Impact of Hospitality Industry on Economic Development

The assignment provided focuses on the contribution of the hospitality industry to economic development. It highlights how the industry attracts customers, creates jobs, and stimulates local economies. The study also examines the external factors that affect the industry, including political stability, technological advancements, and customer trends. The analysis concludes that the hospitality industry plays a significant role in promoting economic growth and development.

The Contemporary
Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTLE Analysis of hospitality industry...................................................................................1
SWOT Analysis of Milestone Hotel...........................................................................................2
Current trends in hospitality industry..........................................................................................3
Ability of the hotel chain to develop products and services to meet current trends...................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Hospitality industry is the one of the biggest industry which contributes in economic
growth the country. It is the broad category of field in service industry. It considers
accommodation, lodging, travel and tourism, transportation, theme parks and more within the
hospitality industry. The Milestone Hotel is the five start rating hotel in London, UK. It was
introduced in 1884. This file will consider major task such as pestle and swot analysis of
hospitality industry, recent trends in hospitality industry and ability of hotel chain to develop the
products to meet with trends(Kandampully, Zhang and Bilgihan, 2015).
MAIN BODY
PESTLE Analysis of hospitality industry
This analysis refers to the external factors which affect the organisation though different
sources-
Political- Political factors consider the major point is political stability or instability.
New political party comes with new policies and new rules and it makes impact on the
hospitality industry as a whole. Whether it is political instability or terrorism, both make impact
directly on the industry. Tourism industry is the main earner of foreign currency for UK. This
industry is backbone of government(Jones, Hillier and Comfort, 2016).
Economical- Economic factors consider the factors such as tax rates, inflation, deflation,
interest rates, economic growth etc. Economic change make significant impact on the hospitality
industry. Wide number of people arriving for the purpose of conferences, meetings, seminars etc.
They come with bringing lots of expectations with them from hotels. Foreign currency matters in
this factor.
Social- Hospitality industry is based on social factors. Many customers' comes and go
with bringing demand from the hotels. Their taste and preferences make impact on the whole
industry. If the hotels fulfil their needs and wants then they will come again in the hotel, all is
about fulfil of expectations.
Technological- Technology is demanded by every people in the hospitality industry. All
the new trends are related to the technological field and it makes heavily impact on the whole
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industry. The customer wants full satisfaction in term of technology with the five star hotel and
stability depends on the technology.
Legal- Legal environment is essential for growth of hospitality industry. The factors
consider health and safety rules, employment law and many other laws. People get attracted to
leisure bases hotels which are legal and provide secure services(.Jauhari and Bharwani, 2017).
Environmental- Environmental factor just like change in weather have direct impact on
the industry because people have different preferences according to their mood. It makes heavy
impact on the hospitality industry. Even the airlines' industry is impacted directly by changing
weather conditions. Air planes cannot fly in stormy weather and if a disaster happens, it affects
the entire industry.
SWOT Analysis of Milestone Hotel
Strength
 Milestone hotel group built a strong
distribution network.
 Successful marketing strategies
 Strong dealer community(Bruns-Smith
and et.al., 2015).
 Successful record of developing new
products.
 Successful performance in new markets.
Weakness
 Gaps in product range sold by the
company
 Dependency on hotels
 Seasonable factors
 Low level of education of workers
 It considers in low status employment
sector
Opportunities
 Opportunities to introduce more
branches in the world.
 Trend of higher demands on quality will
add value to hospitality sector.
 Increasing globalisation leading to more
international travellers.
Threats
 Threat of competitors.
 Lack of education in workers, ruined the
image of hotel.
 Terrorism and political unrest.
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Swot analysis is helpful for the Milestone hotel in decision making process. The thing
which is needed to development is weakness of the organisation and through swot analysis the
organisation can know about its strength and weakness. The hotel can use this analysis to make
opportunities in the competitive environment. This analysis can help in decision making process
because all critical decisions depends on the internal factors of organisation(Santero-Sanchez and
et.al., 2015).
