Contemporary Themes in Hospitality Industry: PESTEL, SWOT & Trends

This report provides a comprehensive analysis of the contemporary themes within the hospitality industry. It begins with a PESTEL analysis, examining the political, economic, social, technological, environmental, and legal factors influencing the sector. Following this, a SWOT analysis is conducted, focusing on the strengths, weaknesses, opportunities, and threats faced by companies like Whitbread and Travelogue. The report then delves into current and future trends, such as internet services, changing customer preferences, transportation demands, and the integration of technology. The analysis includes discussions on direct booking, tracking facilities, and the importance of adapting to these trends. The report concludes by emphasizing the significance of PESTEL and SWOT analyses for strategic planning and achieving sustainable growth in the competitive hospitality market. The analysis references specific examples to illustrate how the trends are impacting the industry, and emphasizes the importance of adapting to changes to ensure success.

CONTEMPORARY
THEMES IN
HOSPITALITY
INDUSTRY

TABLE OF CONTENT
 PESTEL ANALYSIS
 SWOT ANALYSIS
 CURRENT AND FUTURE TRENDS

PESTEL ANALYSIS
Analysis of macro environment is necessary for the organisations in
hospitality industry. As with the help of this analysis strategies can be
made for the future action plan. With the help of PESTEL analysis
organisation will be able to decrease the competition level within
limited period of time. Various factors of PESTEL analysis are as
follows-

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Political factor- It is concerned with stability and policies of the
government of a particular country. The VAT rate in UK is stable
from past many years and due to this organisations are able to
operate its business activities in the proper manner. It is proving as
positive sign for hospitality industry(Menet, 2016). While in some
countries the rate is continuously fluctuating and due to
organisations in this industry need to make changes so that negative
impact can be decreased.

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For example- In this type of factor Travelogue is facing various type of problems and
issues. This is because government is focusing on making changes in the rules and
regulations for the well functioning of hospitality industry. Due to this work of
Travelogue as well as Whitbread is negatively affected.
Economic factor- It is related with per capita income, inflation and deflation rate of
the economy. After the introduction of Brexit in the economy of UK the functions
of various organisations of hospitality industry is negatively getting affected. The
competition level in this type of industry is very high so it become essential for the
organisations to make plans for reducing negative impact of Brexit.

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For example- It is very much essential for Travelogue to make appropriate plans and
strategies for reducing negative impact of Brexit. As by doing this organisation
will be able to attract more and more customer's within limited period of time.
Social factor- It is related with preferences, belief and values of customer's which
directly affects the performance of organisations in hospitality industry.
Customer's demand is uncertain which lays a negative impact on the functioning
of Whitbread(Myung, McClaren and Li, 2012). To reduce adverse impact of this
factor various training programmes can be arranged for the employee's. So that
they are able to meet the demand of customer's in the systematic manner.

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For example- To know the exact demand of customer's in hospitality industry
Travelogue can analyse the exact need and preferences of the customer's. As by
doing this satisfaction level of the potential customer's can be improved.
Technological factor- Hospitality industry required use of latest tools and techniques
for competing the task in the efficient manner. Latest technology are used in
Whitbread so that their satisfaction level is enhanced. Online booking facility is
introduced for its customer's and various discount coupons are offered to them. The
major motive behind this is to reduce the chances of negative impact of this factor on
the functioning of organisations in hospitality industry. If the hotels are able to make
best use of latest technology than its sale and productivity will be directly increased.

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For example- There is high degree of competition due to technological factor and its
directly affects the growth and profitability of Travelogue. So to overcome this
problem management of the hotel can introduce nee innovative services so that
competitive advantage can be achieved.
Environmental factor- It is related with protection and conservation of natural
resources by using laws in the systematic manner. To reduce the negative impact
of this factor organisations are aiming at establishing green parks. Healthy
atmosphere is created within the premises of Whitbread so that customer have
good experience while visiting the hotel.

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Example- Travelogue hotel needs to make disciplined rules and
regulations so that best and competitive position can be
attained by the hotel.

SWOT ANALYSIS
SWOT analysis is very essential for various organisations which are
operating its business in UK. As with the help of this strength ,
weakness and opportunities can be known in the efficient manner.
SWOT analysis will lead to using the available opportunities for
attaining competitive position in the market for a longer period of
time. Various factors of SWOT analysis related to Whitbread is
discussed below-

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Strengths
 The price of the services offered by the hotel is according to the
paying capacity of customer's. Due to this Whitbread is able to
create wide customer base.
 Different kind of discount coupons are offered to the customer's.
This is led to creation of loyalty among potential customer's.
Weakness
 The rooms of Whitbread are not in good condition due to this
customer's are not satisfied.

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 Demand of large size families are not fulfilled by hotel because its
rooms are small in size.
Threats
 Hilton, Travelogue and Marriott are the top competitors of the
hotel. This is affecting the sale and profitability of Whitbread.
 The need and demand of customer's in this type of industry is
unlimited and ever-changing. Due to this growth of the
organisation is getting affected in the negative manner.