Hospitality Business Strategy

Hospitality Business Strategy

INTRODUCTION
With objective of remaining in the market it is very essential for the business
organization to take into account the various factors that might have an impact over the
business operation and the functioning. The business organization is required to is required to
undertake various types of market analysis which might to required to be taken into account
for accomplishing the business objectives. This report is about the trivago company is the
German based company which is specialized in the internet based products and services.
Expedia group owns the majority of the stakes in the company. This report undertakes the
macro and micro environmental analysis along with the competitive analysis of the company.
Further it will also study on the strategies that can be implemented by the company for
attaining higher market positioning and objectives by formulating a strategic plan.
TASK 1
Macro environmental analysis to identify and inform strategic management decisions
PESTEL Analysis
Political factor
The hotel industry is majorly influenced and dependent upon the tourism and the
regulations pertaining to it. In territories that are under political difficulty, the lodging
business performs inadequately. While the United Kingdom is a generally considered as the
free market, the administration will at present will closely look on what is happening in the
non-public sector in order to guarantee that organizations are working within the eventual
benefits of the nation (Mak and Chang, 2019). The immigration policy is the main worry for
the country’s hospitality industry. Limits on the immigration exterior to the EEA leads to
shortage of skills. For example, unavailability of hotel and catering managers with relevant
qualification an affect the workforce requirement and quality of service of the hotel. Thus, it
is having a negative impact.
Economic factor
It refers to the any major monetary variation greatly impacts the hotel business. A
massive portion of this industry is created of the lavish hotels and inns. Hard times, inflation,
and other financial aspects have a greater influence over the individuals' capacity to manage
the expenses associated with it. And yet, this additionally led to a rise in demand for budgeted

accommodations accordingly growing certain verticals in this hotel industry. The foreign
exchange rate is another factor that effects the size of the foreign explorers to exploit
accommodation services. For instance, inflation will lead to increase in hotel service price
affecting the demand or reducing the travel plans.
Social factor
The current age has demonstrated a strong example towards journeying alongside
social media tools where people can share their experience and thusly make companions to
travel. This is extra to the increasing cost limits is ensuring that a broader class of people can
use the motel business (Arif and Hossin, 2016). This trend will develop more in future
prompting significantly more interest for lodgings. Hotels are likewise accepting different
classes of people and are ensuring they are more ready to assist the necessities. Mostly
governments have made it through laws that any sort of discrimination is permitted to occur.
For example, if any of discrimination happens it will affect the reputation of the company
leading to loss of customers. Therefore, this factor has a huge impact over the Trivago.
Technology factor
Hospitality industry have become increasingly more innovative. For all intents and
purposes all of them are close-fitting with CCTV cameras to provide safety and various
features that make the guest's stay more pleasant. Wi-Fi organizations, intercoms, and so
forth, are likely the most generally perceived creative innovation that can be institute in any
hotel. This moreover encourages them to determine all the fundamental facts smoothly. For
instance, hotel not having the option of online booking will lose wide range of customers as it
is not attractive. Thus, having impact over Trivago.
Environmental factor
Countries having extreme climate conditions struggle prospering their inn industry.
Not solely do these lodgings need to have the advancement that can counter such common
effects, yet they furthermore face a nonattendance of intrigue due to the failure of voyagers to
withstand such conditions (Robin, Pedroche and Astorga, 2017). For instance, if the company
fails to meet with the environmental regulations then it will face downfall in demand
affecting business thus, Trivago needs to consider this factor.
Legal factor