Britannia Hotel Chain: PESTLE, SWOT, and Market Research

This report provides a comprehensive analysis of Britannia Hotel, a UK-based private hotel chain. It begins with an introduction to the hospitality industry and then delves into a PESTLE analysis to examine the external factors impacting the hotel, including political, economic, social, technological, environmental, and legal aspects. The report then conducts a SWOT analysis to evaluate Britannia Hotel's internal strengths, weaknesses, opportunities, and threats. Furthermore, it explores current trends in the hospitality sector, such as the influx of international visitors, seamless technology, and the demand for luxurious products and services. Finally, the report assesses Britannia Hotel's ability to develop new products and services to meet evolving customer needs and maintain its competitive edge. The conclusion emphasizes the importance of adapting to market trends and utilizing both PESTLE and SWOT analyses for effective business management and customer satisfaction.

HOTEL CHAIN INDUSTRY
ANALYSIS

INTRODUCTION
Hospitality management involves various service industry such as event planning,
lodging, theme parks, cruise line, transportation, travelling etc. Here, study is based on Britannia
hotel which is situated in United Kingdom. It was founded by Alex Langsam in 1976. Britannia
is a private hotel which headquartered at Greater Manchester, England. The study will define
internal and external factors that impact the hospitality industry. Furthermore, report will analyse
the current and potential trends.
BUSINESS PLANNING REPORT
PESTLE analysis of Britannia Hotel
PESTLE analysis is used in market to know external marketing environment. It has six
factors that help to implement project ideas and planning process.
Political Factor: Political factors are related to all about government involvement. In
this, there are political stability or instability, different government policies, tax policy,
environmental law, labour law, trade restriction etc... Apart from this, there are some hidden
political factors that affect Britannia's hotel business like for example unrevealed corruption,

fluctuation in tax policies, trade restriction can impact the decision-making process of firm which
lays emphasis on their development.
In hospitality industry political factors affect range of visitors, both business travellers
and tourists. For example, due to some political situations lobar are demanding high amount of
money which impact Britannia hotel and also directly influenced their profitability and market
share. Organization need to full fill the needs of workers that helps to run their business
effectively. They have to pay employees according to their demands which break down the
strike.
Economic Factors: UK has strong economy than other countries that helps Britannia
hotel to develop its business in hospitality sector. But there are also some factors that fluctuate
growth. Like interest rates, inflation, economic growth, exchange rate etc. For examples, in 2012
Olympics were held in UK, which increased occupancy rate of Britannia hotel significantly. At
the time of inflation services and goods increase that affect Britannia hotel business because
people are not able to afford.
For example, International and national economic factors and situations and events
affecting the condition, there are major elements impacting Britannia hotel. For example, In UK
during Olympic times most of the hotels were booked and occupied fully for the whole week or
Olympic time period. Britannia hotel gain profit during this time and increase profit margin more
and more, but after Olympic games was over they face difficulties that impact on their business,
it is one of the economic factor.
Social Factors: In social factor analysis there are culture trends, customer’s lifestyle,
demographic differences etc., which affected Britannia hotel. It is totally depends on customers
preferences. If customer is not satisfied then hotels must change its policies according to the
needs, demand, taste and preferences of them. Designing products according to the consumers
wants can support firm in developing.
For example, Social cultural factors have a great impact on hospitality sectors. For
example, once at a time, due to less profitability in Britannia hotel, it takes a step to change the
structure and infrastructure of organisation. Also, change the organisational culture and adopted
hierarchical structure to gain more profitability.

Technological Factors: Technology has laid huge impact on the development of
organisation. Britannia hotel is using technologies like, online booking, online payment system
that help in raising sales volume of company and attracting more guest consumers towards
brand. That impacts positively on the hotel. Organization is taking benefits of social sites by
making its webpage so that customer find all the facilities easily.
For example, For increasing the number of customers in Britannia Hotel, it starts the
process of online advance booking and promoting offers on social websites to gain popularity
and to win competition against other brands. Online booking technology leads to more customers
which directly increases profitability.
Environmental Factors: Government of UK has made some environment laws that have
to follow strictly Britannia hotel which helps to reduce environmental issues. Britannia hotel is
concerned about environment issue. Due to that, company has improved its image in market. For
example, organization has to use only that material which are ozone-friendly. This make
environment free from harmful effects.
For example, Competition is major environment factor for every organisation. Britannia
hotel id facing same. So, to win competition, it improved the customer service quality and to
make them trusted. Britannia hotel brings some changes in employee performance by giving
them proper training.
Legal Factors: Legal factors have product safety, advertising standard, health and safety
policy, environment policy etc. Britannia hotel must follow all the legal policies which made for
the rights of consumers. It is necessary for Britannia hotel to well know about local law of
country that helps to maintain its business.
For example, Data protection law is a legal factor which made by government to
maintaining the private data. Hotel Britannia has effective concern about their data to make them
safe and to have competitive advantage. Hotel Britannia makes a contact with employees to
make their data safe. And if any guilty found, legal actions can be taken against them.

