012. Essentials of tourism. Pearson Financial
Times/Prentice Hall.
Tresidder, R. and Hirst, C., 2012. Marketing in food,
hospitality, tourism and events: a critical approach.
Goodfellows Publishers.
Bowie, D., and et. al., 2016. Hospitality marketing.
Routledge.

Thank-You