Hospitality Industry Analysis: A Case Study of Hilton Hotels

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Hotel Chain industry analysis

Table of Contents
Introduction......................................................................................................................................1
LO3..................................................................................................................................................2
P6 Assess the political, economic, social, technological, legislative and environmental factors
that affect the development of organisation operating within the hospitality industry...............2
P7 Undertake a SWOT analysis for a hospitality business and review how this inform the
decision making process..............................................................................................................4
LO4..................................................................................................................................................6
P8 Appraise the implication of current and potential trends in hospitality industry , providing a
range of specific example............................................................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Introduction
Hotel industry is one of significant sectors in the wide sector of hospitality. The above report has
discussed internal and external environment of an organisation effective in overall operation and
functions considering Hilton Hotel. For identification of the external factors PESTLE analysis is
conducted while SWOT is performed for internal environment so that effective planning and
strategies can be designed accordingly for attaining organizational growth and development, the
hospitality sector is highly influence by various trends some of which is discuss in the report.
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LO3
P6 Assess the political, economic, social, technological, legislative and environmental factors
that affect the development of organisation operating within the hospitality industry.
For Hilton Hotels, PESTEL analysis is performed for understanding the potential effect of
factors upon the organisation along with its revenues and growth.
Political and legal factors: Hilton hotel is a leading organisation in the sector of travel and
tourism and is politically leading hotel chain in international market operating in more than 70
countries. The organisation is known for its business travel and leisure facilities. The
organisation policy is designed by following various government regulations like environment
friendly product (Bowie, et al 2016). UK’s Tax policies also influence the operations of Hilton
Hotel. Laws related to safety and health also restricts the standards of services and products
offered by the organisation.
Economic: The organizational business is expanded to more than 80 countries globally; hotel
acquisition is helpful in increasing the market position of the Hotel. Presently, the organisation
has gained high standards of accommodation making it important assets. That also enhances the
overall management. Due to recession opportunities of the organisation rises home-based stays
among the target guests rather the potentially trips that is expensive.
Social and cultural environment: The services offered by the Hilton Hotel are for pleasure and
business both for satisfying the overall need of the customers associated with the organizational
business (Brotherton, 2015. ). The hotels implement various strategies considering different
target customers and their recreational needs.
Technology: The adaptation to advancing technology not only satisfies the current customer
expectation but also supports the organisation to gain competitive advantages. The organisation
support advance payment and booking systems. Each room is offered with internet facility for
the customers to maximize their services and to remain connected to the world through internet.
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Environment: The organisation has more than 12000 employees working to serve customers.
Hotel Hilton has committed to maintain sustainable development by offering the customers with
best services along with flexible to changes to attain potential scope (Chang et al 2017). The
Hotel also support less energy consumptions and wastage minimizing 45000 tons of carbon
footprint.
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P7 Undertake a SWOT analysis for a hospitality business and review how this inform the
decision making process
SWOT analysis is a tool used by different business organisation like Hilton Worldwide for
effective strategic planning through situational analysis of the organisation (Chathoth,
2016). Hilton Worldwide is one of the fastest and largest growing companies in the hospitality
sector internationally. The managers of the organisation opt to perform SWOT analysis for the
organisation as it is a very useful technique through which the Strengths, Weakness,
Opportunities and Threats of Hilton Worldwide in the present business environment can be done
easily.
Strengths
 The Hilton hotel has different hotels’
brands distributed globally. Having more
than 3000 in four international countries.
 Hilton has a very strong customer base
through its strong brand offering it
competitive advantage of attracting more
customers towards its business services.
 Hilton hotel, offers wide range of services
to the customers due to larger business
covers. This therefore strengthens its
overall market share.
Weaknesses
 The hotel basically targets business
travelers and customers who travel for
leisure, these customers will reduce if
government puts travel bans due to viral
diseases, due to any terrorist attacks or on
basis of political grounds
 Low global market share
 High debts
Opportunities
 The organisation opts to utilize advance
technologies for marketing their services
and products and services and for serving
the customers through its website and other
social media platforms.
