Hospitality Industry Pestle Analysis

The assignment requires a comprehensive analysis of the hospitality industry using the PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) framework. It involves identifying and discussing the various factors that affect the industry, including government policies, economic trends, social changes, technological advancements, legal regulations, and environmental concerns. The assignment also includes a review of existing literature on the topic, with references to relevant studies and publications in the field of hospitality management. A detailed pestle analysis is required for each factor, providing specific examples and case studies from the industry.

The contemporary
Hospitality industry

Table of Contents
INTRODUCTION...........................................................................................................................3
Project 1...........................................................................................................................................4
Examine the current structure, scope and size of hospitality industry........................................4
Hotel Hilton structure and interrelationships among different departments:..............................5
Direct and indirect impacts of hospitality industry on UK economy and other countries also.. 5
Analysis of how global growth , franchising and licensing development contributed to
economics of hospitality industry ..............................................................................................6
Evaluate different range of operational role in Hilton Hotel ....................................................6
Review the skills requirements for the roles mentioned above for the Hilton hotel ..................7
Analysis of some contemporary factors driving skills shortage and high labour turnover in the
UK Hospitality industry .............................................................................................................7
Analysis the impact of skills gaps on hospitality business in the UK and recommend valid
solution to address the skills gaps...............................................................................................7
CONCLUSION................................................................................................................................8
PROJECT 2......................................................................................................................................8
PESTEL analysis of London:......................................................................................................8
SWOT analysis of Hotel Hilton:...............................................................................................10
Factors that impact on the supply and demand of product and services .................................11
Analysis the implication of current and potential trends affecting the hospitality industry in
UK.............................................................................................................................................11
Different operational role within hospitality sector.................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality industry is a large group of tasks and duties that gives services to customers
to give them good memories and experiences. Its main focus on giving satisfaction to their
consumers. This business sector is unique in oneself reason is it depend on mainly on income
and leisure. In hospitality industry mainly three major area covers that is accommodation, food
and beverages and travel and tourism. The common goal of hospitality industry is satisfying
wants of consumers. This report study upon the various factors and issues that faced by hotel
Hilton while operating in London. Hotel Hilton is brand name in full services of hotels and
resorts and comes under flagship of American hospitality company. This report covers various
aspects of hospitality industry such as different types of business that hospitality industry covers.
It also focus on operational and functional departments in hospitality industry. Moreover it focus
on contribution of hospitality industry on every type of market and operational roles of
hospitality industry (Lawand et.al. 2013).
Project 1
Examine the current structure, scope and size of hospitality industry
This report examines the roles and responsibilities of different factors in hospitality
industry with it explains different types of businesses that operate within the hospitality industry.
Hotel Hilton aimed to expand its market share by exploring new opportunities in new market.
Definitions and explorations of different types businesses within hospitality industry.
There are different service sectors that included in hospitality industry and make it
complete. And these are as follows:
 Lodging- Accommodation:
In lodging and accommodation sector consist of luxurious hotels and resorts and camp
grounds. In accommodation sector which is large sector of hospitality industry consist of bed and
breakfast with other services provides lodging services. There are three main type of hotel and
accommodation sectors that is lodging, suites and resorts services that make complete hospitality
industry (Legrand,Chen, Sloan, 2013.
 Food and beverages:

