The Contemporary Hospitality Industry

This presentation provides information about the external factors affecting the hospitality industry, such as political, economic, social, technological, environmental, and legal factors. It also discusses the current and potential trends in the industry and their implications. The presentation concludes with a summary of the importance of PESTEL and SWOT analysis in the hospitality industry.

THE CONTEMPORARY
HOSPITALITY INDUSTRY

TABLE OF CONTENT
• Introduction
• PESTLE analysis
• SWOT analysis
• Impact of external factors

• Implications of current and potential trends
• Potential or future trends
• Evaluation of current trends
• Conclusion
• References
TABLE OF CONTENT

Hospitality industry is becoming one of the most fast growing and flourishing industry in
across the world. It had became a major revenue generator for many economies of different
countries. Present presentation contain information about various external factors which
affect the operations of hospitality industry.
INTRODUCTION

PESTEL analysis is an important tool to understand the external factors of market effecting
the profitably and growth of all business organisation. High competition exists in hospitality
industry, thus it become more important to timely conduct PESTEL analysis to understand
the present scenario of political, economical, social , technological, environmental and legal
factors.
PESTLE ANALYSIS

• Political : these factors shows the attitude and behaviour of political parties and
government toward a business organisation.
• Economical : These are the factors related with economy growth and development and
includes inflation, deflation rate, level and pattern of demand, etc. economic conditions of
UK are quite well, thus people of UK are having sufficient funds to spend on hospitality
industry.
CONTINUE….

• Social : It includes social and cultural behaviour of people having effect on their taste and
preference. Social trends are changing in UK as now people are getting more attracted
towards ride sharing against traditional taxi or cabs and now they also wants to have
private accommodations even at the time of tours
• Technological : These are related with technical advancement and new innovative ideas
of working. People UK are very fast in adapting technological changes.
CONTINUE….

• Environmental : these factors are mainly concerned with the impact of business
activities on environment and physical atmosphere.
• Legal : It includes all legal laws and regulation of a country that mandatory for all
business organisations. In UK, on recommendation of low pay commission report, 2009
minimum wage Advancement in technology has opened new scope for hospitality sector
by providing better.
CONTINUE….

SWOT analysis is mainly conducted to
understand the strengths and weakness of any
business organisation. It also provide a
understanding about prevailing opportunities and
threats exists in current market or environment
(Ozturk and et. al., 2016). It also provide relevant
information about competitors and how this
competition can be overcame.
SWOT ANALYSIS

Strengths Weaknesses
It is having a good brand image and excellent
advertising and promotion strategy. Operating
more than 1200 hotels across world with 100
millions customers showing level of services
and satisfaction provided by them
(Manganari, Dimara and Theotokis, 2016).
Limited market share and technology is the
only weak point of holiday inn.
CONTINUE….

Opportunities Threats
Providing new and better destinations to
travellers and also providing special seasonal
offers to attract more customers.
Large number of competitors is the biggest
threat and also the increasing operating cost
due to change in UK labour laws related to
minimum wage rate.
CONTINUE….

Hospitality industry is greatly affected by external factors. It depends largely on prevailing
social and legal conditions and its growth also depends on behaviour of political parties.
Advancement in technology has opened new scope for hospitality sector by providing better
and easy access to different services.
IMPACT OF EXTERNAL FACTORS

Continuously changing desires and needs of tourists put pressure on hospitality industry to
bring new trends. Current hospitality trends includes following services and facilities:
• Wellness and spa hotels : To get relived from stress and to have an improved quality of
like, wellness and spa hotels are in trend.
• Innovations in technology: Currently in Hospitality industry technology advancement is
in great trends. It provides different facilities like online search and booking of tour and
other services providing more convenience and satisfaction to customers.
IMPLICATIONS OF CURRENT AND
POTENTIAL TRENDS

• Ecology: Sustainable hospitality is also a new trend taking help of improved technology to
minimise the damage to environment. This help in attracting customers who are more
environmental conscious and thus returning the money they invested to protect environment.
• All inclusive hotels : they are mainly getting famous in Mediterranean countries and exotic
tourist locations.
• Health and well being : To maintain a healthy lifestyle while travelling is becoming the
new desire of customers.
CONTINUE….

Theses are the trends on which hospitality is focusing
more to ensure future success and growth. It can include
more green and ecological lodgings, development of
mega hotels providing multi-purpose facilities like
casino, theatre , etc. making use of intelligent hotels with
artificial intelligence like virtual fingerprint to perform
different operations etc.
POTENTIAL OR FUTURE TRENDS

Holiday inn which is a well known hotel brand of UK is providing all possible services to
its customers like best cosy soft and firm pillows and beds, facility of gather around, elevate
your travel with IHG rewards club, interactive running routes to make it more convenient
for customers to reach the hotel.
EVALUATION OF CURRENT TRENDS

It can be concluded from above assignment that hospitality is a very important sector for
development and growth of economy. It also shows the different business and departments
included in hospitality industry. Further conclusion can be made about different skills
required for running a hospitality business successfully. It also provide conclusion about
importance of PESTEL and SWOT analysis. Lastly, conclusion can be drawn about current
and potential trends in hospitality industry.
CONCLUSION

• Kruja, D and et. al., 2016. Empowerment in the hospitality industry in the United
States. Journal of Hospitality Marketing & Management. 25(1). pp.25-48.
• Liang, T. L and et. al., 2017. Transformational leadership and employee voices in the
hospitality industry. International Journal of Contemporary Hospitality
Management. 29(1). pp.374-392.
• Manganari, E. E., Dimara, E. and Theotokis, A., 2016. Greening the lodging industry:
Current status, trends and perspectives for green value. Current issues in Tourism. 19(3).
pp.223-242.
REFERENCES

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