Analysis of the Contemporary Hospitality Industry: Holiday Inn

This report provides a comprehensive analysis of the contemporary hospitality industry, with a specific focus on Holiday Inn. It begins with an introduction to the industry and the chosen case study, followed by a PESTEL analysis to examine the external macro-environmental factors impacting the business. A SWOT analysis is then conducted to evaluate the internal strengths and weaknesses, alongside external opportunities and threats, and how this informs the decision-making process. The report further explores the implications of current and potential trends in the hospitality sector, such as the increasing focus on health and safety, eco-friendly practices, unique customer experiences, rapid response systems, and the accommodation of global travelers, alongside the role of technology. The report concludes with a summary of the key findings, emphasizing the dynamic nature of the hospitality industry and the importance of strategic analysis and adaptation to current and future trends.

The Contemporary
Hospitality Industry

Table of Contents
INTORDUCTION...........................................................................................................................3
TASK1 ...........................................................................................................................................3
P6. PESTEL analysis within hospitality industry.......................................................................3
P7. SWOT analysis within hospitality industry and review how this can inform decision
making process............................................................................................................................5
TASK2.............................................................................................................................................6
P8. Implications of current and potential trends in hospitality industry.....................................6
CONCLUSION ..............................................................................................................................7
REFRENCES...................................................................................................................................8

INTORDUCTION
Hospitality industry is a very broad industry which provides food and accommodation
facilities to the customers. This report will address wide range of contemporary issues in
hospitality industry. Organisation undertaken in this report is Holiday inn which was founded in
1952 and provides hotel facilities to the customers and it is spread all over the world. This report
will explain internal and external factors that impact the hospitality industry and their relation
with current trends and issues. Furthermore, report will elucidate the current and potential trends
and developments affecting the hospitality industry.
TASK1
P6. PESTEL analysis within hospitality industry.
Everyday business market changes with changes in the external environment. As external
environment factor are uncontrollable by the management of the organisation, so effective
PESTEL analysis is needed to conduct within an organisation. This analysis is a tool used by
Holiday inn to detect, evaluate, organise and track macro economic factors which can affect their
business in hospitality industry (Ozturk, 2016). Following is the PESTEL analysis of Holiday inn
in UK is discussed below :-
Political factors : It plays a very significant role in defining the factors that can affect
Holiday inn. This hotel is operating in numerous countries and exposes itself to various different
political factors and risk. Points which are to be analysed for Holiday inn are political steadiness
and value of living accommodation sector in UK, danger of military intrusion, intellectual
property protection, taxation policies like tax rates and incentives, etc.
Economic factors : These factors affect the financial position and profitability of
Holiday inn. They are needed to be evaluated and analysed in detail and it includes factors such
as type of economic system in UK is stable or not, government intervention, inflation and
deflation rates, growth rate, exchange rates, etc.
Social factors : Social cultures and way of performing business operations of Holiday
inn affects the organisations environment (Radojevic, Stanisic and Stanic, 2015). Social changes
in lifestyles and living standard of the people has bought many changes in the working of
Holiday inn. They focuses on customer satisfaction and continually revitalising the business

strategy with changing social values and customer preferences. This further includes variable
room rates, easily accessible, security, quality standards, discounts and promotions, etc.
Technological factors : This factor will directly impact the working of Holiday inn.
Technology is very important in effective and smooth operations of hospitality industry. This is
very crucial to analyse this factor and cope up quickly with new and updated versions and
equipments of technology (Tresidder, 2015). Holiday inn must adopt updated technical
appliances for kitchen, it will design their website such that customers can gain all the relevant
information with images and videos, etc.
Environmental factors : Different market have various environmental norms and beliefs
which can affect the organisation. Holiday inn will do detailed analyses on environmental factors
before starting a new business in existing market or entering new markets. Some of the factors
which Holiday inn will consider are climatic conditions, various environmental laws regarding
pollution, hotel laws, etc.
Legal factors : Holiday inn will do careful and detailed analyses on legal factors of the
country as they are very important for operating. These factors are considered and set by the
legal authorities of the country and it includes employment law which Holiday inn will use to
assure security of job, health, etc. to its employees, data protection law to make confidentiality in
their reports, etc.
P7. SWOT analysis within hospitality industry and review how this can inform decision making
process.
SWOT analysis is a strategic tool used by Holiday inn for making detailed analyses of
internal and external factors. Holiday inn is one of the leading company in hospitality industry.
Its is a useful technique for examining current strength, weakness, opportunities and threats for
the organisation. SWOT analysis of Holiday inn is discussed below :-
Strength Opportunities
 Success in product and technical
innovation.
 High brand recognition.
 Availability of huge resources, like
financial resources, highly qualified
 Innovation in customer services.
 Enter in new segments other then
hospitality like aviation, etc.
 Renovate interiors for attracting people
of all ages.

