Hospitality Management Assignment - Britannia Hotel

HOTEL CHAIN INDUSTRY
ANALYSIS

INTRODUCTION
Hospitality management involves various service industry such as event planning,
lodging, theme parks, cruise line, transportation, travelling etc. Here, study is based on Britannia
hotel which is situated in United Kingdom. It was founded by Alex Langsam in 1976. Britannia
is a private hotel which headquartered at Greater Manchester, England. The study will define
internal and external factors that impact the hospitality industry. Furthermore, report will analyse
the current and potential trends.
BUSINESS PLANNING REPORT
PESTLE analysis of Britannia Hotel
PESTLE analysis is used in market to know external marketing environment. It has six
factors that help to implement project ideas and planning process.
Political Factor: Political factors are related to all about government involvement. In
this, there are political stability or instability, different government policies, tax policy,
environmental law, labour law, trade restriction etc... Apart from this, there are some hidden
political factors that affect Britannia's hotel business like for example unrevealed corruption,

fluctuation in tax policies, trade restriction can impact the decision-making process of firm which
lays emphasis on their development.
In hospitality industry political factors affect range of visitors, both business travellers
and tourists. For example, due to some political situations lobar are demanding high amount of
money which impact Britannia hotel and also directly influenced their profitability and market
share. Organization need to full fill the needs of workers that helps to run their business
effectively. They have to pay employees according to their demands which break down the
strike.
Economic Factors: UK has strong economy than other countries that helps Britannia
hotel to develop its business in hospitality sector. But there are also some factors that fluctuate
growth. Like interest rates, inflation, economic growth, exchange rate etc. For examples, in 2012
Olympics were held in UK, which increased occupancy rate of Britannia hotel significantly. At
the time of inflation services and goods increase that affect Britannia hotel business because
people are not able to afford.
For example, International and national economic factors and situations and events
affecting the condition, there are major elements impacting Britannia hotel. For example, In UK
during Olympic times most of the hotels were booked and occupied fully for the whole week or
Olympic time period. Britannia hotel gain profit during this time and increase profit margin more
and more, but after Olympic games was over they face difficulties that impact on their business,
it is one of the economic factor.
Social Factors: In social factor analysis there are culture trends, customer’s lifestyle,
demographic differences etc., which affected Britannia hotel. It is totally depends on customers
preferences. If customer is not satisfied then hotels must change its policies according to the
needs, demand, taste and preferences of them. Designing products according to the consumers
wants can support firm in developing.
For example, Social cultural factors have a great impact on hospitality sectors. For
example, once at a time, due to less profitability in Britannia hotel, it takes a step to change the
structure and infrastructure of organisation. Also, change the organisational culture and adopted
hierarchical structure to gain more profitability.