Current trends in hospitality industry
Trends of hospitality depends on the demand of customers. Customers exist in the world
with different taste and preferences and everyone demanding for the new. Their demand born a
new trend every-time. There are many trends in hospitality industry such as-
Online booking- There are new trends of technology in which people mostly like online
booking service. It is easy to online booking of the hotel and other travelling packages. People
book the hotels through internet with using different applications. It is in trend because time is
most important thing in the world and people want to save the save their time as well as money
as well. The online booking service gives some discount offers to customers and it is the benefit
of online booking(Ali, Amin and Cobanoglu, 2016).
Increased emphasis on health and well being- In today's world people are more
conscious about their health. They want safety everywhere they want to go. With the demand of
people, hotels are responding with well equipped with fitness centrers, pools and spas. Travellers
are expecting some innovative things every time. Hotels also provide insurance of the guest for
the time in which the guest take experience of the hotel.
Mobile technology- It is another technological trend in hospitality industry. The hotels
provide mobile technology to the customers through the mobile application of the hotel. With the
help of that application the customers can open or close the door, they purchase the limited
things as per the rule of hotel, they also can see the camera of their hotel room through the
mobile etc. It is the trend which performs by the big hotels.
Social media- Social media has made its goodwill everywhere. Maximum persons in the
world use the social media applications to share the reviews. It is the most common place where
everyone can post their reviews, images and live video etc. The hotels use social media
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applications to promote themselves among the people. They make advertisement on their
personal blog including the images and packages(Singal, 2015).
Appraising the implication of Milestone Hotel
Milestone hotel adopted the latest trends which through customers feel happy with their
experience. This hotel also provide the mobile technology to customers which through customers
can easily approval to the system of the hotel. They provide services with mobile technology
such as food service, water service, door lock and open service and payment service etc. Hotel
uses social media to promote and advertise the hotel(Slåtten and Mehmetoglu, 2015).
Ability of the hotel chain to develop products and services to meet current trends
Milestone has ability to develop product and service to with current trends. They already
used many kinds of technology for better guest experience. It is the five star hotel and it can be
approached by high level of people. The guests prefer to go to this hotel due to its services. The
hotel has good customer retention and it helps to develop its product and service regarding the
trends. The financial condition of is good to adopt the new technologies and innovation It
contributes in economic growth so with the help of government the organisation can develop its
product and service in wide area. Good accommodation and lodging helps to develop the overall
organisation.
CONCLUSION
From the above study it has been concluded that hospitality industry contributed in
economic development. It was the industry which attract the customers more and more because
mostly people liked travelling. Many external factors which affected the whole hospitality
industry. Political stability made critical imp[act on the industry. There were many trends in
hospitality industry which adopted by many of the high level hotels. Technologies adopted by
the hospitality industry for better guest experience. Mobile technology was liked by many of the
customers and it was the main reason to attract the customers.
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REFERENCES
Books and Journals
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.
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.
Jauhari, V. and Bharwani, S., 2017. An exploratory study of competencies required to cocreate
memorable customer experiences in the hospitality industry. In Hospitality Marketing
and Consumer Behavior (pp. 159-185). Apple Academic Press.
Ali, F., Amin, M. and Cobanoglu, C., 2016. An integrated model of service experience,
emotions, satisfaction, and price acceptance: an empirical analysis in the Chinese
hospitality industry. Journal of Hospitality Marketing & Management.25(4). pp.449-
475.
Singal, M., 2015. How is the hospitality and tourism industry different? An empirical test of
some structural characteristics. International Journal of Hospitality Management.47.
pp.116-119.
Slåtten, T. and Mehmetoglu, M., 2015. The effects of transformational leadership and perceived
creativity on innovation behavior in the hospitality industry. Journal of Human
Resources in Hospitality & Tourism.14(2). pp.195-219.
Bruns-Smith and et.al., 2015. Environmental sustainability in the hospitality industry: Best
practices, guest participation, and customer satisfaction.
Santero-Sanchez and et.al., 2015. Gender differences in the hospitality industry: A job quality
index. Tourism Management.51.pp.234-246.
Claveria, O., Monte, E. and Torra, S., 2015. A new forecasting approach for the hospitality
industry. International Journal of Contemporary Hospitality Management.27(7).
pp.1520-1538.
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