Finance for Hospitality, Tourism and Events

This document discusses the finance aspects of the hospitality, tourism, and events industry. It covers topics such as PESTLE analysis, SWOT analysis, and Porter's 5 forces analysis. The document also highlights the importance of managing waste and environmental factors in event management.

Finance for Hospitality, Tourism and Events

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
TASK 1........................................................................................................................................4
TASK 2........................................................................................................................................5
TASK 3........................................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Glastonbury festival is a 5 day festival which is held in Pilton, England which includes
the performance of music, dance, circus, comedy and other arts. These all are performed over
these 5 days. Around 200000 people visit their festival every year and all the performance
depicts the British culture. The event is held regularly every year except for fallow years taken
mostly at 5 year intervals so that they can give the localities and land a break.

MAIN BODY
TASK 1
PESTLE analysis
Political factors
These are those factors which affects the long term profitability of the company. Though,
Glastonbury Ltd. is an event organising company the political factors can affect them too. They
have an event of 5 days in England where different contemporary performance takes place, so
there would be a lot of noise pollution at their events, the government may not allow this if the
localities are facing a lot of problems in the happening. Therefore, Glastonbury Ltd must have
strong relation with the government of the country in order for the event to be successful. Also, if
the government is changing rapidly then they might have to deal with this change too.
Economic factors
These are those factors which can affect Glastonbury Ltd at micro as well as macro level.
The event management may face problem with the change in the economy like change in the
interest rates, inflation rates, exchange rates etc., this will affect Glastonbury Ltd in raising funds
to organise their events. When the event happens and the economy is facing recession then this
would cause Glastonbury Ltd a great deal because most people would not want to spend their
money in time of recession.
Social factors
This is one of the most important factor for a company like Glastonbury Ltd because they
have to change according to the preferences. Though, Glastonbury Ltd is managing this factor
very effectively and efficiently as they were trending worldwide for the whole weekend this year
which means that there events are very attracting to the audience. But these are very
unpredictable and the taste and preferences can change anytime.
Technological factors
These factors have helped Glastonbury Ltd to a great extent in promoting and raising
awareness among the people as they have used social media sites like Instagram, Facebook etc.,
so that they can reach to a large audience and they can also take suggestion to the customer by
asking them for feedback on there online sites so that they can improve there event. These were
very difficult before but now with the use of different technology Glastonbury Ltd can do this
easily.

Legal factors
These are again the factors which can affect Glastonbury Ltd in there long run. When the
event is taking place Glastonbury Ltd should always keep in mind that they take all the measure
to avoid anything which is not according to laws and regulations of England. They must also do
all the paper work required to organise the event.(Lai, 2018.)
Environmental factors
Glastonbury Ltd should keep in mind that there event does not affect the environment in
any way. They should have proper measures in place to manage waste, avoid the use of plastic
etc., as these all will degrade the environment. Glastonbury Ltd can face intervention from the
local environmental community despite having license for the event.
TASK 2
SWOT analysis
Strengths
An event managing company must have a unique idea so that they can gain the attention
of the public. Glastonbury Ltd strengths include there strong image of the event all over the
world. They are quite famous, every year the event is being attended by 200000 people. Also,
there volunteer helps in raising millions of funds which are donated to the charitable organisation
all over the world, so there image is very good in the country and there event is supported by the
government too. They event depicts the British culture which have again being supported by the
British government to a great extent. Glastonbury Ltd has a highly motivated team which has
help them all over the years to organise a successful event.(Ateljevic and Page, 2017)
Weaknesses
The weakness an event managing company can face includes they might not have enough
fund, inexperienced staff to conduct the event etc., Glastonbury Ltd faces weakness like they are
unable to deal with the causalities that happens during the event, since the event is being
attended by around 200000 people the chances of any mishap is normal. A report has shown than
in 2000 a total of 3237 people were admitted in the hospital after the event which costed
Glastonbury Ltd a total of NHS £40000. Also, they are inefficient in the waste management as
there events have created a million gallons of raw material sewage which was disposed in the
River Whitelake.

