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