SWOT Analysis
SWOT analysis is used to understand internal factor of Britannia hotel which included
strength, weakness, opportunities and threats. Britannia hotel has to be selective about options
that help it to enhance image (Fiagbomeh and Bürger-Arndt, 2015).
Strengths: Britannia is the biggest private hotel in UK with large brand value and image.
Due to large brand value, it helps organization to expand its business. Britannia has big image so
that it has large revenue. Organization has unique designs, high volume of return consumers,
good location, highly trained staff and there is cost retention that maintain its image in market
(Townend, 2016).
Weaknesses: The major weakness of Britannia hotel is that it is highly depended upon
UK market. Apart from this, product cost is too high thus, entity can target limited people. It has
high rated room so that all customers are not able to afford it.
Opportunities: Britannia hotel has opportunity to increase its domestic and international
consumers. It can enter into new market for offering services to international consumers.
Considering this, Britannia hotel can take advantage of it to expand its business like in Scotland,
Ireland etc. Organization has chance to quick access internet like mobile apps, user friendly
websites, local attraction, navigation etc. Technological advancement creates opportunity for
organisation. Hotel is using internet for pursuing and permitting information such as
reservations, booking, communication with customers (Xu and Gursoy, 2015).
Threats: Britannia hotel has threat from its competitors in market that is other hotels like
Hilton, Travelodge. Some branches of Travelodge are situated nearby hotel which take
advantage to divert consumers from Britannia that may impact on sales of business unit. Changes
in visa policies, economic condition may impact on firm badly.
MARKET RESEARCH REPORT
1. Trend Analysis
There are so many trends which are is using in hospitality sector to proving better
services for customers. Trends that have potential to satisfy guests are explaining below.
Influx of International Visitors: International tourism is increasing now-a-day.
International airport of UK is become the busiest airport in the world. Britannia hotel has chance

to provide them services like multitude of languages, effective technologies, catering to
millennials by using different strategies, by giving them easy check in, food experience at
favourable price. Furthermore, promoting pleasing destination, that will attract travellers more
and by giving them heart-warm welcome. This trend is used to satisfied and increase travellers
(Johan, Baga and Asmar, 2018).
Seamless Technology: Seamless technology is big trend right now in hospitality sector.
Britannia hotel is providing online services to its customers like mobile apps, mobile user-
friendly websites, navigation, local attraction, mobile check in, high tech cards etc. Seamless
connectivity is growing so fast in hospitality management so that is make easier to costumers to
find their interest and demands.
Luxurious products: In today's era people are health conscious and taking charges for it.
Due to this, Britannia hotel is providing its guests pools, spa, gym and fitness equipment’s etc
and consumers are also expecting the new ideas and ready to pay for it as well. Apart from this,
healthy food is also in trend. Customers want best for their health. For that Britannia hotel is
serving air purifier, energizers, yoga space in room and, many more facilities (Xu and Gursoy,
2015).
2. Ability of Hotel chain to Develop Products and Services
Britannia hotel has ability to implement innovation and develop new ideas to assure its
guest. Because of large brand value and image, hotel is enough potential to adapt new
revolution. By preferring consumer test hotel is able to change its facilities and
management. Like in current time people are health sentiment so Britannia hotel is trying
to provide well equipped fitness centres in its hotel, yoga space energizers etc.
Britannia hotel is financially enough capable so that it’s not producing healthy food for
its consumers but also adapting new technologies and equipment’s in its kitchen section to serve
the best facilities for customers.
CONCLUSION
From the above study has been concluded for good hospitality it is needed to serve
consumers the best facilities. By overcoming pestle factors and using swot analysis Britannia
hotel can know its internal strengths and weaknesses which helps it to measure and manage its

business. Britannia hotel should use those trends which bring profit to it and make costumers
satisfied.
REFERENCES
Books and Journals
Johan, A.W., Baga, L.M. and Asmara, A., 2018. Competitiveness important strategy formulation
on individual hotels: case of xyz hotel at city of bogor. European Journal of Hospitality
and Tourism Research. 6(2). pp.1-15.
Köseoglu and et.at,. 2015. Academic foundations of hospitality management research with an
emerging country focus: A citation and co-citation analysis. International Journal of
Hospitality Management. 45. pp.130-144.
Swaffield, K., 2015. An evaluation on the feasibility of setting up a restaurant with rooms;
situated in the South West of England (Doctoral dissertation, Cardiff Metropolitan
University).
Xu, X. and Gursoy, D., 2015. Influence of sustainable hospitality supply chain management on
customers’ attitudes and behaviors. International journal of hospitality management, 49,
pp.105-116.
ONLINE
PESTLE ANALYSIS. 2017. [Online]. Available Through:
<https://blog.oxfordcollegeofmarketing.com/2016/06/30/pestel-analysis/>

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