Luxury Hotels in UK: Analysis, Challenges, and Key Players

LUXURY HOTELS IN
UK

Table of Contents
INTRODUCTION...............................................................................................................3
PESTLE Analysis of Luxury Hotels in UK ................................................................3
Analysis of present economic condition of UK..........................................................4
Importance of issues in Hotel Industry......................................................................5
Porter's five force Analysis........................................................................................6
Analysis of key players in the market........................................................................7
Opportunities and Threats of luxury hotels...............................................................8
CONCLUSION...................................................................................................................9
REFERENCES............................................................................................................................10

INTRODUCTION
Hospitality industry is basically the broad field which deals with providing range of
services, products and amenities to the customers. The luxury hotel is predominately
the hotel that offers the luxurious services and accommodation experience to their
guests. Marriott hotel is the full-service and luxury hotel as well as resort being
established in 1957 by J. Williard Marriott and headquartered in Maryland, U.S. It has its
presence across the world and have more than 566 hotel spread worldwide. Hotel
provides the range of services to their customers including accommodation, food and
beverage, resort etc. Luxury hotels such as Marriott and IHG are the ones who help in
contributing to the economy, increase the level of tourism and maintain the level of
employment of the country.
This report gives a brief about analysis of external environment, current
economic conditions of country, key issues prevailing in the industry, porter five force
model, major players in market, strength and drawbacks of key players, opportunities
and threats within industry and future scenario of the industry.
OVERVIEW OF LUXURY HOTELS IN UK
UK believes that the factor of hospitality is a great pride for them as it has helped
them to earn the reputation they have over the world. There are many luxury hotels as
UK is visited by many tourists. Luxury hotels such as IHG, Marriott and Hilton are
considered as most reputed hotels as they satisfy the needs of people.
PESTLE Analysis of Luxury Hotels in UK
Political Factors-
Major threat that the hotels in UK faces is the threat of terrorism, relationship with
other countries and the climate according to political factors especially where
destinations are popular among people. There are many factors which stops people
from traveling such as terrorist attack or conflict with military etc. issues stops people
from traveling. Apart from this fall in the aviation industry will also disrupt the demand for
luxury hotels in UK. (Heyes, Beard and Gehrels, 2015.)
Economic Factors-
These factors are those which affect the business of the hotels and there overall
rate of growth depends on these factors. Currently the global economy is on the level of

downfall which has put all (Burnett, 2016.) the hotels in the crisis of debt. The reason
behind this is that the spending power of people has been reduced because of the fall in
income which has affected their ability to travel.
Social Factors-
UK is considered popular among people and may people include this country in
their wish list so that they can visit it once in a lifetime. This popularity has increased the
no of visitors which has helped them (Dallabona, 2015) to generate more revenues.
According to the reports it has been observed that the company gets most of their
visitors from Australia. These factors also includes the changes of culture. (Holcombe,
2018. )
Technological Factors-
These factors helps the luxury hotels in UK enhance their services as well as
affect their profitability. Many competitors have came in the market after the
advancement of technology (Burgess, 2017) such as OYO, Airbnb. They win over rates
as they provide same quality and level of luxury with so much difference in pricing as
they don't have to maintain a high level of operating cost which allows them to cut their
prices.
Legal Factors-
These factors states that company has to comply with the factors and if they do
any illegal activity they won't be allowed to serve in the country. Their competitors such
as Airbnb is facing these issues as (Feng, Wang and Ryan, 2018) they have been
caught in some issues related to violation which has improved the status of luxury
hotels in the eyes of people.
Environmental Factors-
Luxury hotels such as Marriott needs to set a limit on the control of electrical
factors so that they can reduce the limit of greenhouse effect which will help them as
well as the environment as if any case of natural calamity arises then it will affect the
luxury hotels in UK. (Peng, Zhao and Mattila, 2015 )
Analysis of present economic condition of UK
The present condition of economy of UK is not at peak level as they are suffering
from crisis. Apart from that after the issue of Brexit that is separation of Britain from