PESTLE and SWOT Analysis: Contemporary Hospitality Industry Trends

This report presents a comprehensive PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) and SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of the contemporary hospitality industry. The analysis examines the macro-environmental factors influencing the industry, including political stability, economic conditions, social trends, technological advancements, legal regulations, and environmental concerns. The SWOT analysis assesses the internal strengths and weaknesses of the Grosvenor House Hotel and WA PILA, while also identifying external opportunities and threats. The report highlights current trends such as globalization, safety and security improvements, and diversity in the hospitality sector. The conclusion emphasizes the industry's contribution to local and international economies and underscores the importance of adapting to changing environments and embracing innovative practices. The report is supported by references from academic journals to provide a robust overview of the industry.

Contemporary Hospitality Industry

PESTEL analysis
 PESTLE is a framework that is taken into use by
companies to gain knowledge of the influence of macro
environment upon functioning of entity. This consists of
a number of factors that have a huge impact on any
enterprise and thus need to be taken into due
consideration.

Political factor
 UK’s stable political system provides
opportunities for Grosvenor to analyse the
consistent policies and establish a strong
brand image among the population of this
nation.
 WA PILA faces threat of political instability,
terrorist attacks that possess the ability to
hamper the reputation of entity within market.

Economic factor
 The strong economy of Britain fosters Grosvenor House
to make use of infrastructural and other facilities, thereby
meeting the needs and demands of people in an
appropriate manner. This facilitates company to
strengthen its market as well as financial positioning.
 The sustainability of WA PILA stands the risk of being
hampered by inflation, recession and fluctuations in
foreign exchange rates.

Social factor
 The changing trends and lifestyles of people
create opportunities for Grosvenor House to meet
the needs and wants of people so as to derive
maximum satisfaction from people.
 The risk that can occur with respect to this factor
for WA PILA is the anticipation of a latest trend
by rival company before WA PILA. This may
lead to decline in sales and profitability of
company.

Technological factor
 Constant advancements occur within every corporate industry creating
opportunities for Grosvenor House.
 WA PILA makes use of latest technologies and systems such as automatic
check-ins and check-outs as well as online bookings to establish a loyal
customer base.

Legal factor
 Laws and regulations like consumer, employment, security, health and safety
are abided by Grosvenor House to avoid getting indulged in any illegal or
unethical affairs.
 Involvement in any kind of misleading or illegal act may lead to dampening of
WA PILA's image as well as its positioning within the market place.

Environmental factor
 Environmental concerns such as sustainable development and 3R’s taken
into consideration by Grosvenor House which presents opportunities for the
respective organisation to gain the trust and belief of service users and
retain them for a long period of time in future.
 Being an entity where tourists visit on a daily basis, it becomes essential for
WA PILA to adopt green measures so as to display the company’s
contribution to CSR initiatives in front of people.

Strengths
Grosvenor House Hotel WA PILA
Strong domestic presence Diversity in guest experience
Emphasis upon innovation High brand name

Weaknesses
Grosvenor House Hotel WA PILA
Less presence at market
place
Lack of adopting new market
demands

Opportunities
Grosvenor House Hotel WA PILA
Changing customer’s
behaviour
Approach emerging markets

Threats
Grosvenor House Hotel WA PILA
Stiff competition Recession