Trends in the Hospitality Industry: Analysis and Future Scenarios

Strategy and the Global
Competitive Environment

INTRODUCTION
Trend is concerned with general change or development that takes place in industry and
as a result of that organisations operating in that industry have to change their internal processing
in order to maintain their survival and growth. In addition to this in terms of businesses this
industry includes restaurants, hotels and bars. These are two strategic tools and on the basis of
analysis from these tools later key trends will be identified for hospitality industry. On the basis
of existing trends of hospitality and also future trends of hospitality scenarios will be developed.
Scenario development is concerned with developing future trends and situations so that industry
or organisation can make long term strategic planning.
Industry Details
Market Scope- Market scope for hospitality industry includes different types of organisations
operating with industry and services that these businesses provide (Aggarwal and Padhan, 2017).
Accommodation services are provided where people can stay and these services are offered by
hotels, resorts and lodges. These businesses or organisation also offers services of food and
beverages, recreational activities, entertainment and gaming. In addition to these certain
businesses also offer entertainment, gaming and recreational activities along with services of
food and beverages. This means that hospitality industry has significant scope and involves
various types of businesses that provide extensive number of services to customers (Kansakar,
Munir and Shabani, 2019). Market scope of industry plays very important role regarding changes
in trends and development of new trends and industry that has large scope trends are also likely
to change quickly.
Market Segment- Market segmentation helps industry in gaining better insights about potential
customers so that industry can make right decisions to fulfil needs of target market. In hospitality
industry, there are different types of hotel that ranges from hotel with basic services to hotels that
provide luxury services to their customers. In context of hotels there are hotel from 1 star to 5
star, that serves requirement for customers with different needs and on the basis of affordability
of customers. In addition to this, there are different types of restaurants are also there that serve
requirements of different types of customers.

Market Size-.. However from 2021 the market size is expected to grow at CAGR 8% and reach
5593 billion in 2023 (Yang, Henthorne and George, 2020).
Hospitality is very important part of overall economy and contributes in different
elements of economy including employment opportunity and GDP in national economy. In UK
hospitality industry generated 20.7 billion GBP. Because of its overall size hospitality industry in
UK is fourth largest employer in country.
Key competitors-
In addition to hotel and food and beverages with this, there are several other
organisations operating within hospitality industry and different businesses of hospitality
industry. Businesses of hospitality industry also include Travel and Tourism (Kazmina and et.al.,
2020). Above discussed competitors in hospitality are some of organisations who own largest
market share in their respective businesses such as hotels and in food and beverages. These
competitors within different businesses of hospitality organisation also are important regarding
developing and changing trends within industry. This means that their practices and competitive
strategies play very important role in developing new trends as well as changing existing trends
within industry.
Hospitality Industry trends
There are different factors which directly affect the hospitality industry, which become
consider as true that hotels plays a primary role and affect some of potential tourists
(Goryushkina and et.al., 2019). Usually, it may include the different features such as theme
parks, additional fields, restaurant, lodging and event planning services. All of hospitality
industry can earn a lot of money and increase the revenue.
Nowadays, it has been rapidly changing the trends of hospitality industry because many
potential consumers are demanding more. They want all kind of luxuries accommodation
services, food and beverage facilities. These are always inspiring or motivating the guest to use
when they were visiting in restaurants, hotels etc.

As per consider the pestle analysis framework, it is best way to find all essential factors,
those are directly affecting entire business process. Social and environmental are essential part in
which play a significant role equally in strategic management. pestle analysis is kind of external
framework, which is always supporting the hospitality industry to examine the current trends of
business. Through analysis, it has been focused on the political, social, economic, technological
and legal changes in the business.
Political- this factor is related the major role especially in the economic condition of nation.
(Konovalova and et.al., 2019). But at certain level, government is always supports to sustain its
competitive advantage. It is the great way to charge large amount of tax on star category of
hotels.
Economic- Therefore, it is directly impacts on the behaviour of hospitality industry. All
capital state or province of every nation which means that different tourist arriving for purpose of
conferences, workshops.
Social- this type of factor is helping to determine the specific need or demand of potential
consumers to the hospitality industry. it is willingness to change the preferences of consumer.
Technological- Different hotels have been used the embedded modern technology, which
may consider as safe or secure.
Environmental- this type of factor is related weather change so that it would be consider
as important topic (Konovalova and et.al., 2019). There are lot of environmental pollution occurs
due to unwanted waste materials.
Legal- this factor is consider as essential for growth of hospitality industry. As per
consider legal factor, business should follow all kind of safety & heath legislation. This will help
for establishing the flexible working environment.
Analysis External factors, Impact on hospitality industry.
All necessary steps are taken by government so that it is directly affecting the hospitality
business. Sometimes, government has been taken important decision in which support for
industry in term of growth and development.