Contemporary Hospitality Industry: Business Analysis and Trends Report

This report offers a comprehensive analysis of the contemporary hospitality industry, with a specific focus on Hilton Hotel in London, UK. It begins with an introduction highlighting the industry's growth and the report's objectives. The core of the report comprises a business planning section, which includes a PESTLE analysis examining political, economic, social, technological, legal, and environmental factors affecting Hilton. A SWOT analysis is also conducted to evaluate Hilton's strengths, weaknesses, opportunities, and threats. The report then delves into market research, analyzing current trends such as wellness and spa hotels, boutique hotels, all-inclusive hotels, hotel animation, online booking, ecology, and slow food restaurants. An evaluation of Hilton's ability to adapt to these trends is also provided. The report concludes by summarizing the key findings and providing references to support the analysis. The report aims to provide insights into the hospitality industry's dynamics, challenges, and opportunities, offering valuable information for business development and strategic planning.

The contemporary hospitality
industry

Table of Contents
INTRODUCTION...........................................................................................................................1
BUSINESS PLANNING REPORT ................................................................................................1
1. Pestle Analysis........................................................................................................................1
2. SWOT Analysis......................................................................................................................2
MARKET RESEARCH REPORT..................................................................................................3
Trend Analysis............................................................................................................................3
Evaluation of the ability of the Hotel chain................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
Hospitality industry is the most growing service sector that provides different kinds of
services which includes accommodation, transportation, tourism, lodging, event planning, etc.
present study based on the contemporary hospitality industry for which report will be taking
Hilton which is the famous hotel in London UK. Present will be discussing Pestle and SWOT
analysis of the hospitality industry in order to identify the new trends and factors that affect
overall business environment.
BUSINESS PLANNING REPORT
1. Pestle Analysis
Political : UK is one of the most powerful country across the world. UK having the good
political stability that is plus point for the hospitality industry for better investment in foreign
market (Ali, Amin and Cobanoglu, 2016). Current corporatisation tax rate for the company profit
is 19%. Besides, the rate would be in 2020 will be 17%. This shows the good sign of political
stability that helps Hilton to get good chances of business development. Besides, In case of low
stability of political factor create low investment possibilities.
Economical : Economic condition of the UK is quite well that helps hospitality industry
to get good profit revenue from the market. Contrary, In case of recession people has stopped to
invest on luxury items or services. Due to which company fails to get enough sales profit from
the market. UK faced challenges in 2017 which increased the cost of goods to the UK. On the
other side, Employment policies also affect the economic situation of the Industry that affect in
negative manner.
Social : Social factor is the another significant factor for hospitality industry that affect
Hilton in different manner (Alshehhi, Nobanee and Khare, 2018). UK having a large consumer
market and foreign travellers, that creates enough profit for hospitality sector. In case where
organisation fails to protect social environment or not fulfilling the social obligations. In that
case, Company fails to attract customers. Hilton needs to adopt social welfare practices to protect
the social environment also influence positive environment in order to meet the society needs.
This would be given good social impact on the business growth.
Technological : Technological is the fast or positive factor for hospitality sector that can
helps businesses to adopt new technology growth. Technological factors directly influence
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travellers, clients to make booking process more easier and effective. Apart from that, Company
can also adopt some new technologies to make booking process or provides some new ways of
innovation to attract travellers or clients (Gibbs, MacDonald and MacKay, 2015).
Legal : Legal factor of external environment affect the company internal policies. Legal
factors also gives negative impact on the business growth in case they are not following the
proper policies or regulations. Such as Hilton has to adopt employment act 1996 in order to
protect employee rights. Likewise, organisations also liable to adopt Equality Act 2010 to ensure
the non discrimination environment. Otherwise, company image can face government
punishment and less company image in the market.
Environmental : Environmental factor, get affect directly to the company sales volume.
For that, it is mandatory for hospitality sector to ensure effective and healthy environment for
their clients and for employees as well (Jauhari, and Bharwani, 2017).
2. SWOT Analysis
Strength : Hilton having a big brand value and image in the hospitality sector in across
the world. This holding a numerous strengths that help it to thrive in the market place. Hilton
having a high high customer satisfaction because of productive customer relationship
management department. Hilton also having a Brand Portfolio to attract the international
national guests. It also helps to make the sustainable brand value in terms of making good
outcome results. Hilton also having a good dealer community that helps to build a culture among
distributor & dealer where the dealers not only promote the company they also helps to invest in
employees training process.
Weaknesses : Hilton holding a high investment inventory which is not effective for long
term process (Kandampully, Zhang and Bilgihan, 2015). Another weaknesses of Hilton that,
Hotel having a high attrition rate in work force due to which company has to invest high amount
on the development of employee productivity. Another weakness of the organisation that, Hilton
cannot earn high profit apart from its core businesses.
Opportunity : Opportunity for the business helps to take its growth more forward in the
future. Hilton having a opportunity to invest in green projects which is the best way to upgrade
the market value in front of governments and international clients. It helps Hilton to holding
products by the state as well as federal government contractors. Besides, Hilton can also make
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new policies which involves the better interest of stakeholder, shareholders. It represents the
