Hospitality Management Simulation | Report

RUNNING HEAD: HILTON HOTEL
HOSPTALITY MANAGEMENT SIMULATION
Name:
Date of submission:

HOSPITALITY MANAGEMENT SIMULATION 1
Introduction
The research report is formulated on the title ‘Hospitality Management simulation’. The
basic aim of the report is to lay emphasis on the current position of the ‘Hilton Hotel’ in
Australia. It comprises of a brief overview of the Hilton Hotel. It includes the position analysis of
the chosen hotel with the help of managerial tools. Moreover, it also comprises various
recommendations based on position analysis of Hilton Hotel. Moreover, it provides a chance to
upgrade the understanding by practically applying the managerial concepts to real-life company.
Hospitality company overview
Hilton hotel is a globally recognized international chain hotel founded in the year 1919
(Owler , 2019). It has hotel outlets in 78 countries including Boston, London and Chicago
(Hilton , 2019). In Australia, Hotel Hilton has seven outlets including Sydney and Cairns
(Kinnon , 2018).
Position analysis
In order to assess the position of the Hilton hotel, it is essential to examine the macro and
micro environment in Australia. The required description is mentioned below.
PESTLE Analysis
PESTLE analysis is a tactical tool used to examine the macro environment of a brand. It
is an acronym that stands for Political, Economic, Social, Technological, Legal and
Environmental factors. It is mainly used to determine the impact of these factors on organization
performance. It helps in determining the number of opportunity and possible threats prevailing in
the external environment (Berry , 2017).
1. Political factor: It helps in determining the political stability of the country, essential for
a business to operate smoothly. It includes factors such as corruption level, tax policies,
and government regulations. Australia has an intermediate corruption rate (Villarino ,
2019). Additionally, government regulates control over the business practices (Heritage
, 2019). Thus, Australia’s political environment does not prove much fruitful for Hilton
hotel brand to conduct its practices.
2. Economic factors: It comprises factors that determine the economic performance of the
country. It includes factors such as GDP, Inflation rate, Unemployment rate and level of

HOSPITALITY MANAGEMENT SIMULATION 2
disposable income. It is examined that Australia has a population of ‘24.8 million’. Its
GDP is marked at 1.2 trillion with a growth of 2.3%. Additionally, its inflation rate is
only 2.0% (Heritage , 2019). It is assessed that Australia has fine economy. Its high
population will generate more customers to the brand. Its high GDP suggests that
customers will have more disposable income to spend. Thus, these factors will directly
benefit the Hilton hotel brand to achieve high profits.
3. Social factors: This dimension relates to social norms, traditions, lifestyle, population
size, health status and individual’s eating habits. It determines the demographic
characteristics of the country that relates to the work practices of the brand. There is
unequal distribution of wealth in Australia (Roy Morgan, 2018). Australians favor a
relaxed lifestyle (Nomads World, 2019). Additionally, it is assessed that Australia is a
multicultural country (Human Rights, 2019). Australia’s multicultural environment
will bring an opportunity to the Hilton hotel brand to experiment with new social
practices within its business premises.
4. Technological factor: It emphasizes on technology automation and innovation level that
can affect the business operation. It is examined that Australia ranks 17th as one of the
innovative nations in the global world (Liddy, 2015). It suggests that Australia’s
upgraded technology will help the Hilton hotel brand in providing best service to its
customers. Additionally, it will assist in cutting the cost by altering the manual
requirements with the automation.
5. Legal factor: It focuses on law relating to consumer protection, patent and employment
laws and other health and safety laws. It attains certain similarities to the political factors.
It is analyzed that Australia has low crime rate as its safety index is marked at 57.75
(Numbeo, 2019). Additionally, government lay prior attention in protecting the
copyrights, health and safety laws in the country (Austrade , 2019). Thus, it is analyzed
that Australia has favorable legal environment. Thus, it allows the Hilton hotel brand to
attract its international customers easily as the country has low crime rates. Additionally,
government will assist the brand in safeguarding its patent rights in Australia.
6. Environment factor: It deals with factors such as climatic condition, air and water
pollution, natural disaster and environmental policies. It is analyzed that these factors
have a direct and long term effect on business practices. It is examined that Australia is