External Macro Environment of Australian Hospitality Industry

This report provides an in-depth analysis of the external macro environment impacting the hospitality industry in Australia. It utilizes a PESTLE analysis to examine the influence of political, economic, socio-cultural, technological, legal, and environmental factors. The report discusses the Australian government's support for the tourism sector, the country's stable economic conditions, and the impact of socio-cultural factors, including multiculturalism and an aging population. Technological advancements, legal regulations, and environmental considerations are also evaluated. Furthermore, the report explores the competitive landscape, including direct, product, service, and discretionary competitors, both locally and internationally. The conclusion highlights the industry's success factors while acknowledging challenges like the aging population and lack of services in inner cities. The report suggests strategies to enhance revenue by improving consumer satisfaction and adapting to changing consumer preferences. The analysis is supported by relevant references.

Running head: HOTEL & HOSPITALITY MANAGEMENT
Hotel & Hospitality Management
Name of the Student
Name of the University
Author Note

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Table of Contents
Discussion........................................................................................................................................2
External macro environment........................................................................................................2
Political factors........................................................................................................................2
Economic factors.....................................................................................................................3
Socio-cultural factors...............................................................................................................3
Technological..........................................................................................................................4
Legal........................................................................................................................................4
Environmental..........................................................................................................................4
Demographic............................................................................................................................5
Competition.............................................................................................................................5
Conclusion.......................................................................................................................................6
Reference List:.................................................................................................................................7

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Introduction
The hospitality industry refers to a number of fields that belongs to the service industry.
Hospitality industry chiefly includes event lodging, transportation, cruise line, event planning,
theme parks and other additional fields within the tourism industry. Being an exotic location,
Australia is considered to be an ideal destination for hospitality organizations to flourish. In this
report, the analysis of the External macro environment of the hospitality industry in Australia
will be performed. This report will include analysis of the impact of demographics, social and
cultural forces, economic conditions, competition from the existing organizations and technology
of the hospitality industry of Australia.
Discussion
External macro environment
The external macro environment analysis includes the uncontrollable factors that impose
a high impact on the decision-making of the management of Hospitality organizations in
Australia (Czinkota et al., 2014). By analyzing the above-mentioned factors, the Hospitality
organizations develop the capability of understanding the market of Australia and this, in turn,
will help them to implement effective strategies for enhancing the revenue of the organization. In
order to assess the hospitality market of Australia PESTLE analysis has been performed below:
Political factors
This factor refers to the degree to which the Australian government influences the
Hospitality industry of the country. Considering the fact that a huge number of the yearly tax
comes from the tourism industry of Australia, the Australian government is highly supportive.
According to the latest data, 8.2 million international tourists have visited Australia by the end of

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the month November. In order to enhance the number of tourists in Australia, the government is
providing immense support for establishing fast trains and new airports (Crotts, Buhalis & March
2000). Moreover, the Australian government has also approved high rise on a beach front. In
order to ensure the security of the tourists as well as the residents of Australia, rapid action to
prevent and defend terrorism is taken.
Economic factors
Being a highly developed country, Australia has a stable economic condition. As a result
of its strong economy, the hospitality and tourism industry of Australia has developed the
capability to incorporate modern facilities and highly advanced technologies like luxurious
hotels, pubs restaurants and technologically advanced transport system. This, in turn, attracts the
tourists to a great level. According to researcher, the Australian industry enjoy a revenue of 167
billion dollars by the end of the year 2015 (Kotler et al., 2016).
Socio-cultural factors
The socio-cultural factors in Australia highly dominate the hospitality industry in
Australia. Considering the fact that the society of Australia is multicultural, citizens of Australia
are found to have mutual respect and social inclusion. The religious acceptance of the majority of
the citizens of Australia is high and this has imposed a highly positive impact on the tourism
industry of the nation. However, the declining school population and ageing population of
Australia can be considered as a major threat to the Australian Country (Hotel News, Training,
Events: professional development for global leaders. 2018). Moreover, while the citizens of the
major cities of Australia enjoy advanced facilities and services, individual residing in inner cities
suffer from lack of hospitality facilities and services.