Opportunities
For any event management company, the main opportunity is time, they must wait for the
perfect time in the year so that they could maximize the number of attendants for the event.
Glastonbury Ltd organise there event generally in the month of June, in the year 2019 there event
took place between 26-30 June. The other opportunities that Glastonbury Ltd have is since there
event promotes the tourism, they have the full support of the localities. Glastonbury Ltd uses the
current technology to promote there events and by doing this they have reached a large number
of audience all over the world.
Threats
Glastonbury Ltd faces threats like they have a lot of waste which is not dumped properly
and this has led to increase in the pollution to a great extent. The company will have to deal with
this or they might face challenges from the local environmental groups. A report from Mendip
District Council has shown that the festival of Glastonbury Ltd have detrimental effects on the
environment. The festival of Glastonbury Ltd created a total of 1000 tons of waste of which less
than 100 ton was recycled.
TASK 3
Porter's 5 forces
Threat of new entrants
Glastonbury Ltd is a highly profit making so this is a very attractive business, but the
requirement of high capital investment, government strict policies etc., creates a high degree of
barrier for the new entrants. Also, the industry have strong players already established well
enough, so for any new entrant it would be very difficult to establish their brand image.
Glastonbury Ltd is well supported by the government for a long time. So this threat of new
entrant is low. (Mohammed, Guillet and Law, 2015)
Threat of substitutes
Glastonbury Ltd faces a great amount of threat from the substitute like Tomorrowland, as
they are also in the same industry. Glastonbury Ltd must consider the factors like the price of the
substitute like the tickets of the events which are occurring at the same time, switching cost of
buyer etc which is very low or nil in case of Glastonbury Ltd., and according to this they must

set the prices of their tickets. Glastonbury Ltd threat of substitute is high.(Moutinho and Vargas-
Sanchez, 2018)
Competitive rivalry
This factor means that the higher the intensity of competition is there in the market the
lesser the price will be decreased to match the competition. Glastonbury Ltd operates in a highly
competitive environment as they faces competition from event management companies like
Tommorowland. They have to meet the expectations of the customer or the customer will not
prefer to go to there event. They must understand what type of program will attract the highest
number of audience and also they have to promote this as much as they can so that there is more
and more awareness about there event, thus making them competitive too. This concludes that
the competitive rivalry is very intense for Glastonbury Ltd.
Bargaining power of customers
The customers are very demanding, and want to get the best at the cheapest rate
available. They can often put Glastonbury Ltd, as there are a lot of substitutes available for them.
But since there customer base is so large that indiividial customers cannot affect them.
Therefore, the bargaining power of customer is low for Glastonbury Ltd.
Bargaining power of suppliers
Suppliers can only affect Glastonbury Ltd if the number of suppliers available to the
company is low. But clearly this is not in the case of Glastonbury Ltd as they have many
suppliers who can supply them with what they want. Also, the government is very supportive
toward Glastonbury Ltd so they can get the supply at cheap prices. Overall the bargaining power
of supplier for Glastonbury Ltd is again low. (Evans, 2015)

ANNUAL REPORT

CONCLUSION
From this report we have come to a conclusion that Glastonbury Ltd is very much
successful in organising and conducting event every year. They are properly managing all there
internal and external factors properly. Though, they need to work upon there weaknesses of
dumping waste correctly without affecting the environment.

REFERENCES
Books and journals
Ateljevic, J. and Page, S.J. eds., 2017. Tourism and entrepreneurship. Routledge.
Evans, N., 2015. Strategic management for tourism, hospitality and events. Routledge.
Lai, I.K., and et.al., 2018. Literature review on service quality in hospitality and tourism (1984-
2014) Future directions and trends. International Journal of Contemporary Hospitality
Management. 30(1). pp.114-159.
Mohammed, I., Guillet, B.D. and Law, R., 2015. The contributions of economics to hospitality
literature: A content analysis of hospitality and tourism journals. International Journal of
Hospitality Management. 44. pp.99-110.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.