Hospitality Industry: Hotel Chain Analysis - Trends and Factors

This report provides an in-depth analysis of the hotel chain industry, focusing on internal and external factors impacting the hospitality sector. It utilizes PESTLE analysis to assess political, economic, social, technological, legal, and environmental factors affecting the industry in the UK. A SWOT analysis evaluates Hilton Hotel's strengths, weaknesses, opportunities, and threats. The report identifies current trends such as the shift to mobile bookings and efficient data use, as well as future trends like destination promotion, health and well-being focus, and technological advancements. It also assesses Hilton Hotel's ability to adapt to these trends through brand recognition, quality management, expansion strategies, and customer relationship management. The analysis concludes with key insights into navigating the evolving hospitality landscape and leveraging opportunities for growth.

Running head: HOTEL CHAIN INDUSTRY ANALYSIS
Hotel Chain Industry Analysis

HOTEL CHAIN INDUSTRY ANALYSIS 2
Table of Contents
Introduction.................................................................................................................................................3
LO3: Review the internal and external factors that impact the hospitality industry and how they relate to
current issues facing the hospitality industry...............................................................................................3
External factors........................................................................................................................................3
Internal factors.........................................................................................................................................6
LO4 Analyse the current and potential trends and developments affecting the hospitality industry............7
Current trends affecting the hospitality industry......................................................................................7
Future trends affecting the hospitality industry........................................................................................8
An evaluation of the ability of the hotel chain (Hilton Hotel) you are working for to develop products
and services to meet current trends..........................................................................................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11

HOTEL CHAIN INDUSTRY ANALYSIS 3
Introduction
This report assesses the internal and external factor that impacts the hospitality industry and also
assesses the how it is related to current issues facing the hospitality industry. It assesses the
current and potential trends and developments affecting the hospitality industry. It also evaluates
the ability of the Hilton Hotel to develop products and services and to meet current trends.
LO3: Review the internal and external factors that impact the hospitality industry and how
they relate to current issues facing the hospitality industry
External factors
PESTLE of UK
PESTLE assessment will be used by Hilton hotel for assessing the external factors that might
impact on the company for expanding the business into the UK. It contains different factors such
as political, economic, social, technological, legal and environmental factors (Bowie, et. al.,
2016). These are described as given below:
Political factor
The political factor can be an essential factor that might influence the growth of business in a
specific time period and expenses. Under the existing era, it is assessed that the UK government
helps the new business for enhancing the current economic conditions. Moreover, the existing
political party more supports the hospitality industry of UK by making policies regarding health
and quality. Hence, Hilton hotel can consider the rules and regulation related to health to enlarge
their business (Dabestani, Shahin, and Saljoughian, 2017). This would be also beneficial for
starting the business and obtains the higher advantageous.
Economical Factor

HOTEL CHAIN INDUSTRY ANALYSIS 4
The economic factor can also affect the performance of the company. It could be described as
given below:
(Sources: Robinson, et. al., 2016).
(Sources: Schuckert, Liu, and Law, 2015).

HOTEL CHAIN INDUSTRY ANALYSIS 5
(Sources: Bertozzi, Ali, and Gul, 2016).
As per the assessment of the existing condition, it is identified that the growth of the economy
has gained that could enhance the chances of acquiring the competitive advantageous. The
annual growth is also gained after the year of 2009 that can be significant for Hilton hotel to
create a favorable image in the UK hospitality market. The tourist arrival is also increased in the
UK that could be supportive for increasing the sales of the hotel. It can be assessed that the
Hilton hotel can acquire favorable responses by launching the quality products in the UK
hospitality market. As a result, this could be beneficial for creating the competitive advantageous
(Bowie, et. al., 2016).
Social factor
Hilton hotel can assess the social factor to evaluate the existing condition of the nation before
launching the products and services in the hospitality industry. The UK focuses on modern
culture that can be significant as a company provides healthy products and services to their
customers. There are a high amount of people who are highly active on the social media that

