Contemporary Hospitality Industry (LO3 and LO4)

This presentation discusses the contemporary hospitality industry, including PESTEL and SWOT analysis, supply and demand, current trends, and more. Suitable for LO3 and LO4.

Contemporary
Hospitality Industry
(LO3 and LO4)

Table of Content
• Introduction
 Pestel analysis
 Swot analysis
 Supply/ Demand
 Current Trends
• Conclusion
• References

Introduction
Hospitality Industry can be defined as wider category of services within
a organization such as, transportation, accommodation, restaurants,
event planning, food and Beverages, theme parks etc.

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This report includes various types of business related to hospitality
industry as well as derive product and services they offer to the
customers in order to satisfy their demands (Ali and Cobanoglu,
2016). Moreover, evaluate different range of operational
departments within a chosen hospitality business in the market.
Moreover, highlight the contribution of hospitality industry in local,
national and international economy. Additionally, throw light on the
investigated range of distinguished operational roles in an hospitality
industry. Discuss various range of operational roles within hospitality
industry as well as explain skills needed to perform this roles in the
working premises. PESTEL (Political, economical, social,
technological, environmental and legal) and SWOT (Strengths,
weaknesses, opportunities and threat) analysis is studied so that
tactics can be framed according to the marketing scenario. Also,
appraise current potential trends in hospitality industry.

PESTEL Analysis
Macro environment can be defined as those external forces such as
political, economical, social, technological, environmental and legal
which affect the working of the business directly or in Premier Inn
directly in the market. This factors are not controllable and organization
can frame policies and strategies accordingly in order to survive in the
intance competition. Investigating macro factors helps the
administration to gain competitive advantages against rivalry.

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It is a essential task to be performed by the business associates so
that set objectives and customer emerging needs, demands,
preference and taste can be meet on set time frame. Here, some of
the macro factors affecting the Premier Inn growth and development
are discussed as follows:

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Political factor: Organization is greatly affected by political factor in the
market. Some of the examples of political factor are political stability,
government policy, foreign trade policy, tax policy, trade restrictions
etc. all this forces affect the business day to day operations at a large
scale.

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Economical factor: Economical factor are, interest rate, wages, laws,
governmental activities, tax rates etc. Premier Inn evaluate the
economical factor before entering into the market so that strategies
can be formulated accordingly. Organization study the economic
forces so that set standards can be achieved respectively in the
market.

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Social factor: This includes costumes, norms, traditions, society taboos,
language, religion, values etc. This macro factors affect the Premier
Inn directly as well as their functions in the market. In order to raise
the market value of the company social factor should be carried out
effectively.

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Technological factor: Advancement in the tools helps the enterprise to
grow and flourish in the international market. Premier Inn adopts
modern ways and technologies to meet the dynamic requirements of
the clients.

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Environmental factor: Macro forces such as , pH level of water,
climate, PH level of soil, temperature etc. directly affect the
functioning of the Premier Inn. In order to gain competitive
advantages against rivalry, organization need to follow environmental
factor.

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Legal factor: Consumer protection act, industry specific law, contract
act, employment act, securities act etc. are some of the examples of
legal factor. Premier Inn can achieve set standards smoothly without
government interventions by following legal forces effectively. It also,
helps to retain skilled and capable employees for longer time duration
in the market place.

SWOT analysis
SWOT (Strengths, weaknesses, opportunities and threat) analysis is
performed by the organization so that strategies can be formulated
accordingly. By doing so opportunities and threat prevailing in the
market can be investigated as well as ways can be designed to
overcome the threats. It plays a significant role in gaining
competitive advantages in the cut throat competitive world. However,
the SWOT analysis of Premier Inn are explained as follows:

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Strengths
Organization has huge market ratio across the globe.
Received many awards for their best services in the competitive
world.
The prices of the Premier Inn is cheap but serve best quality services
to it's customers.
Administration provide meeting rooms on rent to business class
people.

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Weaknesses
Limited number of hotel in few countries.
Enterprise does not focus on expansion and growth of the business in
the market place.
Huge competition prevailing in the market due to which less customer
base for the product and services.

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Opportunities
Organization can use more digital marketing activities.
Enterprise has the opportunity to increase the brand image by building
healthy relations with customers.
By providing seasonal offers more customer base can be increased.

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Threats
The biggest threat is economy recession in the market.
Due to raising terror attacks customers lack interest in tourism.

Supply Demand
As the tourism number is increasing day by day the the demand for
hotel is raising parallel. The rate of rooms is increasing as visitors
are moving from one place to another at a rapid scale. They are
looking for those hotels which are providing them complete facilities
from booking to food and beverages.

Current Trends
The current trends prevailing in the market are discussed as follows:
Trend 1: Providing every information online on their official websites
so that customers quarries can be solved on immediate basis. By
doing so Premier Inn can increase the customer base of the services
in the market place. It directly affect their decision making process in
a positive manner.

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Trend 2: In the current market scenario the current trend which is
prevailing in the market is of providing pick and drop facility.
Transportation facility helps the customers to reach out to their
destination easily and comfortably. Premier Inn provide vehicles to
move around like, for shopping etc. this directly raise goodwill in the
eyes of the customers.

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Influence of international visitors: In today's era travellers are moving across
the globe in order to explore to new destination. As the number of visitors
are increasing in number the they are influencing the visitors to be apart of
hotel. Due to which economy is increasing at a rapid scale and profit is
maximized.

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Tech explosion: Adoption of modern tools in their organization assist
the company to build more and more customers towards the
service. The increasing number of tourism across the boundaries
has raised the workforce efficiency in the administration. Due to
which set standards are meet and customers demands, preferences
are meet on time.

Conclusion
From the above it can be summarized that hospitality industry plays a
critical role in the growth and development of the economy. The
upliftment in the hospitality industry has raised the economy in terms
of revenue which is a positive sign in the cut throat competitive world.
The different types of businesses within the hospitality industry helps
customers to retain them for longer time period. Due to which huge
profit is maximized and more sales ratio increases in the market.

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Tech explosion: Adoption of modern tools in their organization assist
the company to build more and more customers towards the
service. The increasing number of tourism across the boundaries
has raised the workforce efficiency in the administration. Due to
which set standards are meet and customers demands, preferences
are meet on time.

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.
Dedeoğlu, B. B. and Demirer, H., 2015. Differences in service quality
perceptions of stakeholders in the hotel industry. International Journal of
Contemporary Hospitality Management. 27(1). pp.130-146.

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