Analysis of External Factors and Trends in Milestone Hotel

The provided report is an analysis of external factors and trends in the Milestone Hotel. It includes a PESTLE analysis to identify various external factors that affect the hotel's business operations, such as political, economic, social, technological, legal, and environmental factors. Additionally, a swot analysis is conducted to evaluate the hotel's strengths, weaknesses, opportunities, and threats. The report also explores implications of current and potential trends in the hotel industry, including home sharing and customer demand for healthy food options. Overall, this document provides a comprehensive understanding of external factors and trends affecting the Milestone Hotel.

Contemporary hospitality
industry

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
1. External factors that impact on the milestone hotel................................................................1
2. Swot analysis of the milestone hotel and its impact on decision making process..................3
3. Current and potential trends in the hospitality industry..........................................................4
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
Hospitality industry is a broad category of service sectors. It includes transportation,
Hotels etc. The report will be based on “The milestone hotel”. It is a five star hotel and it was
established in 1884.
This report will cover all external factors including political, economic, social,
technological, and environment that affect the development of hospitality industry. Report
discuses swot analysis for hospitality business and also affect the decision making process. It
will show that implications of current trends with example.
TASK
1. External factors that impact on the milestone hotel.
Economic factor : Economic factor impact on the Hotel industry when country economic
is not good. Mostly Tourists wants to stay in a luxury hotel. If country economic is too good so
tourists can also go there and pay for luxury felicities. It is helped to develop the milestone hotel.
Sometimes they also pay for extra services(Chai,2017.). If country economic is not good then
employee has no extra money to spent luxuries. That point affects to develop hotel. Low
disposable income
Technological factor : New technologies are developed day by day. According to the
technology hotel also have to change technology. That time the milestone hotel needs to provide
new technology to the customers like Wi-Fi connections. Technologies are very expensive for
hotel when hotel changed the existing technology. They use social media, email or other new
technology for promote their hotel in other country whereby tourists affects. They also provide
online booking facility whereby tourists and other customer's can advance book the hotel. It
helps to develop hotel industry.
Political factor : political factor also direct impact on hospitality industries. For example
terrorism reduce the number of visitors(Dcosta and McDonough,2015). If tourists feels secure in
a country then they will come and stay in a luxury hotel. Political factor develop Hotel industry.
Social factor : Social factors is effect the milestone hotel. Presently customers needs,
demands and trends getting change time to time for example customer wants luxury facility in
the room and customer is a health conscious therefore they do not eat junk food but hotel only
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provides junk foods(Heyler,2016). They have to change their facilities and services for
development. If hotel provides all facilities according to the customers then customer satisfaction
increased frequency of the customer.
Environmental factor : Environment factors direct affect the hotel industry for example
pollution level is very high in that country where the milestone hotel located so tourist will avoid
for coming. Natural factors also affected hotel sales for example customer likes to go where
weather climate will too good. That is why number of customer will increase and they help to
hotel development.
Legal factor : Many legislations made for hospitality industries(Molina-Azorín,2015.).
These factors improve its internal strength by legal complains. The milestone hotel follows anti
discrimination law, age law, employment law to increase employees' participation as they are
equally treated by hotel management under equality law as well. It also helps to develop
customers' loyalty thus, developing the industry.
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Illustration 1: Pestle Analysis
Source: (Pestle Analysis, 2018)

