Contemporary Hospitality Management: Dorchester Hotel Analysis Report

This report offers a comprehensive analysis of the Dorchester Hotel, a prestigious five-star establishment in London. It begins with an introduction to contemporary hospitality management and its relevance to the hotel's operations. The report then delves into a detailed PESTLE analysis, examining the political, economic, social, technological, environmental, and legal factors influencing the hotel's business. A SWOT analysis is also provided, identifying the hotel's strengths, weaknesses, opportunities, and threats. Furthermore, the report explores current and potential trends in the hospitality industry, such as tech advancements, seamless technology, and green living, and assesses the Dorchester Hotel's ability to adapt and develop its services and products in response to these trends. The report concludes by summarizing the key findings and implications for the hotel's future strategies.

CONTEMPORARY
HOSPITALITY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
1.PESTLE analysis .....................................................................................................................1
2. SWOT analysis .......................................................................................................................3
3. Current and Potential trends in hospitality industry................................................................4
4. Ability of Dorchester Hotel for develop services and products..............................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Contemporary hospitality management communicate with the latest betterment and
thinking on management of organization hospitality and other businesses in the world. It relates
with the changes that has been developed by modern techniques, beliefs and latest trends in
economy that affect business. The present report is base on The Dorchester Hotel which is base
on Deanery street in London (Radojevic, Stanisic and Stanic, 2015). It is one of the most famous
and prestigious 5 star hotels in UK, that offer the best service to people. In this report explains
about PESTLE analysis and their impact on organization development function and other
operations. It also clarified SWOT analysis for hotel chain that effect on decision making
process. Furthermore, this study clarified potential and current trends in industry which develop
organization services and products according to trends.
TASK
1.PESTLE analysis
PESTLE analysis is tool or framework which use by marketers to monitor and analyze
the external and internal environment factors that effect on industries overall business process
and their functions.
Source: (Adamkasi, 2017)
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Illustration 1: PESTLE Analysis

 Political factors: Political factors determine extent and the affect of government on
convinced industry and country economy (Rastogi and Trivedi, 2016). Government
policy and rules, political instability and stability, tax policy, corruption, foreign trade
policy, trade restriction and environmental law are the basic factors that influence on
businesses and organizations. It plays major role specially in economy of the UK.
Organizations main target is to attract customers that will host an assortment of various
properties. Hospitality industry is a back bone of government that support to sustain in
competitive world. Thus, all these changes impact on development of companies that
operating their business within hospitality industry. Brexit is one of the biggest factor that
impact on Dorchester hotel business activity effectively. It reduces their profit margin
and development opportunities which influence on their consumer's behavior as well. But
they improve and get overcome with this problem by implementing in their business
strategies and planning according to the situations that help in running their business
effectively.
 Economic factors: Economic factors have huge impact on organizations and its success.
Economic growth, inflation rates, disposable income of customers, interest rates and
unemployment rates are such factors that have indirect and direct long term effect on
industries. It highly affects organizations process and other functions within hospitality
industry. Economic changes influence on Dorchester Hotel services and production
activity and its behavior. Wide number of clients arriving for the aim of conferences,
business dealing, workshops and other sole purpose. Thus, changes in economy make
some difficulty for firm growth. Organization need to make flexible services charges that
has been changed according to rising inflation and interest rates.
 Social factors: Social factors changes impact the needs for organizations services and
goods. It focuses on social environment and identify current trends in economy that affect
hospitality industry firms. Population growth, health consciousness, age distribution and
career attitudes are those factors that influence firm. Dorchester is a five star Hotel their
customers demand will be develop by growing population and according to the latest
trends which is highly impact on their business growth and popularity. Organization need
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to identify people needs and demands that helps in serving their services as accordance to
consumers preferences.
 Technological factors: Technological environment changes either be an opportunity or
threat to organizations which are operating within hospitality industry. Manufacturing
technology, new way of production techniques and new ways of distributing products and
services are the factors that influence companies. It also impacts on Dorchester Hotel
development function and other facilities that they offer to consumer's. Thus, to develop t
their business more than the other company, they need to use some new ways of
communication with target market and also use some new technologies that help in
distributing their facilities for consumer's.
