The Contemporary Hospitality Industry: Trends, Analysis, and Impact

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on the external factors that influence its operations and growth. It begins with an introduction and proceeds to analyze the industry using PESTLE and SWOT frameworks to understand the political, economic, social, technological, environmental, and legal factors, as well as the strengths, weaknesses, opportunities, and threats. The report further examines the impact of these external factors and delves into current and potential trends such as wellness hotels, technological innovations, sustainable practices, and all-inclusive offerings. The report also evaluates the current trends and provides a conclusion that highlights the importance of PESTLE and SWOT analyses for successful hospitality business operations. The report includes references to support its findings.

THE CONTEMPORARY
HOSPITALITY INDUSTRY

TABLE OF CONTENT
• Introduction
• PESTLE analysis
• SWOT analysis
• Impact of external factors

• Implications of current and potential trends
• Potential or future trends
• Evaluation of current trends
• Conclusion
• References
TABLE OF CONTENT

Hospitality industry is becoming one of the most fast growing and flourishing industry in
across the world. It had became a major revenue generator for many economies of different
countries. Present presentation contain information about various external factors which
affect the operations of hospitality industry.
INTRODUCTION

PESTEL analysis is an important tool to understand the external factors of market effecting
the profitably and growth of all business organisation. High competition exists in hospitality
industry, thus it become more important to timely conduct PESTEL analysis to understand
the present scenario of political, economical, social , technological, environmental and legal
factors.
PESTLE ANALYSIS

• Political : these factors shows the attitude and behaviour of political parties and
government toward a business organisation.
• Economical : These are the factors related with economy growth and development and
includes inflation, deflation rate, level and pattern of demand, etc. economic conditions of
UK are quite well, thus people of UK are having sufficient funds to spend on hospitality
industry.
CONTINUE….

• Social : It includes social and cultural behaviour of people having effect on their taste and
preference. Social trends are changing in UK as now people are getting more attracted
towards ride sharing against traditional taxi or cabs and now they also wants to have
private accommodations even at the time of tours
• Technological : These are related with technical advancement and new innovative ideas
of working. People UK are very fast in adapting technological changes.
CONTINUE….

• Environmental : these factors are mainly concerned with the impact of business
activities on environment and physical atmosphere.
• Legal : It includes all legal laws and regulation of a country that mandatory for all
business organisations. In UK, on recommendation of low pay commission report, 2009
minimum wage Advancement in technology has opened new scope for hospitality sector
by providing better.
CONTINUE….

SWOT analysis is mainly conducted to
understand the strengths and weakness of any
business organisation. It also provide a
understanding about prevailing opportunities and
threats exists in current market or environment
(Ozturk and et. al., 2016). It also provide relevant
information about competitors and how this
competition can be overcame.
SWOT ANALYSIS

Strengths Weaknesses
It is having a good brand image and excellent
advertising and promotion strategy. Operating
more than 1200 hotels across world with 100
millions customers showing level of services
and satisfaction provided by them
(Manganari, Dimara and Theotokis, 2016).
Limited market share and technology is the
only weak point of holiday inn.
CONTINUE….

Opportunities Threats
Providing new and better destinations to
travellers and also providing special seasonal
offers to attract more customers.
Large number of competitors is the biggest
threat and also the increasing operating cost
due to change in UK labour laws related to
minimum wage rate.
CONTINUE….

Hospitality industry is greatly affected by external factors. It depends largely on prevailing
social and legal conditions and its growth also depends on behaviour of political parties.
Advancement in technology has opened new scope for hospitality sector by providing better
and easy access to different services.
IMPACT OF EXTERNAL FACTORS