2. Swot analysis of the milestone hotel and its impact on decision making process.
Strength
 It is located in attractive location.
 It provides customer satisfaction at high
level.
 It provides luxury facilities.
 It provides website for online booking
and feedback.
Weakness
 High cost of the hotel.
 Food delivery services not available.
 Lack of awareness
 food quality also not good
Opportunities
 Improve food quality according to the
customer.
 They don't provide training so its
necessary for employees.
 They can give reliable offers to the
customer.
 Promote the hotel through websites and
other way for tourism.
Threats
 Legal factors affect the hotel industry.
 Other luxury hotel make Better
Strategic plan.
There are all strength, weakness, opportunities and treats are given and they affect the
management decision. The milestone hotel weakness is that they provide bad food quality and
also charge high cost for the services and whereby medium class customer does not afford
them(Nguyen,2016). For customer satisfaction and increase number of customers, hotel change
some rules and decision like they can provide some discount offers to the customer.
The milestone hotel does not provide training facility but New technologies are upgrade
time to time therefore its necessary for the hotel they should give knowledge about the new
software. Management decision and rules have to change.
This hotel not provided home services rather than other luxuries' hotel. For customer
satisfaction hotel management decision impacted. Presently customers wants home delivery
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services with the best quality therefore management can change their rules and provide food
through home delivery and also can take care about the food quality(Phadermrod, Crowder and
Wills, 2019).
In a competitive environment hotel affects when new entrants entered with the new
technologies and strategies. That is why sometimes hotel management can do some changes in
their strategies. This is also affected the management decision.
3. Current and potential trends in the hospitality industry.
Hospitality industry has been developing and growing very rapidly and with the rapid
change in business environment, The Milestone Hotel can observe and implement the current
trend and development and develop products and services accordingly(Sarooghi, Libaers, and
Burkemper, 2015.). There are many potential trends present in hospitality industry:
Innovation in technology
Current trend in technological aspect is growing very fast and hotels adopting them to
attract consumers and to offer them best services. Many hotels offer check-ins via mobile and
digital concierge services to their guests. Online booking and make payment is also trending,
with that many hotels use their websites for resolving their guest issues or concerns as well.
Increase emphasis on health and well being
Consumers are become more conscious about their health and attracted to organic food
and change their behaviour to eating healthy. With the current trend many hotels equipped
fitness centres in their hotel, providing healthy foods, yoga spaces, vitamin-infused shower
facility, in-room exercise equipments.
Home sharing
The current trend of home sharing reshape hospitality industry forever. Many hotels like
Hyatt starting to invest in home sharing organisations to offer more option to their guest by being
as a team together(Sandrin, 2016.). Consumers also demanding home sharing as it is in the trend
and many hotels enter in home sharing sector.
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The Milestone Hotel is a five star successful hotel in UK and they have adopted most of
the changes and trends according to their ability to stay on top. The Milestone Hotel providing
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services to their guests to book rooms online through various online travel agency websites or
official resite of milestone hotel. They are financially very capable to innovate and implement
various technologies in their hotel. They are not providing and adopting home sharing trend in
their organisation as their business ethics and standard not allow them to develop this trend. They
also have a common hall as gym and fitness centre with all the equipments for their guests, with
that they have separate section for healthy food in their menu(Chai,2017). The all products and
services are developed by The Milestone Hotel to meet consumer demand and preferences that is
depends on current trend.
CONCLUSION
From the above project report it has been included that external factors affects the
development of The milestone hotel. Report also showed that swot analysis of the milestone
hotel and its impacted on decision making process. Report emphasised that implications of
current and potential trends in the milestone hotel and also showed that impact of external
factors.
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REFERENCES
Books and Journals
Chai, H.F., 2017. Internal and external analysis under the extraction of non-capital
function. Commercial Economic Research. 4. pp.215-217.
Dcosta, A. and McDonough, M., 2015. Components of a PESTLE Analysis.
Heyler, S.G. and et.al., 2016. A qualitative study investigating the ethical decision making
process: A proposed model. The Leadership Quarterly. 27(5). pp.788-801.
Molina-Azorín and et.al., 2015. The effects of quality and environmental management on
competitive advantage: A mixed methods study in the hotel industry. Tourism
Management. 50. pp.41-54.
Nguyen, L.H.L., 2016. Improving Competitiveness in Service through Customer Satisfaction in
ABC Company.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management. 44. pp.194-203.
Sandrin, E., 2016. An Empirical Study of the External Environmental Factors Influencing the
Degree of Product Customization. International Journal of Industrial Engineering and
Management. 7(4). pp.135-142.
Sarooghi, H., Libaers, D. and Burkemper, A., 2015. Examining the relationship between
creativity and innovation: A meta-analysis of organizational, cultural, and environmental
factors. Journal of business venturing. 30(5). pp.714-731.
Online
Pestle Analysis. 2018. [ONLINE] Available through: <https://processpolicy.com/pestle-
analysis.htm>
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