Contemporary Hospitality Industry (P6, P7 and P8)

This presentation provides an overview of the contemporary hospitality industry, with a focus on P6, P7, and P8. It covers topics such as PESTLE and SWOT analysis, hospitality trends, and the future of the industry. The presentation also includes references for further reading.

Contemporary Hospitality
Industry (P6, P7 and P8)

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

INTRODUCTION
Hospitality industry can be defined as wide-concept which includes hotels and
resorts as well as provide transitional services to its visitors such as. Food
and beverages, accommodations, entertainment etc. Moreover, in today's
world hospitality refers to several services which are, accommodation, food
and beverage, transportation etc. which contribute directly or indirectly in
growth of the national income. Here, this assignment is written in context of
Travel-lodge which is operating their enterprise in hospitality industry across
the globe.

PESTLE Analysis
Macro environment consists of political, social, environmental, legal,
technological and economical factors which directly or indirectly affect the
working of the business in the cut throat competitive world. It is studied by
the business concern so that present market scenario can be examined and
strategies can be formulated accordingly. Here, the macro factor are
explained for two companies which are Travelodge and Primer Inn as
follows:

PESTLE analysis
Political factor: It includes tax policy, protection law, foreign trade policy, trade
restrictions etc. are some of the political factor which affect the growth and
expansion of the business at global level. Travelodge examine all this factors
before entering the new market so that government interference can be eliminated
and expansion can be done smoothly. Market scanning should be done before
entering with any product or services so that strategies can be designed accordingly
and is able to capture huge market ratio (Radojevic and Stanic, 2015).
Political factor: Foreign trade policy, trade restrictions, tax policy etc. are political
factor which are directly affecting the business operations. In order to grow in the
international market Premier Inn need to examine political factor so best outcomes
can be achieved.

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Economical factor: In this case it involves labour cost, interest rates, government
policy, taxes and management etc. are some of the examples of economical factor
in the global market. Travelodge is scan the external macro factor in the instance
market environment so that expansion of the business can be done respectively and
more and more customer base can be gained.
Economical factor: Premier Inn faces economical factor such as interest rates,
government policy etc. while growing at international level. To increase the
profitability ratio and customer base for the services firm need to keep eye on the
economical factor accordingly.

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Social factor: Social factor involves economic status, ethics, taboos of government etc.
organization contribute a part of their profits in the development of the society .
Due to which brand recognization can be increased in the eyes of the customers as
well as living standards of the people in the community can be raised. Travelodge
contribute in the growth and development of the society which is a positive sign for
the firm in this competitive world.
Social factor: Language, traditions, society taboos etc. directly affect Premier Inn
decision making process. In order to gain competitive advantages against rivalry
Premier Inn should follow social factor.

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Technological factor: Advancement in technology assist the company to meet the emerging
needs of the customers in the competitive world. Travelodge adopts advanced tools and
techniques in order to fulfil the demands of the clients as well as to reduce the switching of
customers to some other brands in the market. Using the technology of online booking has
directly or indirectly raised the customer base of the service due to which profits increased.n
all operations of market which determines that it is covering several aspects of business.
Travel-lodge invested good amount in purchasing new technology. This helps them to gain
competitive advantages in industry among their rivals.
Technology factor: Premier uses online booking facilities and other modern tools to resolve the
customers quarries. And to bind customers for longer time period in order to gain profits.

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Environmental factor: Here, it includes, temperature, pH of the water, sunlight etc.
Organization should adopt modern ways by which depletion of atmosphere can be
reduced. Like, recycling process, solar energy etc. sop that environment does not
gets affected or depleted due to harmful emission of gases in the air. Company
takes effective measures to use the resources at optimum level (Ryan, 2015).
Environmental factor: In order to increase brand image in the eyes of the customer
environmental factor need to be followed effectively by Premier Inn. By doing so
more customer base is increased for the service and tough competition is created
for the competitors.

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Legal factor: In legal factor it involves taxes, employment, industry laws and
regulations, immigration, commercial etc. Travelodge follow all the legal laws then
there is no government interferences in the functioning of the company. Due to
which more customer base of the service can be upgraded as well as profitability
ratio can be raised in the intance competitive world.
Legal factor: In order to survive in the market legal factor plays a vital role in it.
Premier Inn adopts legal factor so that skilled and potential workers can be retained
for longer time period. Contract act, employme4nt act etc. Are examples of legal
forces.

