A Comprehensive Report on the Contemporary Hospitality Industry

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on key aspects such as PESTLE and SWOT analyses, and factors influencing supply and demand. It examines political, economic, social, technological, environmental, and legal factors impacting the industry, using Hilton Hotel and Thomas Cook as case studies. The report also explores current trends, including technological advancements, online services, and changing customer preferences. Furthermore, it evaluates the strengths, weaknesses, opportunities, and threats within the industry. The report concludes by emphasizing the hospitality sector's crucial role in economic development, offering valuable insights for businesses and stakeholders within the industry. The report is contributed by a student and is available on Desklib, a platform providing AI-based study tools.

Contemporary Hospitality
Industry

Content
• Introduction
• PESTLE Analysis
• SWOT Analysis
• Current and Political trend in hospitality
industry
• References

INTRODUCTION
The hospitality industry has grown multiple folds in the last few decades and its
primal objective is to satisfy customer need and demand in order to attain
high level of productivity and profitability.

PESTLE Analysis
Political:It is related with interest rate, tax policy, political stability which
impact directly over company's operation. Recently, there was
modification in tax regulation across the globe which effect Hilton Hotel
productivity. Example 2: According to this factor, Thomas Cook
undergoes with an obstacle i.e. alteration in trade regulation over the
operation of hospitality industry. Due to this, it has generated a huge
impact over firm's productivity and proficiency ratio.

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Economical: The major economic factors that affect Hilton Hotel is the slow
growth of economic growth in China and Europe, and such event impact
company heavily because they are highly dependent on these countries
business. Example 2: In recent scenario of UK, there is a increasing
liberalisation of trade policy within hospitality sector that benefit Thomas
Cook performance. However, it help them to invest further into the
regions which are so off limits to firm and can enhance their market share.

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Social:As per the recent report of UK population, it has been stated that
number of people who plan to travel internationally increasing day by day
which create more challenge to Hilton Hotel in terms of providing high
quality service. Example 2: There is an intensive demand of CSR activities
among the population of UK which influence company's profit margin.
Hence, Thomas Cook can make use of this opportunity and can engage
themselves in some social activities like producing basic amenities,
education facilities and many which enrich their brand value among
customer as well as improves their profit margin ratio.

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Technological:This factor has a huge impact over Hilton Hotel business
function as most of the customer prefer online service in order to receive
quick response. Example 2: As the competition level among companies
raises regarding innovation, it directly influence its potentiality in
obtaining profit maximisation. Thus, Thomas Cook can update its services
to 5G which helps them to access and reach wide range of customer as well
as they can gain competitive advantage efficacious.

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Environmental: Currently, major environmental issue which Hilton Hotel
faces is increase in fuel prices which reduces travel level of customer.
Example 2: In UK, majority of the population are aware about
environmental factor which challenges Thomas Cook operation and
function. Hence, they should be more focused about their each function in
order to render high level of satisfaction to customer and also enlarge their
market size in an impressive manner.

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Legal: Hilton Hotel always takes initiative to follow all policies and procedure
which is imposed by UK government which helps them to get less
intervention with government and it add value to customer as well as
explore Hilton brand image in competitive hospitality industry. Example 2:
Till this time Thomas Cook are always updated and maintain disciplined
work within their company, so they should continue to same act in order to
acquire best positioning among competitive marketplace.

SWOT Analysis
 Strength
 It's brand acknowledgement is high
in market as it serve across the
globe which helps them to build
positive perception among
customer regrading brand.
 It is flexible in nature as it make
use of all growth platforms and
they adapts innovative technologies
which helps them to attract and
retain customer at wide range.
 Weakness
 Hilton Hotel is highly dependent on
other inn proprietors company
since it does not claim greater part
of lodging network.
 It contain very less network of inn
connection at Europe and North
America which decreases its
potentiality to attain increased
productivity.

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Opportunity
 There is high level of potential in
emerging market which create
platform for adaption more
innovation within business
operation or function.
Threat
 Entry of international brands along
with strong hold of companies
becomes challenging to Hilton Hotel
to expand their proficiency.

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Strength
The company as a strong market
player is also contains best brand
name within the market. Along
with this, international
collaboration with hotels and
airlines which allow them to to
leverage various offerings to its
customers.
Weakness
The high operating and financial
costs weakens the firm against
smaller market players targeting
same clients. Moreover, it operates
in an industry that has many
players and therefore highly
competitive as aspect that makes it
hard to remain sustainable.