Contemporary Hospitality Industry: A Case Study of Treehouse Hotel

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on the case of Treehouse Hotel London. It begins with an introduction to the sector and its significance. The report then delves into the external factors impacting the industry's development, utilizing a PESTLE analysis to examine political, economic, social, technological, legal, and environmental influences. A SWOT analysis is also conducted to assess the hotel's internal strengths and weaknesses, as well as external opportunities and threats. The report further explores current and potential trends within the hospitality sector, such as sustainability, changing lifestyles, and brand development. Finally, the conclusion summarizes the key findings and emphasizes the industry's growth and customer-centric approach. References to relevant literature support the analysis.

The Contemporary
Hospitality Industry

Table of Content
• Introduction
• Access the external factors that impact the development
• SWOT analysis
• Current and potential trends
• Conclusion
• References

Hospitality sector is considered as the fast growing and emerging industry in all over the world and it
also provide the prominent benefits in terms of serving effective quality to the customers with the
effective manner. Moreover, it also include various areas in its like travel and tourism, food and
beverages and other services. In order to carry forward this report Treehouse hotel London is considered
which is situated in London and also provide suitable facilities like laundry, accommodation, quality
food, Wi-Fi and many more. Besides this, it also identify internal and external factors within the
environment with the help of suitable frameworks like PESTLE and SWOT. Lastly, it depicts the
current trends that exist within the hospitality industry.
Introduction

Political: As per this factor, government of the nation holds extensive power over the industry like they set
the suitable restrictions on travelling and takes suitable decisions regarding the growth of country within the
travel and tourism industry. Moreover, considering the tax reforms, government controls the tax rates by which
the owner of Treehouse hotel London is liable to pay low taxes and it leads to improve the whole industry.
Economical: Tourism give prominent benefits to the economy by improving the cost of economy and for
this, they include the process of economic cost that include the direct cost which is incurred by tourism
businesses. Along with this, the hotel chains leads to improve profitability regarding the profits and revenues that
leads to acquire and merge various resorts among them and after that they leads to change the significant policies
and norms of hotel.
Access the external factors that impact the development

Social: It is vital for the unit to develop effective goods and services according to the taste and
requirements of people that leads to prevail the overall society.
Technological: These are the factors that are essential regarding the effect of hotel industry in
various ways like effective use of latest technologies that leads to facilitate the business activities.
Legal: The crime records leads to ruin the profitability of company as many people want safe and
secure environment in order to stay and if hotel is developed within the crime area then it leads to
reduce the profitability and sales of hotel.
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Environmental: In terms of this, the local climate of area
plays an important role as people wants to stay in that
area which has pleasant season and also visit with their
family and friends. Along with this, the profitability of
hotel depends on the weather and the climate of London
is pleasant and people want to visit and stay in that
climate that is beneficial for the Treehouse hotel London.

SWOT analysis
Treehouse hotel London considered as one of the finest hotel in London as it offer qualitative services to their
customers that leads to achieve success within the business environment. Along with this, in order to gain
vision regarding the internal performance and capabilities, the manager of Treehouse hotel London use SWOT
analysis framework in order to identify the strengths and weaknesses with effective strategies.
Strengths: Treehouse hotel London offer various services to their potential customers that leads to attract new and
helps in retaining existing ones and it also leads to increase the profitability and it helps in achieving the
competitive advantage in market.

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Weaknesses: The higher authority of Treehouse hotel London develop suitable standards for their employees. Along with
this, it also leads to decrease the morale and productivity of employees that put negative impact on the overall
performance and market position of company.
Opportunities: Treehouse hotel London also has the opportunity in order to expand itself in order countries with its effective
and qualitative services which results in earning high profit in more significant manner. Moreover, they can also acquire
large market area by entering into new market.
Threats: Within the hospitality sector, there are various rivals in London that leads to impact the sales and profitability of
company but Treehouse hotel has more competitors like Hyatt hotels, Travelodge and many more.

Current and Potential trends
The hospitality sector has various trends that are followed and put direct impact on the overall performance of
company. In relation with, Treehouse hotel London it is important to include the trends in order to achieve
success and growth in effective manner.
Sustainability and ethical considerations: In order to remain competitive within the market it is important for
company to include the ethical practices in prominent manner. In terms of Treehouse hotel London, they
follow significant legal considerations that leads to develop positive image towards the brand. Along with this,
it is important for the company to work by considering the legal bodies that leads to update regarding the
ethical considerations.

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Changing lifestyle trends: A per this factor customers plays an important role in order to satisfy their customers
that leads to achieve success in market. For this, Treehouse hotel London conduct effective market research
that leads to satisfy the customers in order to retain them for longer period of time and also improves the
profitability and revenues.
Emerging market and brand development: Hospitality sector is rapidly growing and developing at the
international level and for Treehouse hotel London, it is important to develop brand image within the market.
In terms of this, company offer unique mindset that leads to put positive impact on the mind of customers and
also improves the value of company.

By considering the preceding information it is analysed that hospitality industry is considered as the
sector that rapidly grows and emerges by focusing on the fulfilment of the requirements and needs of
customers. Besides from this, the significant objective of the hospitality industry is to offer prominent
quality and time towards the customers in terms of retaining them for longer period of time.
Furthermore, it is also determined that the hospitality industry has major contribution towards the
international, national and local system.
Conclusion

Murphy, K and et. al, 2018. A review of high performance work practices (HPWPs) literature and
recommendations for future research in the hospitality industry. International Journal of
Contemporary Hospitality Management.
Chan, E.S. and Hsu, C.H., 2016. Environmental management research in hospitality. International
Journal of Contemporary Hospitality Management.
Li, X., Ma, E. and Qu, H., 2017. Knowledge mapping of hospitality research− A visual analysis using
CiteSpace. International Journal of Hospitality Management. 60. pp.77-93.
References