Contemporary Hospitality Industry: Analysis and Implications

This presentation provides an analysis of the contemporary hospitality industry, including PESTLE and SWOT analysis. It explores the implications of current and potential trends and evaluates the ability of a chosen hospitality business to meet these trends. The impact of external factors on current and potential trends is also discussed.

Contemporary
Hospitality Industry

TABLE OF CONTENT
• INTRODUCTION
• PESTLE Analysis factors of Whitbread
• SWOT analysis for a hospitality business
implications of current and potential trends
• evaluation of ability of chosen hospitality business
• Evaluation of how external factors impact on current and potential
trends
• Conclusion
• References

INTRODUCTION
Hospitality industry is a wider and broader business sector which
consists of different types of areas and accordingly they provide
services as well as to the consumer and guests. UK hospital industry
has been involved with the time period and providing diversified
services traveller’s people from other places (Arun, 2020). Main
purpose of this report is to understand the importance and
contribution of hospitality industry within the contemporary
business environment. Best Western Hotel, which is the largest
multinational Hotel Corporation located in United Kingdom. The
hotel chain includes and has number of hotels as well as resource
such as Best Western Plus, World Hotels Luxury etc. They provide
number of services at different locations with different prices with
proper consideration of culture region and people taste as well as
preferences. This report comprises of frameworks like swot and
PESTEL analysis and their implication of current and potential
trends have been briefly explained.

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PESTLE Analysis factors of Best Western Hotel
It is a kind of framework which is used by an organisation to determine
external factor which directly affect the overall organisational structure
of business. It includes several components which are discussed below-
• Political factor- This is the element in which it comprises of
different factors like environmental law or labour of foreign trade
policies and many more. In consideration of selected hotel they have
been also affected by these factors because due to impact of brexit it
is becoming difficult for them to change their business structure and
expand it in other countries
• Economic- Economic factor is one in which it focuses on tariff and
non-tariff, inflation of deflation rates etc. In context of Best Western
Hotels, due to changing economic policies because of covid-19 Hotel
is unable to increase their business profit and provide jobs to other
people.

PESTEL Framework

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• Social factor- It consists of elements like behaviour, taste,
attitude, preference, location, region etc. In reference of chosen
hotel, this has been analysed that customers taste and
preferences changes with time period and due to large number
of alternative option available in hotel industry it is not easy for
selected hotel to engage with audience
• Technological- Technological factor comprises of use of
technology advanced software and hardware applications tools
etc. Business using technology special in hotel industry
effective management systems and different applications are
being used to protect the data of customers. So, in chosen hotel
company they have to adapt to advance technology but properly
collecting information within market so that new technologies
are going well adjusted in management.

Social and technological factor

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• Environmental- Environmental factor for those which focuses
on waste management, utilisation of resources etc. In
viewpoint of selected hotel, this is critically analysed to that
they are focusing on reducing the emission by 20% next 3
years.
• Legal- Legal factors of those which focuses on rules
regulations guidelines policies and many more. In
consideration of Best Western Hotel, it is specified that de
carry on their activities by properly following government
rules and regulation due to which they have Goodwill in
market.

Discuss SWOT analysis for a hospitality business
• It is another type of a framework and tool utilised by
enterprises with the purpose of analysing their internal
capabilities. It consists of different elements which are
strength, weakness, opportunities and threats. It is further
explained below-
• Strength
• Main strength of Best Western Hotel is that they have a skilled
and talented employees with different religion and culture due
to which it is easy for hotel to provide better services and fulfil
the needs and demands of customers.
• Strength they have owned number of hotels and resorts which
reflects their strong financial condition in hotel industry.

SWOT Analysis

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• Weakness
• Due to the impact of Brexit it is difficult for them to expand their
business in Asian countries which limits their potential ability.
• Further weakness is that due to this covid-19 on-going pandemic
situation, it is not easy for them to target audience at larger contacts and
employee’s turnover rate is also increasing.
• Opportunities
• Best western hotel has a great scope of expanding their businesses with
the help of merging up with different large multinational hotel chains for
example Hyatt, IHG etc.
• Threats
• Due to increased use of resources and technology it is becoming difficult
for hotel industry to fix their policies and it is also a cost expensive
process which can directly impact upon their other function and
operation department.

