Article On Hospitality, Tourism Events And Environment

HOSPITALITY, TOURISM
EVENTS ENVIRONMENT

Table of Content
OVERVIEW OF HEATHROW 3RD RUNWAY PLAN...............................................................3
PEST ANALYSIS...........................................................................................................................4
Political factor.............................................................................................................................5
Economic factor..........................................................................................................................6
Social factor................................................................................................................................6
Technological factor....................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

OVERVIEW OF HEATHROW 3RD RUNWAY PLAN
Heathrow airport can also be called as London Heathrow is one of the major international
airport in London. It is the second busiest airport in the world. This airport lies around 14 miles
(22.53 km) west of the Central London. It has two parallel west- east runways including four
operational terminals which covers 12.27 square kilometres. The airport is located west of
London and its runway are east- west facing and it uses the airline landing approach directly over
the conurbation of London (Moutinho and Vargas - Sanchez, eds., 2018). The Heathrow is one
of the six airports having scheduled services serving the whole London area along with Stansted,
Luton, Southend, London City and Gatwick.
This airport was established in the year 1929 as a small airfield or aerodrome on south-
east of hamlet of Heathrow. And from thee it got its name Heathrow airport. The operations of
the airport includes around 80 airlines which are flying to around 185 destinations covering
approximately 84 countries. This airport has a multi faith prayer room including free church,
Anglican, Sikh, Muslim, Jewish, Hindu and many other chaplains. Airport also has its own
resident press corps which consist of one TV crew and six photographers which serves for all the
leading and major television channels and stations and major newspaper (Giampiccoli, Lee and
Nauright, 2015).
The head office of the airport is situated in the Compass Centre by northern runway
which was a building previously used by British Airways as a flight crew centres. The expansion
of Heathrow airport was proposed by the Heathrow airport holding which intended to increase
the capacity of the airport by adding one more runway with the rest two. The Department of
Transport published a report outlining the Heathrow airport's strategy and vision of one more
runway in the early December 2006. After analysing the report in November 2007, started a
public consultation on this proposal of Heathrow airport. This plan was supported by the aviation
industry, British Chambers of Commerce and Confederation of British Industry. The government
would not build the runway rather will encourage the airport operator to apply for the planning
permission and to carry on the work.
The government's approval for the third runway is being challenged by the council,
resident and environmental charities and the mayor of London. A majority of 296 MPs back out
from the plan (Raj and Griffin, eds., 2015). They argued that the government's National Policy
Statement (NPS) is supporting the project, but the project failed to deal with the impact of the

quality of air, changes in climate, congestion and noise will be done if the project is executed
(Hall, Gossling and Scott, eds., 2015).
PEST ANALYSIS
The PEST analysis is an analytical tool which is used in order to study the impact of
changes within the macro factors of economy over the company and its working and operations.
Since the company operates in a business environment which is very dynamic and ever-
changing so there are many changes within the environment of company as well. So to study the
impact of such changes within the external environment of business PEST analysis is used.
The pest analysis is used by business in order to take proper and accurate decision for
improving the efficiency and effectiveness of the company. This efficiency is increased because
pest analysis helps in studying and analysing various factors which can impact and influence the
business. This is majorly because of the reason that pest includes factors like politics, economic,
social and technological. These are the major factors which affects and impacts the business
operations and its working.
This tool is also used for doing strategic planning because of the reason that this tool
helps in analysing and evaluating all the possible factors which can impact the business
operations and is helpful in studying the impact of any change in any of the macro factors. So
this tool helps in beforehand doing planning for all such changes which are going to impact the
business and its existence. The factors of PEST are discussed in the following connected points-
Political factors- it includes the government policies and regulations, government
intervention or any rules and regulations laid by government of the country which impacts the
business and any other political changes impacting the business and its operations. Political
factor includes study of environmental regulations, changes in political structure, political
instability, trade policies changes in any policy relating to business and many other similar
things.
Economic factors- these factors impacts the profitability of the business. Economic
factors relates to the economy of the country as a whole which impact the business (Litvin,
Goldsmith and Pan, 2018). The economic factors include changes in interest rate, inflation,
foreign exchange rates of currency, fiscal policy changes unemployment trends, period of
recession, inflation and many other similar factors