In food and beverages industry consist from simple bistro to high profile restaurants and
other categories that included in it. There are many other business establishments that included in
food and beverages industry that are as follow:
Quick service establishments in which consist serving quick snacks, drinks and food and mostly
are self services in that norms. Other type is catering services that provide their services on
special occasions such as birthdays, anniversaries etc. and last one is full services restaurants in
which whole services consist of drinks, meals and other food services consist (Lub,and et.al.
2012).
 Travel and tourism:
Travel and tourism is vast sector of hospitality industry in which consist of trains,cruise,
marines trips and other services too. It is backbone of hospitality industry that needs innovation,
strategy and services at each and every step. There are many purpose in which consumers avail
travel and tourism industry for entertainment, businesses, education and holidays and other
things also.
 Entertainment industry:
In entertainment industry consist of Marines, sports and games, cruise and night clubs
that give experiences to their consumers and that includes in hospitality industry.
 Timeshare:
In timeshare people take and book some place to spend some time at specific place to
spend leisure time in which consist of convention centres and villas and resorts(Pechlaner and
Volgger, 2012).
Hotel Hilton structure and interrelationships among different departments:
Hotel Hilton follows hierarchy of power and responsibilities and shares responsibilities
according to the post and designation of employees. In an organisation, all the departments have
coordination among them to share their responsibilities because all departments of hospitality
industry connects with each other very closely. In hospitality sector, there are various department
which are interrelated with each other such as marketing and human resource department are
interconnected with each other through this they are attracting skilled and qualified employees
who have required capability.

Direct and indirect impacts of hospitality industry on UK economy and other countries also
In current senior hospitality industry is try to cover more market or enhance their
business rapidly and it is beneficial for both hotel as well as local, national and international
economies. Hilton Hotel contribute in growth of local, national and international economies,
which is describe below:-
Local economy- By satisfying the need and demands of guests and customers in Hilton
hotel is contributing in growth of local economy in the London. Through evaluating and analysis
it is identify that respective hotel has enhance the satisfaction of customers and convince them to
spend more on expensive services that leads to growth of local economies (Radojevic,Stanisic.
Stanic, 2015).
National economy- The Hilton hotel has created employment for the various people
through which they improve their standard of living and satisfy their needs. It is evaluated that
respective company and hospitality industry helps in enhancing growth of country by developing
approx 330 new jobs in United Kingdom.
International economy- Hospitality industry and Hilton hotel contribute in growth of
international economies by developing new jobs opportunities for the unemployed people from
worldwide, respective industry has create approx 6 millions new jobs. In United Kingdom,
Hilton hotel can gain higher opportunities in order to attract large number of people.
Analysis of how global growth , franchising and licensing development contributed to economics
of hospitality industry
Hospitality industry are gaining global growth by contributing some share of income and
revenue in the country economy. This will assist in enhancing growth rate by distributing variety
of products and services among world wide customers. On the prospective of Hilton hotel, they
use franchising and licensing options which help them in increase their presence on worldwide
economies (Raub, Robert ,2013).
In addition to this, the effect of franchising has been particularly strong for the hospitality
industry which has experienced in getting world wide growth. The franchising system has
allowed some scare resources of organisation is to expand business which make sure about
quality of products should be appropriate. Such factors help Hilton hotel for easily contributing
economy growth rate in better manner.

Evaluate different range of operational role in Hilton Hotel
Their are various various operational role in Hilton hotel which help them in smooth
functioning of within the organisation, some major of them are describe below:-
House Keeping Department- In Hilton hotel the basic role of house keeping department
is to manage guest rooms, insure cleaning of public area of hotels, cleaning of banquets, halls
and other food and beverage outlets,coordinate with other department of hotels, placing VIP
amenities in VIP rooms etc.
Front Office Department- It is the backbone for any hotel because they are the one who
directly connect to guest and deal with them. In Hilton hotel role of respective hotel is to
welcome guests, attend phone calls and handle emails.
Human Resource Department- In Hilton hotel human resource department ensure
hiring of right people at the right place. They also conduct training sessions for the new
employees so that they enhance their skills and know proper way to do particular
work( Williams,2012).
Review the skills requirements for the roles mentioned above for the Hilton hotel
Their are different skills and ability are required for the different job it is based on the
requirement of particular jobs. Skills Required for above describe jobs for Hilton hotel are
mentioned below:-
House Keeping Department- Skills required for the respective departments at Hilton
hotel are highly punctual, patently respond to customer quarries, friendly nature, good
communication skills, confident and so on.
Front Office Department- Major skills required for front office departments at Hilton
hotel are confident, soft spoken, good communication skills, problem solving nature, punctual,
friendly nature and so on .
Human Resource Department- At Hilton hotel skills required for human resource
department are decision making quality, team leading, communication skills, listening skills,
training and development skills, problem solving skills and so on.
Analysis of some contemporary factors driving skills shortage and high labour turnover in the
UK Hospitality industry
There are some factors which driving the skills shortage of employees in Hospitality
industry are like when they are not providing appropriate training and development program, not

