PEST Analysis of Hilton hotel

This document provides a PEST analysis of Hilton hotel, focusing on the political, economic, social, and technological factors that impact the hotel industry. It also discusses the communication strategy of Hilton hotel based on research and the organization's strategic direction.

RESEARCH

Contents
PEST Analysis of Hilton hotel...........................................................................................................2
Communication strategy of Hilton hotel that is based on research and organization’s strategic
direction.............................................................................................................................................4
REFERENCES......................................................................................................................................5

PEST Analysis of Hilton hotel
Pestle analysis refers to a concept in marketing principles. This concept is mainly
used as a tool through organisations to track environment in which they operating their
business or plan to launch the new project. It is an analytical tool for the strategic planning of
business. Pestle analysis is strategic Framework for the better understanding of external
influences on business. There are several macro environment factors that impact on strategic
planning for an instance exchanges demographic change new laws trade barriers and many
others (Desbien, A. L. and et. al., 2015). The organisation uses Pestle analysis for analyse its
external environment and it is not easy for top management to control the external factors in
an easy manner. Pestle analysis has different components such as political, economic, social,
technological, legal and environmental. Pestle analysis is a part of external analysis at the
time of conducting a strategic analysis or doing the market investigation. It provides
overview of various macro environment factors which need to be taken into consideration.
On the other hand, it is a kind of strategic tool for better understanding the growth of market
or decline position of business direction and potential for operations. Hilton hotel and resorts
is global brand of full-service hotel and resort and flagship strand of American multinational
hospitality organisation. This hotel was founded by Conrad Hilton. There were more than 570
Hilton hotels and Resort properties in about 85 countries and also territories across the six
components. Hilton Hotel is flagship of Hilton brand and it is one of the largest Hotel brand
in all over the world. This hotel brand is target at both the leisure Travellers and business
with location in main city centres, convention centres, popular vacation destinations, near
airports and in around the world. Hilton Hotel conducts Pestel analysis to aware about the
external factors which negatively impact its business the pestle analysis of Hilton Hotel
mentioned below:
Political factor- Under this, political stability is mean requirement to success related to
industry in the hotel industry (Giri and Singh, 2015). Political factors can impact on number
of visitor’s and business Travelers which visit to country in indirect and direct ways. In year
2005, 7 July in London United Kingdom was temporary branded as place that accommodated
set of extremist religious forms. The threats and risks of act of terrorists are most likely to
minimum number of tourists to London and United Kingdom with negative effect on Hilton
performance level in this specific market. In all over the world, Hilton Hotel actively engaged
in logging in context to able to influence the certain political factors on business to certain
extent. This company has been spending more than 1.5 million USD in past four years. The

terrorists and political unbalance impact on the hospitality sector in negative manner. On the
other hand, Brexit developed the negative impact on hospitality sector and also tourism
Occupancy. In addition to this, catering sector in United Kingdom may also suffer from the
sensations in post through UK and European Union was Russia because of its annexation of
Crimea and also its perceived intervention on internal affairs possibly for United Kingdom to
exit from European Union. There is an issue that has been raised through British on different
occasions which might have direct implications on Revenue of the Hilton hotels in United
Kingdom because of reduction in total number of visitors to country.
Economic factor- The international and national macroeconomic situation as well as factors
and events affecting situation which main factors affecting the Hilton hotel business. For an
instance at the time of Olympic in United Kingdom in year 2012 many of hotels were
occupied as well as booked fully for whole period of time as a result of global economic and
financial crisis in year 2007 to 2009 the sales of Hotel produced through 20% and the profit
by 40% by the fourth quarter of year 2008 all the more than 5 years have passed. Since
financial as well as economic crisis of year 2007 to 2009 the national economic in United
Kingdom faced with a set of the significant risk and challenges of another economic crisis
that may not be two distinct (Greer, 2018). On the other hand GBP exchange rate against
main currencies as well as inflation rate in United Kingdom represent significant factors
which can affect performance level of Hilton in United Kingdom. When Hilton Hotel
conducts it business in another country then its face the issues related to adverse currency
movements.
Social factor- Hilton brand is well known among the international tourist and United
Kingdom is one of most popular destination for visitors as well as shopping lovers. Broad
range of the social factors affecting Hilton Hotel consisting emerging trends in customer
Lifestyle, demographic of customers, variables effect of role models in the customer decision
making and development rate of population. For an example, in ensuring number of the
Young customers from emerging economics such as China visiting United Kingdom for
different purposes which can be specified as necessary social factors that affect United
Kingdom hospitality sector. Each customer has different demands and preferences and tourist
want to visit the attractive places and gain better Experience (Serbin and Serbin, 2018). So, it
is a responsibility of Hotel to provide the better destination places on the basis of their