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Technological
Being a highly developed country, the technology used by the hospitality industry of
Australia is highly advanced. The Companies associated with Hospitality and tourism in
Australia have kept the track of the changing attitude of the consumers in this era of
modernization. For instance, consumers can easily book seats and order home delivery with the
help of their mobile phones or laptops. Moreover, Hotels in Australia are incorporating extra
guestrooms and power points for recharging (Travel News, Airline Industry News, & Hotel
Industry News by Skift. 2018). Along with that, satellite tracking systems along with
sophisticated communication is also provided to the consumers to enhance consumer satisfaction
as well as consumer loyalty.
Legal
Some of the legal factors that impose a high impact on the hospitality industry of
Australia are health regulations, liquor license and equal employment opportunities. The level of
foreign investment is high in the mentioned industry. However, the excessive amount of landing
tax for the port, aircraft and dock regulation, imposes a negative impact on the mentioned
industry (Research & Intelligence « Sabre. 2016).
Environmental
Considering the fact that tourism and hospitality are highly related to the environment of
a nation, the Australian environmental laws impose a high impact on the hospitality industry of
Australia (Pegg, Patterson & Gariddo, 2012). The mentioned industry needs to abide by the
environmentally friendly practices that include reducing the usage of plastics, harming
endangered species and reducing pollution due to vehicles.

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Demographic
Since the population of Australia is an ageing population, the restaurant and fast food
chain of Australia is experiencing a decrement in their overall revenue. This is because the chief
consumers of the fast food industry generally include consumers between the age of 15 and 40
years. The majority of the consumers of Australia include Generation X, that is individuals who
are born between the years 1960 to 1070. Moreover, due to the increased cultural diversity of the
citizens, the Australian hospitality industry needs to cope up with the different cultural choices of
each community (Mok, Sparks & Kadampully, 2013).
Competition
The companies associated with the hospitality industry of Australia are chiefly facing 4
types of competitors, namely, the direct competitors, the product competitors, the service
competitors and the discretionary competitors. The direct competitors include the manufacturer
of similar products and services. For instance, Vue de Monte and Testuya restaurants, two of the
most popular retardants in Australia are direct competitors of each other (Pegg, Patterson &
Gariddo, 2012). Discretionary or indirect competitors of the hospitality organizations of
Australia include new entries who are trying to gain consumer’s loyalty. Organizations also face
competition from substitute product or services. For instance, since food chains offer fast
services compared to that of restaurants, several office going consumers prefer dining in a food
chain outlet rather than a restaurant. Apart from the local competitions, Hospitality industry of
Australia also faces competition from the international market. Some of its major competitors in
the Australian Hospitality industry are hospitality industry of Malaysia, United Kingdom and
Europe.

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Conclusion
From the above discussion, it can be concluded that the hospitality industry of Australia
is enjoying huge revenue due to its excellent products and services to the consumers. The
technological advancement of Australia along with its multicultural society are two major
reasons behind the huge success of hospitality industry in Australia. However, some of the
challenges faced by the mentioned include the ageing population and lack of services in the inner
cities. In order to deal with these issues, the hospitality industry must incorporate effective
strategies so that they can enhance their revenue by enhancing the number of consumers.

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Reference List:
Crotts, J., Buhalis, D., and March, R. (Eds). (2000). Global alliances in tourism and hospitality
management. New York : Haworth Hospitality Press
Czinkota, M., Ronkainen, I., Sutton-Brady, C., &Beall, T. (2014). International marketing (3rd
Asia Pacific Ed.). South Melbourne, Vic: Cengage Learning
Hotel News, Training, Events: professional development for global leaders. (2018). eHotelier.
Retrieved 26 April 2018, from https://ehotelier.com/
Kotler, P., Bowen, J.T., Makens, J., &Baloglu, S. (2016). Marketing for hospitality and tourism
(7th ed.). Boston, MA: Pearson.
Middleton, V.T., Fyall, A., & Morgan, M. (2009).Marketing in travel and tourism (4th
ed.). London, UK : Butterworth-Heinemann.
Mok, C., Sparks, B., & Kadampully, J. (2013). Service quality management in hospitality,
tourism, and leisure. Routledge.
Pegg, S., Patterson, I., & Gariddo, P. V. (2012). The impact of seasonality on tourism and
hospitality operations in the alpine region of New South Wales, Australia. International
Journal of Hospitality Management, 31(3), 659-666.
Research & Intelligence « Sabre. (2016). Sabre.com. Retrieved 26 April 2018, from
https://www.sabre.com/insights/research-and-intelligence/
Travel News, Airline Industry News, & Hotel Industry News by Skift. (2018). Skift. Retrieved 26
April 2018, from https://skift.com/

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