organize activities to them which teach them about the work. There are some factors which
driving towards skill shortage such as lower capability, lack of techniques and methods and poor
training sessions. These are directly effect on employees skill so they does not perform in good
manner and are not able to gain higher profitability or income. Along with this, they required to
motivate them towards work which help them in perform effective job role for acquiring good
appraisal.
Along with this, high labour turnover is the main driving factor that occurs in the hotel
due to some reasons. Such as sometime, hotel manager behaviour is bad towards their employees
so this will demotivate them in order to performing work. The another main reason behind high
labour turnover rate is unsatisfied with the job role (Williams, 2012).
Analysis the impact of skills gaps on hospitality business in the UK and recommend valid
solution to address the skills gaps
In Hilton hotel there is great impact of skills gaps because if employees did not have
sufficient and appropriate skills to communicate with employees so they will not able to satisfy
their customers. Then it will provide advantage to their competitors and it create negative impact
on the image and name of respective hotel in the market.
This issue and problems can be resolve by giving appropriate training and development
session to their employees through it they will enhance their skills, knowledge and ability of
employees which is beneficial for them in long run. They can also organize activities and
programs which motivate respective hotel employees and leads to profit ratio and growth in an
organisation. The evaluation of employees and staff is done in proper basis so that employees
can know their weakness and over come it and improve their performance in respective hotel.
CONCLUSION
From the above mentioned point it is conclude that Hospitality industry has different type
of business which provide different products and services accordingly and it help in increase
their business and profitability. Their are different roles in operational functions in Hilton hotel
which required different skills and ability to work their. Hilton hotel also help in growth of local,
national and international economy. Their are various impact of skills gaps on hospitality
industry and there is also solutions for that.

PROJECT 2
INTRODUCTION
This report focus on the current and future issues and opportunities that focus by
organisation in hotel Hilton before expand its market share and its competitors in new market at
time of launching new product and services (Bharwani and Butt, 2012).
PESTEL analysis of London:
Pestle analysis of frameworks aim to address the political, economic, social and
technological, environmental and legal issues while operating in different country.
Political factors:
UK is one of most powerful country in world wide. Political stability that impacts on
business of organisation however some reasons that created troubles in political stability that is
Brexit some believes that it creates chaos and others consider it as door for opportunities that
helps in stability in market. It also the destination that is popular for foreign direct investment.
London is popular city for investments in world wide. Many industries such as sports,
technological, grocery and many other industries have found enormous opportunities in London
city and invest in it. It has corporation tax which for the organisations that is approximately is
19% which is good indicator. So according to different indicators it has been observed that there
are many more indicators that helps in evaluate about sound economy of London and there is
great opportunities for Hilton to expand in that market (Boella and Goss-Turner, 2013).
Economic factors:
It is very important factor that give explanation and knowledge about economic condition
before launch a new product in new market with different attributes. UK is the 5th largest
economy in world in perspective of GDP. Sometimes recession in economy create trouble for the
economy but government take necessary steps to make reforms in country. Sometimes in UK
cost of importing goods and services that indirectly affects living of consumers and also affect
business of UK. In UK inflation rate is also high that impacts negative on economy and low
interest rates is also other reason that affects negatively on economic stability of London
economy in current and future endeavours. If economic rate is higher so automatically hotel
room price increased which negatively impact on Hilton profitability and income level.
Social factors:

