Strategic Hospitality Management

Strategic Hospitality
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Overview of hospitality industry............................................................................................3
Strategy and sustainable competitive advantage in hospitality sector...................................4
Analysis of competitive threats faced by hospitality industry...............................................7
Analysis of strategic responses adopted by hospitality sector...............................................7
Recommendations..................................................................................................................7
CONCLUSION................................................................................................................................7

INTRODUCTION
Strategic Management is characterised as an ongoing process of planning, monitoring,
evaluating and assessing all the activities and tasks that are required to mitigate the goals and
objectives of company. In context of hospitality industry, creating strategic plan is critical to
success of company (Abrate and Viglia, 2016). This essay is based on hospitality sector which
consist of various areas within service industry including food and drink, transportation, lodging,
event planning, accommodation, theme park etc. This report covers key aspects of strategic
management along with strategic environment of hospitality sector. Moreover, current and
emerging developments and sustainable competitive advantage in the sector are discussed. Apart
from this, competitive threats that are faced by organisations and strategic responses to overcome
them are included. At last, some recommendations and conclusion is provided based on the
entire report.
MAIN BODY
Overview of hospitality industry
The hospitality sector of United Kingdom is highly represented by restaurants, hotels,
pubs and leisure organisations of country and contributes around 4% in GDP of nation. It is one
of the fastest growing industry of UK and since it attracts tourist in large number, it provides
various opportunities to investors. Owing to 3.6% contribution in gross domestic product, the
government of country has provided financial resource to several bodies associated to hospitality
for promoting tourism and attracting foreign investment (Hospitality & Tourism in UK, 2016).
An unprecedented has experiences by hospitality industry in recent years due to invest of
foreign investors in sector. As per the records of British Hospitality Association, hospitality and
tourism is comprised of around 1,27,000 businesses and the sector is accountable for rendering
employment to approximately 1.6 million individuals. In United Kingdom, there are around
22,000 motels, hotels and guest houses along with over 16,000 breakfast restaurants. In coming
years, it is expected that these figures will grow with more foreign investment coming in nation.
Strategy and sustainable competitive advantage in hospitality sector
Strategic management is concerned with the administration of resources of organisation to
accomplish its predetermined goals and objectives (Brotherton, 2012). It consist of various

activities including setting objectives, assessing competitive surroundings, analysing internal
environment of company, assessing strategies and assuring that administration rolls out strategies
all across the firm. Strategic management refers to the procedure of evaluating best policies for
administrators of business to carry out so that priorities and goals are achieved. There are some
key aspects of strategic management including strategic choice, strategy execution, internal
analysis of company etc. (del Mar Alonso-Almeida and Bremser, 2013).
In UK, hospitality industry has experienced stronger trading performance than anticipated
which driving a high growth in visitor rates and occupancy. The hotels operating in United
Kingdom have benefited from weaker British pound following influx of foreign travel and Brexit
poll. High performance is enjoying by hospitality industry in year 2018. For London, the annual
occupancy growth is expected at 2.3%. The growth in revenue per available room reached to 9%
in London. The average daily rates increases of 6.3% and 2.6% increase in occupancy rate. Since
2011, the rates have been steadily up by 70% and it is expected to grow to 76% this year (How
has the Leisure and Hospitality Sector changed in recent years?, 2018). Currently, the hospitality
sector represents around 10% GDP of UK. The main reason for development and growth of
hospitality industry is increase in budget sector. In hotels sector of UK, the options of budget
hotel are more that provides a boost to it. For example: Hampton by Hilton Hotels is one of the
leading brand that provides good accommodation to people in their budget. The another reason is
Brexit as it cause pound to take serious dip and potentially maximise the cost of import. This
makes the hotels cheaper which has present opportunities to businesses operated in hospitality
industry (Evans, 2015). Apart from this, economic recovery brings positive change in hotel
sector of United Kingdom. Despite of political uncertainty due to Brexit and global economic
slowdown, the hotel sector has continued to grow and remained vibrant. For instance: In London,
there were around 8500 hotel rooms opened in year 2017. In UK, many projects are underway
and could assist in ensuring that the outlook for sector remains sunny. For instance, around 13
new properties are scheduled to open currently in London market.