Contemporary Hospitality Industry

This presentation provides an overview of the contemporary hospitality industry, including PESTLE analysis, SWOT analysis, and current trends. It focuses on the Intercontinental hotels as a case study and discusses the impact of political, economic, social, technological, environmental, and legal factors on the industry. The presentation also highlights the strengths, weaknesses, opportunities, and threats of Intercontinental and travel-lodge, as well as the future trends in the hospitality industry.

Contemporary
Hospitality Industry

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

INTRODUCTION
Hospitality industry is essential for an economy in order to accommodate the
guests and travellers of other countries for ensuring their good experience
and satisfaction. The hospitality industry consist of different businesses such
as pubs, hotels, restaurants etc. which are formed for providing different
services and facilities to the customers. Hospitality industry also works with
travel industry in order to provide combined services and facilities. Taken
firm for this assessment is the Intercontinental hotels which is a hotel chain
based in Denham, UK.

PESTLE Analysis
PESTLE is a strategic planning method through which an
organisation predict the market environment before
entering in other country. This task cover PESTLE
analysis of travel-lodge

Political factor
Intercontinental hotel- It is the other successful organisation that is operating
their business in hospitality industry. In context of UK there are favourable
market condition for industry which determines that they develop flexible
policy for tourist.
Travel lodge- The management of travel-lodge created an effective policy
statement which emerge to maintain the privacy of their customers. The
political factor include all the rules, regulations,policy that are formulated by
ruling government of country

Economical
Intercontinental hotel- After Brexit the economic condition of UK are not
stable therefore it is essential for intercontinental to formulate effective
strategy in order to sustain themselves in tough market condition. Example-
Different offers are developed by management of Intercontinental to gain
loyalty of customers.
Travel lodge- Under this factor all the policies that are related with interest
and inflation rate are included under economic condition of country. For
organisational growth it work as strength because they origin their business in
developed country like UK which has stable economy.

Social
Intercontinental- For both organisation intercontinental and travel-lodge they
both provide hospitality services to customers. So it is essential for them to
organise different CSR activities due to which they generate trust among
customers and loyalty towards their hotel.
Travel lodge- It is considered as socially accepted organisation as they
provide effective services to their customers. Along with management of
company is aware that they their services is accepted only when they
perform their activity as per culture of organisation.

Technological
Intercontinental- Group of Intercontinental hotels adopts innovation to
perform their operations that helps them to complete their services quickly.
Along with these it also helps them to bring innovation for their products.
Travel lodge- This factor represent or pertain the technology that bring
innovation in the performance of company. It helps the Travel-lodge as
through this they analysis different factors which define if company
implement this technology then it is favourable for the organisation or not

Environmental
Intercontinental- In past few years all global world is aware about
environmental safety which determines that environment plays crucial role for
an organisation. It directly impacts on operations and activities like NGO,
environment regulations on hospitality business.
Travel lodge- The environment factors all surroundings that impact on
business and its activities. This aspect is essential and crucial for certain
business which also includes travel-lodge because travellers wants to visit any
other place if the environment of that country is suitable for them.

Legal
Intercontinental factor- Each country formulate domestic law to save the
interest of local industries along with this it also helps them to operate
business ethically in their country. Example- Intercontinental group
changes their policy as per the legal policy, rules and legislation that are
formulated by legal country of organisation.
Travel lodge- This factor is important for organisation because it is
implemented in inside or outside the organisation. Each country has certain
laws that impact on the performance of organisation.

SWOT analysis
Strength of travel lodge and intercontinental
 Travel-lodge has strength that relate with price factor as they offer affordable
package to all types of clients.
 Above strength factor impacts positively on decision of travel-lodge as they
increases productivity of organisation by implementing effective strategy.
 Management recruited highly skilled work-force that satisfy the demand of
customers through achieving organisation goal parallelly.
 Automation in all activities of organisation helps them to complete their task
quickly.

