This report assesses the internal and external factors that impact the hospitality industry and evaluates the current and potential trends affecting the industry. It also evaluates the ability of Hilton Hotel to develop products and services to meet current trends.
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Running head: HOTEL CHAIN INDUSTRY ANALYSIS Hotel Chain Industry Analysis
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HOTEL CHAIN INDUSTRY ANALYSIS2 Table of Contents Introduction.................................................................................................................................................3 LO3: Review the internal and external factors that impact the hospitality industry and how they relate to current issues facing the hospitality industry...............................................................................................3 External factors........................................................................................................................................3 Internal factors.........................................................................................................................................6 LO4 Analyse the current and potential trends and developments affecting the hospitality industry............7 Current trends affecting the hospitality industry......................................................................................7 Future trends affecting the hospitality industry........................................................................................8 An evaluation of the ability of the hotel chain (Hilton Hotel) you are working for to develop products and services to meet current trends..........................................................................................................9 Conclusion.................................................................................................................................................10 References.................................................................................................................................................11
HOTEL CHAIN INDUSTRY ANALYSIS3 Introduction This report assesses the internal and external factor that impacts the hospitality industry and also assesses the how it is related to current issues facing the hospitality industry. It assesses the current and potential trends and developments affecting the hospitality industry. It also evaluates the ability of the Hilton Hotel to develop products and services and to meet current trends. LO3: Review the internal and external factors that impact the hospitality industry and how they relate to current issues facing the hospitality industry External factors PESTLE of UK PESTLE assessment will be used by Hilton hotel for assessing the external factors that might impact on the company for expanding the business into the UK. It contains different factors such as political, economic, social, technological, legal and environmental factors(Bowie, et. al., 2016). These are described as given below: Political factor The political factor can be an essential factor that might influence the growth of business in a specific time period and expenses. Under the existing era, it is assessed that the UK government helps the new business for enhancing the current economic conditions. Moreover, the existing political party more supports the hospitality industry of UK by making policies regarding health and quality. Hence, Hilton hotel can consider the rules and regulation related to health to enlarge their business(Dabestani, Shahin, and Saljoughian, 2017).This would be also beneficial for starting the business and obtains the higher advantageous. Economical Factor
HOTEL CHAIN INDUSTRY ANALYSIS4 The economic factor can also affect the performance of the company. It could be described as given below: (Sources:Robinson, et. al., 2016). (Sources:Schuckert, Liu, and Law, 2015).
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HOTEL CHAIN INDUSTRY ANALYSIS5 (Sources:Bertozzi, Ali, and Gul, 2016). As per the assessment of the existing condition, it is identified that the growth of the economy has gained that could enhance the chances of acquiring the competitive advantageous. The annual growth is also gained after the year of 2009 that can be significant for Hilton hotel to create a favorable image in the UK hospitality market. The tourist arrival is also increased in the UK that could be supportive for increasing the sales of the hotel. It can be assessed that the Hilton hotel can acquire favorable responses by launching the quality products in the UK hospitality market. As a result, this could be beneficial for creating the competitive advantageous (Bowie, et. al., 2016). Social factor Hilton hotel can assess the social factor to evaluate the existing condition of the nation before launching the products and services in the hospitality industry. The UK focuses on modern culture that can be significant as a company provides healthy products and services to their customers. There are a high amount of people who are highly active on the social media that
