Analysis of PESTLE Factors in Hospitality Industry

The provided assignment analyzes the impact of PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) factors on the hospitality industry. It discusses how government instability can affect organizational operations and highlights the importance of understanding internal strengths and weaknesses in decision-making. The document also explores various trends within the hospitality industry, including customer satisfaction and feedback, food waste reduction, and the changing role of HR professionals.

The Contemporary Hospitality
Industry

INTRODUCTION
Hospitality is one of the biggest industry in UK. It includes hotel, pubs, restaurants, leisure
companies etc. It produces around 4% of GDP of UK. It helps in overall financial rise in local
economy, regional economy, national economy. Hospitality industry have many segments like food
and beverage, accommodation, lodging, travel and tourism etc. The Milestone hotel is a 5 star rated
hotel at London, UK. Originally built as a house in 1884 and converted into the hotel in 1922. This
file will consider internal and external analysis of the hotel and how it helps in decision making
process, current trend in hospitality industry etc.(Edema, Iheanacho and Ekpe, 2017).
MAIN BODY
PESTLE Analysis
It includes the factors of external factors which affects the execution of busienss. It includes
following factors-
Political- Political factors affected on whole hospitality industry in direct way. Changes in
government and their policies impacting the hospitality industry. The many things include in
political factor such as war, terrorism, election and governmental policies make impact on the
whole industry through change in policies(Hotel and et.al., 2017).
Economical factor- It considers points like international trade, inflation, seasonality, taxation etc.
This all impact on hospitality industry in wide range. In past few years, the industry is making big
Illustration 1: PESTLE Analysis
(Source: PESTLE Analysis,2016)

contribution in financial growth. So it is not more impacted by the economical factor.
Social factor- Social trends give shape to the hospitality industry. There are differences in the
buyers exist in market with variations in choices, preferences and trends. There preferences
regarding lodging and accommodation make impact on the hospitality industry. Nowadays
preferences shift into private accommodation. Cabs and taxi brands are rising day by day.
Technological factors- Technology is in demand in all the industries. Current trends such as online
booking, cabs booking, online room service etc. Hospitality industry is influenced by these things.
Organisation required to meet demands of tourists (slam and Mamun, 2017).
Environmental factor- This factor includes thing such as environmental regulation, ecological
regulations, reduction of carbon footprint, sustainability etc. These all factors affect the industry.
Main impact of weather on hospitality industry because everyone prefer different season for
travelling. Airlines also affected by weather which includes in hospitality industry.
Legal- Legal obligations in tourism industry is required to be looked after. Various laws like
employment law, health and safety law, impacted the industry. Airlines in hospitality industry
focuses on risk management because customer safety is the priority of the industry.
SWOT Analysis of The Milestone hotel
Strength
 It has strong distribution network that
can reach majority of its potential market
 Successful market strategies
 Effective customer retention schemes
 High quality of service provide of the
customers
 Good knowledge of the business
Weakness
 Debentures are high.
 Little global market share
Opportunities
 Opportunities to expand the business in
international market
 They can focus on research and
development
Threats
 Big threat of terrorism
 Risk of political instability
 Loss of key talent and key personnel
 Threat from competitors

It contributes in growth of The Milestone hotel. If the organisation know about its strength
and weakness then it can help the management to make decision on the basis of it. They provide
high quality of service to the customers so they can take decision to take feedback from the
customer about service delivery and it can provide better opportunity to the organisation to develop
its service(Jones, Hillier and Comfort, 2016). They have high level of debentures and it is the
weakness of organisation so it can help them to take any decision. Simply if the organisation aware
from its internal factors then it is easy to develop the organisation on the basis of it.
Emerging trend in hospitality industry
Smart rooms for operations automation- Demand of customers increase day by day. This is the
new trend that the customers want something extra in the hotel room. Nowadays hotel rooms with
AI to provide good services to customers. It is the device which used in the hotels to improve the
guest experience(Kandampully, Zhang and Bilgihan, 2015). Some can even be paired tools and
gadgets like guest phones, allowing the guest to control specific functions function of the room etc.
Direct booking- It is in the trend that every people book their required accommodation online. It is
the easiest way for securing the time and money as per different sites give discount on the online
booking. Sometimes the travel companies provide seasonal packages in which the customers get
higher discounting range and is easy for them to travel using online booking. Business will aim to
drive greater profitability by focusing on direct booking. Every business spend more time in
building brand recall and loyalty.
A continuing shift in focus to mobile- It is the world of technology in which every day comes with
innovation. In hospitality industry it is in trend that many things connected to the application of that
particular hotel and customers can easily approach to any information with use of mobile. Through
mobile they can open and close the door, food can be delivered easily in hotel room, and many
other service which can derived by the customers. Mobile app facility attracts customer to the
hospitality chain and it provides better experience to the customer.
Promoting through social media- One of the biggest thing which is used by every people in the
world is social media. Through different types of social media application many hotels promoting
themselves with use of images, services, food etc. The customers who take experience with the
hotels, share their reviews through live video and with different applications. Both customers and
hotel chain management share the reviews and promoting the hotels in direct or indirect way(Kim,
Vogt and Knutson, 2015).

Local food and beverages- It is also in trend that people who go for travelling, likes the local food
which serves in that specific area. They want to use the all things which used by the local people of
the area. Travellers use local food, clothes etc. to make their journey good. Hotel management says
that not provide the food with 500 menus, provide food with local and testy offering.
Trends adopted by The Milestone hotel
The Milestone hotel incorporated trend of online booking to improve customer accessibility. Hotel
have its specific website which through anyone can book the hotel room and the hotel also tied up
with different travel companies, which through customers can book the hotel.
Other trend which adopted by The Milestone hotel is mobile application which through customers
can use the all services of the hotel. This service is very helpful for the customers and they give
review on the bases of these services(Pirani and Arafat, 2016).
The Milestone hotel uses social media for advertising the hotel. The hotel uses different
applications like Instagram, Facebook, for advertising. Experienced customers also provide their
review with social media applications and they indirectly promote the hotel chain.
Capabilities of businesses in meeting current trends and developing products and services
The Milestone hotel has ability to develop itself with the current trends. The Milestone hotel
has good retention of customer supporting the hotel and its services as per current trends. Through
reviews and feedback from the customers, it can be developed. The financial health is good in
adoption of the innovative technologies. It leads to go through involvement of organisation that can
develop its product and services. Effective and comfortable staying helps evolve and rise the
operations of hospitality enterprise and with different demands of people, organisation can develop
itself. Hospitality firm has good experience making it easy to innovate and introduce new
innovation for them because they know the demands of high profile people(Radojevic, Stanisic and
Stanic, 2015).
CONCLUSION
Based on the study, it is concluded that hospitality industry contributed to economic growth
of country. There were macro elements affecting the whole hospitality industry. Governmental
instability affected the organisation too much. Internal factors helped the organisation in decision
making through understood its strength and weakness. Many trends which run in the hospitality
industry and some trends adopted by Milestone hotel to improve customer satisfaction level.

REFERENCES
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Online
Scanning the Environment: PESTEL Analysis. 2016. [Online] Available through:
<https://www.business-to-you.com/scanning-the-environment-pestel-analysis/>.