Contemporary Hospitality Industry

This report analyzes the contemporary hospitality industry, focusing on Hilton Hotels in the UK. It utilizes PESTLE and SWOT analysis to assess the external and internal factors impacting Hilton's performance. The report also examines current and potential trends in the industry, including mobile services, automation, social media presence, and artificial intelligence, and evaluates Hilton's ability to meet evolving customer needs.

Contemporary Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
PESTLE analysis for Hilton........................................................................................................1
SWOT analysis............................................................................................................................2
Current and potential trends in hospitality industry....................................................................3
Evaluation of the ability of Hilton to meet out the needs...........................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Hospitality industry occupies a huge amount and share the biggest contribution to the
world's economy. The chosen hospitality company for this report is Hilton which is a five star
hotel in UK. The quoted firm offer different variety of services to their customers at reasonable
rates and report presents PESTLE and SWOT analysis and also describe some implications of
current and potential trends in the hospitality industry.
PESTLE analysis for Hilton
PESTLE analysis is a strategic tool that helps to identify the external environment which
includes following factors.
Political Factor: Political stability is the basic requirement of the success of a hospital
industry because it directly influences the number of visitors and business travellers. IN UK,
because of terrorism attack, the number of visitors are decreases and as a result, it creates
negative impact on Hilton performance (Neukirchen, Gansser and Klumpp, 2019). Hence, it is
quite necessary to stable the political condition of the country which helps to raise the
profitability as well as production level.
Economical Factor: this factor directly affect the Hilton in adverse way such that
because of inflation rates, the customers' buying power affected and on the other side, at the
times of Olympic times in UK many hotels are booked and when the games are over the situation
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Illustration 1: PESTLE Analysis
(Source: PESTLE Analysis, 2018)

