SWOT Analysis of Hotel and Tourism Industry

MANAGEMENT

Contents
Introduction................................................................................................................................3
Business Planning Report..........................................................................................................3
SWOT analysis...........................................................................................................................5
Market Research Report.............................................................................................................7
Conclusion..................................................................................................................................8
References................................................................................................................................10

Introduction
The report brings out a discussion on internal and external situational analysis, which
comprises of PESTLE analysis and SWOT analysis of hospitality and tourism industry. Apart
from this, the report has analysis of industry trend. This report also deals with an analysis of
how efficiently Marriott use its capabilities while introducing its new products and services.
Marriott international, an American multinational that has managed franchises in its broad
portfolio of hotels with certain lodging related facilities. I, as an intern started my internship
process in a hospitality industry, which is Marriott international in UK (Behaylo, Rehbein,
and Fort, 2015).
Business Planning Report
PESTLE Analysis
Political factors
Political factors have direct impact on hospitality industry especially in relation to
government regimes and terrorism. Political stability is an important factor to be considered
behind the flourishing of the hospitability sector. For example- Egyptian tourist is struggling
while developing the industry due to threat of governmental terror influences (Behaylo,
Rehbein, and Fort, 2015). Egypt has strived to grow much after 2011 even when the nation
has been facing a tourism crisis due to terrorism. When looking at the development of Egypt,
Asia and seeing them performing so well to great extent, the political conditions have to be
stable. Terrorism and UK Brexit are an important political situation, which affected the
revenues of the industry negatively. Moreover, the status of security, military apparatus in the
country and its reputation on the political landscapes affect the tourism.
Political factors affect the Marriott in the name of international relations, danger of terrorism
and political environment at popular tourist destinations. Other threat is the terrorist attack

and military flict, which could destroy international air travel away from the people. For
example- event that includes downing of the Malaysian Airlines Flight by the missile in 2014
that was fired by the Ukraine. Increasing international missions and the rise of the aggressive
new terrorist companies such as ISIS. These attacks can hurt the hotel with the scare away
potential guests for the need of costly security measures (Behaylo, Rehbein, and Fort, 2015).
Economic factors
This factor always remained a major influencing factor due to increasing demand and
consumer spending. However, labour market has been growing due to increase in spending of
personal disposable income and increasing population. Therefore, disposable income has
arisen the average hourly income too. Rising operational cost during the lean business time
creates pressures throughout the year (World Travel & Tourism council, 2017). Due to
recession, the consumers may cut down the travelling expenses.
Whereas, if the economy is enjoying peak seasons, then consumers will spend more on
leisure activities. Under these conditions, players include hotel brands and airline industries
are forced to cut down the prices to attract more demand. This resulted in reduced profits. It
is observed that every one percent increase in total expenditure in UK tourist industry
increase the employment by 0.89 percent. It is anticipated that by 2025 3.8 million jobs and
UK`s GDP will increase it by 10 or 11 percent (World Travel & Tourism council, 2017).
Economic turmoil in countries and collapse of stock market in china has reduced person`s
buying power and also their ability for the traveling.
Social factors
The growing economy in 2017 has flourished hotel industry. Moreover, the discount offers
will attract the customers and this way airline will also be benefited. Consumer preferences
for accommodation have been shifting in recent years. It is affected by personal preferences

where males want lean season to relax and children want holiday from schools and colleges
complemented by comfortable seasonal weather to enjoy. A rise in Air BnB remains a
challenge for hotel industry. Social factors for the sustainable future in Marriott hotel as the
number of people planned to increase it at the international level by 13 percent. Most
importantly, an average amount for the spending ranges between the $5955 to $8000.
Technological factors
This factor have emerged as a facilitator of demand for the hospitality industry. From
planning for an international trip to booking the airline and even for several marketing
purposes, technology acts as a biggest influencer. Technology enables the transfer of
information through communication, which bridges the gap among the different parts of the
world. Every tourist have started conducting research that try to attract more and more
discount offers to get best deals before finalising the booking. After 2017, cloud technology,
and internet of things affected the mobile technology (Evans, Vladimirova, Holgado, Fossen,
Yang, Silva, and Barlow, 2017).
Legal factors
Hotel industry is an inseparable from legal issues, which are highly correlated to its
operations. Food and beverage department should have licence for liquor in order to regulate.
Law is used to ensure that customers are consuming it safely. If any undesirable conditions
happened then the customer will be responsible for occurrence and risk tolerance. Both
labour and public security are two important concerns. Tourism include airlines that do not
lose focus of risk management because they are always at the risk of losing the market share.
Management is another aspect, which is vulnerable to legal issues. Licence agreement of
Marriott international should be clearly stated and communicated especially with its
franchisors (Ambardar, 2015).

