Hilton Hotel: PESTEL, SWOT, and Trend Analysis Report

This report provides a comprehensive analysis of the Hilton Hotel within the contemporary hospitality industry. It begins with an introduction to the hospitality sector, highlighting its diverse services. The core of the report comprises a PESTEL analysis, examining the political, social, technological, environmental, and legal factors influencing Hilton's operations. A SWOT analysis follows, identifying the hotel's strengths, weaknesses, opportunities, and threats. Furthermore, the report delves into the implications of current and potential trends in the hospitality industry, such as changing customer demands, technological advancements, and the importance of safety and environmental consciousness. The report also includes a discussion on factors influencing supply and demand for Hilton and Travel Lodge. The report concludes by summarizing the key findings and providing recommendations for Hilton to maintain a competitive edge in the market. References to relevant books and journals are also provided.

Contemporary
Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Covered in poster........................................................................................................................4
TASK 2............................................................................................................................................4
Covered in fact sheet...................................................................................................................4
TASK 3............................................................................................................................................4
P6 PESTEL analysis of Hilton Hotel..........................................................................................4
P7 SWOT analysis of Hilton Hotel.............................................................................................5
TASK 4............................................................................................................................................6
P8 Implication of current and potential trend in hospitality industry.........................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Hospitality industry provide various services like travel and tourism, food,
accommodations etc. this report will discuss about the internal and external factors which impact
hospitality industry. this also has impacted the current trends which has impact on the
organisation.
TASK 1
Covered in poster
TASK 2
Covered in fact sheet
TASK 3
P6 PESTEL analysis of Hilton Hotel
PESTEL analysis is conducted by the Hotel in order to analyse the impact of macro
factors on the organisation. Hilton will conduct PESTEL analysis in order to know about the
positive and negative impact on its functioning. Below is the PESTEL analysis of Hilton hotel:
 Political factors: These factor includes the government intervention. Factors include
here are labour law, foreign trade law etc. As earlier there was crisis in Greece and due to
this fact customers got negative and this affect the sales of Hilton hotel.
Example 2: Under this factor, due to Brexit there was huge changes occurred within
Travel lodge operation and function that directly impact over firm productivity ratio. However,
firm takes an initiative to modify its procedures and policies according to the demand of Brexit
in order to acquire sustainable profitability.
 Social factors: The factors include here relates to the age, customs, buying behaviour,
lifestyle etc. The taste and preference of customers are continuously changing and it is
required by Hilton hotel to know about their proper need of their customers. Moreover
the people are now very conscious towards the health and in that case Hilton should
provide hygienic food and healthy environment to its customers.
Example 2: As per the recent scenario of UK population,. There was an intense demand of CSR
activities which challenge Travel lodge profit margin. Thus, company can analyse the demand
of customer and implement corrective course of action by rendering basic facilities like food,

clothing, shelter, education platform etc. in order to generate healthy relationship with customers
that add value to Travel lodge brand image among industry.
 Technological factors: Technology is moving at a fast pace and it is required for the
organisation to make changes were required in order to survive. It is required by Hilton
hotel to use high end technology to provide services to the customers.
Example 2: In this, there are high competition among UK population regarding
innovative technologies for making business function much easier and accessible that impact
Travel Lodge . Thus, Travel lodge evaluates the market condition and acquire updated
technologies and provide the facility of online booking as well as they can give their valuable
reviews about their service. With the help of this, they can easily attain increased level of
productivity.
 Environmental factors: The factors include here are concerned with protecting the
environment and can affect the environment in one or other forms. The factors include
here are climate changes, weather etc. Before entering into new market Hilton is required
to evaluate some of the environmental standards and must also check the laws regulating
the environmental pollution. It is very important for Hilton to make use of the resources
effectively so that they do not have to run out of the resources.
Example 2: In this, majority of population are highly conscious about environment factor that
influence Travel lodge decision making capability and ability. Thus, Travel lodge makes an
effort to reduce pollution from atmosphere and introduces the concept of reuse, recycle, reduce
which help them to increase their market size within industry in productive way.
 Legal factors: In order to trade in the market company is required to follow certain rules
and regulations. Hilton before entering into market should consider some of the laws very
carefully which includes Discrimination laws, employment laws, health and safety laws
etc. The company should treat every employees equally and must provide fair wages to
them which will increase the trust of employees among them and also build effective
image in the market.
Example 2 : Under this, Travel Lodge follows all government policies, procedures, regulation
which decreases the intervention of government into their business operation and function that
add value to firm brand value in an impressive manner.

P7 SWOT analysis of Hilton Hotel
Hotel Hilton conduct SWOT analysis in order to identify the internal strength and
weakness and external threat and opportunities. Below is the SWOT analysis of Hilton:
Strength
Global presence: The brand acceptance of Hilton in the market is very high as it is
having its presence all over the world.
Customer satisfaction: Hotel Hilton due to their dedicated staff are able to achieve high
level of satisfaction among the existing and potential customers.
Weakness:
No developed network: The company is not having network in Europe and North
America due to this it is not able to operate properly.
Lack of product range: The services provided by Hotel Hilton has hap in the product
range and due to this customers have lack of choice.
Opportunities:
Acquiring of small hotel: Hotel Hilton can acquire small local hotels so that they are
able to build effective customers base and are able to eliminate the local competition.
Using new technology: The new technology and different pricing strategy will provides
an opportunities to the Hilton to maintain their loyal customers.
Threat:
New regulations: Due to new environmental regulations in Paris, Hilton is facing the
major threat.
Competition: Hilton is facing strong competition from the Hotels like Holiday inn,
Mariott etc.
However, from the above mentioned SWOT analysis, Hilton Hotel can easily identify its
internal or external capabilities and based on that they can make corrective course of action
which lead them to obtain profit maximisation with an available resources.
SWOT Analysis of Travel Lodge
Strength
 It offers its products in an affordable
price which captures the wide range of
customer attention towards the brand
Weakness
 It does not equip its customers with a
whole range of products and services as
well as its pricing level is little bit

