Industry Analysis and Possible Adaptations

Running Head: INDUSTRY ANALYSIS AND POSSIBLE ADAPTATIONS
INDUSTRY ANALYSIS AND POSSIBLE ADAPTATIONS
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INDUSTRY ANALYSIS AND POSSIBLE ADAPTATIONS
Table of Contents
1. Analysis of the Macro environmental factors affecting the travel and leisure industry of UK.
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1.1 Political environmental factors.........................................................................................3
1.2 Economic environment.....................................................................................................5
1.3 Socio-demographic developments....................................................................................6
2. Micro analysis of the hotels sub-sector of the travel and leisure sector of UK........................6
2.1 SWOT analysis model of UK hotels.................................................................................6
3. Challenges faced in execution of tasks 1 and 2........................................................................9
4. Reference List.........................................................................................................................10

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INDUSTRY ANALYSIS AND POSSIBLE ADAPTATIONS
1. Analysis of the Macro environmental factors affecting the travel and leisure
industry of UK.
So far as most of the business organisations of this industry in UK are concerned, we had to face
tough times because of the recent Global recession. However, one significant factor of this
Industries that in spite of cut down of consumer expenses over travel and leisure services, it is
evident that new hospitality destinations has opened up by about 67% every year in UK and the
in surge of the foreign tourists have enhanced by 30 to 32% person in the year 2019 compared to
what happened in the year 2010 (Al-Najjar 2017). So far as enhancement of prospect is
Industries considered, out of the new hospitality facilities emerging in the country, at least 40%
have been boutique hotels along with establishment of new branches of global hospitality brands
in the country. They have been ample customers for budget friendly hotels boutique hotels as
well as star rated hotels with the latest amenities. The financial uncertainty had prompted the
customers to avail budget Airlines and stay in boutique hotels compared to luxurious outlets.
This has changed the consumer experience and the perception that the boutique hotels can also
provide classic holiday experience has started to emerge (Duncan and Cohen 2016). In the
following parts of the section the various micro environmental factors affecting the industrial
will be reflected.
1.1 Political environmental factors
The government have tendency of introducing legislation as well as regulations that can have a
significant impact on the organisations interested in this industry. However, most researchers like
Ramiah, Pham and Moosa (2017), prefer to call UK a free market from the perspective of this
industry, the government is closed watch on the advancement in this industry which is primary

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INDUSTRY ANALYSIS AND POSSIBLE ADAPTATIONS
dominated by private sector in order to ensure that the businesses in this industry are functioning
properly and in best alignments to the national interests.
One of the major political factors that have impacted this travel and leisure industry of the
country is the Digital economy act of 2010. This was a parliamentary act which was made in
order to diminish the sharing of files illegally in order to prevent copyright infringement and this
has to be enacted in the most digital environment of the society. Naturally, all the recently setup
hotels, the airports, major transport like Metro Railways, intercity express and so on as well as
the biggest shopping destinations like shopping malls and supermarkets came under obligation of
this regulation (Glaesser et al. 2017). This is because; these are the areas which provide free WI-
FI connection to the customers. In case if any of the customers of these foundations broke the
law of digital economy act, the service provider in this case would come under conviction.
Again, it is not working that is for these facilities at the hotels could charge convenience fees
from their customers. Nevertheless, major Hotel groups which are preferred by international
Travellers for laser as well as business purpose is expected to have Wi-Fi connectivity. On the
contrary note, International Travellers will refer not to stay in search hotels if they are coming
for business conferences or business trips (Davies and Weston 2015).
Another factor impacting the industry is the new immigration policy. This policy introduced by
the coalition government has Costa be concerned in the travel and leisure industry. Caps on
immigration in areas outside European economic area could ignore the issues like skill shortages
in the hospitality sector and mainly in the recruitment as well as employment configuration. The
researchers like Urry (2016), is of the opinion that except from the operational rules like Chefs,
bar staff as well as few other positions, shortage of employee management skills helping evident
all over the hospitality and travel segment. After the imposition of caps on immigration in the