Work Integrated Learning: Hospitality Sector Analysis in Australia

This Work Integrated Learning report provides a comprehensive analysis of the hospitality industry, with a specific focus on Hilton Sydney. It examines the macro and micro environmental factors influencing the hotel's business operations, utilizing PESTEL and SWOT analyses to assess the political, economic, sociocultural, technological, environmental, and legal aspects, as well as the strengths, weaknesses, opportunities, and threats facing the organization. The report also identifies key issues affecting the sector, such as cross-cultural communication barriers and competition from other business sectors, and discusses the potential for future career growth in the hospitality industry, emphasizing the importance of transferable skills like teamwork, leadership, and time management. The study highlights the contribution of the hospitality sector to Australia's economic growth and emphasizes the need for diversity and inclusion in the workplace.

Running head: WORK INTEGRATED LEARNING
Work Integrated Learning
Name of the Student
Name of the University
Author’s Note

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Executive Summary
The study provided deep insight on the growth of hospitality industry and its contribution in
economic enhancement of Australia. This very specific study has provided in-depth overview on
how macro environmental analysis and micro environmental analysis leaves a major positive
impact for flourishing the business process of Hilton Sydney. Based on the political, economic
and technological competency of Australia, the business experts of Hilton Sydney have analyzed
environmental factors.

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Table of Contents
1. Introduction:................................................................................................................................3
2. Overview of the hotel:.................................................................................................................3
3. Macro environmental analysis:....................................................................................................4
5. Issues affecting sector:.................................................................................................................8
6. Potential of future career for this sector:.....................................................................................8
7. Conclusion:..................................................................................................................................9
Reference List:...............................................................................................................................10

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1. Introduction:
Hospitality industry is one of the most flourishing sectors for rendering the economic
growth of a business industry. As per the World’s business scenario, the direct contribution of
hospitality sector to GDP was US$ 71.53 billion in 2016 (trademinister.gov.au, 2018). Around
4500 hotels are situated all over Australia for maintaining effective hospitality services. Around
929,000 employees are associated directly and indirectly in the hospitality sector of Australia
(trademinister.gov.au, 2018). However, this very specific study has focused to make in-depth
overview on how Hilton Sydney has flourished their entire process of business in the realm of
hotel industry (hotelbusiness.com, 2018). In order to render the economic growth of Australia
hospitality industry has left major contributions. Especially, the establishment of hotels and
restaurants in a particular country decides whether the tourism business would draw the attention
of large number of international customers (melbournepolytechnic.edu.au, 2018). This very
specific study has provided in-depth overview on how macro environmental analysis and micro
environmental analysis leaves a major positive impact for flourishing the business process of
Hilton Sydney. Some of the major barriers faced by the business experts of Sydney Hilton in
expanding business have also been analyzed.
Hilton Sydney has already occupied a predominant place in the realm of hospitality
industry. As per the global scenario Hilton group has expanded their widespread wings in 105
countries over 856,000 rooms (hiltonsydney.com.au, 2018). This particular group is constituted
with 14 brands across different market segmentation. Around 169,000 employees are intimately
associated with this very specific group. However, in Sydney around 50 hotels are available
under Hilton. Hilton Sydney is located in central business district. This particular hotel is 3

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minutes away from Town Hall Train Station. Australia’s GDP has been raised 18% till 2016
due to the contribution of hospitality industry (trademinister.gov.au, 2018). The contribution of
hospitality industry towards this economic growth of Australia is undeniable. Providing superior
quality of services to the customers is the primary mission of this very specific hotel. By
rendering diversity within their products as well as services Hilton group is expected to expand
their entire process of business more widely all over the World. It is expected that this specific
industry within 2020 would face a remarkable future growth of around 10% from the present
business scenario (trademinister.gov.au, 2018).
In order to make any kind of business deal the customers would get around 28 meeting
and conference rooms along with living well premier health club and 25 swimming pools in
Hilton Sydney (hiltonsydney.com.au, 2018). Customers can get full time gym facilities inside the
campus. Professionals associated with customer services are well trained endowed with effective
professional skills and competency. Customers do not have to face any difficulties in dealing
with the service providers regarding language problem (Zopiatis, Constanti and Theocharous
2014). Professionals are very much comfortable in using multi-languages with the help of which
customers from different geographical backgrounds and cultural attitudes can interact with the
service providers effectively. The service providers are available for both premium customers to
average cost customers (Bharwani and Butt, 2012).
2. Macro environmental analysis:
Before establishing a business process in the country like Australia, the business experts
have made effective environmental analysis of Australia in order to know the political, socio-
cultural, technological and legal factors.

