The Contemporary Hospitality Industry: PESTEL and SWOT Analysis

The Contemporary Hospitality Industry

Table of content
INTRODUCTION
PESTEL Analysis
SWOT Analysis
Current and potential trends
CONCLUSION
REFERENCES

Introduction
The hospitality industry focuses on cover different industries that involve food, drink as well as
accommodation. The role which is played by hospitality sector is important in improvement of
hospitality provision. In current assessment depend on hospitality sector so that they focus on take
decision in respect of diverse challenges which assists in the industry. There is assessment related to
Hyatt Hotel. It is determined as a biggest hotel chain possessing 750 hotels around diverse part of
world. There is an assessment of different sectors that is determined as a part of hospitality industry
and diverse operational as well as functional department. There is assessment of operational roles in
order to examine diverse function that is considered as a part of hospitality sector. In this report, there
is a discussion regarding SWOT & PESTEL analysis in order to assess internal or external
environment which impose direct effect on the company and there is also an explanation regarding
effect of external factor on improvement of organisation in hospitality sector. There are different kind
of example related to appraisal of implication related to current trend in hospitality sector and
assessment of ability of hospitality organisation in order to improve goods and services that meet
specific need and how external environmental factor imposes direct effect on development of current
as well as potential trend within hospitality sector (Alegre and Berbegal-Mirabent, 2016).

Meaning of digital disruption
Meaning of digital disruption
Background
Hyatt Hotel Corporation is determined as an American International
hospitality organisation that handle and franchises business, hotel resorts
and so on. The hotel was founded by Hyatt Robert Von Dehn as well as
Jack Dyer Crouch in year of 1957. They focus on performing work with
around 1, 00,000 employees who perform their work within the hotel in
900 properties with 20 brands within 60 countries.

PESTEL Analysis
 PESTEL analysis is determined as a tool and technique which is adopted for purpose of making detailed
assessment of external environmental factor. In reference of hospitality sector, this kind of factors must be
changed very rapidly and there is a requirement to emphasize on method that imposes direct effect on
internal function of hospitality brand. In present report, there is a segment of a way of such kind of factors
imposes direct effect on the whole functioning and operation of Hyatt. It offers a great detail regarding
operating challenges which is faced by Hyatt hotel in order to achieve competitive advantage over rivalries
at market place (Andrades and Dimanche, 2019).Thus, the PESTEL analysis of chosen hotel is going to be
mentioned below:
 Political factors the government possess stronghold over changing nature within hospitality sector. There
is not such as they do not possess any kind of travelling restriction by government that leads to no
movement of individual person around border since there is an effect of COVID-19. The situation and
condition resulted in adverse effect on organisation of hospitality sector. Therefore, the Hyatt hotel has
affected in adverse way from March 2020 with situation or condition of Lockdown around diverse part of
globe and there is not any kind of business as well as a creation of revenue on diverse part of hospitality
brand. Due to political stability as well as significance of lodging industry in countries economy it imposes
positive effect on operations of business organisation. And, due to this, the company do not change their
policies and conduct their operations in proper manner. In addition to this, due to increase in corruption
level within service sector it imposes negative effect on operations of organisation (Bani-Melhem, Zeffane
and Albaity, 2018).

Economic factor
 Economic factor The economic factor involved inflation rate, foreign exchange rate as well
as many more. There are different kinds of factors such as competition norms that impose
direct effect on competitive edge of organisation. They focus on using different economic
elements like growth rate, inflation rate, and growth rate and so on. In current time, the UK
possesses robust real property laws as well as contact that is secure. There is a long history
of using laws in fair way related to disputes within business organisation. The current judicial
procedure is connected as well as reliable. There is a several isolated instances related to
corruption that lead to investor assess corruption. Due to increase in COVID-19, it imposes
negative effect on the economic scenario. There is a slower growth of economy because
there is a decrease in personal disposal revenue of individual person that leads to threat for
hospitality sector. There is different kind of hospitality brands such as Hyatt has affected by
condition because there is a constant decrease in method the individual person perceiving
safety and security within hotel connected to decrease in recreational activity. In addition to
this, due to stability in host country currency, the organisation operates their business in an
appropriate manner that imposes positive effect on operations of organisation (Boxall,
Nyanjom and Slaven, 2018).