Contemporary Hospitality Industry: Factors, Trends, and SWOT Analysis

This presentation provides a comprehensive analysis of the contemporary hospitality industry. It begins with an assessment of various external factors, including PESTEL analysis, to understand their impact on hospitality organizations. The presentation then conducts a SWOT analysis, specifically focusing on Rosewood London, to evaluate its strengths, weaknesses, opportunities, and threats. Following the SWOT analysis, the presentation explores current trends such as digital marketing, smart rooms, and advanced technology, along with potential future trends like artificial intelligence and the use of robots in the industry. The conclusion emphasizes the importance of adapting to changes and providing excellent customer service. References are also provided for further reading. The content is designed to help students understand the dynamic nature of the hospitality sector and its evolving landscape.

The Contemporary
Hospitality Industry

Table of contents
 Introduction
 Assessment of factors
 SWOT Analysis
 Current and Future trends in hospitality industry
 Conclusion
 References

INTRODUCTION
Hospitality Industry works for providing of different services to the
customers and clients. In this presentation, discussion will be made on
external factors affecting the hospitality organizations, their internal
environment and current and potential trends in the industry.

Assessment of factors
There are various types of factors which affect the organizations working
within the hospitality industry. These factors are as follows-
 PESTEL analysis-
 Political factors- These factors impact the businesses because they have
to be analyzed by them before making a strategy.
 Economic factors- These factors are necessary to be considered by the
businesses because economic conditions are quite ever-changing in
nature and therefore are required to be considered by the businesses.

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 Social factors- These factors can be considered by organizations because
social customs and traditions put an influence on their businesses.
 Technological factors- These factors are important for the businesses
because technology has to be considered for ensuring proper working of
the organization in the future.
 Environmental factors- These factors are necessary to be considered
because environment laws are pretty strict nowadays. Thus the
organizations need to comply with them.
 Legal factors- These factors are required to be considered by the
businesses because they can put an influence on the level of profits.

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From the analysis of the factors, it can be concluded that there is a
requirement for the hospitality organizations to be identify the impact
which they will put on their overall operations, Thus the managers of
Rosewood London must identify and assess the impact which is put by
these factors.
The dynamic requirements in the hospitality industry keep on changing and
thus it is essential for the company to be able to adjust according to them.
The management of Rosewood London is required to make sure that these
dynamic requirements are met in a highly effective manner by making a
proper strategy for dealing with the influence generated by each of these
factors on the organization.

SWOT analysis
SWOT analysis a tool in management which is used by the organizations
to assess their internal environment. The analysis in the context of
Rosewood London is as follows-
Strengths-
 Rosewood London is a five-star hotel and thus enjoys a substantial
customer base which can lead to its growth.
 Rosewood London is much ahead of competitors and therefore this serves
as an area of its strength.
Weaknesses-
 The marketing plans of Rosewood London leave a lot to be desired as
they are behind that of its various competitors present in the market.
 The prices which have been set by Rosewood London for some of its
rooms are very high which can lead to loss of its business.

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Opportunities-
 Rosewood London has an opportunity to make sure that it is able to
expand internationally to locations where it is not present. This can
generate more profits for it.
 Rosewood London can make sure to use the opportunity of tourism
seasons in the year to increase its profits effectively.

Continued…
Threats-
 Rosewood London faces a threat from ever-rising competition level in
the hospitality industry because it can reduce its profits.
 Rosewood London faces a threat from the increase in tax rates by the
government which can reduce its profits.

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Impact on decision-making- Rosewood London’s SWOT analysis
can impact its decision-making. This is so because its managers need to take
a right decision on the basis of the analysis to be able to make sure that they
are using the right strategies in order to earn higher profits in the future time
period. In this manner, strategic change can be brought by the management
of the organization so as to acquire a distinct competitive edge within the
market of the country.

Current and potential trends in the
hospitality industry
The trends in business keep on changing rapidly. It is important for the
businesses to keep a track with them in order to sustain themselves in the
market. The current and potential trends in the hospitality industry are as
follows-
Current trends-
 Use of digital marketing- Digital marketing has taken over the
marketing operations in several of the hotels. Rosewood London has
started using it for its marketing and promotion. This allows the hotel to
get ahead of its various competitors in the market.
 Smart rooms- Smart rooms are now the norm across the hospitality
industry. It is so because they offer facilities to the guests and customers
of the hotel. Thus Rosewood London has added various facilities to its
rooms in the hotel by making them smarter so that it is able to attract the
customers and clients towards itself.

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Advanced technology- In the hospitality industry the advanced technology is
being used so as to provide the right facilities to the customers. In the
context of Rosewood London, it is essential to provide it to the customers
and clients to ensure their satisfaction.
Online facilities- In the current age, the use of online facilities has picked up
pace. Thus for Rosewood London, it is crucial to provide these facilities to
the customers.