Contemporary Themes in the Hospitality Industry: Whitbread Analysis

This report provides a comprehensive analysis of the contemporary themes within the hospitality industry, focusing on Whitbread. It begins with a PESTEL analysis, examining the political, economic, social, technological, environmental, and legal factors impacting the company. A SWOT analysis is t...Read More

CONTEMPORARY
THEMES IN
HOSPITALITY
INDUSTRY

TABLE OF CONTENT
 PESTEL ANALYSIS
 SWOT ANALYSIS
 CURRENT AND FUTURE TRENDS

PESTEL ANALYSIS
PESTEL environment is very much essential for Whitbread as with the
help of this analysis management of the organisation will be able to
make better plans for controlling and managing the external
environment in the best possible manner. The various factors of
PESTEL analysis are discussed below-

Continue..
Political factor- This factor is related with laws and polices of the
country which directly affects the working of hospitality industry.
The Digital Economy Act2010 was introduced by bthe government
of UK which states that file sharing and copyright infringements can
direclty affect the operations and activities of Whitbread. The hotel
is currently charging high prices from the customer's for the using
Wi-Fi and internet. This plans was mainly used to reduce the
chances of negative impact of digital economy act on the functions
and operations of Whitbread.

Continue..
For example- Currently the management of Inter- continental is going
through various kinds of problems. The major reason behind this is
major changes in the polices imposed by the government of UK. It is
becoming essential for Inter-Continental to make appropriate plans as
per the current scenario so that negative impact can be decreased.
Economic factor- It is related with change in inflation and deflation
rate of the economy. The economic condition of UK is negatively
getting affecting and the major reason behind this is is entry of
Brexit(Karadakis, K., Kaplanidou and Karlis, 2010). Due to this
inflation rates is continuously increasing. Whitbread is aiming at
providing its services at very low price and due to this customer's
need not to worry about change in inflation rate of the economy.

Continue..
For example- After the entry of Brexit Inter-continental is
unable to carry its business activities in the proper manner.
Due to this large number of customer's are not getting
attracted towards the hotel which is resulting in loss to hotel.
Social factor- It is related with tradition, belief and social values
of the individuals. The customer's of the hotel generally
prefer to buy products and services at low price. So keeping
this in mind the management of Whitbread is aiming at
providing its services at affordable and reasonable price.
With the help of this large number of customer's are getting
attracted towards the hotel.

Continue..
For example- It is quite essential for the management of
Intercontinental to identify current need of individuals in the
society. As by doing this appropriate set of plans can be made
for enhancing experience of guest.
Technological factor- It is related with use of latest technology
for increasing the satisfaction level of customer's(Lynch and et.
al., 2011). Keeping this factor in mind the management of the
organisation is aiming at providing online room booking and
free internet facilities to its customer's. With the help of this
factor the sale and profitability of the hotel is increased because
customer's are not required to go anywhere for satisfying their
need and wants.

Continue..
For example- The competition level in hospitality industry is
very high, so to handle this problem latest and innovative
techniques can be used to Intercontinental. This will also lead
to achievement of competitive advantage in the best possible
manner.
Environmental factor- It is related with pollution and natural
resources which are available in the external environment. To
maintain healthy environment within the hotel management
of the hotel is aiming at providing pollution free environment
to its customer's. With the help of this factor large number of
customer's are getting attracted towards the hotel because
environment is hygienic and environment friendly.

Continue..
For example- Focus can be emphasised on forming
appropriate set of laws and regulations regarding the
welfare of employees. This is because of the employees
are satisfied working in the hotel than they will
automatically give their best output.

SWOT ANALYSIS
SWOT analysis is very much essential for the Whitbread as with the
help of this analysis strength and weakness can be known and
analysed in the systematic and coordinated manner. SWOT analysis
will also be beneficial for the management of Whitbread for taking
some important decisions for its effective working. SWOT analysis
of Whitbread is mentioned below-

Continue..
Strengths
 The hotel is able to provide its rooms at low and affordable price
to the customer's which is one of the biggest strength for the
hotel.
 Hotel is also providing the facility to books rooms as per the
convenience of customer's.
Weakness
 The rooms of Whitbread are not attractive and does not have
any kind of decoration.