 Environmental factors: Weather and environmental changes directly impact on
industries that operating their business within hospitality industry. Environmental
problems, insurance policies, dealing with hazardous material and safe waste disposal are
such factors which affect industries and their ability. Flood, heavy rains and storm impact
Dorchester hotel the most and minimize their profit margin more and more. Thus, for
serving good quality services they need to take proper measure for these factors and also
make control at appropriate time frame. This process will help to decrease trouble and
organization team handle any environment situation perfectly.
 Legal factors: Government make laws that organizations has to follow in way to
continue their operations within hospitality industry. Business laws, health and safety
law, environment and local laws affect the entire company activity like production.
Government make age law that influence Dorchester Hotel and consumers possibility for
attraction. It also affects the other business functions that firm manage in hospitality
industry.
2. SWOT analysis
SWOT analysis is technique and strategic planning that used for help organization by
identifying their strengths, opportunities, weaknesses and threats related to business project and
competition planning.
SWOT analysis for Dorchester Hotel
Strength- Dorchester is a five star hotel that give their effective services to consumers
effectively (Blockeel and et.al., 2016). They make innovation and creation in products which
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they offer to people for the motive of attracting them. Organization manages the entire business
function by good management structure that help in operating other activities. Hospitality
industry is one of their target market that they need to grab it as soon as possible. Firm give their
best accommodation facility that increase their profit margin and attract more consumer's
towards their business. All these strengthen of Dorchester impact on decision making process.
Their management need to make some new or interesting plans that develop firm growth much
higher in way. By identifying people needs they serve good quality facility and goods that raise
their position in marketplace.
Weaknesses- Dorchester is one of the most expensive hotels in UK, that concentrate on
their service and products prices which is their primary weakness. They make charges on each
services that simply out of range of the household averages. Client want low budget and
affordable hotels that adjust in their budgets, but Dorchester high costs pressure people for
switching to another hotels. Thus, it directly impacts on business profitability and decision
making process. Organization need to create and modify their pricing policies that attract
costumers and make their connection stronger. They have to make some low price plan and
strategy that improve their reputation in business world.
Opportunities- Making new plan and offer lower cost services and goods Dorchester
garbs the opportunity that develop their business more and more. Through this process they
attract new clients and satisfied its potential consumer's as well. Making effective plans is the
best opportunity for Dorchester hotel that also influence on decision making activity. They
increase business profitability and productivity by attracting people towards their facilities which
build their position in marketplace.
Threat- New entrance in business world is one of the biggest threat that has to be face by
each and every organizations. Dorchester Hotel also faced this problem that affect their services
and products quality delivery. Thus, to beat their new competitors in marketplace organization
need to make changes in their management and functions structure by adopting modern
techniques which make them stronger than the other firms.
3. Current and Potential trends in hospitality industry
Trend analysis is a method that use in technical analysis that try to predict the future price
stock movement based on current observation trend information (Lee and Kwak, 2014). The
entire process is base on idea that what happened in past give organizations an idea of what they
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happen in future for developing their businesses. Trend analysis are base on two types current
and potential trend-
Current trends in Hospitality industry-
 Tech explosion: Hospitality industry need to make changes in their business structure
and functions according to current trend. Thus, most of the costumers are self sufficient
and tech savvy that need comfortable by using mobile and apps websites. Therefore,
industry want to make sure about their offerings which has to be user friendly and up to
date. Hospitality industry is operating conferences and business meeting functions that
highly affect profit margin. So for that they have to use tech equipment and
knowledgeable supporting staff who give their effective services.
 Need for seamless technology: Seamless technology is innovative process that use by
every organizations. Hospitality industry need to adopt this technique that grow their
business more effectively. In UK many hotels group offer digital communicating
technology and mobile check in services to their guests that share their information and
identify their needs and wants.
 Destination promotion: Thus, according to current trend hospitality industry need to
promote their business function and activity that attract consumer's more than now. By
using social media platform hotels become more involved in self-promotion and
destination. According to the modern generation they use this tools for searching any
things or collect information about every thing which they want. Thus, promotion is the
best way to grab the attention of clients and make firm position in marketplace.