Continue....
Weakness of Intercontinental and travel-lodge
 Due to large structure it is complex for travel-lodge to provide all types of
products and services to its customers which determine they has rigid
structure to perform their activities.
 To overcome from weakness travel-lodge develops decision that reduce
negatively impact on performance of organisation by performing activities
in planned manner.
 Intercontinental group is expanding their business for this they need to
invest huge amount of capital for their business that is difficult to arrange.
 Another fact that assist on its weakness is that they earn low profits from the
industry average.

Continue....
Weakness of Intercontinental and travel-lodge
Due to large structure it is complex for travel-lodge to provide all types of
products and services to its customers which determine they has rigid
structure to perform their activities.
To overcome from weakness travel-lodge develops decision that reduce
negatively impact on performance of organisation by performing activities
in planned manner.
Intercontinental group is expanding their business for this they need to invest
huge amount of capital for their business that is difficult to arrange.
Another fact that assist on its weakness is that they earn low profits from the

Continue....
Opportunities of Intercontinental and travel-lodge
 Implementation of new technology helps them to bring innovation in their
product.
 Research team of intercontinental predicts trends and behaviour of
consumer effectively.
 Travel-lodge has large number of loyal customers that always purchase their
services so management take decisions to expand their infrastructure for
providing accommodation for large number of customers.

Continue....
Threats of Intercontinental and travel-lodge
 Competition in hospitality industry is increasing day by day. It results that it
decreases their market area.
 Demand of inferior quality goods is increasing day by day due to which it is
complex to arrange resources in market.
 Travel-lodge does not expanded in international market which reduce their
global presence. So for this company execute decision which increase their
performance at multi-national market.

Impacts on the demand and supply of intercontinental
and travel-lodge
In present market condition hospitality industry is growing day by day
which impacts on the market condition of organisation. Like the country
which is high inflation rate and good per capita income of individual then it
create positive work conditions for hospitality organisations.
Both of the organisation are expanding their business day by day which
determines they need to invest more amount of capital in order to operate
their business successfully. Along with these demand of organisation is
impacted when competition in market is reach at peak level.

Current trends in hospitality industry
Technology- In present scenario more number of customers are self-
sufficient and friendly with technology. So travel-lodge implement high
technology through which they attract more customers. Example- To
provide high speed Wi-Fi services inside all whole infrastructure of
organisation.
International visitor- In present scenario many customers want to visit
other countries so number of international visitor is increased. For this
travel-lodge found and deliver their services in different languages to
customers. Example- many hotels hire those employees which are able to
communicate in more than one language.

FUTURE TREND
Food and restaurant- Most of the hotels are now focused to establish their
restaurant also. It helps them in two methods like guest can order their
food from the rooms while outside customers also increases their
customers.
Technological friendly- Today most of the guest are self sufficient in
context of technology. It determines that they are comfortable to use the
application that are provided by organisation. Example- To organise or
conduct effective business meetings or conference technology is
essential tool for travel-lodge for satisfying need of customer.

Trend evaluator
This is very popular trend in present scenario most of the today guest are
aware about their health which determines health is essential factor in
present hospitality industry. Like in all hotels of travel-lodge different
fitness tools like gym, spa and pool are present in the organisation.
For analysing that trends are successfully operating in organisation and helps
them for achieving the desired goal of the organisation. They evaluate their
actual performance or outcomes with the expected performance of the
organisation.

CONCLUSION
From the above report it is concluded that there are different types of business
are benefited with the functions of hospitality organisation. To complete the
activities of hospitality company, marketing, housekeeping, administration
and other functional and operational department input efforts to achieve the
goal of the organisation. In present scenario hospitality industry is working as
backbone of country and contribute to develop the economic condition of
local, national as well as inter-national by bringing foreign exchange in the
country. At last some necessary skill which are communication and team work
is explained that are necessary to perform a role in organisation.

References
Cheong, T., Song, S.H. and Hu, C., 2016. Strategic alliance
with competitors in the electric vehicle market: tesla
motor’s case. Mathematical Problems in Engineering,
2016.'
Chen, Y., Eshleman, J.D. and Soileau, J.S., 2016. Business
strategy and auditor reporting. Auditing: A Journal of
Practice & Theory. 36(2). pp.63-86.

Thank-You