The Contemporary Hospitality Industry: PESTEL and SWOT Analysis

This presentation discusses the PESTEL and SWOT analysis of the contemporary hospitality industry. It also appraises the implications of current and potential trends in the hospitality industry, such as sustainability, local experience, healthy food and beverages, and focus on millennials. The Langham Hotels, one of the largest traditional style hotels located in London, England, is used as an example. The presentation includes references for further reading.

The contemporary hospitality industry

Table of Contents
 Introduction
 Pestel analysis
 SWOT analysis
 Conclusion
 references

INTRODUCTION
 Hospitality industry is a broad category as it
includes not only services but products as well.
It includes longing, food and drink services and
majorly travel and tourism services. It is
important for the tourism industry to wok
effectively and efficiently as they are dealing
directly with the customers and the main aim is
to make sure that they are providing best in class
services to the customers. In context to The
Langham Hotels, it is one of the largest
traditional style hotel located in London,
England. The company has 380 rooms available
for customers and 8 floors.

PESTEL Analysis

Political factor
 These are the factors that tells the company about the degree up to which the
government can intervene in the free market of the industry. In the current times
government has put certain restrictions on the travelling but soon the travel industry
will start working again and will work on 100% capacity.

Economic factors:
 The hotel industry contribute a big part in
the economy of the country. The
contribution in the form of high
investments will be earned back with the
help of large number of tourists of the
country.

Social factors
 The hotel industry provide high level of employment opportunities to the local people.
The hotel will be able to get both skilled as well as unskilled workforce at low cost.

Technological factors
 The hotel industry is considered to be
one of the most technology dependent
industry as systems are involved in
each and every processes through
which the hotel is providing services
to its customers. The hotel can also
taker benefit of social media platforms
in order to do marketing activities.

Environmental factors
 The hotels can alter their room charges on seasonal basis as it will help the hotels in
getting better revenues and will also make sure that they are controlling the pricing
factor.

Legal factors
 the hotel will follow innkeeper law
which will help the hotel in ensuring
that the guests as well as their
properties are safe and secure.
Usually the compensation will be
charged from innkeeper if the
property of guest get stolen or
damage.

SWOT analysis

Strengths
 The services that the hotel provides to its customers is its biggest strengths. The hotel is
having a loyal customer base as the hotel is providing luxurious customer services to it
customers and the location of the hotel is also very significant.

Weaknesses
 The biggest weakness of hospitality
industry is that it rely too much on
travellers and during off seasons the
company may not be able to have that
much customers although they have to pay
same cost.

Opportunities
 People nowadays prefer luxurious stay in hotels and the company can increase their
visitor experience by improving their services and by modifying them according to the
trends prevailing in the market.

Threats
 High level of competition in the market is
one of the biggest threats of the company.
People nowadays are more informed with
the help of internet and compare details of
the hotels before choosing one. It is
important for the company to make sure
that they are working according to the
trends that are prevailing in the market so
that the company will be able to attract
large number of customers.

An appraisal of the implications of current and potential
trends in the hospitality industry

Sustainability
 One of the most important trend prevailing in
the market is towards sustainability. Tourists
are more focused on sustainability and prefer
to stay in hotels who are providing
sustainable options of stay to them.

Local experience
 Customers nowadays are more focused on local experiences, they like to explore real
and authentic city and not just the tourist places. It is important for the organisation to
make sure that they provide that experience to their customers.

Healthy food and beverages
 People likely to prefer healthy and organic food in place of junk food. The current trend
is focussing more towards healthy food choices and are really concerned about their
lifestyle. By providing healthy food and beverages the company will be able to attract
large number of audience.

Focus on millennials
 The hotel must focus on millennials audiences as they travel frequently and it is
observed that they are going to be the main travel group in the near future.

CONCLUSION
 From the above information, it is concluded that there are several factors that are
needed to be considered by the companies that are going to invest in the hotel industry.
The hotel industry is one of the most profitable industry and are also coping with the
changing environment extremely well.

REFERENCES
 Ma and et. al., 2019. From finance to marketing: Initial public offering ownership
overhang and marketing in the hospitality industry. International Journal of Hospitality
Management, 76, pp.71-82.
 Fissi, S., Romolini, A. and Gori, E., 2020. Building a business model for a new form of
hospitality: the albergo diffuso. International Journal of Contemporary Hospitality
Management.
 Chang and et. al., 2020. Meta-analysis of outcomes of leader–member exchange in
hospitality and tourism: what does the past say about the future?. International Journal
of Contemporary Hospitality Management.

Thank you