Potential trends in Hospitality industry-
 Capitalize on Tech: Being tech savvy is no longer domination of the millennial. Many
guests use their mobile phones rather than other things. Thus, for that hospitality industry
invest money for developing their business effectively (Li, Wang and Yu, 2015). They
highly invest money on payment and data security function that secure their business and
customers information. More over they also concentrate about guest room technology
like using sensor system. Mobile engagement is the best techniques that organization
apply for engaging their customer's with them for long time. They spend in new
technology like unlock room door by key cards that make their clients comfortable in
Hotels.
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 Word of “mouth” Promotion: Mouth promotion is one of the potential trends that
impact on hospitality industry business. By using social media they improve position and
reputation also attract people towards services and facilities. Guests give their reviews on
Facebook and twitter about services which offer by hospitality industry. Social media
done a good job by turning organizations into more profitable. It is good tools that help to
reach out to consumer's and earn their trust and loyalty.
 Green Living: Green living is the potential trend that follow by hospitality industry for
making their customer's happy. Healthy conscious person like to be eco-friendly that
grow more concern for environment, wellness and health among consumers. Thus, for
make them happy hotels install solar panels and apply some systems that switch off
automatically after guests leave their rooms.
4. Ability of Dorchester Hotel for develop services and products
Dorchester is a five star hotel that have many employee's in each departments which give
their hard working performance activity to meet objectives and achieve goals. Firm innovate in
their business for developing their products and services according to current trends. They have
the ability which make organization stronger than its competitors. They use different techniques
for attracting people and make them comfortable at the place. They have knowledgeable and
skilled employee's in marketing department that has the capability to create effective promotion
strategy that increase profitability and productivity.
Through promotion they deliver good services and goods to clients that develop their
interest more over than now. Dorchester have five restaurants within having many chiefs and
number of staff that offer good facility and hospitality facilities its potentiate guests (Noone, Enz
and Glassmire, 2017). They use seamless technology and apply in their facilities that make their
customers more comfortable in rooms and other places in organization. They have a huge
number of staff that placed in each and every department and perform their work in appropriate
way. Thus, by adopting all the current trends they develop their goods and services within good
quality which make their consumers more happy and satisfied.
CONCLUSION
It has been concluded in this report that contemporary hospitality make business more
successful by making new ideas and thoughts. In present study by apply PESTLE analysis
organization identify the factors that impact on their business growth. In this report explain
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SWOT analyses that help firm to know about their strength and opportunities and weaknesses or
threats that they need to get over come within it. Furthermore, in present study will also justify
current and potential trends in hospitality industry and ability of organization for adopting these
trends in their business function for developing services and goods.
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REFERENCES
Book and Journals
Blockeel and et.al., 2016. A fresh look at the freeze-all protocol: a SWOT analysis. Human
reproduction. 31(3). pp.491-497.
Lee, J.N. and Kwak, K.C., 2014. A trends analysis of image processing in unmanned aerial
vehicle. International Journal of Computer, Information Science and Engineering. 8(2).
pp.2-5.
Li, X., Wang, Y. and Yu, Y., 2015. Present and future hotel website marketing activities: Change
propensity analysis. International Journal of Hospitality Management. 47. pp.131-139.
Noone, B.M., Enz, C.A. and Glassmire, J., 2017. Total hotel revenue management: A strategic
profit perspective.
Radojevic, T., Stanisic, N. and Stanic, N., 2015. Ensuring positive feedback: Factors that
influence customer satisfaction in the contemporary hospitality industry. Tourism
Management. 51. pp.13-21.
Rastogi, N.I.T.A.N.K. and Trivedi, M.K., 2016. PESTLE technique–a tool to identify external
risks in construction projects. International Research Journal of Engineering and
Technology (IRJET). 3(1). pp.384-388.
Ryan, C., 2015. Trends in hospitality management research: a personal reflection. International
Journal of Contemporary Hospitality Management. 27(3). pp.340-361.
Online
Adamkasi, 2017. PESTLE Analysis of Hotel Industry. [Online]. Available through:
<https://freepestelanalysis.com/pestel-analysis-of-hotel-industry/>.
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