PESTLE, SWOT, and Trend Analysis of Contemporary Hospitality Industry

This report offers a detailed analysis of the contemporary hospitality industry, focusing on two major players: IBIS Hotel and Intercontinental Hotels. The analysis incorporates PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) factors to assess the external environment and SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to evaluate internal capabilities and competitive positioning. The report examines the supply and demand dynamics of both hotels, highlighting current and future trends such as technological advancements and the growing popularity of bachelor trips. The report concludes that the hospitality industry holds significant growth potential, influenced by various factors affecting front and back-house operations and providing insights into business development prospects. The report also includes references to academic sources.

Contemporary Hospitality Industry

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PESTLE Analysis
Political factor
IBIS hotel
 IBIS hotel don't face any threat as it helps in reducing level of terrorism and build cordial relations with EEC
country as they conduct their business at global level.
Intercontinental Hotels
 In last few years, UK and other emerging economies have changed regulations regarding not only market
entry but also companies in Hotels & Motels can operate in the local market..
Economic factors
IBIS hotel
 Frequent exchange rate fluctuations affect both long and short term investment plans of hospitality industry
Intercontinental Hotels
 Increasing liberalization of trade policy of UK can help Intercontinental Hotels ADR to invest further in to
the regions which are so far off limits to the firm.

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Social factors
IBIS hotel
 Different social factors comprises of culture, tradition, demographics, attitudes, norms, roles, media
activity and acceptance.
Intercontinental Hotels
 With increasing liberalization the attitude towards health and safety are getting lax. Intercontinental
Hotels ADR needs to stay away from these attitudes as the cost of failure is too high in UK.
Technological factors
IBIS hotel
 AccorHotels they have adopted latest technologies for hotel booking, electronic media card along with up
to date information systems.
Intercontinental Hotels
 In Intercontinental hotel, Technological innovation is fast disrupting the supply chain as it is providing
greater access to information to not only supply chain partners but also to wider players in hospitality
industry.

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Legal factors
IBIS hotel
 It is mandatory for every country to follows these laws as these further helps in eliminating
discrimination and ensure health and safety of both staff and tourists.
Intercontinental Hotels
 Legal protection of intellectual property, patents, copyrights and other IPR rights in UK affect
Intercontinental hotels ADR if there are not enough protection.
Environmental factors
IBIS hotel
 In context of AccorHotels they are now emphasising on developing products as per environmental
standards which helps in increasing both profits and reputation of the company.
Intercontinental Hotels
 Waste management especially for units close to the urban cities has taken increasing importance fro
players such as Intercontinental Hotels ADR.

SWOT analysis
Strengths (IBIS Hotel )
 Digital campaigns
 Social media platforms
 Focusing on franchisees and contracts
Strengths (Intercontinental hotel)
 Wide geographical presence
 Good customer experiences and relation
 Successful employment engagement

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Weakness( IBIS Hotel)
 Decline in quality of services
 Lack of proper and adequate attention
 Losing business and profitability to small hotels
Weakness( Intercontinental Hotel)
 No economic hotel brand
 Poor information security system
 Poor use of social media channels

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Opportunities( IBIS hotel)
 Build academics and provide students with global experience and knowledge
 Long term growth and sustainability at both global and national level
 Plan for attractive packages for customer's
Opportunities( Intercontinental hotel)
 By making innovation in its existing products and services
 Providing technology facilitated bookings
 Increment in international tourist travel

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Threats( IBIS Hotel)
 Rival firms are Starwood, Cendant Corporation, Best Western
 Economic conditions at global level as this hamper sales
 Negative impact in both local and international market due to Brexit
Threats( Intercontinental hotel)
 Change in government rules and policies
 Increased dependencies on intermediaries
 High level of competition in the markets

SWOT analysis of IBIS Hotel
This organisation has a strong image in the market and operating its business through a chin of hotels. But
there are various small hotels and they offer different online booking services to customers which generate
threats for it. Poor utilization and use of technology is the weakness of the firm. By offering is services on
affordable prices at different geographical location the management of the company can gain various
opportunity.

SWOT analysis of Intercontinental Hotel
This hotel as good market presence and employee engagement which is the strength of it. But this hospitality
firm has not economical brand and not use strong social media channels. Use of effective technology like
social media, online booking services and others help in offering different opportunity to it. Competition
and change in government rules and regulations generate threats for it.

Supply demand of IBIS Hotel
In this firm, the supply of material is much high but the demand regarding products is low which create deficit
and create impact on the business operations and activities in negative manners. So it is necessary for the
company to find out the reason and make satisfaction within the customers.