PESTLE, SWOT, and Trends in the Hospitality Industry: A Report

This report provides a comprehensive analysis of the hospitality industry, focusing on two major players: Whitbread and Holiday Inn. It begins with a PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors affecting both companies. The report then presents a SWOT analysis, detailing the strengths, weaknesses, opportunities, and threats faced by each firm. Following the SWOT analysis, the report delves into the supply and demand dynamics of Whitbread and Holiday Inn, highlighting factors that influence their market positions. Finally, the report identifies and evaluates current and future trends within the hospitality sector, such as theme-based services, bachelor trips, and underwater tourism, assessing their potential impact on the industry and offering recommendations for these companies to leverage these trends for business improvement.

Contemporary Hospitality Industry

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PESTLE Analysis
Political factor
Whitbread
 Whitbread operates in various countries, it faces the problem of trade regulations and tariffs of providing
consumer services, this creates problem for the company to operate and hinders growth of the respective
hospitality business.
Holiday Inn
 In Holiday Inn, terrorist attacks and Brexit affect the business and trade polices of the firm in different
manners like profit, productivity in negative terms.
Social factors
Whitbread
 Different varieties of food as well as all types of rooms should be available so as to target high and medium
class customers.
Holiday Inn
 New trends due to changes in demographics, lifestyles etc. and impact of epidemics like Zika virus spread are
created effect on the business of Holiday in unfavourable manner.

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Economical factors
Whitbread
Economic condition with the country as well as the interest rate, exchange rate and inflation rate of the
country..
Holiday Inn
GDP growth and economic recession influence the economic condition of the country affect the business
operation and activities of Holiday Inn.
Technological factors
Whitbread
With the increase in technological advancements it is necessary for the hospitality organization to use
updated and modernized equipments in hotel so as to meet the satisfaction level of the customers.
Holiday Inn
Social media listing platforms and uses of big data for personalisation are some technological aspects which
create impact on business activities of Holiday Inn.

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Legal factors
Whitbread
Legal laws are related to the health and safety of the tourist as well as provide compensation to the employees according to
the predetermined structure.
Holiday Inn
Data Breach law suits and travel restrictions are some legal factor and components which influence business operations and
activities of Holiday Inn.
Environmental factors
Whitbread
It is concerned with functioning the business activities in such a manner that reduces the negative impact on the
environment moreover with the impact on the environmental changes.
Holiday Inn
IHG's water risk assessment and green engage system affect positively Holiday Inn's Business in term of increasing
customer base and profitability.

SWOT analysis
Strengths (Whitbread)
 Enhanced brand image
 Eco friendly policies
 Use of green parks and reduced waste management
Strengths (Holiday Inn)
 Good brand image and reputation in the market
 Provide number of services and products
 Operating business at global level

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Weakness( Whitbread)
 Limited level of global presence
 Political condition in various countries affects the operation
 Complexities in the functioning of the business activities
Weakness( Holiday Inn)
 Limited use of social media and advertisement channels
 Consistency of services to consumers
 Poor utilisation of technology

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Opportunities( Whitbread)
 Expand its business in other countries
 To enhance its competitiveness over rival companies
 Provide various offers and discounts
Opportunities(Holiday Inn)
 Use consumer feedback to their advantages
 Making innovation in existing services
 by making promotion in loyalty program

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Threats( Whitbread)
 Large competition from its rival companies
 Updating technologies
 Technology changing within short period of time
Threats(Holiday Inn)
 New opening of various affordable hotels
 Competition from main competitors
 Changes in government plans and policies

SWOT analysis of Whitbread
As per the described data, it can be monitored that green-park and eco friendly
services are some strengths whereas limited global presence and political condition
are weakness of the firm. Discount and offer business strategy will be helpful for
providing various growth opportunities for the firm. High competition due to its
strong rivals in the market, affect negatively and create threats for it.

SWOT analysis of Holiday Inn
From the above information, it can be determined that effective reputation and global
presence of the company help in making increment in its profit and productivity
while less use of technology and social media channels are some weakness of the
firm. Customer feedback help in providing opportunities to make innovation
whereas changes which are generating in policies and plans affect in negative
manners.

Supply demand of Whitbread
Limited global presence of the firm and unfavourable political condition of the nations
are some factor which affect the supply and demand of the organisation in term of
lack of awareness about the products and services of the company.