Environmental factors
Sustainability is a key concern for a tourism industry. United nation has identified and
recognised officially 2017 as international year of sustainable tourism for development.
Environmental concerns that are important for tourist operators include transportation, hotel,
and food brands. As Aeroplanes can not fly in stormy weather and if any disaster happens
then it affects entire industry. Tourist do not flock to a particular area all the time in a year
because one would not like to go to any place near equator in severe hot (Evans,
Vladimirova, Holgado, Fossen, Yang, Silva, and Barlow, 2017). Climate disruption can lead
to disallowance of basic flight outlooks and does not allow the flights to travel due to worst
climate conditions. Falling oil prices can reduce travel expenses. Other potential l threat
through mong term environmental effect includes raised electricity cost as being created by
the Hotels in order to prevent the greenhouse effect by minimising the burning of coal for the
power plants (Evans, Vladimirova, Holgado, Fossen, Yang, Silva, and Barlow, 2017).
SWOT analysis
 SWOT analysis is a strategic planning tool or technique used by the company to
identify Strengths, opportunities, weakness, and threat (Bull et al., 2016). It is a
framework to analyse, evaluate the organisation’s competitive position, and finally
develop strategic planning through internal analysis in order to identify the potential
and current attributes and weaknesses (Bull et al., 2016).

Strengths
 Biggest potential of the hotel chain is its strict adherence to certain operational norms.
The code of conduct is undertaken to be designed by top-management because
execution of policies revolve around resources (Bull et al., 2016).
 Marriott International has its stake among 122 countries in the world with 600
properties in its umbrella and 1.2 million rooms to the credit (Marketing91, 2019).
 The company`s operations rely on innovation and most of its procedures are
integrated with innovation that ensure money.
 The company drive for competitive advantage and it continuously try to combat the
competition (Bull et al., 2016).
Weaknesses
Excessive focus on expanding the business that affects the maintenance standards of
services because the brand is diluting.
STRENGTHS
strong position
leading in the world`s market with strong
financial position
provide a wide range of satisfying products
and services.
Threat
Certain political issues and government
involvement are threat
high rate of substitution
WEAKNESS
Weak manamgment system
high state of debt
declining position in market
OPPORTUNITIES
merge with other firms and businesses in
the whole world.
Lack of awareness
Threat of new entrants for competition
SWOT

Every employee is given a set of procedures to be followed. The main stringent action is
to bring them to the moral of employees (Marketing91, 2019).
The company`s image is marred by continuous controversies where latest block of
personal Wi-Fi state privacy risks (Bohari, Hin, and Fuad, 2017).
Opportunities
People in the world have opened to luxury hotel especially for staying. This has become a
trend with a sharp incline in the developing countries.
This industry is still unexploited as Marriott supports LGBTQ community and its special
offer to same-sex couples (Marketing91, 2019).
Number of people who started travelling has increased for both work and pleasure. With
the help of tie-ups with the airline industry, hotel chains can exploit the available
opportunities (Bohari, Hin, and Fuad, 2017).
Threat
The company faces a lot of competition from other brands such as Hilton and Novatel
who are in pursuit to emerge as a market leader.
The economic global crisis and recession has affected the hospitality business severely
that became a reason for lower generation the revenues.
Star-rated properties often face a risk of terrorism, as they can become an easy target for
attacks (Bohari, Hin, and Fuad, 2017).
Market Research Report
Trend Analysis

Marriott international, an independent hotel has been catering the millennial, which
represent that around 50 percent of travellers to US by 2025. Global economy is an
important factor affecting the conditions of tourism industry (Bohari, Hin, and Fuad,
2017). Company has to define the strategy as per the preferences of different
demographic personality habits and traits. As a trend, the company should create its own
application because majority of guests are self-sufficient and tech-savvy, who are more
comfortable while using applications (Bohari, Hin, and Fuad, 2017). Hotel should provide
services with a multitude of languages and tailored experiences suitable for cultural needs
of international visitors. Apart from these, hotels are responding to well-equipped pools,
centres, and spas. Innovative wellness options are trending and provide a innovative
wellness options such as healthy food options, air purification, in-room exercises, yoga
spaces and vitamin infused shower (KOCAK, 2018).
Capabilities of Marriott international to introduce new products
The company is capable enough, as it has announced that its residential portfolio will be
increased by more than 70 percent in four years for both consumer as well as residential
real estate developers from Malaysia to Boston and Mexico to Bangkok. The company is
largest residential company in the accommodation industry (Bohari, Hin, and Fuad,
2017). The company has a pipeline of nearly 60 additional approved projects in several
location to construct resort destinations (Bohari, Hin, and Fuad, 2017). Number of buyers
of apartment house has been growing globally and the company is well-known brand and
is ready to welcome them to provide them a zone of homely environment and deliver a
different experience (Bohari, Hin, and Fuad, 2017). The company is expected to work
with excellent interior designers and developers that can help them to deliver successful
branded residencies to the market. Serving the demand well fuels more demand for the
branded residencies as it is a confluence of customer trends such as elevated will to reside

in open and walkable environment, evolving demographics, assuring greater quality
service to customers such as housekeeping, in-house exercise equipment, fitness facilities,
spa and dining (Tahseen, and Karney, 2017).
Conclusion
From the above discussion on hospitality industry, it can be concluded that this industry
contributes a considerable GDP to the economy. In 2016, travel and tourism contributes
to 3.4 percent in total GDP and it is expected that it will rise by 2.2 percent per year from
2018 to 2027. The council works with the government and several international
institutions that would create jobs and drive exports to generate prosperity. It is seen that
UN has designated 2017, a year of International Year of sustainable tourism for
developing. In recent years, the trends have been changing in this industry due to
customer growing preferences for holiday and breaks.

References
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