Contemporary Hospitality Industry: External Factors, SWOT Analysis, Trends, and Impacts

This presentation explores the contemporary hospitality industry, focusing on the external factors that affect company development. It includes an assessment of external factors, a SWOT analysis, an evaluation of current and potential trends, and an analysis of how external factors impact the industry. The presentation also discusses the ability of companies to develop products that meet current trends. The subject is the hospitality industry, and the document type is a presentation.

Contemporary
Hospitality Industry
Task 3 and Task 4

Table of content
• Introduction
• Assessing external factors which affect development of company that operate in hospitality industry
• Undertaking SWOT Analysis for hospitality
• Evaluation of impacts of external factors in development of companies in hospitality sector
• Appraisal of implications of current and potential trends in hospitality industry
• Evaluation of ability of company to develop commodities and products which will meet current trends
• Evaluation of the ways external factors impact on trends together with development in hospitality sector
• Conclusion
• References

Introduction
• Contemporary hospitality industry is part of wider network
that comprises of lodging services, travel related products,
food and beverages and so on in conjunction to various
other industries including entertainment, food and so on.
For the presentation, selected business is North Hill Hotel
that is planning expansion in Asia along with looking for
new investors to support the project.

Assessing external factors which affect development
of company that operate in hospitality industry
• There are certain number of external factors that impacts widely on operations of hospitality
company. External or macro environmental factors are termed as elements that are
uncontrollable in nature and affect businesses which depends most on overall health of an
economy.

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• Political: Political stability of a nation is significant factor as the hospitality industry
needs to cope with pertaining political situations wherein, they operate.

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• Economic: Prior expanding business in some country, it is essential to check economic
situation of that nation. Economic factors which impact business operations are inflation
rate, employment rate, business cycle and many more.

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• Social: In hospitality industry, social factors including population growth rate, consumer
lifestyle, gender ratio, customer demographics and many more affects business
operations.

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• Technological: In hospitality industry of Asia, there is ongoing improvement in
technology in present era. In order to expand in Asian market, North Hill Hotel cannot
afford to ignore technological factor.

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• Legal: Legislation and regulation of a nation affect operations of hospitality business. In
Asia, there are certain legislation such as employee law, customer law and many more
that should be adhered by North Hill Hotel in order to restrict intervention of political
parties in operations.

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• Environmental: In Asia, people or residents or vacationers are becoming more
sophisticated for protecting ecology or environment. In the country, hospitality
companies are becoming centre or point of criticism for environment pollution.

Undertaking SWOT Analysis for hospitality
• SWOT Analysis is termed to strategic planning technique that is ideas by entity to look
towards strengths, weaknesses, opportunities and threats. In North Hill Hotel, use of
SWOT Analysis assist business decision making for maximising strengths, working on
weaknesses, capitalising on opportunities and mitigating threats.

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• SWOT analysis of North Hill Hotel is underneath:
•Strength: It refers to what business do best within gamut of activities or operations
to achieve success in competition, strengths of North Hill Hotel are below:
• Focus on innovation
• Power of positivity

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•Weaknesses: It is termed to areas wherein company require improvement. Some
weaknesses of North Hill Hotel are underneath:
• Overemphasise on standardisation
• Limited penetration

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•Opportunities: It is called as avenues in environment which surrounds company on
which it capitalises for enhancing returns. Opportunities for North Hill Hotel are below:
• Emphasis on personalisation
• Taping in new market

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Threats: These are factors which could be detrimental to development of an organisation.
For North Hill Hotel, threats are below:
 Competition
• Economic recession

Evaluation of impacts of external factors in
development of companies in hospitality sector
• External factors such as political, social, economic, technological and many more
impacts adversely on development of a hospitality company. For example, unstable
political condition in Asia can hinder working of businesses like North Hill Hotel that
impacts adversely on its revenue generation strategies.

Appraisal of implications of current and
potential trends in hospitality industry
• Trends are said to general direction into which some things are changing or veering
towards. Hospitality industry is competitive as well as organisations performing in it
requires to keep with latest trends for avoiding being left behind.

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• Current trends: Some current trends that North Hill Hotel have adopted are below:
 Tech explosion
• Enhanced focus on health and wellbeing

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•Future trends: Hospitality industry is changing and so its trends, some future trends
that North Hill Hotel have to adopt are as follows:
• Voice activated assistants
• New technology learning for employees

Evaluation of ability of company to develop
commodities and products which will meet current
trends
• Hospitality organisations are working with smart moves so to develop and deliver
products that meet trends pertaining in industry. In context to North Hill Hotel, it has
strength of focus on innovation and power of positivity.

Evaluation of the ways external factors impact on
trends together with development in hospitality
sector
• External factors are uncontrollable in nature and impacts widely on business operations.
For example, technology factor impacts operations of North Hill Hotel as the company
have to modify or change its practices so to adopt technologies such as Chatbots and so
on. Also, it costs huge on operations that reduces revenues and productivity on company.

Conclusion
• From the presentation, it is concluded that hospitality industry is wider kind of field with
service sector comprising of event planning, travel and tourism, lodging, etc. PESTEL
Analysis is a model that facilitates understanding about wider aspects of business
environment, encourage development for strategic thinking and enable forecasting of
elements impacting operations.

References
• Ann, S. and Blum, S.C., 2020. Motivating senior employees in the hospitality
industry. International Journal of Contemporary Hospitality Management.
• Kandampully, J., Zhang, T.C. and Jaakkola, E., 2018. Customer experience management
in hospitality. International Journal of Contemporary Hospitality Management.

Thank You