It can be analysed that London is great consumer market and largely population of old
age between the age of 65 to 85. that impacts on both labour market and health and medical
sector. There is lot of needs for people to understand the needs of older people and other
opportunities also exist in other sectors also (Brotherton, 2012). If Hilton hotel offer guest
desired services and adopt latest social trends which attract large number of customers towards
them.
Technological factors:
UK is one of most techno savvy country that both financially and technological stable
and hub in whole world. A lot of investment and development is spread in all over world that and
that is country which invest lot of money in technological advancement in countries prosperity
and development. Hilton hotel also adopt new technology and methods which help them in
keeping records and details of their each guest in proper manner. If they use such techniques so
they can easily gain higher profitability and income.
Environmental factors:
London is most eco-friendly country which focus on producing less polluted goods and
services and sometimes it faces weather challenges. Weather of London creates huge
opportunities for its economy because it creates huge of opportunities for localities development
and save to environment. Hilton hotel required to analyse their external and internal environment
which ensure to feel people comfortable and healthy. If their surroundings are not clean and they
throw waste products around their location so this will create negative impact on people mind.
Legal factors:
There are many rules and regulations that works in protest of rights of others in London.
In country Employment act 1996 and equality act 2010 works to protect their rights. It is
required for hospitality industry is to follow all legal rules and regulations in better manner. If
they are not adopt such rules and norms so this will create major issue within an organisation by
government.
SWOT analysis of Hotel Hilton:
In SWOT analysis consist of strengths, weaknesses, opportunities and threats.
Strengths:
There are many strengths that made Hilton as brand name in whole world that are as
follows:

brand acknowledgement:
Brand recognition is on peak of hotel Hilton it spread in almost whole world. That have
positive impact on the customers.
Administration and Items quality:
System of management is very solid of hotel Hilton that gives positive impact on the
consumes that give motivation to employees and attract lot of consumers in present scenario in
world wide (Chen and Shen, 2012).
Weaknesses:
There are many weaknesses of hotel Hilton that face by them:
Not much developed network:
it has wide area in which spreads hotels and chain of series that connect with each other
in Hotel Hilton. But there is not solid connection of networks in system that spoils the whole
structure of Hilton.
Higher dependency:
Hotel Hilton faces the problem of higher dependency on different factors that negatively
effect on economic condition of Hotels industry. It has high relies on proprietors (Hall and
Gössling, 2013 ).
Opportunities:
Relationship management:
it has strong relationship management team that rarely observe in other industries in
hospitality industry. It uses more leadership specialist to best management practices.
Procurement of neighbourhood inns:
the neighbourhood lines and other groups helps to eradicate local competition that helps
in building strong relationship with customer's.
Threats:
Exceptional rivalry:
competition is very fierce in market that also impacts on business of Hotel Hilton and
affects its proceedings (Jones, Hillier,Comfort, 2016).
New entrants:
There are no. of entrants that enter into market and that affects economic power of Hotel
Hilton.

Factors that impact on the supply and demand of product and services
Demand and supply of product as well as services within hospitality sector get affected
due to several factors. All these factors give negative as well as positive impact some of them are
as follows :- Price fluctuations – It is the strong factor which directly give impact on the demand and
supply within hospitality sector. If price of Hilton hotel room will increase then average
customer will not going to book these because they think it is not that much worthy so
demand of the room will decline. This result in cutting down production which will
hopefully change value of the product. On the other hand, reducing price of a product as
well as services may result in increasing demand. Such practices indicate that the
customers start feeling that suddenly value of product get increase. Tourism season – In hospitality sector tourism season comes at that time demand for
Hilton hotel product will increase. Whereas, in off season their will be no tourist which
directly result in decreasing demand as well as supply of product and services.
 Income level of clients – Demand of customer generate as their income level if an
individual financial gaining will increase then their demand for products and services of
Hilton hotel will automatically enhance (Kandampully, Zhang and Tand, 2015)
Analysis the implication of current and potential trends affecting the hospitality industry in UK
Hospitality is the widest and fast growing sector as well as help in development of
economy. Their are several current and potential trends emerging in hospitality industry
explanation of these are as follows :- Internet services - With the assistance of internet services Hilton Hotel is providing
online services to their customers. They can visit site of the respective hotel and explore
things such as room, food facilities, gym, pool site and so on. Direct Booking – As per the emerging trend in hospitality industry Hilton is providing
direct booking option to the customers. By using internet services as well as platform
such as Facebook, Trip Advisor, Yelp and similar business pages.
 Tracking facilities – It is also one of the emerging trend in hospitality sector that family
member of travelling person can track their location which is important for safety of
travellers.