Social factors- with help of this factor the company is able to study and analyse the taste
and preference of the consumers and also it takes care of the culture and the environment of the
society (Tussyadiah, Wang and Jia, 2017). It includes study of factors such as demographic of
society, population growth, attitude, beliefs, and values of people living in society, age
distribution and many related factors.
Technological factors- the technology changes very fast and rapidly and it is very
essential to study technological factor because technology is the support system of business. The
technology can have both a positive and negative impact on the business. So it is of utmost
importance that the company assess the right technology for itself.
Political factor
Effect of European Union policies on UK business and expansion of Heathrow
airport- the policies of EU allow its members to indulge in commercial activities outside and
within the country itself. These policies prevent variations that can arise form the different
policies used by different countries. These policies are framed in order to safeguard the domestic
industries. These policies ensure the environmental protection and natural resources from
damages which can be caused by operations and working within industries. Complying with this
policy will have positive impact on the expansion of the project because the environment of UK
and the domestic companies will be safer.
Unstable political environment- in the recent years the political environment in the UK
was very unstable because of coalition of government which impacted the Heathrow airport
business. As the company planned for expansion the budget cuts were increased number of
flights cannot go forward so this may cause problem for the company in expanding.
Changes in taxation policy- the government increased the taxes and because of this now
the company has to more taxes which will have a negative impact on the business. This is
because of the major reason that if the company earns more in order to support its expansion then
it will have to pay more taxes which will be unnecessary wastage of money (Croes, Ridderstaat
and van Niekerk, 2018).
Impact of UK's monetary and fiscal policies- if in both the policy government makes
changes which are in progress of the company then it is good. But if the changes are negative
like increase in interest rates then it will have a negative impact on the company's expansion.

Economic factor
Allocation of resources by economic system- the economic system decides who will be
the using the resources, how they will be using it and related aspects of resources. There are two
types of economic system that is socialist and capitalist (Ivanov, Webster and Berezina, 2017). In
socialist system the government decides that who will use the resource in what quantity and in
what way. All the decision relating to allocation of resources is done by the government only. On
the other hand the capitalist economy is the economy which is run by the private firms and there
is no interference of government in any kind. So here all the allocation of resources is done by
the private owners only.
So now if the socialist economy is prevalent in UK then the expansion plan will have less
freedom of using resources which will have negative impact on the company. On the flip side if
the capitalist economy is popular within the country then it will have positive impact on the
company' s working and expansion plan. This is because of the major reason that if private firms
has to decide resource allocation then the will efficiently do it by taking into consideration all the
factors like security, safety, finance, transport and many other related factors.
Recession- it is an economic factor of economic cycle which consists of recession,
growth and depression. If in economy there will be situation of recession then the number of
travellers will decrease as they have no job, so they have no money to travel into flights. So the
profits of the company will go down. So it will impact the company in negative way.
Rise in fuel prices- this is another impact of the economic factor which impacts the
company in negative ways. If the prices of the fuel will increase then it will increase the cost of
the company and to recover this cost of the company then it will increase the price of the ticket.
By this way the company will recover its loss which might happen due to increase in the fuel
prices.
Social factor
These factors generally relates to the society as a whole including the society and its
environment (Dale, Decosta and Weir, 2017).
Ageing population- with time there is an increase in the ageing people within the
country. This will have a positive impact on the company as increase in older people will
increase the travelling. This is because of the reason that older population will have more time to

spend travelling and for leisure. So this will increase the revenues and profits of the business and
this will help in increasing the expansion.
Travelling trend- now- a- days travelling has become a trend and is becoming very
popular in the youth so there is increase in the travelling (Boroomand, Kazemi and Ranjbarian,
2019). This increase in the travelling will promote increase in the number of travellers and
increase in the popularity of the company. So this will be a positive impact on the company
because it will increase the sales of the company and revenues. There are many reasons for
which person travels some for leisure, some out of work, some for promoting some
environmental concern and for many other reason.
Environmental safety- with caring of the society and its consumers taste and preferences
it should also take into consideration the environmental factors to protect the society. This is
because of the reason that if the company will take care of the environment then its goodwill will
be enhanced and increased so it will increase the market share of the company. So for this the
company must take into consideration like the emission of the noise, creation of air pollution and
related factors.
Greenhouse gases- the company must take into consideration the greenhouse gases. If
the airport goes for third runway would increase CO2 aviation emission by 10 % by 2040. So
this will have the negative impact on the environment. So the company must take into
consideration all the environmental aspects relating to the society.
Technological factor
These are essential factors to be studied because if technological changes are not taken
into consideration then the company's current technology can become obsolete.
Online internet services- in this modern era all the things have gone online and if these
are not adopted by company then it will be negatively impacted as the consumer will not be
happy travelling with the flights which are not updated and up graded. In this online age, the
company must use every online thing like advertising online, working online in form of online
ticketing and online booking. This online system will reduce the cost and time of company in
booking and all other related processes. Also, it will have a positive impact on the consumers as
they will think that the company with which they are interacting is technically sound (Robinson,
Ruhanen and Breakey, 2016).

