The Contemporary Hospitality Industry - Palace Hotels, Buxton

This presentation analyzes the macro and micro environment of Palace Hotels, Buxton, a popular hotel founded in 1868. It discusses the factors present in the macro environment, the impact of these factors on hospitality businesses, current and future hospitality trends, Palace Hotel's ability to address these trends, and the critical evaluation of the impact of macro factors on hospitality trends.

Unit 1 - The
Contemporary
Hospitality Industry
Palace Hotels, Buxton

Table of Contents
 Introduction
 Factors Present in Macro Environment
 Micro Environment Analysis of Palace Hotels
 Impact of Macro Factors on Hospitality
Businesses
 Current and Future Hospitality Trends
 Palace Hotel's Ability to Address the Macro
Hospitality Trends
 Critically Evaluating the Impact of Macro
Factors on Hospitality Trends
 Conclusion
 References

INTRODUCTION
 The operations of a business organisation are influenced and impacted by various
factors that are present to it in its internal and external environments.
 It is immensely important for the business organisations operating within the hospitality
industry to identify and take into account these factors in all their decision making and
operations, in order to operate successfully.
 This presentation analyses the macro and micro environment of Palace Hotels, Buxton,
a popular hotel founded in 1868 and offers accommodation, gym, spa, pool and event
services to customers.

Factors Present in Macro Environment
 In order to analyse the external factors present in the macro environment of
the tourism industries, we can make use of the PESTLE analysis as follows:
 Political Factors: There are various political factors present in the external
environments that can have impact on the Asian hospitality industry with the most
important being political stability.
 The political stability in Asia has positive impact on the hospitality industry as it allows
for global hospitality businesses to enter into Asian hospitality markets without
worrying about sudden political changes, revolts or revolutions which has negative
impact on the operations of hospitality industry.
 Economical Factors: One of the most important economical factors present in the
macro environments relates to the taxing laws and policies of the Asian countries.

CONT.
 Social Factors: The social factor relating to the current outbreak of
Coronavirus (COVID-19) pandemic has effectively halted the
operations of all business organisations operating within the
hospitality industries of Asia.
 Elected governments of various Asian countries have implemented
strategic lock downs which have put the operations of the entire
hospitality industry to a complete stop.
 Technological Factors: Technological factors such as online
booking, digital self check in and check out operations have had
immensely positive impact on the hospitality industry, as these
modern technological solutions allow for the customers of
hospitality industry to have a much better and positive experience,
with added convenience, which was not available to them before.

CONT.
 Legal Factors: Changes to legally mandated laws and regulations, which businesses in
hospitality industry are required to adhere to, regarding food quality and standards or
health and safety of hospitality customers can have a significant impact on the
operations and financial performance of hospitality industry.
 Environmental Factors: The weather and environment conditions at which the
business organisation operates within the hospitality industry of Asia has an immense
impact on the hospitality business.
 Since these factors are out of the control of the business, sudden or predictable weather
changes have to be factored in the business operations within the hospitality industries,
especially for hotels, resorts and lodging businesses.

Micro Environment Analysis of Palace Hotels
 The micro environment of Palace Hotels, Buxton can be analysed using SWOT
analysis:
 Strengths:
 Established Brand: The palace Hotel, Buxton, having successfully operated in hospitality
industries has established a valuable brand reputation and awareness.
 Strategic Location: The Palace Hotel, Buxton is located at a prominent position in Buxton's
conservation area, where the customers have access to overlooking the entire town.
 Weaknesses:
 Inexperience: The palace Hotel, Buxton is inexperienced in their current endeavours
towards global expansion into Asian markets, having not expanded prior to any other
markets.

CONT.
 Opportunities:
 Popular Tourist Attraction: With the UK being one of
the world's premier tourist attractions, the Palace
Hotel, Buxton has the opportunity to service millions
of potential customers.
 Renovations: The Palace Hotels, Buxton can renovate
their traditional interiors to aesthetically convert them
into more modern alternatives, which can help them
service the millennial generation effectively.
 Threats:
 Disease Outbreak: Future outbreaks of diseases and
viruses pose as an immense threat to Palace Hotel,
Buxton's operations.

Impact of Macro Factors on Hospitality
Businesses
 All external factors present in the macro environments have an immense impact on the
hospitality businesses.
 For example the current social factor relating to Coronavirus (COVID-19), has made
the previous daily operations of hospitality businesses completely redundant, with
businesses now having to adhere to numerous additional heath and safety guidelines as
are proposed by the various Asian country's governments.
 Even after this, most hospitality businesses are finding it particularly hard to service the
number of customers that they have been able to traditionally prior to the outbreak of
the virus, with acquiring new customers in the current times being even harder for
hospitality businesses.

Current and Future Hospitality Trends
 Current trends in the hospitality industry relates to the hospitality businesses providing
to the customers an experience that is aligned with the local traditions, customs and
practices, instead of providing them with an experience that they are used to.
 A current and future trend that is going to have immense impact on the operations
hospitality industry relates to the increasing focus customers pay towards health and
safety particularly towards exclusively staying at hotels that adhere to health
regulations and eating organic food and beverages.
 Another future trend of hospitality industry relates to seamlessly integrating all modern
and future technologies together in order to provide the best hospitality experience to
the customers.

Palace Hotel's Ability
to Address the Macro
Hospitality Trends
 Due to the current trend of customers
placing immense focus on the health and
hygiene measures provided by Palace hotels
to them, the hotel's administration has
placed dedicated hand sanitisers and
disposable napkins in all operational areas of
the hotel.
 The Palace hotel also offers choice of
organic food and beverage to its customers
as a direct result of the current trend.

Critically Evaluating the Impact of Macro
Factors on Hospitality Trends
 The social factor present in the external environments relating to the outbreak of
coronavirus (COVID-19) can exacerbate the current and future trend of consumers
placing high focus on their personal health and hygiene, with all business organisations
operating within the hospitality industries having to place immense significance on
their capability to provide standardised health and hygiene to their customers.
 On the other hand, if a vaccine to the coronavirus is not discovered, then many
businesses operating within the hospitality will have to shut down, irrespective of the
safety measures that they implement.

CONCLUSION
 In conclusion, hospitality business organisations are required to identify and take into
account the various factors present in its micro and macro environments for all their
operations in order to operate successfully within hospitality industry.
 This presentation uses PESTLE and SWOT frameworks to assess the macro and micro
environment of Palace hotels and their impacts.
 The presentation also appraises the current and future trends within hospitality industry
and assesses how Palace hotels can operate successfully using these trends.
 Finally, the presentation evaluates the impact of macro factors of hospitality industry on
its current and future trends

REFERENCES
 Books and Journals
 Arif, T.M.H. and Hossin, M.Z., 2016. A comparative analysis of internal and external
environments between Hotel Hyatt, UK and Hotel The Cox Today, Cox’s Bazar,
Bangladesh. IOSR Journal of Humanities and Social Science. 21(6). pp.13-22.
 Kara, E., 2018. A contemporary approach for strategic management in tourism sector:
pestel analysis on the city Muğla, Turkey. İşletme Araştırmaları Dergisi. 10(2). pp.598-
608.
 Leung, R., 2020. Hospitality technology progress towards intelligent buildings: a
perspective article. Tourism Review.
 Part, A. and Part, B., BHM16 Bachelor Of Hospitality Management 3.
 PAUL, J., Hospitality Business Strategy.
 Recommendation, P.D., HAT304-Impact On The Hospitality And Tourism Industry In
Kenya.