Value Chain Analysis of Hotel Industry

Hotel Chain Industry
Analysis

Table of Contents
INTRODUCTION...........................................................................................................................1
BUSINESS PLANNING REPORT ................................................................................................1
1. External factors that affect the development of the hotel...................................................1
2. Swot analysis of the park lane hotel and its impact on the decision making process........3
MARKET RESEARCH REPORT .................................................................................................4
1. Current and potential trends in the park lane hotel. ...........................................................4
2. Ability of the hotel to develop services through current trends.........................................4
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
Hospitality industry is a broad category of service sector that includes hotels,
transportation etc. The report will be based on “Park lane hotel”. It is a luxury hotel. It was
established in 1971.
This report will discuss that all external factor which affect the development of the hotel
industry and also conduct swot analysis of a park lane hotel. Report discusses current and
potential trends in the hotel industry.
BUSINESS PLANNING REPORT
1. External factors that affect the development of the hotel.
Political factor: Factors like increase in tax rate, changes in rules laws and legislations
can impact the working of the organisation. Like for example Brexit has laid huge impact on the
firm, as the number of travellers has been increased because of it which has enhanced the
profitability of firm.
Economic factor : Country economic also effect the hotel industry. Park lane hotel earns
maximum profit through the tourist. If country economic is good then chances will increase to
globalise their hotel. Park lane hotel develop when tourist also reached there. In other way
Customers can not spend money in hotels because of poor economic condition of the country.
So, development of Hotel industries depends on the economic.
Social factor : Hotel development depends on the customer satisfaction and customer
demands is getting changed time to time(Jiang, Cui and Faloutsos,2016). It is necessary for the
hotel that they should provide foods and services according to needs the customers. Customers
does not attract from the park lane hotel services when hotel did not fulfil customer requirements
like customer wait for food services. Hotel responsibility that they should provide services
according to the customers need.
Technical factor : Hotel industry affected by the technologies factor. It is necessary for
the park lane hotel that they should provide new technologies to the customer's(Bertozzi, Ali and
Gul, 2016). Tourist also take interest if hotel uses new technologies like through the mobile
application's customer can book hotel rooms in advance therefore number of customers
increased. Tourist can not book rooms in advances when hotel does not use digitalisation.
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Environmental factor: Environmental and weather changes are directly affect to park
lane. This factor plays vital role, especially in monsoon season. In that season peoples want to go
at another place for enjoy and fun. This will help to minimize problem and hotel is able to handle
all situations easily. So, that factor affect to hotel and its customer positively. When park lane is
not able to handle that situation effectively, then it gives negative impact on it(Köseoglu, Ross,
and Okumus, 2016).
Legal factor: These factor have both external and internal side. Government policies and
legal factors are directly impact on performance of park lane. The legal factor includes safety
and health law. Changes in transport law, visa policies may affect sales of company in positive
and negative both manner
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Illustration 1: pestle analysis
(source : Marketing strategy, 2019)

2. Swot analysis of the park lane hotel and its impact on the decision making process.
Strength
 Excellent customer support program.
 Financial capable.
 It provides luxuries facilities for the
customer satisfaction.
 Provide facilities at international and
national level customers.
Weakness
 High cost of the hotel services therefore
medium class customers does not
afford.
 High investment for skilled employees.
Opportunities
 Add new technologies and facilities.
 Globalisation.
 Increase in demand for fast food
worldwide.
 Digitalized media.
Threats
 Competitors with luxuries facility.
 Changing Government legislations.
Strength, weakness, opportunities and treats impact on decision making process of business.
Park lane provide luxuries facilities therefore they charge high cost for the services(Wang,2016).
Medium class customers does not afford park hotel services therefore management provide
discount offers. Thus, medium class customers can also use the luxury facilities. Management of
Park lane hotel also need to strategic skills for making strong competition.
Competitive affected to management decision therefore management make new
strategies for customer's attraction. Other luxury hotels uses new technologies for customer
attraction like robot. They serve all items through robot whereby customer's attraction and
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satisfaction also increased. That is why management of Park lane hotel need to take decision for
change their technology time to time(Rahimi and Kozak, 2017).
Park lane hotel can globalised in other country where customer demands high. This
opportunity affects the management decision.
Sometimes hotel management may also change there decision due to government
legislations like employment law. They may have to change hiring process according to the
government rule. They will have to also provide securities to their employees and customers
because of government rule. That is why hotel decisions impacted time to time for customers
satisfaction.
MARKET RESEARCH REPORT
1. Current and potential trends in the park lane hotel.
Park lane hotel has developed through current and potential trends(Radojevic, Stanisic
and Stanic,2015). Many trends are available which is followed by park lane hotel.
Digitalisation and technological advancement
Park lane hotel use new technologies for customer attraction. Through digitalisation park
lane hotel communicate with the international customers. Tourist can also use pre booking
facility from anywhere. That thing helps to develop park lane hotel. Uses of new technologies
necessary for the competitive environment.
Emphasis on health and well being
Park lane hotel provides luxuries services but now they focus on healthy food because
customers become very health conscious(Nieves and Segarra-Ciprés,2015). That is why
customers and tourists easily attracted by the services then hotel development chances get
increased.
Influx of international visitors
Park lane hotel provides pickup facilities of international visitors. For this, they hired
skilled drivers who easily understand visitors language. With the help of this facility visitors
affected and hotel development chances will increase.
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2. Ability of the hotel to develop services through current trends.
The park lane hotel is a luxury hotel which is established in U.K. They adopt the current
trends that is why entity stay on the top. Park lane hotel use currents trends like emphasis on
health issues and well being, influx the international visitors. Current treands helpes to develop
park lane hotel. Hotel has an ability to develop more facilities for customer satisfaction and
attraction. It is financially capable to innovate current trends in the hotel(Kuo, 2016). They
provide more facilities like online booking thus, customer get attracted. Park lane hotel develop
their services and fulfil customer needs through the current trends.
CONCLUSION
From the above report it has been concluded external factors which has affected the
development of the hotel positively or negatively. Mainly technically and economic factor
affected the number of tourist or customers. Due to swot analysis of park lane hotel also known
that all strengths and weakness whereby hotel adopted the current trends. Report emphasised that
park lane hotel has the ability to develop their services through current trends like digitalisation.
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