Hospitality Industry: External Factors, SWOT Analysis, Trends, and Impacts

This presentation explores the external factors that affect the development of organizations in the hospitality industry. It includes a discussion on the PESTEL analysis of Hotel IBIS London, SWOT analysis for a hospitality business, implications of current and potential trends, and the evaluation of external factors' impact on trends. The presentation also highlights the importance of adopting current trends and the abilities of Hotel IBIS London in the market.

Hospitality
Industry

Table of Content
 Introduction
 Access the external factors that affect the development of organisation
 SWOT analysis for a hospitality business
 Evaluate impacts of external factors
 Implications of current and potential trends in the hospitality industry
 Evaluate the ability of a specific hospitality business
 Evaluate how external factors impact on current and potential trends
 Conclusion
 References

Introduction
Hospitality industry is consider as one of the growing industry and they offer huge range of
products as well as services so that customer's requirement get fulfilled such as travel and
tourism, theme park, lodging and many more. The main aim of companies who are conducting
business at respective industry is to fulfil need as well as requirement of customers.
Organisations taken for this presentation is Hotel IBIS London Shepherds Bush which is
located at Hammersmith, London, United Kingdom.

Access the external factors that affect the
development of organisation
PESTEL analysis is considered as the framework that is utilised through marketers for
examining as well as monitoring the external factors which has an effects upon firm. So
the PESTEL analysis of Hotel IBIS London are discussed below:
 Political
 Economical
 Social
 Technological
 Environmental
 Legal

SWOT analysis for a hospitality business
Hotel IBIS London adopt SWOT analysis in order to conduct internal analysis so that they can
know about their capabilities and strengths which help them in taking proper decision.
Explanation of respective hotel SWOT analysis is given below:-
Strengths Weaknesses
 Location: The location of respective hotel is very appropriate which
help them in attracting more and more visitors such as near Cutty
Sark, Train Station and so on.
 Room facilities: This hotel provide all necessary facilities to
customers such as internet access, television, comfortable bed and
many others.
 Competitive strength: The respective hotel is operating at middle
level but in marketplace there are various other big hotel which
increase their competition.
 Financial factor: Hotel IBIS London is one of the famous hotel but
they are not financial strong due to which sometime they not able to
cope up with changes.
Opportunities Threats
 Expand globally: Hotel IBIS London can expand their business at
international level. That help them in increase range of profitability
and market shares.
 Huge competition: In London market there are number of hotel
which offer similar variety of products and services such as Green
Rooms, Best Western Plus London etc.

Evaluate impacts of external factors
External factor refers to those factors that will affect an organisation's business operations and
function from the outside as well as it cannot be controlled by company, they can also conduct
changes accordingly. Along with this, different factors of external environment impact on
development of Hotel IBIS London who conducting business at hospitality industry. Such as if
there is change occur in technology and according to which robots in hostel are in trends, then
according to this if respective company adopt this trend and technology then they able to
attract more and more customers toward their hotel in competitive marketplace.

Implications of current and potential trends
in the hospitality industry
In order to survive in marketplace it is essential for a company to adopt current as well as
potential trends because through it they able to gain competitive advancement. Along with this
it will also help in gaining other advantages like increase in customers, market shares,
profitability, stakeholders and so on. In context of hospitality industry there are various new
trends which Hotel IBIS London may adopt in order to conduct business in effective manner
as well as attracting customers.

Cont.…
From which some are mentioned below:-
 Robot technology
 Digitalised room key
 Sustainability technology

Evaluate the ability of a specific hospitality
business
For every company it is essential to adopt new as well as current trends so that they can run as
well as expand their business in effective manner. In respect of Hotel IBIS London, they have
various factors which seems as their abilities in order to develop products and services
according to current market trends of London. Such as they have highly skills as well as
professional staff who conduct their role in effective manner which lead to huge ratio of
satisfied customers.

Evaluate how external factors impact on
current and potential trends
As per the perspective of Wang, 2014, external factor refers to several elements which affect
business operations and functions from the outside and it can not be stopped by company, so it
is essential for them to change their strategies according to change in factors. These factors are
political, technological, economical, social, environmental and many others. Through all these
factors management of Hotel IBIS London able to identify as well as adopt current trends
properly which help them in enhancing their profitability ratio and market shares.

Conclusion
By analysing above mentioned topics it can be determine and summarise that in current time
hospitality industry is growing day by day at international level. It is so because this is
consider as one of the most profitable sector which provide huge opportunities for companies
to expand their business in successful manner. In this industry there are number of sub
businesses who offer variety of products and services in order to fulfil customers need as well
as requirement.

References
 Wang, C. J., 2014. Do ethical and sustainable practices matter? Effects of corporate
citizenship on business performance in the hospitality industry. International Journal of
Contemporary Hospitality Management. 26(6). pp.930-947.
 Wang, Y. F., 2013. Constructing career competency model of hospitality industry
employees for career success. International Journal of Contemporary Hospitality
Management. 25(7). pp.994-1016.

Thank You