manpower resources, etc.
Weaknesses Threats
 Excessive emphasis on expansion leads
to inadequacy in maintaining quality.
 Lack of financial planning.
 Inability to manage the challenges
which are brought by new companies in
same industry.
 Competitors like Marriott, Hilton, etc.
 Economic rescissions which leads to
inability in generating revenues.
 Currency fluctuations.
This SWOT analysis of Holiday inn will have huge and very dynamic effect on decision
making process. Organisation will have to keep numerous factors and will make study on several
issues before making decisions. SWOT analyses must be carried out continuously. The business
environment and market of hospitality industry changes constantly and repeated use of SWOT
process gives a way of analysing and reviewing organisations performance (Wang, 2014). It has
huge impact on decision making process as this will help in making relevant decisions regarding
various issues which are discussed below:-
 Hospitality industry is very huge, so while deciding on the use of finances in hotel
industry. They will allocate budget such that weak areas of the holiday inn can be cope
up like ineffective labour pool, for this organisation will set budget for required training
and development sessions for their employees.
 Making innovations in new products, hospitality industry will try to assess the market
needs and demands in detailed so that inventions will be made which is required in the
hotel.
 Technical innovations will be such that is easily understood by employees and customers.
For such innovations, hotel management will provide adequate training to the staff.
 They must make proper financial planning of resources so that available funds can be
utilised effectively and efficiently.
 Organisation will hire expert marketing manager who will help in deciding upon various
promotion schemes and marketing tools which are to be used by the hotel.

TASK2
P8. Implications of current and potential trends in hospitality industry.
There are numerous current trends present in hospitality industry. People have started
spending more money in travel and accommodation. Big companies even became larger through
mergers and acquisitions in hospitality industry. Following are the current and potential trends in
hospitality industry :-
 Increased focused on health and safety : This is not a new trend in hospitality industry
but gaining huge momentum. People travelling alone or with family are becoming more
concerned about health, safety and hygiene. Hotels are now equipped with fitness centres
and gym for their customers (Wang, 2016). Travellers, specially youth expects innovative
health measures. Apart from this, people are also concerned that they are consuming
healthy food which is not contaminated and made in good ingredients.
 Provision of eco-friendly atmosphere : Hospitality industries are now adopting eco
friendly practices for their customers and focusses on renewable sources of energy and
scarcity of water resources. Sustainability has become crucial to the travel and hospitality
industry. Holiday inn provides facilities of solar plants and updated systems so that air
conditioners and lights automatically off when customer leaves room.
 Creating unique experiences : People while travelling looks and expects unique and
awesome experiences. For this purpose Holiday inn can partner with local vendors or
guides and travel agencies so that together they can create unique experiences for the
guest.
 Quick response : If hotel guest are not satisfied with the services and products offered to
them, then they can make complain on hotels official website, social pages of hotel like
Facebook, twitter, etc. and management of hotel must quickly respond to their query and
obstacles faced by them.
 Inflow of global traveller : As people are travelling from all over the world, hospitality
industry must provide cultures relating to languages, food, needs, etc. For this purpose,
Holiday inn can have the employees of different cultures who can understand the
language of different international visitors and can provide different variants of food for
the people of various different countries (Wijesinghe, 2014). This will provide

satisfaction to the customer as they will feel like home country and enhances
international tourism and hospitality industry will grow.
 Investing in technology : As most of the travellers are prone to technology. Hospitality
industry must assure that they are using mobile applications and websites. Holiday inn
must use relevant information on their applications and websites (Ye and et. al., 2014).
They must ensure that the information available over there is up to date and user friendly.
CONCLUSION
From the above report it has been concluded that hospitality industry is one of the largest
and fastest growing in today's business world. Hospitality industry have different segments like
hotel, tourism, lodging, etc. The above analyses showed that this industry is affected by the
external factors which are needed to be considered for hotel industry. The SWOT analyses is
very useful in making various decisions for the organisation. Later part of the report explains the
current and future trends in the hospitality industry.

REFRENCES
Books and Journals
Ozturk, A.B., 2016. Customer acceptance of cashless payment systems in the hospitality
industry. International Journal of Contemporary Hospitality Management.28(4).
pp.801-817.
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.
Tresidder, R., 2015. Experiences marketing: A cultural philosophy for contemporary hospitality
marketing studies. Journal of Hospitality Marketing & Management.24(7). pp.708-726.
Wang, C.J., 2014. Do ethical and sustainable practices matter? Effects of corporate citizenship
on business performance in the hospitality industry. International Journal of
Contemporary Hospitality Management.26(6). pp.930-947.
Wang, C.J., 2016. Does leader-member exchange enhance performance in the hospitality
industry? The mediating roles of task motivation and creativity. International Journal of
Contemporary Hospitality Management.28(5). pp.969-987.
Wijesinghe, G., 2014. Reimagining the application of sustainability to the hospitality industry
through a virtue ethics framework. Journal of Sustainable Tourism.22(1). pp.31-49.
Ye and et. al., 2014. The influence of hotel price on perceived service quality and value in e-
tourism: An empirical investigation based on online traveler reviews. Journal of
Hospitality & Tourism Research.38(1). pp.23-39.

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