HOTEL CHAIN INDUSTRY ANALYSIS6 could help to persuade the customers in minimum time and expenses. This would be also beneficial for dealing with the business procedure(Dabestani, Shahin, and Saljoughian, 2017). Technical Factor Technology is a significant factor in order to attain the goal of the company. There are some elements that can be essential to accomplish the particular aim as well as objectives. Under the UK nation, people more focus on innovation tool that motivates a company to practice social media and directly interacts with upcoming customers. Moreover, research and development techniques can be feasible for obtaining the higher success(Robinson, Fallon, Cameron, and Crotts, 2016). Legal factor The legal factor can be evaluated by the company for making an appropriate decision with regards to the Hilton hotel. Before expanding the business, Hilton hotel can focus on specific policies such as compensation, working hours and safety. These policies can be essential to attain the company’s objectives at minimum cost as well as time(Yeoman, and Meethan, 2015). Environmental factor The environmental factor can be significant for an individual. Hence, the company can focus on products and services that would not harm the atmosphere. There are some policies made by the UK government for protecting the environment such as water quality, air, pollution, and natural hazards. Hilton hotel would make sure that products and services never directly affect the atmosphere(Jones, Hillier, and Comfort, 2016). Moreover, the company will be competent to effectively deal with the services in the UK nation and supports for higher competitive advantageous. Internal factors
HOTEL CHAIN INDUSTRY ANALYSIS7 A SWOT analysis for Hilton Hotel Strengths 1.High recognition of the brand 2.Technical innovations for enhancing customer experience and continuous upgrade of business procedure 3.High employees retention 4.Around 600 hotels in over 78 nations 5.It deals in the hospitality industry for long periods. 6.Good image in the marketplace. Weaknesses 1.Restricted market share in spite of the good brand recall 2.Operations are influenced internationally because of different government parameters and policies (Boykin, Hilton, and Palmer, 2017). Opportunities 1.High potential in the emerging nation 2.Innovation in customer services 3.Digitalization and better practice of technology 4.Indian and international hospitality fields are looking for boom (Loustaunau, 2018). Threats 1.Entry of different global brands and stronghold of long standing as well as developed UK brands 2.Rivalry related to price 3.Stagnated expansion 4.Political and economic instability in different nations(Hilton Hotel, 2018). LO4 Analyse the current and potential trends and developments affecting the hospitality industry Current trends affecting the hospitality industry A Continuing Shift in Focus to Mobile
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HOTEL CHAIN INDUSTRY ANALYSIS8 In the current scenario, people are continually shifting towards mobile as compared to traditional channels. It is assessed that the mobile platform is key to gain the profits and revenues. The practice of mobile technology may extend further than the efficient acquisition of guests in order to deliver the better customer experience. For instance, keyless entry and check-ins by using the mobile app as well as higher customization in the information collected through mobile devices (Bertozzi, Ali, and Gul, 2016). An Increased Focus on Direct Bookings The aim of properties is to drive the higher profitability by emphasizing on direct booking. Hilton hotel can spend more time as well as efforts in developing the loyalty and recall. This can be done by making demonstrating websites and other owned channels like TripAdvisor, Yelp, Facebook, as well as similar business pages (Mariani, et. al., 2016). Greater Efficiency in Use of Data In the hospitality industry, there is a current trend related to higher efficiency in using the data. The hotel manager can busy with all kinds of data to make a smart business decision. The company should cut the data that are irrelevant for it. Moreover, Hilton hotel can use the revenue management system as it would be effective to manage the data (Bowie, et. al., 2016). Future trends affecting the hospitality industry Destination promotion The social media will be highly used in order to promote the destination and self-promotion. There would be also a trend of improving the guest image and tweets on their website. Hilton hotel will use advertising campaigns in order to endorse the products and services (Dabestani, Shahin, and Saljoughian, 2017). More focus on health and well-being
HOTEL CHAIN INDUSTRY ANALYSIS9 In future trends, guests will pay for health hence hotel would have needed to provide the well- resourced fitness centers, spa, and pools. Moreover, travelers are projecting the innovative wellness alternatives. Moreover, healthy food alternatives, and growing trends involve the lighting energies, air purification, yoga spaces, vitamin-infused, in-room exercise equipment and the shower water (Robinson, Fallon, Cameron, and Crotts, 2016). Tech savvy The high amount of guests would be independent and will have technical knowledge hence travelers who are happy can use the mobile websites as well as apps. Hotels should ensure the offering and should need to up-to-date and friendly services. Travelers will anticipate conference centers and hotels with premium tech tools as well as well-informed support personnel during the business meetings with conferences(Schuckert, Liu, and Law, 2015). An evaluation of the ability of the hotel chain (Hilton Hotel) you are working for to develop products and services to meet current trends The following are the ability of Hilton hotel to develop the products and services in order to meet the current trends: Brand acknowledgment Hilton hotel has high brand recognition in the market that is owing to the availability in different nations across the world. It has developed a favorable insight regarding brand in the mind of consumers. It could be beneficial for influencing the customer’s choice towards their brand (Yeoman, and Meethan, 2015). Exciting supervision and products quality The management is supposed by Hilton group that is superlative and focusing on carrying the innovative information for attracting the consumers and also retaining the current consumers.
