Contemporary Hospitality Industry: Holiday Inn Analysis Presentation

This presentation provides a detailed analysis of the contemporary hospitality industry, using Holiday Inn as a case study. It begins with an introduction to the industry's importance and then delves into macro-environmental factors using a PESTLE analysis, examining political, economic, social, technological, environmental, and legal influences. A SWOT analysis of Holiday Inn is then presented, identifying its strengths, weaknesses, opportunities, and threats, followed by a discussion on how these factors influence decision-making. The presentation further explores the implications of current and potential trends affecting the hospitality sector, evaluating how Holiday Inn can adapt its products and services to meet these trends. The analysis covers factors affecting supply and demand for both Holiday Inn and Travelodge, providing a comprehensive overview of the industry's challenges and opportunities. This presentation is designed for students seeking to understand the complexities and dynamics of the hospitality industry.

Contemporary Hospitality Industry

Cover Content
 Introduction
 Macro environment factors and their impacts on hospitality industry
 SWOT analysis of a hospitality organisation
 Influence of SWOT in decision-making

Cont....
 Implication of current and potential trends affecting the hospitality industry
 Ability of Holiday Inn to develop products and services that will meet current trends
 Conclusion
 References

Introduction
Hospitality industry plays very important part in economic development of nation as it attracts a
large number of travellers towards nation and provide them better facilities and satisfaction.
Present presentation is based on an exhibition that is conducted for school pass-outs so that they
can make their career in hospitality industry. Along with it, an organisation is also taken so as to
complete this project which is Holiday Inn that was founded in 1952 and headquarters are situated
in Denham. PESTLE and SWOT analysis along with implications of current and potential trends
in hospitality sector will also described in this presentation.

Macro environment factors and their impacts on
hospitality Industry
Pestle analysis is used by organisation in order to
determining the impact of macro-environmental
factors on business operations. With the help of it,
These organisation can determine the factors that
can influence productivity and performance in
market. This model is discussed in further slides

Cont....
Political: This factor comprises of stability of government, political conditions etc. that can poses impact on
growth and success of hospitality organisation in positive or negative manner. Positive or negative impacts of
this factor on both organsiations are defined as below:
Basis Holiday Inn Travelodge
Positive Stability of UK government and constancy
of tax rates is providing support to Holiday
Inn in terms of improving their profitability
and growth.
Presence of organisation in several nations can
become profitable for the growth and
sustainability of organisation.
Negative Due to Brexit, government policies such as
tax duties are changing on continuous basis
in European countries which have created
challenges for hospitality organisations such
as Holiday Inn in terms of earning
profitability
Travelodge is facing large number of issues just
because of trade regulations which are framed
by UK government for hospitality industry.

Cont...
Economical: These factors can also impact on the growth and success of organisation due to change in
interest, inflation rates etc. Positive and negative impact of this factor on profitability of both organisation i.e.
holiday Inn and Travelodge are given as below:
Basis Holiday Inn Travelodge
Positive Current tax rate in UK is 20% which is
less than the other nation's tax duties
therefore, it can be considered as a
positive sign of this factor on overall
profitability of firm.
Current inflation rate is 2.1% which is less than from
the previous year that was 2.3% which defines
positive sign of this factor on growth and profitability
of organisation.
Negative Operations of Holiday Inn are expanded in
several nation such as Ireland, America,
Africa etc. so that if any change is
occurred in tax rates of these nations then
it will provide negative impact on the
overall growth and profitability of firm.
Whereas, in other nations like America, UAE
inflation rate is not constant that can impacts
negatively on the overall profitability of Travelodge.

Cont.…..
Social: This factor comprises of taste, preferences, attitude, belief, preferences of customer that can impact
on their purchasing habits. Positive and negative affects of these factor on both hospitality organisations are
defined as below:
Basis Holiday Inn Travelodge
Positive Individuals of UK are educated and skilled due to
which they prefers to collect whole information
before visiting or booking in hotel. For this,
Management of Holiday Inn should conduct market
research so that present needs and wants of
customers can be identified that will automatically
leads in improvement of facilities.
Due to effective services, large number of
customers prefers to stay within the hotel and
enjoying services.
Negative Whereas, needs and requirements of customers
can be changed over a time period that can
negatively influence on the profitability of firm.
Therefore, it should be identified effectively so that
these impact can be overcome easily (Rahimi,
2016).
Apart from that, traditional culture is followed by
management of Travelodge that can reduce the
overall profitability of firm.

Cont.…..
Technological: Such factor comprises of advancement in technology, invention etc. Due to having
presence of various multinational organisations UK nation is more technically advanced because of which
most of individuals prefers those hospitality organisations which are providing technically updated
services such as Wi-Fi, Gaming Zone, Poker etc.
Basis Holiday Inn Travelodge
Positive Artificial intelligence is using by
Holiday Inn so as to improving
quality of services that have
provided positive impact on the
profitability of firm.
Employees of Travelodge are technically skilled due to
which company is providing better services with
unique qualities to their customers.
Negative Whereas, lack of IT skills among
the employees have restricted the
growth of firm in marketplace.
Apart from that, competitors have adopted artificial
intelligence that can reduce the customer base of firm.

Cont.…..
Environmental: Protection of environment, utilisation of resources, elimination of wastage etc. are falls
under this factor.
Basis Holiday Inn Travelodge
Positive Government of UK is more strict for
protecting the environment due to
which several laws are formed by
them i.e. Environmental protection act,
2011. Through following this
regulation, management of Holiday
Inn will be able in making good brand
image in front of government.
Management of Travelodge is using smart
meters so that energy can be saved easily
which is a positive impact of this factor on the
overall growth of firm.
Negative Whereas, if this law will not followed
by management effectively then it will
posses negative impact on the growth
and sustainability of firm in market.
Wastage of food and other things can posses
negative influence on the overall profitability of
firm.

Cont.…..
Legal: This factor comprises of laws and legislations that are framed by UK government for protecting
employees from unfair treatment of employers.
Basis Holiday Inn Travelodge
Positive Management of Holiday Inn is following
several legislations like Equal act 2010,
National Minimum wages Act 1998, working
time regulation 1998 etc. that are impacting
positively on the organisation.
Positivity of this factor is that company is following
each legislations which are formed by government so
as to executing each hospitality activity in effective
manner.
Negative Whereas, their point of sale systems were
hacked by Hackers due to which credit card
data of customers was stolen that have
influences the sales figures of approx. 1200
branches of hotel (Latest Credit Card Breach
Hits Holiday Inn, 2016).
The company have paid an amount of £70,000 due to
breaching of health and safety act at workplace.

SWOT analysis of a hospitality organisation
SWOT can be refer to an internal analysis that is used
by organisations for analysing their internal strength and
weaknesses along with opportunities and threats.
Through this model, organisation can eliminate the
threat or weaknesses or modifying weaknesses into
strength. SWOT analysis for Holiday Inn are described
in further slides