The Contemporary Hospitality Industry: A Strategic Analysis Report

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on the challenges and opportunities faced by organizations like Hilton Hotel. It begins with an introduction highlighting the industry's growth and the impact of external factors. The main body of the report...Read More

THE CONTEMPORARY
HOSPITALITY INDUSTRY

Table of Content
 Introduction
 PESTEL analysis
 Evaluation of external factors
 SWOT analysis
 Current and Potential Trends
 Developing of new products and services
 External factors which impact on current and potential
trends
 Conclusion
 References

INTRODUCTION
 Hospitality industry is one of the fastest
growing industries as people want get increases
day by day to enjoy hospitality services. This is
identified that there are many factors that
impact on hospitality industry (Suess, Mody
and Guarracino, 2017). Due to macro
environmental factors, hospitality industry get
effected that's why it is very necessary for
hospitality organisations that they should find
out all external factors.

MAIN BODY
 Hospitality industry is facing many challenges
that come from external environment but it is
not necessary that external environment
factors get impacted only negative as it may be
become opportunity for hospitality
organisations (Sajjad, Jillani and Raziq, 2018).
That's why Hilton Hotel needs to analyse the
external environment with the help of PESTEL
analysis model.

PESTEL analysis
 It is the model that helps Hilton Hotel to
analyse the macro environmental factors
which impact on the development of
organisation. It consists of six important
factors that are political, environmental, social,
economical, technological and legal factors.

Political Factors
 It is very necessary for Hilton Hotel that they
need to understand and analyse the political
factors as they are operated in many countries
that's why it get impacted. In the case of
Hilton Hotel, they are facing a challenge due
to Brexit as it will reduce the number of
visitors.

Economical Factors
 Economical factors are very necessary for
hospitality industry as it includes the inflation
rate, economic growth rate, etc. which gives a
great impact on the success of Hilton Hotel
(Ribeiro, Duarte and Fidalgo, 2020). After
pandemic situation, it becomes very tough for
Hotel that how they can reposition their
business as it reduced the number of visitors
due to restrictions such as lock-down.

Social Factors
 This factor includes all the customs and
traditions which is necessary to consider while
offering services by Hilton Hotel as it gives a
great impact on the decision of customers.

Technological Factors
 This is one of the most important factors
because of increasing the use and importance
of digital technologies and tools. This is the
reason that Hilton Hotel using all social
websites and apps so that they can boost their
brand recognition.

Legal Factors
 Hilton Hotel is following all rules and
regulations such as employment law, healthy
and safety law, equality law, etc. as they are
necessary to comply. Every nation has
different laws which need to be complying by
Hilton Hotel if they want to survive in the
market.

Environmental Factors
 It is the factor which is very necessary for an
organisation that they should need to comply
as hospitality industry gives a great impact on
the environment (Harrington and et. al., 2020).
Hilton Hotel need to focus on sustainable
development if they want to expand their
operations in Asia as it is very important for
the survival.

Evaluation of the impact of external
factors
 After the analysis of PESTEL model, it is analysed
that Hilton Hotel gets benefited if they decide to
more invest in Asia. This is due to many
opportunities will be enjoy by organisation after the
analysis of external factors. For example, invest in
emerging economies becomes an opportunity for
company as they will be get benefit of growth and
success. Emerging economies includes Asia, Africa,
etc. which becomes very beneficial for hospitality
industry if they are focusing on investment.

SWOT analysis
 SWOT is the tool that used by organisations in
order to analyse the internal factors as they are
important for overcoming the challenges from
external environment. It consists of internal
capabilities which is necessary understand and
analyse.

Strengths
 Hilton Hotel is the highly recognizable brand
as they are operated in approximate 78
countries with 540 hotels.
 They run their business from 93 years and
that's why they are expertise in surviving in
the market as they know all the tactics of
market.

Weaknesses
 It is identified that operations of Hilton Hotel
get effected due to different policies of
government as they have operations in many
countries.
 They have limited market share.

Opportunities
 Hilton Hotel has an opportunity to invest in
emerging economies such as Asia, Africa, etc.
 They also have an opportunity to innovate
customer services so that their clients get
maximum benefits.

Threats
 Biggest threat for Hilton Hotel is competition
because it gets increases day by day

Current and Potential Trends
 After the analysis of present situation of
COVID-19, it is identified that there are some
important current and latest trends which
should be consider by hotels in order to take
competitive advantage.
 Contactless payments are becoming important
trends after COVID-19 as it helps in stopping
the propagation of virus.

Developing of new products and
services
 In order to meet the current potentials, it is
very necessary for Hilton Hotel that they need
to innovate their products and services
(Sharma, Thomas and Paul, 2021). For
example, hotels need to launch and update
their existing products such as use of mobile
check in services in replacement of manual
check.

External factors which impact on
current and potential trends
 It is analysed that current trends is comes due
to the impact of external factors. For example,
hospitality industry is facing the issue of safety
and security so that's why the new trend which
comes in the market place is GDPR that
becomes necessary to follow by organisations.

CONCLUSION
 It is concluded from the above discussion that
hospitality industry is facing many uncertainty
situations due to dynamic business
environment. This is done with the help of
PESTEL and SWOT analysis model. In
addition to this, it also covers some current
and potential trends which is necessary to
consider by hospitality industry.

REFERENCES
 Books and Journals:
 Harrington, R. J., and et. al., 2020. International
Hospitality Development: Training to Enhance the
Understanding of ‘The Art of Hospitality’Business
Model. In The Routledge Companion To International
Hospitality Management (pp. 106-116). Routledge.
 Ribeiro, N., Duarte, P. and Fidalgo, J., 2020. Authentic
leadership’s effect on customer orientation and turnover
intention among Portuguese hospitality
employees. International Journal of Contemporary
Hospitality Management.

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