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Political  Stable political environment and regulation policy
 Taxation policy is very such systematic
 The country is free from political chaos
Economic  Economically developed country
 Around 18% of the GDP comes from tourism sector
 Inhabitants belonging to Australia are from high level of income status
Socio-cultural  People of diverse cultural backgrounds and attitudes
 Implementation of diversity within workplaces
 Different cultural and religious backgrounds get equal responses
Technological  Technologically developed country
 More than fifty percent of the employees are accustomed with the
advanced technology
Environmental  Extreme weather exists in Australia
 Business experts provides environmental friendly products and services
 Some of the major regulations are strictly maintained within the
country such as environmental protection act, sea protection act, whale
protection act.
Legal  Implementation of anti-discrimination act, gender equality act, health
and safety acts are strictly maintained at the workplace
Figure 1: Overview of PESTEL Analysis
(Source: Bharwani and Butt, 2012)
Analysis:

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Stable political environment along with systematic taxation policy is the core aspects for
Australia for stabling large number of multinational corporations in this country. It has already
been stated that tourism sector in this very specific country is flourishing due to which around
18% of the GDP of Australia comes from this particular industry. Therefore, Hilton Sydney
would not have to face any kind of difficulty in establishing their entire process of business.
Australia is constituted with the people of diverse cultural backgrounds and attitudes
(Kandampully, Zhang and Bilgihan, 2015). As a result, the organization like Hilton Sydney has
focused to render diversity with services as well as products. As a result, people from different
cultural backgrounds and attitudes would like to show their level of interest in using the services
from Hilton Sydney. It is undeniable that Australia is out an out technologically developed
country. People belonging to various geographical backgrounds and attitudes are well
accustomed with the advancement of technology (Daskin and Tezer, 2012).
On the other hand, in quest of flourishing their business in the international market the
business experts of Hilton Sydney has focused to use technology as the primary device to
communicate with the customers. Australia is constituted with extreme whether in different
season. As a result, Hilton Sydney has focused to make environmental friendly products and
services to draw the attention of customers. By implementing some of the major regulations such
as environmental protection act, sea protection act, whale protection act, the government takes
major initiative in controlling environmental issues (Line and Runyan, 2012). As a result, large
number of multinational corporations has already established their business wings in the soil of
Australia. Most of the inhabitable regulations for running business organizations like anti-
discrimination act, gender equality act, health and safety acts are strictly maintained at the
workplace of Hilton Sydney.

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3. SWOT analysis:
Strengths Weaknesses
 Economy, technology and human
resource, the three major components
are huge strengths for Hilton Sydney
 Employees are well trained with proper
professional skill and competency
 Very expensive for low cost customers
 Consequently, the number of target market
is limited
Opportunities Threats
 Expanding the entire process of business in
the internal market
 Increasing the attention of international
customers by expanding the business in
global market
 Competitors’ market threat is major threat
for Hilton Sydney
 The business strategy of Hotel Emirates,
Jadan Cottage, Big Brook Cottage,
Wagners’ Cottage are the major threat for
Hilton Sydney.
Table 2: Overview of SWOT analysis
(Source: Brown, Thomas and Bosselman, 2015)
Analysis:
Hilton Sydney is well developed in technology. The employees associated with this
specific hotel are very much familiar with the advancement of technology. Customers by sitting
at various geographical boundaries can easily access the websites of Hilton as well as their
services. As a result, the communication between service providers and service users are very
much flexible. In case of any kind of issue faced by the services of Hilton Sydney, the customers

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can communicate immediately with the service providers to resolve the issue (Daskin and Tezer,
2012). This very specific business organization by implementing diversity in services can easily
expand their business process more effectively all over the World. Competitors’ market threat is
major threat for Hilton Sydney. The business strategy other hotels belonging to hospitality sector
are the major threats for Hilton Sydney. In order to overcome competitors’ market threat the
business experts of Hilton Sydney would have to focus on rending most effective strategies and
policies (Gursoy, ahman and Swanger, 2012). The organization should increase their budget for
social media promotion so that international customers can get in-depth overview about the
products as well as services. People from various geographical backgrounds would like to show
their interest in purchasing the products and services from Hilton Sydney.
4. Issues affecting sector:
 Cross cultural communication issue affecting hotel industry:
Cross-cultural communication barrier is one of the most effective issues affecting the
business process of Hilton Sydney. Service providers are from different geographical
backgrounds and attitudes. As a result, they have to face immense challenges in communicating
with each other and sharing their views and thoughts regarding reaching the business goal.
Organizational managers on the other hand have to face difficulties in making an effective
collective decision due to cultural barrier as well as linguistic barrier (Gustavo, 2013). On the
other hand, the service providers are facing immense difficulties in dealing with the customers
from different language backgrounds and attitudes.
 Psychological barrier affecting tourism industry:

