Contemporary Hospitality Industry: External Factors, SWOT & Trends

This report provides a comprehensive analysis of the contemporary hospitality industry. It begins with an introduction to the industry and then explores the impact of external factors using PESTEL analysis, focusing on political, economic, social, technological, environmental, and legal aspects. The report then conducts SWOT analyses for both Holiday Inn and Hotel Hilton, evaluating their strengths, weaknesses, opportunities, and threats. Following this, the report examines the factors influencing supply and demand for these hotels. Finally, it discusses the implications of current and potential trends within the hospitality sector, concluding with a summary of the key findings and a list of references. The analysis highlights the importance of adapting to external environments and leveraging trends for competitive advantage.

Contemporary
Hospitality Industry

Table of Content
 Introduction
 The impact of external environment
 SWOT Analysis
 Implication of current and potential trends
 Conclusion
 References

Introduction
Hospitality industry is one of the very broad concept in the service
industry as it provide services to customers and also satisfy their needs.
In the following assignment will study about the impact of internal and
external factors on the hospitality industry. At last the implications of
current and potential trend in the hospitality industry is discussed.

The impact of external environment on
hospitality Industry
In order to know about the impact of macro environmental factors on
the hospitality industry , company uses PESTEL analysis. It is a tool
which is used in order to analyse the impact of external environment
on an organisation. Below is the PESTEL analysis of Holiday Inn:

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Political factors: These are the factors which involves government
intervene. The factors include here are government policy, foreign
trade policy, tax policy and many more. The UK government is making
some of the policies and strategies for the development of hospitality
industry which results in a positive impact.
Example 2: The impact of this factor can be clearly seen on the operation
of Hotel Hilton as act of Terrorism in London in the year 2005 has
reduced the number of visitors in London and UK and has a negative
impact on the performance of Hilton.

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Environmental factors: These are the factors whose main concerned is
over using the means of environment in such a way that does not impact
the environment.
Example 2: For Hilton it is required make proper use of the resources and
for this reason only the Hilton started using renewable technology.
Moreover regular involvement of government towards the environmental
agencies are adding to the cost of Hilton worldwide. Thus they started
working toward recycling of resources and minimising the wastage.

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Social factors: It includes the customs and values of the populations.
Factors include here are age distribution, income distribution, culture
barrier and many more.
Example 2: Media outlet plays a great role in influencing the opinion of
public. So it is very important for Hotel Hilton to know about the taste
and preference of customer. Thus must provide services that enhanced
the experience of customer.

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Technological factors: In includes factors like innovation, invention and
many more. As technology is developing at a fast pace and in that
case company need to make change in the operations according to the
technology.
Example 2: There is a high competition in technology of UK and the
development of mobile technology is successful in transforming the
customer expectation in service industry.

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Economical Factors: These re the factors that affect the economy of a
nation. It includes factors like economic growth, inflation rate,
interest rate and many more.
Example 2: The exchange rate is bit volatile in UK and is having a
impact upon both short as well as long run in hotel Hilton. Moreover
also the disposable income of people remain stable which has a
negative impact upon the consumer spending behaviour.

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Legal factors: These factors are concerned with laws and regulation.
Company in order to operate properly is required to follow the legal
practices.
Example 2: Hotel Hilton followed all the rules and regulation properly
which has reduced the intervention of government and also was
successful in adding value to the image of the brand. Along with this
laws should be properly followed with the employees and also provide
them with fair payment which enable them to build trust among the
hotel.

SWOT ANALYSIS
The SWOT analysis is done in order to know about the
internal capabilities and external threat and opportunities.
strength and weakness are internal to an organisation
which can be controlled. on the other hand threat and
opportunities are external to the environment which cannot
be changed but can be controlled to some extent.

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Strength:
Strong brand image: Holiday Inn has established its good
image throughout the world because of its effective
promotional techniques.
Global presence: Holiday Inn has highest global presence
all over the world as it has near about 1200 hotel across
the world.