Strategic Analysis of the Global Competitive Hospitality Environment

This report provides a comprehensive analysis of the hospitality industry, encompassing market scope, segmentation, and key competitors. It delves into industry trends, utilizing PESTLE and Porter's Five Forces analyses to identify external factors and their impact. The report highlights key developments such as digital guest experiences, personalization, sustainability, destination promotion, and influencer marketing. It also presents a grid for scenario development, leading to four quadrants that explore future scenarios like hi-tech rooms, sustainable hotels, and destination promotion. The conclusion emphasizes the dynamic nature of the hospitality industry, driven by technology, customer preferences, and environmental considerations, with references to relevant academic sources. This report is a valuable resource for students seeking to understand the strategic landscape of the hospitality sector.

Strategy and the Global
Competitive
Environment

Table of Contents
INTRODUCTION
Industry Details
Hospitality Industry trends
Key trends and developments developed on the basis of analysis
Grid
Four Quadrants
CONCLUSION
REFERENCES

INTRODUCTION
External strategy environment refers to environment of a business that involves all factors that
are in outside organisation.
This environment involves all important factors that contribute in developing different trends
affecting an organisation and its growth and success.
This study will contextualise Hospitality industry, this is a type of service industry and services
included in lodging, food and drink services, event planning, theme parks, transportation.
This study will discuss include industry trends, key trends and developments on the basis of
application of Pestle Analysis and Porters’ five forces analysis.
On the basis of existing trends of hospitality and also future trends of hospitality scenarios will
be developed.

Industry Details
Market Scope
Scope of hospitality includes vast range of products and services including
accommodation, travel and tourism, food and beverages, entertainment, gaming and
recreational activities.
Accommodation services are provided where people can stay and these services are
offered by hotels, resorts and lodges.
Food and beverages services are offered by businesses that includes restaurants, cafe and
bars.
Travel and tourism organisations offer services of travelling and for tourism to different
locations to their customers.

Cont..
Market Segment
Market segmentation involves determination of target markets for the
industry and segmentation of target markets on the basis of price
sensitivity and booking behaviour of customers.
Hospitality industry segments market on different basis in which it
targets customers from all type of social economic status.
On the basis of that provides varied type of services on the basis of price
sensitivity as well as on the basis of services required to customers.

Cont..
Market Size
In relation with hospitality industry and market size of industry in terms of global hospitality
industry Asia Pacific is largest market for hospitality which accounts for 42% of overall
hospitality market size.
Global hospitality industry is expected to decline because of reason of economic slowdown in
which market size of hospitality industry is likely to decline by 4623.2 billion in 2019 to $4516.8
billion in 2020 at CAGR of -2.4
Regarding market size of hospitality industry in UK it has a market size of more than 100 billion
Euros and this is expected to grow in future which has been affected by economic slowdown.


Cont..
Key Competitors
Competitors of hospitality industry includes Marriott International, Hilton Hotel, Accor Hotels,
Wyndham Hotel Group, Hyatt Hotels Corporation, Jin Jiang International Hotel Management
Co. Ltd.
In addition to this in food and beverages key competitors within industry includes Starbucks,
dominant coffee shop chain organisation, McDonald’s Cooperation, largest fast food restaurant
chain.
Along with this, Yum China Holdings, Inc restaurant chain organisation and Darden Restaurants
Inc organisation that operates casual and fine dining restaurants chain are included in key
competitors within hospitality industry and in its business of food and beverages.

Hospitality Industry trends
Hospitality industry provides the various kind of great and
important service to their potential consumers.
In general, potential tourists, travellers of particular
country influence with different hotels.
Hospitality is the fastest growing sector in which attract
more consumer to visit again in the hotels, restaurants,
resorts and so on.

Cont..
Pestle Analysis
Political
Hospitality industry is to attract international tourism which will host a variety of different
properties
Economic
This type of factor is related to the taxation changes, inflation, economic growth and interest
rate.
These are consider the essential aspect which may have do some change in the economic
level.
Many different hotels are trying to capitalise the travellers because they brings more money.

Cont..
Social
As business of hotel, there would require to use the best options,
giving facilities for consumers accordingly.
Technological
In recently, hospitality industry is used the advance technology in
their business to handle the entire management system.
Software used by hospitality business which means that fulfil all
essential need or requirement of staff members, consumers.

Cont..
Environmental
Nowadays, it has been increasingly the pollution degradation all
around the world. In this serious or severe poor weather condition.
Hospitality industry will generate a lot of unnecessary materials
which may have affecting the environmental condition.
Legal
There are lot of changes made which directly affected behaviour of
enterprise.

Analysis External factors, Impact on
hospitality industry.
As per analysis, it has been identified that Political factor directly impact on the hospitality industry
because of government.
Economic factor is directly impact on the hospitality industry where it would increase tax rate of hotels.
As per analysis, Social change occurs in the existing marketplace. Nowadays, it has been rapidly
increasingly the demand of consumer to the hospitality industry. So as identified that social changes are
directly affecting on the hospitality industry while difficult to handle the all kind of need or requirement.
By using consideration of modern technology, hospitality industry will increase their business profitability
as well as productivity in marketplace.
Analysis of environmental perspective, different environmental factor such as flood, heavy rains.