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Customers are from various geographic location having different cultural backgrounds
and attitudes. As a result, service providers have to face challenges in maintaining effective
communication with them. Due to the increase of expectancy level after emergence of large
competitors, Hilton Sydney facing immense barriers in establishing their entire process of
business.
 Establish of other business sector like retail telecomm and IT
Currently, it has been observed the flourish of IT sector, retail sector and
telecommunication sector has become a major threat for hospitality industry in enhancing their
economic growth.
6. Potential of future career for this sector:
It is undeniable that hospitality industry in the market of Australia has immense bright
future ahead (Karatepe, 2013). People belonging to various geographical backgrounds and
attitudes should get equal priority and importance for being the part of Hilton Sydney. Employees
should be hired as per their skill and competency level rather than their cultural as well as social
backgrounds. A learner while receiving a course on hotel management and hospitality has potential and
bright future career for getting security of job. On the other hand, employees like to maintain professional
ethics and belief while involving within services. As a result, both the customers and employees would
get equal benefits and facilities (Ivanov, 2014). The organization can easily draw the attention of large
number of customers belonging to various multinational countries. Employees of Hilton Sydney can
easily get an effective transferable facility based on which they can shift at their convenient place. It is
assumed that the potential of future career of this very specific sector is high.

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In order to become successful in the hospitality industry the transferable skills that are
highly needed are as follows:
 Team work:
An individual should have the competency of making an effective communication among
the team members so that they can provided their best performances. In order to fulfill
organizational objective employees need to have effective teamwork.
 Leadership:
Employees should have an effective leadership skill and style for providing their best
endeavor towards services. With the help of participative skill of leadership, employees can take
collective decision for making business strategies.
 Time management:
Delivering the services within proper time is one of the most effective skills that every
employee should have for becoming an efficient professional.
 Decision making:
Being professional employees should have proper skill of making effective decision at
the right time in order to control sudden business crisis.
7. Conclusion:
The entire study has provided detailed overview on how the environmental factors leaves
a major positive affect on the establishment of business like Hilton Sydney. Based on the
political, economic and technological competency of Australia, the business experts of Hilton

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Sydney has decided to implement necessary strategies and policies for drawing the attention of
customers. The study has provided detailed overview about the expected challenges that Hilton
Sydney may have to face for drawing the attention of global consumers. However, potential of
future career for this sector has been critically analyzed in this very specific study.

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Reference List:
Bharwani, S. and Butt, N., (2012). Challenges for the global hospitality industry: an HR
perspective. Worldwide Hospitality and Tourism Themes, 4(2), pp.150-162.
Brown, E.A., Thomas, N.J. and Bosselman, R.H., (2015). Are they leaving or staying: A
qualitative analysis of turnover issues for Generation Y hospitality employees with a hospitality
education. International Journal of Hospitality Management, 46, pp.130-137.
Carter, J. (2018). Hot Venue: Hilton Sydney relaunches $1.5m Glass Brasserie restaurant - Spice
News: Special Events, Product Launches, Incentives, Conferences, Exhibition. Spice News:
Special Events, Product Launches, Incentives, Conferences, Exhibition. Retrieved 31 March
2018, from https://www.spicenews.com.au/2018/03/hilton-sydney-relaunches-1-5m-glass-
brasserie-restaurant/
Daskin, M. and Tezer, M., (2012). Organizational politics and turnover: An empirical research
from hospitality industry. Turizam: međunarodni znanstveno-stručni časopis, 60(3), pp.273-291.
Gursoy, D., Rahman, I. and Swanger, N., (2012). Industry's expectations from hospitality
schools: What has changed?. Journal of Hospitality & Tourism Education, 24(4), pp.32-42.
Gustavo, N., (2013). Marketing management trends in tourism and hospitality industry: Facing
the 21st century environment. International Journal of Marketing Studies, 5(3), p.13.
Hiltonsydney.com.au (2018). Hilton Sydney Hotel | Accommodation In Sydney CBD |
Home. Hiltonsydney.com.au. Retrieved 31 March 2018, from http://www.hiltonsydney.com.au/

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hotelbusiness.com (2018). Hilton Adds Properties Across Globe | Hotel Business. Hotel
Business. Retrieved 31 March 2018, from https://www.hotelbusiness.com/hilton-adds-properties-
across-globe/
Ivanov, S., (2014). Hotel revenue management: From theory to practice. Zangador.
Kandampully, J., Zhang, T. and Bilgihan, A., (2015). Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
Contemporary Hospitality Management, 27(3), pp.379-414.
Karatepe, O.M., (2013). High-performance work practices, work social support and their effects
on job embeddedness and turnover intentions. International Journal of Contemporary
Hospitality Management, 25(6), pp.903-921.
Line, N.D. and Runyan, R.C., 2012. Hospitality marketing research: Recent trends and future
directions. International Journal of Hospitality Management, 31(2), pp.477-488.
trademinister.gov.au. (2018). The Hon Steven Ciobo MP. (2018). Department of Foreign Affairs
and Trade. Retrieved 31 March 2018, from http://trademinister.gov.au/
Zopiatis, A., Constanti, P. and Theocharous, A.L., (2014). Job involvement, commitment,
satisfaction and turnover: Evidence from hotel employees in Cyprus. Tourism Management, 41,
pp.129-140.