Analyse implications of current and potential trends
• Current trends
• Social media & digital marketing- It is a current trend within hotel
industry in which each and every business are promoting and
advertising their brand as well as productive with the help of social
media platforms like Facebook, Instagram, Twitter etc. It have a
direct impact on business activities because without using digital
marketing and social media in this Modern era it is not easy for
selected to expand or engage with target audience.
•
• Potential trend-
• Artificial intelligence & technology- It is the potential trend in hotel
industry because technology and artificial intelligence are becoming
in water and nowadays due to which it is easier for many hotels
chain to provide better experience to their customers and guest. For
example many hotels in United Kingdom uses smart robots like
chatbots and waiter robots to attract customers towards their services.

The impacts of external factors
• Competition- This is the external factor which impact upon
the development of Hotel operations and it is critically
important for selected Hotel chain to reduce their competition
level in market to survive for longer period. For example they
have many competitors like Marriott International, choice
hotels, Starwood hotel and resorts etc. They can expand their
business into new diversify product and services to engage
with target audience easily.

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Critical evaluation of ability of chosen hospitality business to
develop products and services that will meet current trends
Ability
• Market analysis - This is the most effective ability of
Best Western Hotel which is used by them as because they
have an advanced Management system through which they are
capable of conducting research and market analysis of
customers and their competitors which help them to implement
strategies accordingly.

Evaluation of how external factors impact on current and
potential trends
Impact- Current trend
• Competition affecting social media & expenses-
Competition is the major external factor which is affecting the
current trend of social media and digital marketing because
due to increase level of competition in market hotel has to use
more social media platforms with multi-tasking operations
which will cost expensive procedure.

Use of artificial intelligence

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Impact – potential trend
• Artificial intelligence & technology- Technological factor is
also external factor which directly affect this protection Trend
because with the changing market situation customers’
expectations are also expanding and in order to provide a
better experience it is critically essential for selected hotel to
adopt use of artificial intelligence and machine learning so that
they are able to achieve competitive benefits in market.

Social media engagement

Conclusion
After discussed presentation, It is seen that types of framework,
current and potential trend hotel industry, impact of external
factor on both current as well as potential trend are explained. It
is evaluated that Hotel need to be aware about market solution to
increase their productivity and profitability.

REFERENCES
Books & Journal:
Arun, 2020. Operational Need and Importance of Capacity
Management into Hotel Industry–A Review.
Bondarenko, 2019. Marketing strategy for hotel and tourist complex
companies.
Boora, 2017. Foreign direct investment and its impact upon the
Indian hospitality industry. African Journal of Hospitality, Tourism
and Leisure, 6(1), pp.1-17.
Kalargyrou, 2018. The impact of disability on guests’ perceptions of
service quality delivery in the hospitality industry. International
Journal of Contemporary Hospitality Management.
Kordana, 2017. SWOT analysis of wastewater heat recovery
systems application. In E3S Web of Conferences (Vol. 17, p. 00042).
EDP Sciences.
Kornelius, 2020. CitizenM’s South East Asia Market Entry Analysis.
iBuss Management, 8(2).

Continue..
Lee, 2019. Hotel restaurants’ challenges and critical success
factors in Klang Valley, Malaysia: the inseparable roles of
support centers and revenue streams. Journal of Quality
Assurance in Hospitality & Tourism, 20(1), pp.16-43.
Lim, 2019. Predicting future trends of media elements in hotel
marketing by using change propensity analysis. International
Journal of Hospitality Management, 82, pp.270-277.
Meissner, 2019. Integrating professional and academic
knowledge: the link between researchers skills and innovation
culture. The Journal of Technology Transfer, 44(4), pp.1273-
1289.

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