and it improve its overall performance. higher which create dissatisfaction
among customer and it impact over
company profit margin.
Opportunity
 As environmental protection movement
has been popularised among UK
population, Travel lodge has an
opportunity to show their potentiality in
rendering high level of customer
satisfaction.
Threat
 The industry where Travel lodge
operates its service is highly
competitive industry which directly
impact over company productivity rate.
Thus, it has been signified from the preceding analysis that with the help of this effective
tool, Travel lodge can examine current and emerging trend of market place and also it enable
them to make best strategic decision in order to acquire high level of proficiency ratio.
Factors influencing supply and demand of Hilton Hotel
According to the current performance of firm, it is stated that it contain effective and
efficient brand value among customer which helps them to expand their market size. But, there
is a lacking factor which makes weaker from other competitor that it sometime fails to evaluate
market condition which create delay in introducing innovative technologies within their business
function as well as to enrich their market size.
Factors influencing supply and demand of Travel Lodge
In this, it is one of the leading company within travel and tourism industry and it gain
wide range of customer attention towards brand image. But, it produce its product with a high
price which restricts consumer to buy their product and it directly reflect over decreasing its sales
growth.
TASK 4
P8 Implication of current and potential trend in hospitality industry
Hospitality sector is growing at the fast pace because of the change in customers
requirements, their lifestyles and technological advancement. Hence in order to deal with these

challenges Hilton hotel can work over its current practices to increase a base of loyal customer to
achieve competitive advantage.
Trend 1 : The biggest demand among hospitality industry that customer needs and their
requirements which keeps on changing according to market trend. Therefore, company should be
aware about current and emerging trend of marketplace so that they can bring high level of
satisfaction.
Trend 2 : The another trend is that highly demand of innovation and updated technology
in hotel industry. Therefore, company must be flexible in nature and acquire all latest equipments
in order to gain competitive advantage in a better way.
Trend 3 : It is such type of industry where consumer seeks for entertainment in order to
gain relaxation of mind and soul. Therefore, Hilton Hotel should conduct some kind of mind
relaxing game or activities so that customer gain positive perception towards company brand
image.
Trend Evaluator : The above mention trends are the factor which challenge Hilton
Hotel productivity and profitability. Thus, in order to attain sustainable profitability they should
implement best tactics within their business operation and can easily attain increased level of
profit margin.
Following are the current and future trends that Hilton hotel can implement:-
 The most important concern now days is related to the safety and security of the
customers as well as employees. Hotel Hilton is taking various steps in order to ensure
that there customers are safe and secured at their hotel. For this it started using biometric
and face recognition technology to make only known and authorised persons to enter in
hotel premises.
 Now a days people are aware about the environment protection and are admiring them in
their regular lives. They are health conscious and require clean environment in order to
live comfortable. In that case it Hilton hotel must plant trees near their surrounding in
order to keep environment safe and attract people.
 Hotels are now following the latest technology in order to attract their customer. Hilton
can use technology of pre booking, moreover it can also implement fingerprint system for
hotels check ins and check outs. Internal parks, shops, theatre could be opened in order to
attract large number of customers.

 Now a days the social media interaction is most common trend which support
organisation to get higher market success. Hence to improve its brand image, Hilton hotel
can interact with customers over social media platform and ask them for feedback or
suggestion to improve its practices and make healthier relationship with customers.
CONCLUSION
From the above mentioned report it can be concluded that hospitality industry play a vital role in
the economy of the country. With the help of PESTEL analysis hotel Hilton is able to know
about the macro environmental factors and their positive and negative impact. Moreover with the
help of SWOT analysis organisation is able to know about the position in the market. At last
current and potential trend are explained in order to provide effective services to the number of
customers.

REFERENCES
Books and Journals
Kuo, C. M., Chen, L. C. and Tseng, C. Y., 2017. Investigating an innovative service with
hospitality robots. International Journal of Contemporary Hospitality Management.
29(5), pp.1305-1321.
Leung, X. Y., Xue, L. and Bai, B., 2015. Internet marketing research in hospitality and tourism: a
review and journal preferences. International Journal of Contemporary Hospitality
Management. 27(7), pp.1556-1572.
Ozturk, A. B., 2016. Customer acceptance of cashless payment systems in the hospitality
industry. International Journal of Contemporary Hospitality Management. 28(4),
pp.801-817.
Prud’homme, B. and Raymond, L., 2016. Implementation of sustainable development practices
in the hospitality industry: A case study of five Canadian hotels.International Journal of
Contemporary Hospitality Management. 28(3), pp.609-639.
Ruetzler, T., Baker, W., Reynolds, D., Taylor, J. and Allen, B., 2014. Perceptions of technical
skills required for successful management in the hospitality industry—An exploratory
study using conjoint analysis.International Journal of Hospitality Management. 39,
pp.157-164.
Sukru Cetinkaya, A., Ergul, M. and Uysal, M., 2014. Quality of relationship on information
technology outsourcing for organizational success in hospitality industry. Journal of
Hospitality and Tourism Technology. 5(3), pp.229-244.
Tsang, N.K., Lee, L.Y.S. and Qu, H., 2015. Service quality research on China’s hospitality and
tourism industry. International Journal of Contemporary Hospitality Management.
27(3). pp.473-497.