Hilton Hotels PESTLE and SWOT Analysis

The provided document is an in-depth analysis of Hilton Hotels' PESTLE and SWOT analysis, highlighting the factors contributing to the organization's success and potential market downfalls. The report includes a trend analysis identifying current and future trends affecting the hospitality industry. It also evaluates Hilton Hotels' ability to adapt its products and services to meet these trends.

CONTEMPORARY
HOSPITALITY
INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................1
BUSINESS PLANNING REPORT.................................................................................................1
P1: Impacts and effects of PESTLE analysis on the growth of organizations.......................1
P2: SWOT analysis of Hilton and how it impacts the decision-making process...................2
MARKET RESEARCH REPORT..................................................................................................4
P3: Trend analysis identifying the current and political trends in the hospitality industry as a
whole with appraising their implications ..............................................................................4
P4: Evaluation of Hilton's ability to develop products and services to meet current trends. .4
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
Hospitality industry plays vital role in serving and providing leisure and accommodation
to people worldwide. Each and every individual working in hospitality has to go through tough
management and training. This has ensured the organization's smooth functioning. Training has
made employees efficient which has developed good image of company in market. The below
report showcases the PESTLE and SWOT analysis of Hilton and factors leading to the
organization's growth and market downfalls. Along with it, there is trend analysis identifying the
current and potential trends affecting the hospitality industry as a whole. An evaluation of the
ability of Hilton hotels to develop its products and services to meet its current trends.
BUSINESS PLANNING REPORT
P1: Impacts and effects of PESTLE analysis on the growth of organizations
Hospitality industry provides great services not only to its guests but to travellers
worldwide. The industry and its rising demand has made organizations such as Hilton to lead
towards growth and making itself stand apart in its services. The below PESTLE analysis
discusses the factors leading to the development of Hotels worldwide:
 Political Factors: Political factors acts a vital factors affecting the hospitality industry.
Its main aim is to provide such services which attracts tourists from all over the world.
The industry holds a backbone of the government and its support helps the industry to
make its stand in a competitive market.(Kandampully, Zhang, and Bilgihan, 2015.) Great
amount of taxes are being charged by the government luxury and star category of hotels.
Realizing increase in taxes has helped in development of Hilton. Steps taken by the
government effect the hotel industry worldwide as changes have to be made and
implemented accordingly.
 Economic Factors: Factors such as changes in taxation policies, inflation etc. leaves a
great impact on the hospitality industry. Hilton hotels have to suffer a lot when these
factors like taxation rates, inflation rates takes place. However, it tries to capitalize the
travellers as they bring them good money with a desire to get world-class services from
it. Realizing economic changes has supported Hilton to grow.
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 Social Factors: Factors such as the expectation of guests from the services provided,
their needs and demands, varieties of services provided by the Hilton that differs from a
guests' expectations could prove as factors leading to its development with the industry.
Customers have changing demands in this industry, they prefer to pay high in for getting
qualitative services and products. According to the changes, this hotel tries to satisfy all
their needs with the main aim of being in a competition.
 Technological Factors: Guests around the world expects the world-class technology
from the hotel as they are giving them a lot of money. Realizing technological changes
has supported Hilton to grow. Technological changes such as the arrival of new
management systems, artificial intelligence, etc. These factors make the Hilton hotels
look beyond what they are offering. On the other hand, investment in new and advanced
technology can increase their overall costs which is not good for them. So it can be said
that this factor has both positive and negative impacts.
 Environmental Factors: Environmental factors affects the Hilton hotels in many ways.
Factors such as weather changes, floods, harsh temperatures etc. make the guests to
choose between different cities and places to stay and make use of services. This has
assisted Hilton in growing. It is also focusing on reducing wastes generated by their
activities and want to become sustainable business.
 Legal Factors: Legal environment plays important role in growth of the Hospitality
industry. Safety of health laws, political differences between countries etc., affects the
Hilton's development across the world. People in general are only attracted towards
leisure based hotels which provide secure services and legal. This has supported hotel
Hilton in growing and accepting changes(Jones, Hillier, and Comfort, 2016)
The above PESTLE analysis evaluates how Hilton and its development is being affected
by political, environment, economical, social, technological and legal factors.
P2: SWOT analysis of Hilton and how it impacts the decision-making process
SWOT analysis of Hotel Hilton is been done below. Also, how these factors influence its
decision-making process:
 Strengths: The organization serves more than 140 million guests and is having its market
in 100 countries worldwide. Its large scope of its business operations, the company
benefits from its economy in the scale to a considerable extent, creates the potential for
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its further growth. Also, the organization offers the finest customers' loyalty schemes
which in turn helps it in gaining more consumers. Benefits such as discounted prices,
digital check-ins, late check outs, and free internet access make its customer base strong
and helps in their decision-making to choose Hilton hotels instead of others. All its
strength make its more able to take and make an effective decisions after analysing all
factors that have positive and negative impacts (Wang, 2016).
