Hilton's Trends and Challenges in Hospitality

This assignment delves into the current trends and challenges faced by the hospitality industry, focusing specifically on Hilton hotels. It requires an analysis of PESTLE and SWOT factors influencing Hilton's operations, along with an evaluation of their product and service development strategies in response to market trends. The goal is to demonstrate a comprehensive understanding of Hilton's position within the dynamic hospitality landscape.

CONTEMPORARY
HOSPITALITY TRENDS
Student name: Claudia
Nicoleta Negrea

Table of Contents
INTRODUCTION...........................................................................................................................1
P1: PESTLE analysis showcasing the affect and development of organisations that operates
within the hospitality industry.....................................................................................................1
P2: The SWOT analysis of Hilton Hotels and how it affects the decision making process.......2
P3: Trend analysis with the identification of current and political trends of Hilton Hotels with
appraising their implications ......................................................................................................3
P4: Hilton's evaluation of developing its products and services to meet current trends.............4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The below report explores the importance of hospitality industry worldwide. How the
industry has managed to stand as one of the finest and leading industries in the world and factors
leading to its growth and development. Along with it, it contains a trend analysis which identifies
the current and potential trends that impacts the entire hospitality industry and its growth using
the example of Hilton Hotels.
P1: PESTLE analysis showcasing the affect and development of organisations that operates
within the hospitality industry
Hospitality industry is growing with its increasing demand worldwide. With more people
travelling from one place to another this industry plays a major role that attracts tourists from
worldwide. The below stated PESTLE analysis discusses how Hilton hotels have developed
themselves worldwide.
 Political Factors: Political factors plays both advantage and disadvantage to Hilton
hotels. Hospitality industry being one of the core industries that provides tourism to the
country. The governments act as a backbone of it. The industry enjoys the benefits when
there are very less restriction get levied by the government but it has to suffer when
government implies strict implications such as strong taxes, country policies etc. (Lopes,
2016.)
 These are few factors from which Hilton hotels have to suffer.
 Economic Factors: These factors creates the business to suffer more than its external
market or internal effects. Business is usually affected by heavy taxation policies,
inflation etc. The inflation causes profits downfall or sometimes it can help in gaining
them too, whereas heavy taxes can make the organisational business to suffer with very
few gains.
 Social Factors: Social factors such as the variety of expectations from the guests from
Hilton hotels. In case if they are not fulfilled, then they will shift to another brand which
will make the brands consumers leave and the images to suffer. (Menicucci, 2018)
 Technological Factors: Technological factors such as the updated technology, (Afsar,
Shahjehan, and Shah, 2018)

 systems with better security, artificial intelligence etc. makes the Hilton hotels to adopt
new systems every time when there is something new in the market.
 Environmental Factors: Factors such as harsh weather, change in weather, natural
disasters etc. are the environment factors that affect hospitality as well as the Hilton
hotels as well. These factors can make the guests choose between countries, different
regions etc. They overall makes the environment of Hilton hotels suffer if more than one
property is situated in the same place.
 Legal Factors: Strict laws and regulations implemented by any country or personnel are
the strong legal factors that Hilton Hotel have to suffer. Political differences between the
countries, health and safety laws are few of the legal factors that Hilton Hotels have to
suffer.
The analysis explains the PESTLE factors that affects the operations of Hilton Hotels worldwide.
P2: The SWOT analysis of Hilton Hotels and how it affects the decision making process
The below stated SWOT analysis describes the Strengths, Weaknesses, Opportunities and
Threats of Hilton Hotels worldwide.
 Strengths: Hilton Hotels serves more than 140 million guests worldwide with its hotels
in 100 countries. Its market base and strong business is one factor that makes Hilton
Hotels famous worldwide. Also, it plays as major strengths of the organisation.
 Weaknesses: Hilton's big market lies in US which is around 80 percent of it. This market
makes the company to suffer for its only targeting customers are in the US, whereas in
other countries Hilton have very less of its own market, which is around 20 percent.
 Opportunities: The organisation is considering expanding itself further internationally.
Which is a good opportunity for it grow its business in the markets where it is still not
having its reach.
 Threats: Various threats including the brand's market downfall due to the recent trade
war between China and US, have proved as a threat where the organisation has to suffer
from heavy taxes and a variety of strict legal implications.

