Contemporary Hospitality Business: LO3 & LO4 Analysis of Hilton Hotel

This report provides an analysis of the contemporary hospitality business, focusing on the external factors impacting companies like Hilton Hotel. It examines political, social, legislative, technological, and environmental factors, alongside economic considerations. The report includes a SWOT analysis for Hilton, exploring its strengths, weaknesses, opportunities, and threats. It also investigates the impact of external factors on the development of firms, such as changes in taxation, customer preferences, and technological advancements. Current and potential trends in the hospitality industry are discussed, including online booking, digitalized guest experiences, and the ability of Hilton to adapt its services. A PESTLE analysis is also included, along with references. The report concludes with an overview of the factors influencing the success and development of businesses within the sector.

CONTEMPORARY
HOSPITALITY
BUSINESS
LO 3 and LO 4

TABLE OF CONTENT
■ LO3 and LO4
■ Political, social, legislative, technology and environmental factors affect
development of companies operating within hospitality industry
■ SWOT analysis for Hilton Hotel
■ Impact of external factors on development of firms operating within hospitality
industry
■ Implications of current and potential trends in hospitality industry
■ Ability of Hilton Hotel to develop services and products that will meet current
trends
■ External factors impact on potential and current trends and development in
hospitality industry

Political, social, legislative, technology and environmental
factors affect development of companies operating within
hospitality industry
Political factor
■ Hospitality industry analysis is the modern and best way to find out the factors which
impact on organization operating under it.
■ Trade policy, foreign trade, labour law, tax policy and political instability or stability are
the factors that impact development of organizations under hospitality sector.
Economic factor
■ Exchange rates, economic growth, interest rates, disposable income of businesses and
consumers and inflation are the factors which affect organizations operating within
hospitality industry.

CONTI….
Social factor-
■ Population growth, health consciousness, age distribution, career attitudes and customer
preferences are elements that included in social factors which influenced firms operating
successfully within hospitality industry.
Technology factor-
■ Technology incentives, research and development action, level of innovation,
technological advancement are the factors that can affect companies working in
hospitality sector within UK.

CONTI….
Legal factor-
■ Discrimination laws, employment laws, health and safety laws, copyrights and patent
laws, antitrust laws and consumer protection laws are included in legal factors that
might be affecting organizations operating within hospitality sector or industry.
Environmental factor-
■ It includes environmental and ecological aspects such as climate change, weather,
environmental and climate which affect industry such as tourism and hospitality.
■ Increasing scarcity of raw materials, carbon foot print targets and pollution targets set
by government affect company or Hilton hotel within hospitality industry.

SWOT analysis for Hilton Hotel
Strength
■ Brand reputation and recognition is the biggest strength of Hilton Hotel, in UK
company provide quality services to customer that help to build their high image in
marketplace. It is the main source that attract potential and existing customers towards
them and help to retain existing ones for longer. They provide satisfaction grantee to its
guests at all of their properties or companies across the world.
Weakness
■ Hilton is not highly successful at integrating organization with various work culture that
impact on employees' performance as well as profitability. It impacts on decision
making process and management activities.

CONTI….
Opportunity
■ They are able to work according to new trends in customers behaviour that give new
ways to its business towards success and growth at international level.
Threat
■ Threat of new entrants and rising new material pose as the biggest threat to Hilton hotel
profitability and financial budgets.
■ New entrants in hospitality sector impact on companies decision making procedure, new
entrances impact on Hilton hotel current business strategies and plan.

Impact of external factors on development of firms
operating within hospitality industry
■ Changes in Taxation policy put affect on organizations operating within hospitality
industry. Great amount of tax on star and luxury category of hotels impact on their
profitability and productivity, they need to pay high taxes on each of its operations and
business expansion process that influence business functions and other activities.
■ Changes in customers preference is one of the factor that impact on firms operating
with in hospitality sector. Hotels or resorts need to change their whole service structure
that impact on their operational efficiency. If company understand people needs and
make changes in their existing activities they can be able to gain attention of customers
and retain for longer term period.

CONTI….
■ Technology Advancement, change the whole organization structure operating within
hospitality industry. In current modern world technological sector improve and get
developed more and more. Due to advancement in technology company marketing
functions affect the most, if they promote their services into international market with
the help of TV, Billboard and social media platforms they can be able to attract people
and generate more revenue.
■ Changes in employment laws also put negative impact on firms operating within
hospitality sector and its activities related with workers. According to employment law
Hilton hotel and other companies must implement all the rules and legislations within
their employment contract that affect on their profit margin and market position.

Implications of current and potential trends in
hospitality industry
Current trends
■ People are like to plan their family functions and wedding events outside with the help
of event planner. It defined as current trends that impact on Hospitality sector
organizations, local and residential people like to prefer plan for destination wedding
which is suitable and appropriate for local families.
■ They pay money to event planner for planning the best event and provide quality
services to customers.

CONTI….
Potential trends
■ Online booking and event planner, is one of the potential trend that impact on
hospitality industry and drive towards success in marketplace.
■ Through online event planner people will easily communicate and share information
related to their preferences which is essential for planning an event.
■ Guests are able to book events date and pay money to event agent and with the help of
online booking they can save time.

CONTI….
■ Digitalized guest experiences, is another potential trend that help companies operating
within hospitality industry.
■ It supports hoteliers to manage their services they offer to consumers and control
aspects of people experiences and cycle.