Business Analysis: Contemporary Hospitality Industry Report Example

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on the Cairn and Hilton hotel groups. It begins with an introduction to the hospitality sector, highlighting its diverse components and the significance of travel and tourism. The core of the report comprises PESTLE and SWOT analyses. The PESTLE analysis examines political, economic, social, technological, environmental, and legal factors impacting the industry, with specific examples related to the UK market. The SWOT analysis assesses the strengths, weaknesses, opportunities, and threats faced by Cairn and Hilton hotels. The report also discusses current trends within the hospitality sector, emphasizing globalization and improved customer service. The conclusion underscores the utility of PESTLE and SWOT analyses in identifying external impacts and internal capabilities, respectively. References to academic literature are provided to support the analysis.

Contemporary Hospitality Industry

Introduction
Hospitality sector is one of the diverse & wide industry in which different
sectorial firm are used to be operates to generates profitability for the business
operations. Hospitality industry is being classified into different units: hotels,
restaurant & cafes and club, bars etc. Also, travel & tourism sector is also a part
of hospitality industry which facilitates people to see places. In the current era,
hospitality industry is growing with an expectancy to gather customer's at a
major time period.

PESTLE Analysis

In UK, political fluctuation is a major issues such as change in government rules,
political instability as because of the ideologies are some of the major issues which
would be major impact for Cairn hotel to operates in that kind of environment.
Increased political up-down, influences of Brexit has impact's Hilton hotel in their
business operation on the longer basis as well as decrease in business operation.
Political

Economical
England is one of the costlier country, because of its increasing currency valuation may
put burden on other tourist who cannot afford to pay for trips to London and not able to
afford to buy hotel services. High prices of the resources has made hospitality services
costlier to be afford.
Increase in inflation rate, fluctuation in interest rate & exchange rate has impact Hilton
hotel to continues its business operation and also led to decline in market share.

Social
In this, factor such as people thinking, cultural influences and societal thought are
some of factor which can effects business operations of the Cairn group at a major
forces. Various social factors such as cultures, tradition, demographics, attitudes,
norms etc., are some of the social factor which can impacts business operations and
turning process of prospective customer's to overcome businesses goals or targets of
the Cairn hotels in given time period and business performances.
Social burden such as change in the perception of people and social entrust of
people has led decline in business operation of the Hilton hotel. This would be
severe for Hilton hotel

Technological
Now a days, hotels are using technologies such as websites booking, use of mobile
apps, mobile check in & check out which is convenient to both time and cost at a point
of time. These adaptation needs to incur huge cost & money due to which Cairn have to
spent on an implementation of these technological adaptation.
Efficient development of technology such as easy check in and check out has led Hilton
hotel to attracts their customer's on an proactive basis. This is one necessary for Hilton
hotel to gather an effective business effeciences.

Environmental
In UK, environmental forces such as nature in climate on regular, storms
etc., are some of the environmental factor which have led burden on
business entities in such level of the situation. This is in context of Cairn
hotel
Action taking for biodiversity and less usage of poly-ethane product have
forced Hilton hotel to implements environmental usage of products or
services in an effective manner.

Monitor and forecast external influences
Cairn group of hotels are required to prepares policies and structures to measures impact
of these external forces to make it correct and also perfects, so that its negative do not
impact on businesses functioning of the Cairn group of hotels at a major ratio or targets.
Also, Cairn group of hotels have to make a strategic plan on how to overcome impacts
and threats of these factor to accomplishes defined goals of businesses in given point of
time.

SWOT Analysis
In context of the hospitality industry, SWOT analysis is useful to check out internal
capacities of a business to accomplish its defined goals and target in given period of
time.

Strengths
Cairn Hotel Hilton hotel
Innovation in customer services Revising technology in
customer products.
strong brand image Capable to make customer's
loyal

Weaknesses
Cairn Hotel Hilton hotel
Lack of an appropriate
communication channel
High pricing of customer's products
Lack of service cost control Decrease people loyalty