is completely different. On the other hand at the time of financial crisis in UK, the market share
of hotel was went down by 20 to 40 percent. Moreover, the GBP exchange rates are also
impacted upon performance of the Hilton.
Social Factor: This is another factor that create negative impact upon the business such
that recently the customers' preference is also shifted towards travelling and as a result, the sales
went down by 30 percent (Sachs and et.al., 2018). In order to keep meet out the demand of their
customers, it is quite essential for Hilton to produce those services which are help to increases
the sales. In addition to this, the shard belief and the attitudes of the population also plays an
effective role in how the market at Hilton will easily understand the customers from the market.
Technological Factor: It plays another effective role and provide direct impact upon
business. For this reason, Hilton has also set the global benchmark for better customers
experience which has a result in strong customers' loyalty and many latest operations in their
operations. Apart from this, hotel also allow automatic check-in and check- out system for their
customers. Therefore, it is quite necessary for the firm to cope up with all new and advance
technologies so that it will help to increase its sales.
Legal Factor: The firm has to cope up with all the laws and regulations such that
employment law, discrimination law etc. for this reason, company have to invest some time as
well as money in order to train their staff effectively (Schyns, 2016). As legal factor directly
creates impact upon company's financial performance therefore, it is quite necessary to follow all
the laws such that Anti- trust law, health and safety law etc.
Environmental Factor: Firm has to take some initiatives in order to reduce the
environmental impact and sustainability and some natural calamity and weather condition also
affect the business in negative way.
SWOT analysis
Strength Weaknesses
 Hilton has a strong brand image in
market and property portfolio.
 Firm also uses new and advance
technique in order to improve the
customers experience and also have
 The firm has limited market share and
many operations are also affected
globally because of different
government policies and parameters.
 The firm also have lack of flexibility
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high employee retention (Gupta, 2015).
 Hilton operates its unit at global level
such that it have more than 500 hotels
in 78 countries.
because of its large portfolio of brands.
Opportunities Threats
 The firm also expand its business at
international market.
 If Hilton focus on research and
development then it has many
opportunities to invest into other
country.
 Hilton also faces threat of terrorism and
political instability.
 Faces high competition in market.
 It also has many ethics related issues
(Neukirchen, Gansser and Klumpp,
2019).
Current and potential trends in hospitality industry
Hospitality industry always uses new and advance technique in order to meet out the
expectation of their customers. Such that the list of recent change in hospitality industry is as
mentioned below:
Mobile services: It is the most affecting recent trend that affect the business in positive
way. Such that many hotels are uses mobile or smart phone as a self check- in and out. Hilton
also provide key to their customers through which customers can easily lock their room and also
provide notification if anyone enter in their room (Recent trend adopted by hospitality industry,
2018).
Automation with cloud services: This advance technology also improve the operations
in order to attract some loyal guest and also encourage the visitors to visit their property. This
service, helps a hospitality industry to increases their bookings, reduce the workload and
compliance with laws. Therefore, this cloud service also boost the level of security.
Social and online presence: Almost hospitality industry uses social services in order to
keep their customers know about the latest updates and millions of people are uses social media
and therefore, it is consider one of the most effective strategy to connect many peoples. For
example, Hilton also uses social media and website to let their people know about new offers and
services (Schuckert, Liu and Law, 2015).
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Artificial Intelligence: Customers want to interact directly with the hospitality industry
by using variety of digital channels so that they receive rapid response. Therefore, many firms in
hospitality industry also uses Artificial intelligence and chatbots which help to understand the
simple questions and provide answers instant and as a result, it also improves the experience for
their customers.
Evaluation of the ability of Hilton to meet out the needs
Hilton also uses many advance technique in order to develop products and services to
meet the current trends such that
 Hilton introduce using mobile for keyless entry such that a guest can uses their phones to
swipe across that includes mobile app in order to unlock the room. Thus, the technology
also makes sure that the room access cannot be transferred to another device. Even to
increase the revenue, the company also uses social media and website to let people or
their customers know about new services offered by Hilton (Radojevic, Stanisic and
Stanic, 2015).
 Recently, Hilton also uses Artificial Intelligence in order to provide better customers
experience. This advance technology system advise the customers or guest about local
attraction points and some interesting sites.
 Internet on thing is another application which is used by Hilton in order to let many
peoples know about the different services and products which are offered by Hilton. The
firm have its own website and by using IoT (Internet of Things) device that involves
internet connectivity and also collect data and communicate with their customers. Thus,
this technology can be adopted by Hilton in order to improve the energy efficiency and
provide correct data information to their customers (Leung, Xue and Bai, 2015).
 Hilton also provide best services to their customers and also uses automated cloud
services in order to improve the operations which helps to attract some loyal guest. Such
that this technique helps to increase the bookings and reduces the workload.
CONCLUSION
By summing up above report it has been concluded that Hilton is one of the top brand in
UK and the internal and external factor also affect the company's brand image in market. Further
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report also concluded that there are many new trends which are adopted by the hospitality
industry and in the same way Hilton also uses many advance technology in order to meet out the
demands of their customers.
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REFERENCES
Books and Journals
Gupta, M., 2015. Strategy Formulation for Performance Improvement of Indian Corrugated
Industry: An Application of SWOT Analysis and QSPM Matrix. Journal of Applied
Packaging Research.7(3). p.3.
Leung, X. Y., Xue, L. and Bai, B., 2015. Internet marketing research in hospitality and tourism: a
review and journal preferences. International Journal of Contemporary Hospitality
Management.27(7). pp.1556-1572.
Neukirchen, T., Gansser, O. and Klumpp, M., 2019. Marketing Concepts and Instruments in
Supply Chain Management. In Operations, Logistics and Supply Chain Management (pp.
97-129). Springer, Cham.
Radojevic, T., Stanisic, N. and Stanic, N., 2015. Ensuring positive feedback: Factors that
influence customer satisfaction in the contemporary hospitality industry. Tourism
Management.51. pp.13-21.
Sachs, T. and et.al., 2018. Microgrid Design from a Business and Information Systems
Engineering Perspective. Business & Information Systems Engineering, pp.1-16.
Schuckert, M., Liu, X. and Law, R., 2015. Hospitality and tourism online reviews: Recent trends
and future directions. Journal of Travel & Tourism Marketing.32(5). pp.608-621.
Schyns, P.F.M., 2016. The technological future of the wealth management industry for portfolio
management investment services (Bachelor's thesis, University of Twente).
Online
Recent trend adopted by hospitality industry. 2018. [Online]. Available
through:<https://blog.trilyo.com/the-top-10-emerging-trends-in-hospitality-industry-part-
2>.
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