The Contemporary Hospitality Industry - Hilton Hotels

This presentation analyzes the macro and micro environment of Hilton Hotels in order to determine the forces and industry trends that can affect its operations. It includes a PESTLE analysis, SWOT analysis, and evaluation of the impact of external factors on the development of companies operating within the hospitality industry. The presentation also discusses the implications of current and potential trends in the industry and evaluates the ability of Hilton Hotels to develop services and products that will meet these trends.

THE CONTEMPORARY
HOSPITALITY
INDUSTRY
Hilton Hotels

Table of Contents
 Introduction
 PESTLE analysis in context of Hilton hotel, London
 Swot analysis for Hilton Hotel
 Evaluating the impact of external factors on
development of companies operating within hospitality
industry
 Implications of current and potential trends in industry-
 Evaluating the ability of Hilton hotel to develop services
and products that will meet current trends
 Conclusion
 References

Introduction
 Within the external macro environments in which Hilton Hotels operates in, there exist
various factors and forces which affect its operational and financial performance within
the hospitality industry.
 This presentation analyses the macro and micro environment of Hilton Hotels in order
to determine the forces and industry trends that can affect its operations.

PESTLE analysis in context
of Hilton hotel, London
 Political factor-
 These may impact chances of survival or profitability of
the organization are quite diverse.
 Political risks vary from sudden changes in current political
regimes or policies to civil unrest to major decision taken
by local and national authority.
 Political instability is one of the political factors that put
negative impact on Hilton hotel success.
 Due to this factor, hotel cannot be able to operate their
business across UK in effective manner. It may make firm
reluctant to invest in new business or enter new markets,
which is not good for business long run success.

CONT.
 Social factor-
 Emerging trends in customers lifestyles and growth rate of population are included in list of social
factors that impact on any company in positive or negative manner. In context of Hilton Hotel,
emerging trends in lifestyles of people impact positively as it drive most people or travel lovers
towards UK because it listed in one of the most popular destination places in the world. For
example, increasing number of youngsters from emerging economies like US and other seeking to
visit United Kingdom and more famous destinations for various purposes can be specified as an
essential social factor that affect effectively on firm in term of increasing their consumers base.
 Technology factor-
 Overall development and enhancement of technological infrastructure related to catering sector
may have great influence on Hilton hotel performance in London or across the nation. Matters
connected with use of energy and their costs and potential for innovation in sector can be
Categorized as essential technological factors.

CONT.
 Environmental factor-
 Government and guests concern for environmental sustainability put high pressure on Hilton
hotel and other operating in same sector to reduce their carbon foot print. It can be said that
hospitality industry becomes a point of criticism for polluting air, land and water as well as
overall environment particularly in most of tourist attractions such as forest, historical
places, hills, beached etc. It affects negatively on current business practices of Hilton hotel
as they have to make some instant changes within it which consume a lot of time and money
as well.
 Legal factor-
 Along with above factors, it also put impact on Hilton hotel, London may be positively or
negatively. These are also significant sources of external effect on firm performance, and
they include any modification in UK jurisdiction that affect hospitality industry and its
companies in direct or indirect ways.

Swot analysis for Hilton Hotel
 It is one of the most effective and beneficial framework used in context of many
firms as it helps in comprehending core areas of companies where it beats competition and
have benefits related to it in market.
 Strength-
 Service quality is the key strength of Hilton Hotel, London, as they cater the best
quality of services such as food, cleaning and other as well to its guests which cater people
overall satisfaction in effective manner. The management held by company is world-class
that keeps on bringing innovative and creative ideas to retain and attract consumers.
 Weakness-
 One of the biggest weaknesses of Hilton hotel is their lack developed network
across UK. They do not have enough number of inn connections in North America and
Europe to contend with range lavish five star inns operating there.

CONT.
 Opportunity-
 The best thing Hilton hotel can do to
enhance their performance and strength brand image at
global level is business expansion. It is one of the best
opportunities for company to develop network and
connections with emerging nations like N. America
and Australia. It has been analysed that Australia has
turned into the one of the world's biggest economy.
 Threat-
 Exceptional rivalry is the biggest threats for
Hilton hotel, competition among existing players is
very high in hospitality industry as it affects current
business plans and running strategies of company.

Evaluating the impact of external factors
on development of companies operating
within hospitality industry
 There are range of external factors available in business world that can affect in
negative or positive manner on hotels or businesses operating within above sector since for
so long. For example, technology development and advancement is one of the component
that impact positively on firm.
 It gives organizations like hotel sector a chance to gain attention of travellers all around the
world who wants better services and products during their whole travel journey. As it help
in increasing sales and profit margin of businesses because, more people invest more in
hotel and catering services.
 Visa restriction is legal factor that impact negatively on growth of companies as it restricts
most people to wants to visit London but unable to do this, due to this factor.

Implications of current and
potential trends in industry-
 There are present various current and potential future trends within
the external environments of the hospitality industries that can have a
significant impact on the operational and financial performance of business
operating in it such as Hilton Hotels. Most significant current and future trends
are as follows:
 Coronavirus: The current pandemic of Coronavirus (COVID-19) has had an
immense impact on the overall hospitality industry, with the entire industry
observing a resulting decrease in the total numbers of customers served owing
directly to the coronavirus pandemic.
 This trend has had an immensely negative impact on the entire hospitality
industry and if a vaccine is not found in this fiscal year, then this trend will
carry on to the future, with the operational and financial performance of all
business operating within the hospitality industry decreasing.

Evaluating the ability of Hilton hotel to
develop services and products that will
meet current trends
 There are several initiatives that Hilton Hotels can undertake in order to be able to address the
current and future trends present in the hospitality industries. Hilton hotels can install hand
sanitisers and dispensers at all of their operational hotels and resorts in order to safeguard their
employees and customers from the spread of the Coronavirus (COVID-19).
 Hilton hotels can also sanitise their hotel establishments and client rooms three times every week
in order to ensure that their establishments are not infected from the Coronavirus in any form or
manner.
 Further, Hilton Hotels can also procure the cleanliness certificate from the World Health
Organisation that assures the customers that their premises and operations are following the
industry regulated rules and guidelines towards curbing the spread of Coronavirus, through which
they can effectively ensure the safety and health of customers choosing to stay at the Hilton
Hotels.

CONCLUSION
 Based on the presentation it can be concluded that the micro and macro environment of
Hilton Hotels possess various forces and factors that affect the operational and financial
performance of Hilton within the hospitality industry.
 The presentation also identifies the current and future industry trends and analyses the
ability of Hilton to effectively address such industry trends.

REFERENCES
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