HOTEL CHAIN INDUSTRY ANALYSIS 6
could help to persuade the customers in minimum time and expenses. This would be also
beneficial for dealing with the business procedure (Dabestani, Shahin, and Saljoughian, 2017).
Technical Factor
Technology is a significant factor in order to attain the goal of the company. There are some
elements that can be essential to accomplish the particular aim as well as objectives. Under the
UK nation, people more focus on innovation tool that motivates a company to practice social
media and directly interacts with upcoming customers. Moreover, research and development
techniques can be feasible for obtaining the higher success (Robinson, Fallon, Cameron, and
Crotts, 2016).
Legal factor
The legal factor can be evaluated by the company for making an appropriate decision with
regards to the Hilton hotel. Before expanding the business, Hilton hotel can focus on specific
policies such as compensation, working hours and safety. These policies can be essential to attain
the company’s objectives at minimum cost as well as time (Yeoman, and Meethan, 2015).
Environmental factor
The environmental factor can be significant for an individual. Hence, the company can focus on
products and services that would not harm the atmosphere. There are some policies made by the
UK government for protecting the environment such as water quality, air, pollution, and natural
hazards. Hilton hotel would make sure that products and services never directly affect the
atmosphere (Jones, Hillier, and Comfort, 2016). Moreover, the company will be competent to
effectively deal with the services in the UK nation and supports for higher competitive
advantageous.
Internal factors

HOTEL CHAIN INDUSTRY ANALYSIS 7
A SWOT analysis for Hilton Hotel
Strengths
1. High recognition of the brand
2. Technical innovations for enhancing
customer experience and continuous
upgrade of business procedure
3. High employees retention
4. Around 600 hotels in over 78 nations
5. It deals in the hospitality industry for
long periods.
6. Good image in the marketplace.
Weaknesses
1. Restricted market share in spite of the
good brand recall
2. Operations are influenced
internationally because of different
government parameters and policies
(Boykin, Hilton, and Palmer, 2017).
Opportunities
1. High potential in the emerging nation
2. Innovation in customer services
3. Digitalization and better practice of
technology
4. Indian and international hospitality
fields are looking for boom
(Loustaunau, 2018).
Threats
1. Entry of different global brands and
stronghold of long standing as well as
developed UK brands
2. Rivalry related to price
3. Stagnated expansion
4. Political and economic instability in
different nations (Hilton Hotel, 2018).
LO4 Analyse the current and potential trends and developments affecting the hospitality
industry
Current trends affecting the hospitality industry
A Continuing Shift in Focus to Mobile

HOTEL CHAIN INDUSTRY ANALYSIS 8
In the current scenario, people are continually shifting towards mobile as compared to traditional
channels. It is assessed that the mobile platform is key to gain the profits and revenues. The
practice of mobile technology may extend further than the efficient acquisition of guests in order
to deliver the better customer experience. For instance, keyless entry and check-ins by using the
mobile app as well as higher customization in the information collected through mobile devices
(Bertozzi, Ali, and Gul, 2016).
An Increased Focus on Direct Bookings
The aim of properties is to drive the higher profitability by emphasizing on direct booking.
Hilton hotel can spend more time as well as efforts in developing the loyalty and recall. This can
be done by making demonstrating websites and other owned channels like TripAdvisor, Yelp,
Facebook, as well as similar business pages (Mariani, et. al., 2016).
Greater Efficiency in Use of Data
In the hospitality industry, there is a current trend related to higher efficiency in using the data.
The hotel manager can busy with all kinds of data to make a smart business decision. The
company should cut the data that are irrelevant for it. Moreover, Hilton hotel can use the revenue
management system as it would be effective to manage the data (Bowie, et. al., 2016).
Future trends affecting the hospitality industry
Destination promotion
The social media will be highly used in order to promote the destination and self-promotion.
There would be also a trend of improving the guest image and tweets on their website. Hilton
hotel will use advertising campaigns in order to endorse the products and services (Dabestani,
Shahin, and Saljoughian, 2017).
More focus on health and well-being

