Impact of Trends in the Contemporary Hospitality Industry

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on the Intercontinental Hotel Group and Travelodge. It begins with an introduction to the industry and then conducts a PESTEL analysis, examining political, economic, social, technological, environmental, and legal factors affecting the businesses. A SWOT analysis is then performed, identifying the strengths, weaknesses, opportunities, and threats for both companies. The report further explores factors influencing demand and supply within the hospitality sector, considering both companies. It concludes by examining current and potential trends, such as increasing customer expectations, the need for transportation services, and the importance of entertainment, along with future trends like sustainability and seamless technology integration. The analysis provides valuable insights into strategic decision-making within the industry.

Contemporay
Hospitality
Industry
(Task 3 & Task 4)

Table of Content
 Introduction
 PESTEL Analysis of hospitality industry
 SWOT analysis for hospitality business
 Current and potential trend in hospitality industry
 Conclusion
 Rerefences

Introduction
PESTLE and SWOT analysis are conduct to identify the impact of
macro and micro environmental factors on business operations of
Intercontinental Hotel Group. It assist management in making an
effective decision for the betterment of an organisation in
competitive market world.

Pestle Analysis On Intercontinental
Group & Travelodge
Political factor- This factor is related with the government policies which are
commenced by the government. The rate of VAT in UK is constant since last
couple of year due to which hospitality industries are capable of operating its
business activities easily and smoothly. Government in UK has been facing global
pressure pressure so that all the regulations formed by WTO for hotels cab be
fulfilled.
Positive: Operating in UK will benefits the intercontinental hotel groups to
have stable policies and norms due to which employees will be able to
perform their work in a desired manner.

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Negative: If hotel chain will operates in region which is not politically
stable then they have to change their rules and strategies at continuous
basis due to which organisational productivity will reduce.
Example 2: In political factor, Trevelodge is facing number of issues and
problem just because of trade regulation which is being imposed on
hospitality sector. This has been creating unnecessary issue for the
organisation and because of they are unable to perform better with in the
market.

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Economic factor: These factors are concerned with interest rate, economic
cycle, savings rate, inflation rate, GDP and foreign exchange rate.
Intercontinental hotels are needed to acknowledge these aspects about a
country before expanding their businesses in that region.
Positive: It will be beneficial for the concerned hotels to operate in area
where government intervention will be low. This will secure the company
from extra taxes and custom duties (Tresidder, 2015).

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Negative: If interest and inflation rates will be high in a region then
operating their will charge extra costs to company due to which
profitability can reduce.
Example 2: It is necessary for Travelodge to deliver the affordable services
to their customer so that they can be easily attracted towards hotel. Even it
will help them to reach near to their goals and targets.

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Social factor: These factors are linked with culture, values, briefs and trends
associated with a particular society. Belief of population will help
intercontinental hotel groups in understanding the needs of customers in
context with travelling and staying.
Positive: If manager of hotel will understand demographics, culture, values
of a place properly, it will benefits them in serving according to the needs
and demands of customers.

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Negative: If company is not aware about demographic, it will results in
offering those services and products to customers which are not needed or
accepted by them. It will results in revenue loss.
Example 2: Every single day, wants and desire of customer do changes due to
which it will directly impact on the the sales and revenue of Travelodge
hotel.

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Technological factor: In order to gain competitive advantage over rivals, it is
essential for business organisations operating in hospitality sector to
update their technology. This will benefits in gaining access to large
customer base.
Positive: It will help company in performing business operations in more
efficient manner.

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Negative: If organisational technology will not be implemented, customer
will change their preference toward other organisation.
Example 2: Here, if Travelodge wants to upgrade its working style by
bringing new technologies then they have to invest huge of capital and that
will directly impact on the revenue of the hotel.

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Environmental factor: Different countries have varied environmental norms
and standards. To operate in a particular region, it is vital for
intercontinental hotel groups to follow all the policies and procedures
related with environment.
Positive: Following environmental laws will benefits the company in
sustaining a positive image in market due to which sales will be high.