involvement of company in green development (Li and et.al., 20155).
Threats : threats of Hilton are changing in needs and wants of the customers.
Unnecessary regulations of government, heavy competition in the market.
MARKET RESEARCH REPORT
Trend Analysis
Current trends influenced by contemporary needs and wants of tourists customers. There
are given some current trend of hospitality sector that helps Hilton to enhance the more new
customer attraction
Wellness and Spa hotels
People visits different tourists places to feel better and relax. Along with they also wants
to get some Spa which is exist in within the hotels itself. This become convenient for the clients
to feel more better (Manganari, Dimara and Theotokis, 2016). Wellness and Hotel spa consist
body care, face care, health promotion, mental relax etc. this is the current trend generally people
want.
Boutique Hotel
Boutique hotel is highly includes most expensive services that cost huge for clients. It
involves, Decorated interior, specially designed rooms and suites furnished with some excellent
lounge bar. That helps to attract large number of customers towards the company services.
All -inclusive Hotels
This is the another most trendy way which generally found in exotic places, in which
includes various modern facilities for clients such as Modern Buffet breakfast, lunch dinner,
afternoon, late night snacks. Etc (CURRENT TRENDS IN HOSPITALITY INDUSTRY. 2013).
Hotel animation
As per the modern demand of the tourists, hotel industry has to full-fill them all. It helps
to attract different national or international client. For that, Hotel can make some new area for
guest, children sports club, some other recreational activities for their clients as well.
Online Search and Booking
This is the most required trend or demand of the client that company has to provide easy
way to book rooms prior without any threats. For that, Hilton has to adopt advanced software and
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technology that helps to full fill those needs of the clients. The reason behind this trend is,
customers are facing this issue from past many times due to which they cannot able to
understand the concept of online or e-payments as a part of everyday life. For that, Hilton should
need to provide easy access to book the services through its own sites (Radojevic, Stanisic and
Stanic, 2015). Through websites, company can also promote their new offers and services
directly to the customers.
Ecology
In present time, Modern customers give preference to healthy and safe environment that
are more socially or environment friendly (Xiang and et.al., 2015). Precisely, it is necessary for
Hilton to keep maintained the green environment within their hotel premises to attract customer
attention.
Slow Food restaurants
This is the new concept of businesses that helps to cultivate good taste and immortality
simplicity in business. Where dishes are being prepared with fresh ingredients.
Evaluation of the ability of the Hotel chain
In order to meet out the trend and current needs of the customers. Hilton has adopted
some new technologies and strategies in order to meet out the best growing target for the
company growth. Hilton has adopt high technology trend through which customers can easily
adopt the current trend and new market emerging growth (Schuckert, Liu and Law, 2015). They
provides multiple training methods to their clients that helps to make the productive customer
experience. Besides, Hilton also adopt the trend of Ecology where they maintained the green
environment within their outlets to promote healthy and safe environment. Hilton also adopt Spa
and customer wellness trend that helps to motivate customers to get the best approach for their
clients into more appropriate manner. Hilton also adopted online booking strategy that helps to
promote the high booking opportunity for the company into better effective manner. They also
provides different discounts on rooms and overall packages of the clients. Hilton adopts various
social media platform to enhance the product or services in order to meet out the client needs and
wants (Torres and et.al., 2015).
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CONCLUSION
Hospitality sector is the only sector where companies focused on their clients
preferences, needs and wants and try to improve new services. Present has been divided into two
parts business planning and market research report. In which study explained about PESTLE and
SWOT analysis of the industry in order to identify the opportunity or threats of the organisation.
Study also discussed about the current trends of hospitality industry to attract clients.
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REFERENCES
Books and Journals
Ali, F., Amin, M. and Cobanoglu, C., 2016. An integrated model of service experience,
emotions, satisfaction, and price acceptance: an empirical analysis in the Chinese
hospitality industry. Journal of Hospitality Marketing & Management. 25(4). pp.449-475.
Alshehhi, A., Nobanee, H. and Khare, N., 2018. The impact of sustainability practices on
corporate financial performance: Literature trends and future research
potential. Sustainability. 10(2). p.494.
Gibbs, C., MacDonald, F. and MacKay, K., 2015. Social media usage in hotel human resources:
recruitment, hiring and communication. International Journal of Contemporary Hospitality
Management. 27(2). pp.170-184.
Jauhari, V. and Bharwani, S., 2017. An exploratory study of competencies required to cocreate
memorable customer experiences in the hospitality industry. In Hospitality Marketing and
Consumer Behavior (pp. 159-185). Apple Academic Press.
Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
Contemporary Hospitality Management. 27(3). pp.379-414.
Li, G., and et.al., 2015. Identifying emerging hotel preferences using Emerging Pattern Mining
technique. Tourism management. 46. pp.311-321.
Manganari, E. E., Dimara, E. and Theotokis, A., 2016. Greening the lodging industry: Current
status, trends and perspectives for green value. Current Issues in Tourism. 19(3). pp.223-
242.
Radojevic, T., Stanisic, N. and Stanic, N., 2015. Ensuring positive feedback: Factors that
influence customer satisfaction in the contemporary hospitality industry. Tourism
Management. 51. pp.13-21.
Schuckert, M., Liu, X. and Law, R., 2015. Hospitality and tourism online reviews: Recent trends
and future directions. Journal of Travel & Tourism Marketing. 32(5). pp.608-621.
Torres, E. N. and et.al., 2015. The Use of Consumer-Generated Feedback in the Hotel Industry:
Current Practices and Their Effects on Quality. International Journal of Hospitality &
Tourism Administration. 16(3). pp.224-250.
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Xiang, Z. and et.al., 2015. Adapting to the internet: trends in travelers’ use of the web for trip
planning. Journal of Travel Research. 54(4). pp.511-527.
Online
CURRENT TRENDS IN HOSPITALITY INDUSTRY. 2013 .[Online]. Available
through :<https://scindeks-clanci.ceon.rs/data/pdf/2334-735X/2013/2334-
735X1304091B.pdf>.
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