Report: Contemporary Hospitality Industry Analysis - Hilton & Marriott

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on two major players: Hilton and Marriott. It begins with a PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors impacting both companies. The repo...Read More

CONTEMPORARY HOSPITALITY
INDUSTRY

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PESTLE Analyses
Political
Hilton: Hilton hotel is mainly involved in the lobbying in order to affect other external factors of
business.
Marriott: Marriott faces terrorists attack directly on its tourist sites or hotel directly so this create
negative impact on the organisation's functions and brand reputation in the market.
Economic
Hilton: Hilton hotel also faced some financial and global economic issues so that they applied
different kind of tax and policies on their business rules effectively.
Marriott: Marriott is the high exchange rate for the US dollar overseas which disappoints Americans
from travelling and foreign tourist from visiting US locations.

CONTINUE...
Social
Hilton: In reference to the Hilton hotel, they are required to follow new culture in which tourist and
people can get satisfied in a proper manner.
Marriott:Cultural changes that could impact Marriott include increased numbers of Chinese and
other Asian travellers.
Technological
Hilton: In context to the Hilton hotel, they applied different technologies in order to make their
customer's satisfied with the help of this they can get their goals within the marketplace.
Marriott:One major potential threat Airbnb poses to traditional hotel companies is its hosts can avoid
expenses such as hotel taxes and fire regulations which means they have much lower operating
costs.

CONTINUE...
Legal factors
Hilton: In reference to the Hilton hotel they followed different kind of laws which is given by the
UK government in order to enhance their business growth and productivity in a systematic
manner.
Marriott:Marriott also faces the possibility of an increased minimum wage as high as $15 an hour
in some proposals. That could lead to higher lobar costs and service reductions.
Environmental factors
Hilton: In context to the Hilton hotel, they are differently using some aspects such as laws,
climate, weather as well as waste management within the service sector.
Marriott: Increased temperature due to global warming could close ski resorts or make some
beach resorts too hot for comfort. Those developments could force the closure or relocation of
hotels.

SWOT Analyses
Strength(Hilton)
 Higher brand recognition
 Better quality of food items
 Good reputation within the market
Strength(Marriott)
 Strong pipeline to expand internationally
 Effective position in competitive landscape
 Providing proactive and innovative services

CONTINUE...
Weakness(Hilton)
 Limited marketing shares
 Change government policies
 Comparison to the brand recall
Weakness(Marriott)
 High number of hotels my lead to brand dilution
 Limited market share
 Concentration on the family

CONTINUE...
Opportunities(Hilton)
 Expansion of business
 Formation of strategic alliances
 Collaborating with game events
Opportunities(Marriott)
 Travellers looking for new destinations
 Seasonal offers
 Better use of technology

CONTINUE...
Threat(Hilton)
Emerging markets
Innovation in their food products and accommodations
Using effective technology
Threat (Marriott)
By making innovation in interior
High potential in emerging markets
By making focus on personalization

Analyses of SWOT of Hilton
According to the SWOT analysis, manager of Hilton hotel can get lots of ideas about their firm or in
order to operate their organisation's function in a proper way. On the basis of this manager of this
industry can make better decision for future as well as employee's so that they are able to get
future development growth of this firms within the marketplace.

Analyses of SWOT of Marriott
As per the defined information, it can be summarised that strong brand image and competitive
landscape help in expansion of the business. Limited market shares and focusing on family will
be weakness of the company. By making innovation in interior and concentrating on
personalisation, this firm can gain various development advantages. Economic recession and
terror attack generate threats for the company.

Supply demand in Hilton
Political and economical issues of the nations affect the supply and demand of the
management of Hilton. This create negative influence of the business of the firm.
Economic recession is also a factor which affect the demand of the customer and
influence the business of the firm.

Supply demand in Marriott
Terror attack and high level of competition in the market affect the supply and demand of
Marriott. This unfavourably influence the business and profit margins of the company
differently.

TREND1
As per the analysis of the current situation of hospitality sector, it can be monitored that
Entertainment tour packages are in trend and liked by people during the time of vacations. In
these kind of tours people are liked to visit with family and they are also helpful for the
development of the firms.

TREND2
According to the present performance of this sector, it can be analysed that in these days receiving
services are in trend and also provided by various hospitality firms. In these kind of services,
the company offer transpiration to the clients according their pick up timings.

TREND3
Advance technologies and artificial intelligence services is also in trend which can be also adopt by
the organisations which belong from hospitality industry. In these kind of services, company use
robotics and others in nits business operations which will help in effective running of the
activities of the company.

TREND EVALUATOR
As per the defined information, it can be analysed that all trends are beneficial for the growth
and development of the company. Some of them like technological advancement and
others are helpful and efficient for effective running of the company.

Current and Future trends specification
According to the defined information, it can be monitored that receiving services can be beneficial
as current trend and artificial intelligence will be effective as future trend. These trend help in
increasing market share and improving revenues of the organisations.

REFERENCE
Segovia-Pérez, M., and et. al., 2019. Incorporating a gender approach in the hospitality industry:
Female executives’ perceptions. International Journal of Hospitality Management, 76.
pp.184-193.
Su, N. and Reynolds, D., 2019. Categorical differences of hotel brand personality: Identifying
competition across hotel categories. International Journal of Contemporary Hospitality
Management.
Teng, H. Y., 2019. Job crafting and customer service behaviors in the hospitality industry:
Mediating effect of job passion. International Journal of Hospitality Management, 81, pp.34-
42.