Contemporary Hospitality Industry: PESTLE, SWOT and Trends

This report provides an in-depth analysis of the contemporary hospitality industry, focusing on Baglioni Hotel's expansion plans. It assesses PESTLE factors influencing the industry's development, followed by a SWOT analysis of the hotel. The report evaluates the impacts of external factors, such as political, economic, social, technological, legal, and environmental aspects, on hospitality firms. It appraises current and potential trends, including tech explosion, sustainability, and destination promotion, and evaluates the hotel's ability to adapt its products and services to meet these trends. The report critically examines how external factors impact these trends and the overall development of the hospitality industry, concluding with a summary of key findings and recommendations.

About Contemporary
Hospitality Industry
TASK 3 and TASK 4

Table of content
• Introduction
• Assessment of PESTLE factors which affect development of entities
operating in hospitality industry
• SWOT analysis of company
• Evaluation of impacts of external factors on development of firms in
hospitality industry
• Appraisal of implications of current and potential trends in hospitality
sector
• Evaluation of abilities of the company to develop products and services
which will meet current trends
• Critical evaluation of the ways external factors impacts on current and
potential trends along with development of hospitality industry
• Conclusion
• References

Introduction
Hospitality industry is broken into basic
areas that are travel and tourism,
accommodations, food and beverage.
All areas are customer focused yet they
all provide distinct service levels. The
presentation is all about Baglioni Hotel
which is planning an expansion in
Asian market for enhancing its brand
value and market size.

Assessment of PESTLE factors which
affect development of entities operating
in hospitality industry
Macro environment factors are
changeable in nature and impacts
development of entity in wide
manner. In case with Baglioni
Hotel, the impacts of various factors
on growth and development of the
entity as seen from diverse number
of macro environmental factors.

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Political: The extent of involvement of government in business
practices impacts development of established entity in the field.
Economic: Factors concerned with inflation rate, consumer
disposable income and economic growth plays crucial function in
impacting business developments.

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Social: Cultural addition to social factors of demographics
including age, health statistics, preferences, gender ratio etc affects
sale of products of company.
Technological: Involvement and innovation of technology while
meeting needs of clients affects development of entity.

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Legal: It is macro environmental factors that states the ways
law impacts or affects the aspects in which business operate
and behaviour of consumer.
Environmental: In past decades, environmental factors
achieved huge importance in hospitality industry.
Organisations are more conscious for pollutions that they
may cause as well as carbon footprints.

SWOT analysis
SWOT analysis is one of in-depth look towards the ways an entity
operates. SWOT analysis of Baglioni Hotel is as follows:
Strengths:
 Baglioni Hotel have well designed
concepts and ideas to meet expectations
of guests.
 The hotel have autonomous control in
its operations and allows personal
countenance of passion.
Weaknesses:
 The hotel has less penetration or official
presence in international market.
 Products and services offered by
Baglioni Hotel d not account cultural
diversity in particular regions.
Opportunities:
 Baglioni Hotel have opportunity to
diversify in Asian market with its
products for various cultures.
 Usage of technological innovation and
advancement as ways for distributing
commodities in international market.
Threats:
 Other organisations imitate their
hospitality products which is threat for
Baglioni Hotel.
 Changing legislations, decision making
of government and pressure from
consumers to change price structure for
products.

Evaluation of impacts of external factors
on development of firms in hospitality
industry
External factors impacts drastically in Baglioni Hotel and other
companies in the industry. For example, decision imposed by
government to close hospitality premises in Covid-19,
changing preferences and attitudes of consumers or society,
advancements in technology etc impacts business
sustainability, revenue making and meeting customer
expectations.

Appraisal of implications of current and
potential trends in hospitality sector
Trends are broad direction for something unique, new and
different. In hospitality sector, managers of Baglioni Hotel
have appraised implications of existing and potential trends in
the sector that are as follows
Tech explosion: In present world, majority of guest or visitors
are tech savvy and sell sufficient travellers that are more
comfortable in using mobile websites and apps for making
bookings or making any complaints.

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Sustainability rules: In coming years, eco friendly practices
will become norms as buildings or properties of hospitality
company will majorly emphasis on renewable energy
resources addition to water scarcity.
Destination promotion: In present durations, detonation of
social media platforms are causing or pressurising hotels to
more involve in self promotions addition to destination
promotions.

Evaluation of abilities of the company to
develop products and services which will
meet current trends
Baglioni Hotel have huge abilities or competences to build
products and services that can meet pertaining trends. For
example, customer handling skill assist the firm to make
changes in its offerings that are transportation mode,
service styles, amenities and so on for meeting trends that
are tech explosion and promotion of destination and self.