This SWOT analysis explains various Strengths, Weaknesses, Threats and Opportunities of
Hilton Hotels that effects its business and market worldwide.
P3: Trend analysis with the identification of current and political trends of Hilton Hotels with
appraising their implications
Various trends bring changes within the hospitality industry and creates different internal
and external growths and downfalls. These trends needs to identified and adopted properly to
ensure smooth functioning and staying up to date with the market. Today, there are tonnes of
new trends that an organisation needs to identify to stay updated, few of them come and go and a
some of them stays for a while. Any organisation needs to identify the trends which are creating
a lasting impact and that is where one have to make changes as well. Below listed are few trends
that recently hospitality industry have seen and Hilton has adopted:
1) Influx of international visitors: People from worldwide are travelling these days, these
people belong to different cultures, traditions and nationalities. They speak different
languages, share a variety of views and live in different environmental conditions. In this
regard, Hilton have chosen to recruit employees with diverse backgrounds. This helps the
hotels to gain more employees which speak different languages and later would lead to
organisational growth. (Yam, Raybould and Gordon, 2018.)
2) Sustainability rules: Sustainability has started creating an impact worldwide as people
from all over the world are being more aware of how waste can be managed effectively
and implementing rules and regulations to make sure environment concern should be
there topmost priority. (Mejia and Torres, 2018) Hilton hotels have taken an initiative
towards the adoption of solar panels and saving electricity as much as possible.
The above trends showcase how Hospitality industry have seen different trends and have started
adopting them accordingly.

P4: Hilton's evaluation of developing its products and services to meet current trends
Hilton hotels have a number of properties worldwide and a good consumer base which
explores its potential of having a large market. This market is dominated by its word of mouth
and also the services provided by Hilton are world-class. Its good services and word of mouth
are its major beneficiaries. Other than this, the brand has identified its market in other nations as
well and have decided to explore new areas.
These factors help Hilton hotels to grow its business worldwide with an approach of
finding the right and customer-oriented ways. Its products and services such as leisure, world-
class gourmet food, fine-dining restaurants can be promoted with the help of advertising and
marketing to gain more consumer base. Also, Hilton can seek better changes by observing how
their consumers are reacting and taking their feedback from time to time, to ensure their word of
mouth. Observing and finding what competitors are doing is another approach to do market
analysis and looking for growth opportunities.
CONCLUSION
The above report explores varieties of trends and challenges that hospitality industry have seen
recently. These trends deal with an extensive variety of opportunities in which an organisation
such as Hilton is leading towards growth. The report also explores the PESTLE and SWOT
analysis of Hilton, and, its evaluation of developing its products and services in the worldwide
market.

REFERENCES
Books and Journals
Lopes, M., 2016. The hospitality industry (Doctoral dissertation).
Menicucci, E., 2018. The influence of firm characteristics on profitability: Evidence from Italian
hospitality industry. International Journal of Contemporary Hospitality Management, 30(8),
pp.2845-2868.
Afsar, B., Shahjehan, A. and Shah, S.I., 2018. Frontline employees’ high-performance work
practices, trust in supervisor, job-embeddedness and turnover intentions in hospitality
industry. International Journal of Contemporary Hospitality Management, 30(3), pp.1436-1452.
Yam, L., Raybould, M. and Gordon, R., 2018. Employment stability and retention in the
hospitality industry: Exploring the role of job embeddedness. Journal of Human Resources in
Hospitality & Tourism, pp.1-20.
Mejia, C. and Torres, E.N., 2018. Implementation and normalization process of asynchronous
video interviewing practices in the hospitality industry. International Journal of Contemporary
Hospitality Management, 30(2), pp.685-701.