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 employs PESTEL and SWOT analyses to evaluate the macro-environmental factors and internal capabilities affecting Hilton Hotel. It examines political, economic, social, technological, legal, and environmental factors, as well as the company's strengths, weaknesses, opportunities, and threats. The report then explores current and potential trends, such as contactless payments, and discusses the development of new products and services to meet evolving customer needs. It concludes by emphasizing the importance of adapting to a dynamic business environment and considering external factors to gain a competitive advantage. The report references key academic sources to support its findings.

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.