Impact of External Factors on Hospitality Industry

Contemporary Hospitality Industry

 Introduction
 Main body
 Conclusion
 References
Table of contents

 PESTLE analysis refers to the framework that helps the organizations to identify and monitor the
impact of external factors on the performance of business. External factors affecting business of
firms operating in hospitality industry are as follows:
Political-
 There are various types of political factors that may impact the business of hospitality organizations
such as political stability is considered as greatest strength of country. Further, rate of taxation may
also impact the cost of operations of the business of hospitality companies.
Economical-
 Economic factors is also one of the major factor that affects the business of hospitality firms. It
affects the demand of product or service offered by organization operating in hospitality sector of
the country.
PESTLE analysis for organisation operating within hospitality
industry.

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Social-
Like economic factors, factors related with social and cultural environment also affects the business of
hospitality firms. There are various social factors such as change in preference and demands of
customers regarding products or service offered by hotels, restaurants etc. Perception, attitude,
beliefs of the clients also affect hospitality industry.
Technological-
 Technological factors also considered as one of the important factor affecting the business and
profitability of firms that are operating in hospitality industry of the country.