HOTEL CHAIN INDUSTRY ANALYSIS10 Expansion manages in Asian Continent The company has initiated to build the market in the region of Asia, which would support in the business foundation. It could be supportive in creating the customer base and increasing the revenues(Jones, Hillier, and Comfort, 2016). Strong customer relationship The customer relationship is highly developed by the group in which they keep the preference of each as well as every customer. It also delivers the same group of preferences to the particular consumers on their visit. It helps in developing a brand and making the emotional bonding with the consumers(Ladkin, and Buhalis, 2016). Conclusion From the above interpretation, it can be concluded that there are certain external factors that affect the hospitality industry such as political, social, economic, technological, legal and environmental factor. It can be also summarised that SWOT analysis is used to assess the internal condition of the Hilton hotel. It can be concluded that there is the certain current trend of hospitality industry such asa continuing shift in focus to mobile, a continuing shift in focus to mobile and greater efficiency in the use of data. Future trendsaffecting the hospitality industry areDestination promotion, increased emphasis on health and well-being, and tech explosion. Moreover, it can be summarized that there are different competency of Hilton hotel such as brand acknowledgment, interesting administrations, and items quality, solid provider’s relationship, development organizes in the Asian continent.
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HOTEL CHAIN INDUSTRY ANALYSIS11 References Hilton Hotel. 2018.About us.[Online]. Available at:https://www.hilton.com/en/corporate/ (Accessed: 07 January 2018). Bertozzi, F., Ali, C.M. and Gul, F.A., 2016. Resource Based View of an Organization and PESTEL Analytical Tool; An Analysis of Hotel Corallo, Rimini.EPH-International Journal of Science And Engineering (ISSN: 2454-2016),2(11), pp.57-71. Mariani, M.M., Buhalis, D., Czakon, W. and Vitouladiti, O. eds., 2016.Tourism Management, Marketing, and Development: Performance, Strategies, and Sustainability. USA: Springer. Bowie, D., Buttle, F., Brookes, M., and Mariussen, A., 2016.Hospitality marketing. Routledge. Dabestani, R., Shahin, A. and Saljoughian, M., 2017. Evaluation and prioritization of service quality dimensions based on gap analysis with the analytic network process.International journal of quality & reliability management,34(4), pp.530-548. Robinson, P., Fallon, P., Cameron, H. and Crotts, J.C. eds., 2016.Operations management in the travel industry. UK: CABI. Schuckert, M., Liu, X. and Law, R., 2015. Hospitality and tourism online reviews: Recent trends and future directions.Journal of Travel & Tourism Marketing,32(5), pp.608-621. Yeoman, I. and Meethan, K. eds., 2015.The future of food tourism: foodies, experiences, exclusivity, visions and political capital(Vol. 71). USA: Channel View Publications. Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some personal reflections on corporate challenges and research agendas.International Journal of Contemporary Hospitality Management,28(1), pp.36-67.
HOTEL CHAIN INDUSTRY ANALYSIS12 Ladkin, A. and Buhalis, D., 2016. Online and social media recruitment: Hospitality employer and prospective employee considerations.International Journal of Contemporary Hospitality Management,28(2), pp.327-345. Loustaunau, M.C., 2018. MANAGING HOTELS IN A SUSTAINABLE WAY.International Journal of Applied Sciences in Tourism and Events,2(2), p.108. Boykin, T.F., Hilton, A.A. and Palmer, R.T. eds., 2017.Professional Education at Historically Black Colleges and Universities: Past Trends and Future Outcomes. UK: Routledge.