Self service check in- at Heathrow airports there are many self check in machines
installed and implemented which means that the consumers and passengers not have to queue for
the check in for availing the flights (Folgado - Fernández, Hernández - Mogollón and Duarte,
2017). So this process reduces the time of both the employee of the airport and the passenger a
consumer. This is because of this check in points the consumers will promote the airport
expansion.
CONCLUSION
The report interpreted that for the business to be successful it is very necessary for the
company to do an environmental analysis of all the macro factors. For this the company has used
PEST analysis for doing the external environmental analysis of the company. PEST analysis of
the company refers to as analysing and evaluating all the macro external factors of the whole
business environment and the impact which it will have on the business.
The report outlined the study of changes in political, economic, social and technological
factors which impacts the business working and operation of the business. The study of political
factor helped the business in knowing the impact of changes taking place in the political system
of the country. The study of this factor concluded that in context of politics changes in political
party have negative impact on the business. On the other hand complying with the different
government rules and regulations have a positive impact because by adhering with the rules and
regulations it follows all the requirements correctly.
With the analysis of the economic factors the company interpreted that changes in
economic conditions like recession the company have negative impact as the travellers will not
travel much, thus reducing the sales of the company. On the other hand, if the economic system
of the country is capitalist then it will impact the company in positive way as private companies
will allocates resources more efficiently and effectively.
By studying and analysing the social factors the company came to know about the latest
trends, taste and preferences of the consumers which helps the company in updating their
services according to the needs of the consumers. With this study it was outlined that the
increase in trend of travelling helps the company in positive way because it will increase the
business of the company. On the flip side, if the company not take into consideration the
environmental factors then it will have a negative impact on the business and its goodwill and
market position. At last the report discussed the technological aspect of PEST analysis. This is a

totally positive aspect because the company adheres and comply to the latest technologies. So it
is always a positive indicator for the company.

REFERENCES
Books and journals
Boroomand, B., Kazemi, A. and Ranjbarian, B., 2019. Designing a Model for Competitiveness
Measurement of Selected Tourism Destinations of Iran (The Model and
Rankings). Journal of Quality Assurance in Hospitality & Tourism, pp.1-16.
Croes, R., Ridderstaat, J. and van Niekerk, M., 2018. Connecting quality of life, tourism
specialization, and economic growth in small island destinations: The case of
Malta. Tourism Management. 65. pp.212-223.
Dale, N.F., Decosta, P.L.E. and Weir, B., 2017. Semantics of learning outcomes for a tourism
degree across institutions, industry and governing bodies. Journal of Hospitality and
Tourism Management. 30. pp.15-21.
Folgado - Fernández, J.A., Hernández - Mogollón, J.M. and Duarte, P., 2017. Destination image
and loyalty development: the impact of tourists’ food experiences at gastronomic
events. Scandinavian Journal of Hospitality and Tourism. 17(1). pp.92-110.
Giampiccoli, A., Lee, S.S. and Nauright, J., 2015. Destination South Africa: Comparing global
sports mega-events and recurring localised sports events in South Africa for tourism and
economic development. Current Issues in Tourism. 18(3). pp.229-248.
Hall, C.M., Gossling, S. and Scott, D. eds., 2015. The Routledge handbook of tourism and
sustainability. Routledge.
Ivanov, S.H., Webster, C. and Berezina, K., 2017. Adoption of robots and service automation by
tourism and hospitality companies. Revista Turismo & Desenvolvimento. 27(28).
pp.1501-1517.
Litvin, S.W., Goldsmith, R.E. and Pan, B., 2018. A retrospective view of electronic word-of-
mouth in hospitality and tourism management. International Journal of Contemporary
Hospitality Management. 30(1). pp.313-325.
Moutinho, L. and Vargas - Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Raj, R. and Griffin, K.A. eds., 2015. Religious tourism and pilgrimage management: An
international perspective. Cabi.
Robinson, R.N., Ruhanen, L. and Breakey, N.M., 2016. Tourism and hospitality internships:
influences on student career aspirations. Current Issues in Tourism. 19(6). pp.513-527.
Tussyadiah, I.P., Wang, D. and Jia, C.H., 2017. Virtual reality and attitudes toward tourism
destinations. In Information and communication technologies in tourism 2017 (pp. 229-
239). Springer, Cham.