Contemporary Hospitality Industry

This presentation provides a PESTLE analysis of Whitbread Plc and Hilton Hotels in the contemporary hospitality industry. It examines the political, economic, social, technological, legal, and environmental factors that impact these companies. The presentation also includes a SWOT analysis, supply and demand analysis, and discusses current and future trends in the industry.

Contemporary Hospitality Industry

Name:
Enrol Id:

PESTLE Analysis
Political factor
Whitbread Plc
Whitbread Plc can sustain in the UK market and can earn a better profit as government policies in the UK does not change
very quickly.
Hilton Hotels
In the context of Hilton hotel, these political factors can leave some negative effects which leads to the business to a major
loss. Increase and decrease in tax could be a best example of political factors. The government of the country might
increase taxes for some companies and decrease it for others, it will effect the business directly.
Economic factors
Whitbread Plc
In the other aspect, if inflation rate is increase by government, therefore prices of the hospitality products and services will
be increase and company will receive better profit but in this case a negative effect will be occurred is decrease in
demand because if prices of their products and services will be increase and people demand will be decrease which
can leave a bad effect on the profitability of the company.
Hilton Hotels
In the favour of Hilton hotel, If the government rises the inflation rate in the economy, it would be affect the price of the
company products. In that case Whitbread Plc has to be increase the prices of their hospitality products and services
and this can increase profitability ratio for the hotel, so if the economics conditions are good , the sales of vehicles
remain high.

Continue...
Social factors
Whitbread Plc
In refer to Whitbread Plc, it uses social media platforms like Facebook, Instagram, and twitter to engage with
customers.
Hilton Hotels
Hilton hotel can badly affects by the suddenly change people's choice, fashion, and many other. Due to this,
company must provide facilities as per latest trend and choice of people.
Technological factors
Whitbread plc
In the production, Whitbread plc is used high technology so they can save their scrap cost.
Hilton Hotels
Hilton hotel is needed to use advance technology but if employee will not given training, they will not be able to
use it properly.

Continue...
Legal factors
Whitbread Plc
These factors are concerned with the legal laws and procedures of a nation. In relation with Whitbread Plc,
following these laws will benefits hotel in sustaining a positive image in market.
Hilton Hotels
 Legal protection of intellectual property, patents, copyrights and other IPR rights in UK affect Hilton
hotels ADR if there are not enough protection. If Hilton hotel will not follow legal procedures and laws,
victim employee can file a case which will reduce effectiveness of hotel.
Environmental factors
Whitbread plc
These factors are related with preventing nature and environment from harmful business practices. Following
environment law will allow Hotel in making a positive reputation in mind of customers.
Hilton Hotels
If Hilton hotel will not follow environmental laws then customers will not prefer to buy their services. This will
reduce their sales

SWOT analysis
Strengths (Whitbread Plc )
High Skilled Workforce
Heavy investment
High level of customer satisfaction
Strengths (Hilton hotel)
Superb Performance in New market
Appropriate revenue system
Brand acknowledgement

Continue...
Weakness( Whitbread Plc)
Low marketing strategies
Lack of innovation
Limited success outside core business
Weakness( Hilton Hotel)
High attrition rate in workforce
Less investment in training
High dependence on proprietor

Continue...
Opportunities( Whitbread plc)
 Opening up of new market because of agreement with government
 Lower inflation rate
 Offering discounts and offer
Opportunities(Hilton hotel)
 Procuring neighbour inns
 Expansion in Australia
 Increased online presence

Continue...
Threats( Whitbread Plc)
 No regular supply of innovative product
 New technology as competitor
 Threat of rivals
Threats( Hilton hotel)
 New entrants
 High employee turnover
 Lack of skilled workforce

SWOT analysis of Whitbread Plc
The SWOT influences decisions of the company by providing information related to strengths, weakness,
opportunities and threats as the decision are made according to that information. The decision of long term
strategies is formed considering weaknesses and taking steps to remove them. It helps the organisation in
deciding that objective is achievable or not. It allows mangers to form vision and produce possible
outcomes which will help in long term change.

SWOT analysis of Hilton Hotel
It helps in considering key features of company to form future plan , developments and risk mitigation.
Through SWOT company can grab the opportunity present in the environment and can respond to new trends
and allow to deal with the changes in technology or in competitors operations.

Supply demand of Whitbread Plc
Supply demand of Whitbread Plc
In context with today's situation, lack of using advertising techniques and tools can impact supply and demand
in hotel in negative way.

Supply demand of Hilton Hotel
As per current performance of the hotel, it is analysed that terror attack impact the supply and demands of the
business of hospitality firm.

Different Trends
Now these days people are travelling for various purposes like study, interest, entertainment and
Trend 1- In past time, renowned hotels send their employees to receive their important guests so that they feel more
valuable and prefer repeat sales.
Trend 2- In today's time, businesses in hospitality sector have increases due to which hotels offer complementary
services and dishes to their customers.
others. So by adding other more destinations and location in travelling packages, they can make improvement in their
business.
Trend 3- Simplifying complex work with the help of Artificial intelligence will be potential future trend.
Trend evaluator- From the above information, it is acknowledge that these all trends will help in earning high sales.
Due to this, hotel will achieve desired growth.

Current/ future trends specification
It is vital for business organisations in hospitality sector to formulate plans and policies in accordance with future and current
trends. With the help of these trends, company can grab attention of customers so that high revenues and profitability can
be earned.
Current trends:
Security and safety: Due to threats and terrors, main trend in hospitality sector is to offer high security and protection to the
guests so that they can feel comfortable and secured during their stays.
Maintained privacy: If privacy will not be given, customers will feel reluctant for stays due to which sales and profits can
reduce.

Future trends
Future trends
Era of bots: Chat bots represents an easier manner for the hotel operators to interact with their customers and guests without involvement of real
people. Bots will respond to the queries and messages asked by customers in a quick and proper manner.
Virtual reality: Booking in hospitality sectors like resorts, hotel etc. will be carried out through interactive technologies such as 360 view.
Advanced technology: Due to these advanced technologies, customers will be able to choose desired room without their physical presence. .

Conclusion
From above discussed report, it is concluded that businesses associated with hospitality satisfy the needs and desires of consumers
in a proper manner. To analyses business environment, SWOT and PESTLE techniques are used and they benefits in enhancing
sustainability of business.

References
Segovia-Pérez, M., and et. al., 2019. Incorporating a gender approach in the hospitality industry: Female executives’ perceptions.
International Journal of Hospitality Management, 76. pp.184-193.
Su, N. and Reynolds, D., 2019. Categorical differences of hotel brand personality: Identifying competition across hotel categories.
International Journal of Contemporary Hospitality Management.
Teng, H. Y., 2019. Job crafting and customer service behaviors in the hospitality industry: Mediating effect of job passion.
International Journal of Hospitality Management, 81, pp.34-42.

Thank You