 Weaknesses: Having a large amount of (around 80 percent) revenue generating market in
United States and less in other countries makes it overdependent on United states only.
This makes difficult for Hilton Hotels as the competition intensifies to maintain its place
as one of the best organizations. Also, the organization is having high level of debts and a
very less global market share despite the large portfolio of brands, Its lack of flexibility
because of its large size is another weakness of Hilton hotels. The lack of global market
share increase the competition level. According to this weakness it requires to make its
strategies like to use compensative analysis and more focus on increasing customers
experience and take all employees in their decision-making process for making this
effective.
 Opportunities: One of the good opportunity that Hilton hotels have is its further
international market expansion. Or the formation of strategic alliances which makes it
growth further among the international competitors. The brand focuses more on research
and development which can evaluate the factors that needs to be taken into consideration
for its market growth. Also, from establishing its presence in mid level budget hotel
sector Hilton is having different opportunities to grow its market worldwide.
 Threats: Threats of political instability and terrorism creates a disadvantage when it
comes to the further development and growth. Along with it, the adverse change in
macroeconomic climate, its ethics related issues and loss of key personnels are other
threats that the organization faces.(Huang, Li, et.al. )
The above stated SWOT factors determines the factors leading to Hilton's overall growth and
development and how it is being affected from all these factors globally.
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MARKET RESEARCH REPORT
P3: Trend analysis identifying the current and political trends in the hospitality industry as a
whole with appraising their implications
Trends all over the world impact the hospitality industry to its core. These trends change
the way it is being operated, its development, and a variety of other things that can leave the
business suffering. If these trends are identified and observed carefully they can help all of this
organization to grow fast and better than their competitors. (Ali, Amin and Cobanoglu, 2016.)
Below mentioned are the certain trends that impacts the hospitality industry with the appraising
of their implications.
 Catering to millennials – Millennials have been identified as one of the major travellers
worldwide these days, they tend to travel in order to gain more knowledge, earn degrees
etc. These factors have created the hospitality industry to look for ways to make
technological and social changes as per their requirements. Hilton should consider
applying varying changes as per the requirements of millennials, this will help them to
gain more customers and would lead to development as well. For example Millennials are
the people who like to explore new places and restaurants.
 Guest's emphasizing on health and well-being: People all around the world are being
more attentive towards health and well-being, this is where hospitality industry have seen
new growth requirements (Kim and et.al., 2018). Hotels worldwide have considered
opening gymnasiums, yoga spaces, etc. also they tend to provide the best food options
which helps their establishment standards grow and increases word of mouth. For
example Hotel Hilton can engage in giving healthy spa to there clients in order to attract
them.
These are few trends that are majorly affecting the Hospitality industry and can be used
as an advantage to growth and development of Hilton hotels.
P4: Evaluation of Hilton's ability to develop products and services to meet current trends
Hilton hotels are having more than 5,500 properties worldwide. Being a large
organization the hotel chain holds a big responsibility of developing its products and services to
meet current consumer trends. It is important for any such organization to be responsible about
the changes that impact the consumer market and how the current trends can be met accordingly.
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From the evaluation of current trends one can determine how this can be done effectively, which
further will ensure its market capitalization and growth.
Hilton hotels have a good consumer base with its large amount of properties worldwide.
This ensures that any made changes would ensure its reach towards its overall customers or
guests. Hilton hotel regularly meet the current trends by the identification of the outside market,
how its consumers are behaving with its provided services. What is making them stay, and what
is making them choosing other brands besides them. It also evaluates the services provided by
them are consumer favourable or not, if not then necessary changes are made to make them
favourable.
CONCLUSION
The above report explores he PESTLE and SWOT analysis of Hilton, and factors leading
to the organization's growth and market downfalls. Along with it, there's a given trend analysis
identifying the current and potential trends affecting the hospitality industry as a whole. An
evaluation of the ability of Hilton hotels to develop its products and services to meet its current
trends. The report also mentions several factors that explains how Hilton has managed to stay
one of the best Hospitality organization worldwide.
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REFERENCES
Books and Journal
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.
Huang, J. and et.al., 2016. The impact of CEO servant leadership on firm performance in the
hospitality industry. International Journal of Contemporary Hospitality
Management.28(5).pp.945-968.
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some
personal reflections on corporate challenges and research agendas. International Journal
of Contemporary Hospitality Management.28(1).pp.36-67.
Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
Contemporary Hospitality Management.27(3).pp.379-414.
Kim, H. and et.al., 2018. The effects of corporate social responsibility (CSR) on employee well-
being in the hospitality industry. International Journal of Contemporary Hospitality
Management. 30(3). pp.1584-1600.
Wang, C.J., 2016. Does leader-member exchange enhance performance in the hospitality
industry? The mediating roles of task motivation and creativity. International Journal of
Contemporary Hospitality Management. 28(5).pp.969-987.
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