demands and needs. Changing patterns of the family in society as well as associated values
like in ensuring number of the single people, similar sex marriages and the families without
children might have certain impact on performance of business of Hilton hotel in United
Kingdom market.
Technological factors- The overall development of the technological infrastructure
concerned to scattering sector that might have great effect on performance level of Hilton. On
the other hand, the matters related with use of energy and their cost and potential for
innovation within sector can be classified as necessary technological factors. Bookings of
Hotel have become more sophisticated than ever before anyone can book room of hotel in
simple step with using of internet sources in anything number of social media such as
Facebook, website, Twitter like the trip advisor help both hotels and customers in order to
communicate with the customers. Company use social media tools and provide them all the
details and information regarding the hotel services and other services provided by them and
it helps in developing the better customer relationship. On the other hand, it provides the
booking tool from which customers can easily book their tickets for hotel rooms in an easy
manner (Jones and et. al., 2016).
Communication strategy of Hilton hotel that is based on research and organization’s strategic
direction
Communication is important in nature which helps to build effective relation with
other parties in market. This has huge importance while considering the growth of
organisation. There are different styles of communication and all have their own importance
in different situations. Communication is like promotion which helps to disburse the
information in market and persuade the behaviour of consumers. Hilton is multinational hotel
which serves their operations in many countries. They have the aim about development of the
best facilities to serve optimum to their different consumers. The growth strategy which
adopted by Hilton is diversification. This includes entrance in the new market with something
new value added service. This strategy has associated with the large number of benefits but
the organisation must have to build effective communication strategy. This will provide an
opportunity to become famous in market and attain competitive advantage. There are
numerous benefits of effective communication like grab large market share, ascertain the
support of other drivers and public. The strategy of communication which is adopted by
Hilton in the case of diversification is about Push communication (Zaman and et. al., 2015).

This will includes about the deliberant deliverance of information about their existence and
the new services in between the market. This strategy force the consumers to focus on the
news and advertisement provided from the organisation side. One of the importance and
benefit which cab be attached with acceptance of this strategy that help to made robust entry
in market where they easily attain the attention of consumers in comparison to others
competitors. In todays market the one who can get success which have effective and
dominant strategy which differentiates it from others. Adoption of push strategyhelp thee
Hilton to made dominant entry within the new market and grab the large market share. Once
the organisation is able to enter effectively in new market then they have large number of
option to adoptand to capture the whole market. This helps Hilton to become successful in
short of span of time in new market.
REFERENCES
Books & Journals
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in fishes, shrimps and sediment from a tropical river. International journal of environmental
science and technology. 12(7). 2349-2362.
Greer, G. (2018). Win in India: An Analysis of Market Entry Strategy Into India’s Food and
Beverage Industry.
Jones, C. L. and et. al., (2016). The Underlying Mechanisms for Nitrogen and Phosphorus
Removal in High Rate Algal Ponds Used to Treat Brewery Effluent; Harvesting Algae Using
Filter-feeding Fish; the Use of Brewery Effluent in Agricultural Crop Production; and
Duckweed as Wastewater Treatment Solution: Report to the Water Research Commission.
Water Research Commission.
Serbin, S., & Serbin, A. (2018). Bromic Heating Co business exposure project to the Chile
market. Economics, Management and Sustainability. 3(1). 79-93.
Zaman, M. and et. al., (2015). Fabrication and analysis of hydroxypropylmethyl cellulose and
pectin‐based controlled release matrix tablets loaded with loxoprofen sodium. Advances in
Polymer Technology. 34(3).