HOTEL CHAIN INDUSTRY ANALYSIS 9
In future trends, guests will pay for health hence hotel would have needed to provide the well-
resourced fitness centers, spa, and pools. Moreover, travelers are projecting the innovative
wellness alternatives. Moreover, healthy food alternatives, and growing trends involve the
lighting energies, air purification, yoga spaces, vitamin-infused, in-room exercise equipment and
the shower water (Robinson, Fallon, Cameron, and Crotts, 2016).
Tech savvy
The high amount of guests would be independent and will have technical knowledge hence
travelers who are happy can use the mobile websites as well as apps. Hotels should ensure the
offering and should need to up-to-date and friendly services. Travelers will anticipate conference
centers and hotels with premium tech tools as well as well-informed support personnel during the
business meetings with conferences (Schuckert, Liu, and Law, 2015).
An evaluation of the ability of the hotel chain (Hilton Hotel) you are working for to develop
products and services to meet current trends
The following are the ability of Hilton hotel to develop the products and services in order to meet
the current trends:
Brand acknowledgment
Hilton hotel has high brand recognition in the market that is owing to the availability in different
nations across the world. It has developed a favorable insight regarding brand in the mind of
consumers. It could be beneficial for influencing the customer’s choice towards their brand
(Yeoman, and Meethan, 2015).
Exciting supervision and products quality
The management is supposed by Hilton group that is superlative and focusing on carrying the
innovative information for attracting the consumers and also retaining the current consumers.

HOTEL CHAIN INDUSTRY ANALYSIS 10
Expansion manages in Asian Continent
The company has initiated to build the market in the region of Asia, which would support in the
business foundation. It could be supportive in creating the customer base and increasing the
revenues (Jones, Hillier, and Comfort, 2016).
Strong customer relationship
The customer relationship is highly developed by the group in which they keep the preference of
each as well as every customer. It also delivers the same group of preferences to the particular
consumers on their visit. It helps in developing a brand and making the emotional bonding with
the consumers (Ladkin, and Buhalis, 2016).
Conclusion
From the above interpretation, it can be concluded that there are certain external factors that
affect the hospitality industry such as political, social, economic, technological, legal and
environmental factor. It can be also summarised that SWOT analysis is used to assess the
internal condition of the Hilton hotel. It can be concluded that there is the certain current trend of
hospitality industry such as a continuing shift in focus to mobile, a continuing shift in focus to
mobile and greater efficiency in the use of data. Future trends affecting the hospitality industry
are Destination promotion, increased emphasis on health and well-being, and tech explosion.
Moreover, it can be summarized that there are different competency of Hilton hotel such as
brand acknowledgment, interesting administrations, and items quality, solid provider’s
relationship, development organizes in the Asian continent.

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References
Hilton Hotel. 2018. About us. [Online]. Available at: https://www.hilton.com/en/corporate/
(Accessed: 07 January 2018).
Bertozzi, F., Ali, C.M. and Gul, F.A., 2016. Resource Based View of an Organization and
PESTEL Analytical Tool; An Analysis of Hotel Corallo, Rimini. EPH-International Journal of
Science And Engineering (ISSN: 2454-2016), 2(11), pp.57-71.
Mariani, M.M., Buhalis, D., Czakon, W. and Vitouladiti, O. eds., 2016. Tourism Management,
Marketing, and Development: Performance, Strategies, and Sustainability. USA: Springer.
Bowie, D., Buttle, F., Brookes, M., and Mariussen, A., 2016. Hospitality marketing. Routledge.
Dabestani, R., Shahin, A. and Saljoughian, M., 2017. Evaluation and prioritization of service
quality dimensions based on gap analysis with the analytic network process. International
journal of quality & reliability management, 34(4), pp.530-548.
Robinson, P., Fallon, P., Cameron, H. and Crotts, J.C. eds., 2016. Operations management in the
travel industry. UK: CABI.
Schuckert, M., Liu, X. and Law, R., 2015. Hospitality and tourism online reviews: Recent trends
and future directions. Journal of Travel & Tourism Marketing, 32(5), pp.608-621.
Yeoman, I. and Meethan, K. eds., 2015. The future of food tourism: foodies, experiences,
exclusivity, visions and political capital (Vol. 71). USA: Channel View Publications.
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some
personal reflections on corporate challenges and research agendas. International Journal of
Contemporary Hospitality Management, 28(1), pp.36-67.

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Ladkin, A. and Buhalis, D., 2016. Online and social media recruitment: Hospitality employer
and prospective employee considerations. International Journal of Contemporary Hospitality
Management, 28(2), pp.327-345.
Loustaunau, M.C., 2018. MANAGING HOTELS IN A SUSTAINABLE WAY. International
Journal of Applied Sciences in Tourism and Events, 2(2), p.108.
Boykin, T.F., Hilton, A.A. and Palmer, R.T. eds., 2017. Professional Education at Historically
Black Colleges and Universities: Past Trends and Future Outcomes. UK: Routledge.