All these are emerging trend in hospitality industry which must be implemented by
Hilton Hotel for providing better services to their customers as well as gaining competitive
advantages (Köseoglu,and et.al. 2013).
Different operational role within hospitality sector
There are several operational role which is performed by specialist or manager within
Hilton Hotel. Some of them are as follows :- Food service– In hospitality industry, the role of operational department is to offer
variety of food services and facilities that are required by guests. The main role of food
service department is to maintain food quality and prefer customers choice.
 Hiring new employees – The another operational role in hospitality industry is to select
those employees who have skill and abilities which are required for job position.
CONCLUSION
From the above report it has been concluded that tourism sector plays a major role in
economy of country. Role of Hospitality industry rises day by day and it occurs many current
and recent trends in market. Hotel Hilton aimed to expand its market share in London that have
lot of opportunities and accomplishments that increase its market share in different country.
There are many factors that affected in proceedings of hotel Hilton in current scenario. It has
describe different functions that essential for smooth functioning of hospitality industry in
different situations and their impacts on specific industry.

REFERENCES
Books and journals
Bharwani, S. and Butt, N., 2012. Challenges for the global hospitality industry: an HR
perspective. Worldwide Hospitality and Tourism Themes. 4(2). pp.150-162.
Boella, M. and Goss-Turner, S., 2013. Human resource management in the hospitality industry:
A guide to best practice. Routledge.
Brotherton, B. ed., 2012. International Hospitality Industry. Routledge.
Chen, T.L. and Shen, C.C., 2012. Today's intern, tomorrow's practitioner?—The influence of
internship programmes on students' career development in the Hospitality Industry.
Journal of Hospitality, Leisure, Sport & Tourism Education. 11(1). pp.29-40.
Hall, C.M. and Gössling, S. eds., 2013. Sustainable culinary systems: Local foods, innovation,
and tourism & hospitality. Routledge.
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some
personal reflections on corporate challenges and research agendas. International
Journal of Contemporary Hospitality Management. 28(1). pp.36-67.
Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
Contemporary Hospitality Management. 27(3). pp.379-414.
Köseoglu, M.A., and et.al. 2013. Linkages among business strategy, uncertainty and
performance in the hospitality industry: Evidence from an emerging economy.
International Journal of Hospitality Management. 34. pp.81-91.
Law, R., and et.al. 2013. Progress and development of information technology in the hospitality
industry: Evidence from Cornell Hospitality Quarterly. Cornell Hospitality Quarterly.
54(1). pp.10-24.
Legrand, W., Chen, J.S. and Sloan, P., 2013. Sustainability in the Hospitality Industry 2nd Ed:
Principles of Sustainable Operations. Routledge.
Lub, X., and et.al. 2012. Different or alike? Exploring the psychological contract and
commitment of different generations of hospitality workers. International Journal of
Contemporary Hospitality Management. 24(4). pp.553-573.
Pechlaner, H. and Volgger, M., 2012. How to promote cooperation in the hospitality industry:
Generating practitioner-relevant knowledge using the GABEK qualitative research
strategy. International Journal of Contemporary Hospitality Management. 24(6).
pp.925-945.
Radojevic, T., Stanisic, N. and Stanic, N., 2015. Ensuring positive feedback: Factors that
influence customer satisfaction in the contemporary hospitality industry. Tourism
Management. 51. pp.13-21.
Raub, S. and Robert, C., 2013. Empowerment, organizational commitment, and voice behavior
in the hospitality industry: Evidence from a multinational sample.mCornell Hospitality
Quarterly. 54(2). pp.136-148.
Williams, A., 2012. Understanding the hospitality consumer. Routledge.
Online
Hospitality Industry Pestle Analysis. 2018. [Online]. Available through:
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