Contemporary Hospitality Industry

This presentation provides an overview of the contemporary hospitality industry, focusing on the PESTEL and SWOT analysis of the industry, the impact of external factors on organizational development, and current and potential trends in the industry. The presentation also explores how Marriott International Hotel adapts to these trends and develops products and services to meet customer demands.

Contemporary Hospitality
Industry

Table of Content
 Introduction
 PESTEL analysis of hospitality business
 SWOT analysis of hospitality business
 Impact of external factors on development of organisation
 Appraisal of implication of current and potential trends

Table of Content
 Ability of hospitality business to develop products and service to meet current trends
 External factors impacts on current and potential trends and development in
hospitality industry
 Conclusion
 References

Introduction
 Hospitality industry is defined as the broad category of services
industry that includes various sectors such as food and drink
services, travel and tourism, lodging and event planning. In this
report the chosen organisation is Marriott International Hotel which
is an American multinational organisation established in 1927 by J.
Willard Marriott Alice Marriott. The headquarter of organisation is
situated in the Bethesda, Maryland, US. In this report PESTLE,
SWOT analysis and external factors are covered.

PESTEL analysis

Political factors: There are various political factors that affect
the Marriott Hotel are danger of terrorism, political climate and
international relations that impacts on the sustainability and
profitability of hotel.
Economic factors: As Marriott International Hotel operations
business functions outside the country as well so fluctuations in
the local currency impacts on the functioning of hotel. The
restrictions on spending also affect the hotel adversely (Li, 2019).

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Social factors: As there are more competition in the hospitality
industry so, it becomes important for Marriott International Hotel to
provide better quality services to customers on time.
Technological factors: In competitive business environment
various technological factors, innovations and automations are
adopted by the Marriott Hotel for booking and other operational
purpose that enhance the cost and decrease the profitability level (Lu,
Chen, and Law, 2018).

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Legal factors: There are various legal lows and legislations are
issued by the government for the hospitality industry data security
and non-disclosing privacy rules that affect the Marriott
International Hotel in various manner.
Environmental factors: There are various environmental
factors that affect the functioning and decision-making procedure
of Marriott International Hotel. As it is multinational organisation
so, it must abide the rules of all countries while operating.

SWOT analysis

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As the Marriott International Hotel is the premium that
provides quality products and services to customers in order to
retain them for long period of time.
 Strengths: Strengths are defined as the internal
sufficiency that provides various advantages to Marriott
International Hotel than other competitors. As the hotel is
adherence strict operational regulations as well as code of
conduct that help to run all operations properly. It has
presence across 122 countries.

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 Weaknesses: Weakness are defined as the internal areas of Marriott
International Hotel that requited improvement. As the regulations of
helot are strict that impacts on performance on employees and
productivity.
 Opportunities: Opportunities are defined as the avenues of
Marriott International Hotel that provides various competitive
advantages than other competitors. The behaviour of customer is
shift towards staying in luxury hotels. The hotel provides
personalised attention on each customer that creates opportunity to

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 Threats: Threats are the external factors that affect the Marriott
International Hotel sustainability and performance. Higher competition is
the major threats as there are various competitors of Marriott Hotel are
Hilton and Novotel. Economic recession hit the hospitality industry
adversely that impacts on revenue generation. Apart from that
vulnerability of terror attack also the threats that affect the respective
hotel.

External factors on development of organisation
 There are number of external factors are exist in the
outside the Marriott International Hotel but affect all
operations and functions of business in various manner.
These factors are mentioned below:
Innovation and digitalisation: In current
competitive business environment the trend of innovation
as well as digitalisation are enhancing.

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 Enhancing competition: As Marriott International Hotel face high
competition from various competitors that affect the performance and
profitability of hotel. The higher competition reduces the market share, customer
base as well as organisational profitability.

Appraisal of implication of current and
potential trends

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 There are various current and potential trends that impacts on the hospitality
industry.
 Present business trends:
 Safety and hygiene: In covid-19 pandemic, it is required for Marriott Hotel
to ensure safety and hygiene measures of customers in order to provide them
better quality services.
 Contactless payments: Online payment is the most effective hospitality
trends that is related to deduct friction & contactless payments. The contactless
payment leads to saving time and efforts. There are various platforms such as
Google pay and apple pay to carry a wallet.

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Future trends in the hospitality industry:
Voice control and voice search: The use of voice search is becoming very common
among the present customer base of customers. Marriott Hotel hotels have to focus on the
structuring of the website so that there can be featuring of proper voice results.
Chatbots: Chatbots are is the important part of hospitality major trends which is
linked with the customer services in order to provide swift responses (Susaeta, Babinger,
and Muñoz, 2020).

Ability of hospitality business to develop products and service to meet current trends
Marriott International Hotel is the multinational hotel that
provides its products and services in various part across the
world.
Skilled employees: Marriott International Hotel have
skilled and capable employees who are able to perform in
defined manner and attain all organisational goals and
objectives efficiently. There are proper training is provided to
employees that help organisation to remain competitive.

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 Brand value: As the Marriott International Hotel has effective brand value in
potential target market that help to enhance market share (Youn, Lee and Lee,
2018). There are various resources and equipment that allow the hotel to
implement all current trends.

External factors impacts on current and potential trends and development
As external business factors are existed outside business
boundaries and these factors are not in organisational
control. There are various factors that affect the Marriott
International Hotel such as competition, innovation and
technological advancements.

Conclusion
 As per above report, it can be concluded that hospitality industry is the major
sector of service industry that deals in accommodation, lodging and food and
beverages. These are various business are included in the hospitality industry
that provides quality services to the customers gaining competitive advantages.

References
 Li, H., and et. al.,2019. “When you write review” matters. International Journal of Contemporary
Hospitality Management.
 Lu, Y., Chen, Z. and Law, R., 2018. Mapping the progress of social media research in hospitality and
tourism management from 2004 to 2014. Journal of Travel & Tourism Marketing. 35(2). pp.102-118.
 Melián-González, S. and Bulchand-Gidumal, J., 2017. Information technology and front office employees’
performance. International Journal of Contemporary Hospitality Management.
 Park, H., Lee, M. and Back, K. J., 2020. Exploring the roles of hotel wellness attributes in customer
satisfaction and dissatisfaction: application of Kano model through mixed methods. International Journal of
Contemporary Hospitality Management.

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 Poulston, J., 2019. Pleasure and Hospitality in New Zealand the Roles of
Alcohol Sex and Ervice. Current Politics and Economics of South,
Southeastern, and Central Asia. 28(2/3). pp.231-255.
 Su, L., and et. al.,2017. How does perceived corporate social responsibility
contribute to green consumer behavior of Chinese tourists. International
Journal of Contemporary Hospitality Management.
 Susaeta, L., Babinger, F. and Muñoz, N., 2020. Influence of limiting beliefs in
soft employability skills: An analysis for the hospitality sector. Tourism: An
International Interdisciplinary Journal. 68(2). pp.207-220.

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