SWOT analysis of both organisation
SWOT analysis is conducted by the business associates (Travelodge and Primer
Inn) so that strengths, weaknesses, opportunities and threats can be
evaluated in the present market scenario. By doing so it directly or indirectly
aid the company to frame tactics respectively in order to grab some market
ratio. Travelodge SWOT analysis are discussed as follows:

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STRENGTHS
The prices for the product or services of the organization are affordable for the
customers. Like, on early bookings special discounts are given to the clients.
Business associates also run programmes for their premium customers such as
Travelodge business account card.
As the organization run their own programmes in the competitive world due to which
they are able to bit their rivals.
In UK there are 500 facilities which helps the firm to attract loyal customers in the
market place.

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WEAKNEESES
Business associates does not equip it's clients with complete range product
and services like, room services, porter services etc.
There is no entertainment facility in the company due to which it seems to
boring and plain looking.
The prices are high of the hotel and are not able to meet the expectation due to
which potential are switching to some other brands to meet their
demands.

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OPPORTUNITIES
Travelogue:
Joining hands with other reputed brands makes them more strong in the cut
throat competitive world.
Company is branded as eco- friendly and has reputable sustainability
programmes due to which firm is more likely to receive positive public image
(Tresidder, 2015).

Current trends in hospitality industry
Current trends:
Over-tourism: In today's era people are travelling from one to another in order
to enjoy their spare time and to explore the places. So firm frame tactics in
effective manner to meet the emerging the emerging demands of the
customers.
Tech- Explosion: Customers wants everything in their phone. From booking of
tickets to food and beverages offered to them. Hospitality industry are
adopting modern tools in order to make them satisfy and to gain huge profits.

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Trends evaluator
Organization by adopting this trends in the market are able to create tough
competition for other company. Also, increase the productivity and
profitability ratio in the cut throat competitive world.

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Current trend:
Internet services: In the era of 21st century internet services is helping the
Hospitality organisations by providing effective services to clients like,
visitors can easily take review and facilities of hotel before booking.
Moreover, this services comes under the current trend because in current
market scenario of hospitality sector customers cross check the viability
and facilities of organisation before finalizing the booking.
Tech explosion: In the modern world everyone is technology friendly and like
to operate everything online.

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Future trends
Direct Booking: In future, Hospitality organisations like Travelodge can
provide direct booking option to their customers as it will beneficial for the
organisation in managing income and expenditure.
Tracking facilities: It can also taken as an example of future trends that can
be grabbed by hospitality organisations like Travelodge in future as
through it they will be able in tracking the location of guests while
providing them tourism services (Yadav and Swaroop Pathak, 2016).

Trends...
Restaurant- In present scenario organisation which are
operating their business in hospitality industry are also
opening different restaurant that attract customer. It helps
them to increase their profits and number of customers.
Booking- It is the most important factor that helps
customers to book their accommodation on already basis.
These helps an organisation to increase the volume of
their customers.

CONCLUSION
From the above it can be concluded that lots of opportunities are prevailing in
the market which can provide sustainability to the hospitality firm in the
cut throat competitive world. In order to investigate external factors
business associates conduct PESTEL analysis so that strategies can be
formulated respectively. Whereas, SWOT analysis is conducted so that
strengths, weaknesses, opportunities and threats can be examined and
improvement can be done accordingly.

References
Ali, F., Amin, M. and Cobanoglu, C., 2016. An integrated model of service experience,
emotions, satisfaction, and price acceptance: an empirical analysis in the Chinese
hospitality industry. Journal of Hospitality Marketing & Management. 25(4).
pp.449-475.
Bontis, N., Janošević, S. and Dženopoljac, V., 2015. Intellectual capital in Serbia’s
hotel industry. International Journal of Contemporary Hospitality Management.
27(6). pp.1365-1384.
Claveria, O., Monte, E. and Torra, S., 2015. A new forecasting approach for the
hospitality industry. International Journal of Contemporary Hospitality
Management. 27(7). pp.1520-1538.

Thank-You