 Developing countries like India and China
are emerging fast in the lodging sector
offering opportunity to Hilton Hotel to grab
the developing market.
Threats
 Rising competitive market is the hospitality
sector is one of the greatest threats Hilton
Hotel that directly influence the product
prizing.
 Advancement of technology is resulting
loss of employees.
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Considering the opportunities the organisation is planning to implement new strategies for
attracting more customers by offering differentiated services and products to the customers. For
the leisure tourist spacious room, facilities of outdoor and indoor entertainment etc. is offered
while for travelers for the business are offered Internet services, car services, conference rooms,
etc. For attracting more customers Hilton hotel is planning to implement new marketing strategy
with the help of electronic media. Being an international company, Hilton must concentrate on
Internet marketing for advertising along with banner advertising, social media advertising, search
engine marketing and email advertising for attracting more customers in low price and time.
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LO4
P8 Appraise the implication of current and potential trends in hospitality industry , providing a
range of specific example
The Hospitality sector is one of the fast growing industries in international level. The business
environment is changing due to emerging trends and development. Some of current and potential
trends in the sector of hospitality is stated below:
Growth of Online booking: Travelers of UK and around the globe research and book tickets
through online sites. In the 2013, it has been found that more than 100 million travelers
researched about hotels and services online, while about 85 million made their booking using
online portals (Gibson, 2016). According to British Hospitality Association, 80% of travel
booking were done online by year end of 2015.
Increasing Mobile based bookings: Smart Mobile devices are the most effective way of using
Internet services offering flexibility to the users to book tickets or make research from anywhere
and anytime. Popularity of internet through Mobile device is helping organisation like IHG,
Hilton to limit their operational costs.
Impact of Social media platform: The sector of Hospitality is mainly concern about customer
services with quality products. Satisfied customers are categorized as a source of advertisement
himself offering a promotional boost for the organisation or hotel (Ikkala, and Lampinen, 2015).
While negative comments will negatively impact upon the organization’s brand image. In
traditional methods, customer’s reviews and feedbacks were paid no attention unlike today. One
of crucial part of the organizational business strategies are result of customer review along with
power of various social media platforms. For instance, there are more than 100000 followers of
Starbucks in Twitter, is any of the customer post his negative experience regarding any outlet or
product, it will result in creating a negative publicity in large scale.
Changing Lifestyle: Lifestyle of people are changing with the increasing disposable salary, that
is resulting in changing in taste among the customers. For instance, London presently is
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observing developing new and more boutique hotels that focuses mainly on offering distinctive
services to the customers considering their preferences.
The overall growth of the hospitality sector along with is subsector is highly impacted by various
trends, changes and developments. Therefore, to sustain in the competitive market the
organisation must consider these emerging trends before designing and planning new strategies
to attract more customers towards the organizational business.
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Conclusion
The above report has discussed about various factors and environment that determines the
organizational operation and growth. Thus considering Hilton Hotel, PESTLE analysis is
conducted for understating the business external environment. For the same hotel SWOT has
been conducted so as to understand all the strength, weakness, and opportunities and threats so
that product and services for the customers can be designed. All the current trends are considered
by the organisation for gaining competitive advantage.
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References
Books and journals
 Bowie, D., Buttle, F., Brookes, M. and Mariussen, A., 2016. Hospitality marketing.
Routledge.
 Brotherton, B., 2015. Researching hospitality and tourism. Sage.
 Chang, Y.C., Ku, C.H. and Chen, C.H., 2017. Social media analytics: Extracting and
visualizing Hilton hotel ratings and reviews from TripAdvisor. International Journal of
Information Management.
 Chathoth, P.K., 2016. Historical evolution of hotel chains. In The Routledge Handbook of
Hotel Chain Management (pp. 53-66). Routledge.
 Gibson, S., 2016. Mobilizing hospitality: The ethics of social relations in a mobile world.
Routledge.
 Ikkala, T. and Lampinen, A., 2015, February. Monetizing network hospitality:
Hospitality and sociability in the context of Airbnb. In Proceedings of the 18th ACM
conference on computer supported cooperative work & social computing (pp. 1033-
1044). ACM.
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