Report: Macro Environment and Trends in the Hospitality Industry

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on two major players: Whitbread and Intercontinental Hotel Group. The report begins with an introduction to the hospitality sector, defining its scope and key services. It then delves into a PESTLE analysis of both companies, examining the political, economic, social, technological, environmental, and legal factors impacting their operations. A SWOT analysis is conducted to assess the strengths, weaknesses, opportunities, and threats faced by each company, followed by a discussion of factors affecting demand and supply. The report also highlights current and potential trends shaping the industry, such as standardized services, tech integration, and health-focused amenities. The analysis concludes by emphasizing the importance of adapting to market trends and the industry's potential for growth, supported by relevant references.

Contemporary
Hospitality Industry

Content
 Introduction
 Macro Environment Factors
 SWOT analysis
 Factors effecting demand and supply
 Current and Potential Trends
 Conclusion
 References

Introduction
Hospitality industries is defined as the service industry which deliveries
number of facilities to its guest. The services which are included in
hospitality sector is event planning, lodging, theme parks, cruise lines and
many more services within the field of tourism industry. The main purpose
behind preparing this project is to give wider range of knowledge to the
student who are planning there career within the field of Hotels industry

Macro environment factors of
Whitbread & Intercontinental
A Pestle analysis is a tool used to examine the external environmental factor
that impacts the hospitality industry. This tool is used when a new hotel is
entering into industry or collaboration of two hotels to understand the
situation which is affected by internal and external factors (Hospitality
Industry Pestle Analysis, 2018). These factors are explained with broad
framework such a demographic, intercultural, ethical and ecological. Whit
bread uses Pestle to analysis detail about operating challenges which the
hotel will face other than competitive forces. The brief explanation of these
factor and impact on Whitbread Plc and Intercontinental has been explained
below.

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Political- This factor states that how much degree a government interface in the
economy or to certain industry. This include all the policies made by
government such as tax policy, foreign trade policy etc. It is important to
understand the factor which can impact long term profitability in a country.

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Whitbread is working in Travel & leisure in many countries and expand in
different political environment so to diversify the risk related to political
environment the aspects are taken into consideration which are Political
stability of that particular environment, level of corruption , legal
framework and property protection right etc (Minca and Oakes, 2012).
While talking about Intercontinental Hotel Group, the tax policies which has
been made by government has been helping them to perform well within
the market.

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Economic factor- These factors
determine the performance of
economy which are economic
growth, exchange rates, inflation
rates, disposable income of
consumers and unemployment.

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Whitbread use these economic factors to estimate growth rate of the
hospitality sector . The Factor which are required to take into
consideration are the type of economic system, exchange rates & stability,
efficiency of financial market, education level,skilled workforce. If growth
rate is high then the company can enter into that market.
As inflation and interest rate are increasing in a rapid speed it is very
important for Intercontinental that how they perform with in the market
because it reduce the number of customer of a company as their rates are
already expensive.

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Social Factor- These factors are
important to examine the
customers that are to be
targeted. The factors are
population growth rate, age
distribution, income
distribution, career attitudes,
safety emphasis and cultural
barriers. Society.

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Whitbread Plc examine customer by understanding belief and attitude of
customer to design the marketing message of company. The factors that
Plc analyse are demographic of population, class structure, education
level, culture, attitudes and leisure interest (Moutinho and Vargas-
Sanchez, 2018).
In terms of Intercontinental Hotel Groups, they are required to understand the
belief and culture of those customers who are attracted towards the hotel
as it will direct have the effect on sales of an organisation.

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Technological factors- Technology is growing rapidly. It is transforming
very fast that even no one is able to cope up with it.
Whitbread perform technological analysis to examine the speed of
technological transformation as slow speed will give time to cope with it.
Intercontinental Hotel Group is required to understand that they need to
upgrade there technologies when it comes to online booking as it is one of
the most suitable form of technology which is easily influence the
customer.

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Environmental Factors- Before entering in a market The analysis of
environment factors are needed for proper functioning. As different
market have different impact on profitability.
Whitbread analysis weather, climate change, laws & regulation and waste
management to operate in that market without any risk or enhancing
profitability.
In terms of Intercontinental Hotel Group they are required to comply with
each and every law related to health and safe environment and if they will
not be able to do then overall sales will automatically decrease.