Continue..
 The size of the rooms are small and due to this it not suitable for
big families.
Threats
 There are large number of competitors which are operating its
business in same type of industry. Due to this there are chances
that customer's can shift from one hotel to another.
 There are chances that customer's can demand luxurious rooms
for satisfying their needs. This can affect the growth of the hotel.

Continue..
Opportunities
 Hotel has wide range of opportunities to expand its business
in various parts of the world such as Europe.
 Organisation can also opt for partnership so that large
number of customer's can get attracted towards the hotel.

SWOT of Intercontinental
Strength Weaknesses
Plans and strategies for the
increase in sale are made as per
the paying capacity of visitors.
Large number of customer's are
attracted because of its high brand
image.
Its advertisement polices are also
attractive.
Various kinds of services provided to hotel
are not proper.
Online room booking services is also not
appropriate.
Better plans are not made for the future
course of action.
Opportunities Threats
Major changes in the services can
be done.
Improvements in the promotional
strategies can also done.
Hotel also have wide range of
opportunities for expanding its
business in various parts of world.
There is high degree of competition.
Visitors are not satisfied with the food
services.
Working environment is also not proper.

Continue..
Factors effecting supply and demand of Whitbread Hotel Group
The major focus of the hotel is to increase and expand its business in
various parts of the world. This is done by antialiasing and
evaluating the current and past demand of the customer's. As by
doing this better plans can be made for supplying appropriate
services.
Factors effecting supply and demand of Intercontinental Hotel
Major focus is also emphasised on making appropriate polices for the
supply of services. This is directly resulting in fulfilling of demand
of customer's and increase in their satisfaction level.

CURRENT AND FUTURE
TRENDS
Hospitality industry is the fastest growing industry which consist of
various challenges and trends. It becomes essential for the
management of Whitbread to make plans according to the latest
trend. As this can lead to growth and profitability of the
organisation. Some of the major trends are mentioned below-
Trend 1- appropriate set of plans and strategies can be according to the
ever-changing demand and preferences of the potential visitors and
guest.
Trend 2 – better plans and strategies can be made for providing
transportation and other facilitates to the guest.

Continue..
Trend 3- better entertainment facilitates can also be given so that visitors can
enjoy their stay at the hotel.
Trend evaluator- if appropriate set of tactics are made as per the current trends
than goals and objectives will be automatically achieved and competitive
advantage will also be attained.
 Focus on green and eco lodgings- It is one of the latest trend because
individuals are becoming more concerned with the natural environment.
Plans can be made for saving and conserving the environment in the proper
manner(Sisson and Adams, 2013). The management of Whitbread can
make plans for planting plants on the roof of the hotel. As with the help of
this large number of customer's can be attracted.

Continue..
Intelligent hotel with advanced technology- Hotel needs to make use
of latest technology for satisfying the needs of its customer's. This
can be done by using virtual fingerprint machine for check in and
check out of the customer's and visitors.
CURRENT TREND
Tech explosion- Most of the customer's of Whitbread uses mobile phones and
latest technologies for satisfying their need(Still, 2017). Keeping this in
mind organisation is aiming at using user-friendly and high quality
techniques, so that overall experience of the customer's are increased.

Continue..
Catering to millennials- Millennials generally travel a lot and uses
latest technologies(Wilson, Murphy and Fierro, 2012). Organisation
can make use of latest technologies for attracting large number of
customer's in the best possible manner.

CONCLUSION
SWOT and PESTEL analysis can be used by the management of
organisation for reducing the chances of risk and uncertainties in the
business. There are certain type of skills required for performing
various roles in the organisation and also for overcoming shortage,
so that major goals and targets are achieved in the effective and
efficient manner.

REFERENCES
Books and Journals
Ban, V., 2012. Analysis of the upscale/Fine dining sector in the
restaurant industry.
Bell, D., 2016. Moments of hospitality. In Mobilizing Hospitality(pp.
29-44). Routledge.
Bowie, D., and et. al., 2016. Hospitality marketing. Routledge.