Report on Contemporary Hospitality Industry: PESTLE, SWOT & Trends

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on the external factors influencing its development. It employs a PESTLE analysis to examine political, economic, social, technological, legal, and environmental factors, and a SWOT analysis to assess the strengths, weaknesses, opportunities, and threats facing the industry, particularly in the context of Premier Inn. The report evaluates the positive and negative impacts of the external environment, discusses current and potential trends such as shorter work weeks and demand for fitness facilities in hotels, and identifies core competencies related to technology and customer service. It concludes that while the hospitality industry significantly contributes to economic growth, it faces challenges such as economic recession and health concerns, requiring continuous adaptation and innovation to sustain competitiveness and enhance customer experience. The report emphasizes the importance of adhering to industry standards to ensure quality and build brand loyalty.

Contemporary Hospitality
Industry

Table of Content
• Introduction
• PESTLE Analysis
• SWOT Analysis
• Evaluation of impact of external environment
• Current and potential trends
• Core competency
• Influence of external factors on development of hospitality industry
• Conclusion
• References

Introduction
The contemporary hospitality industry in today's
Era has become the major revenue generator
for the growth of economies of developing
countries. In today's competitive environment
the hospitality industry is exploring wide range
of attributes in respect of service delivery in
different sectors of hospitality. The hospitality
industry is flourishing in today's competitive
time and playing major role in economic
contribution of the country

PESTLE Analysis
There are many external environment factors that impact the
growth and development of the hospitality industry.
Political factors: Political factors like Import/ export, travel
ban, political stability, Brexit etc. creates major impact on the
hospitality business. The travel ban and restriction on labour
movement due to the Brexit created the major impact on the
growth of the Premier Inn and on the hospitality industry.

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Economic factors: the hospitality industry is the key to the economic growth of UK’s economy therefore the
economic recession due to the COVID-19 has caused downfall of revenue in the hospitality industry as people are
investing less in the this sector.
Social factors: Social factors like customer’s attitude, health concern, ethical or religious elements, lifestyle trend
etc. influence the hospitality industry. The consumers of the hospitality industry are becoming more health conscious
and therefore the organisations are coming up with new menu in their restaurant to meet the consumer needs (Yang,
Henthorne and George, 2020).
Technological factors: the technology has changes the structure and the systems of hospitality industry in each and
every manner making more digitally oriented. In Premier Inn they have the online reservation system for the guest
and also there are loyalty cards and E- key cards for entering the room which has positive influence on company’s
brand.

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Legal factors: In UK there are legal factors like 14 allergens, the food safety act, consumer
protection, employment law and many more that organisation of hospitality industry is required to
comply with in order to operate their business. In Premier Inn the hotel staffs are complied with
employment law to protect their rights. The hotel also complies with food safety and health safety
act to maintain sustainability.
Environmental factors: the hospitality industry of UK is highly focused on sustainable and
environmental friendly development. Therefore the environmental factors impact majorly to the
business operations as the Premier Inn has to reduce the food waste, comply with strict
environmental policies and deliver sustainable resources in their business.

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Legal factors: In UK there are legal factors like 14 allergens, the food safety act, consumer protection,
employment law and many more that organisation of hospitality industry is required to comply with in order to
operate their business. In Premier Inn the hotel staffs are complied with employment law to protect their rights.
The hotel also complies with food safety and health safety act to maintain sustainability.
Environmental factors: the hospitality industry of UK is highly focused on sustainable and environmental
friendly development. Therefore the environmental factors impact majorly to the business operations as the
Premier Inn has to reduce the food waste, comply with strict environmental policies and deliver sustainable
resources in their business.

SWOT Analysis
In order to gain sustainable competitive
advantage and to take influential and successful
decision the hospitality industry should
consistently analyse their internal environment.
To analyse the micro environment SWOT
analysis of premier Inn is conducted for the better
understanding of factors in hospitality industry
and its influence of decision making process.

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Strengths Weaknesses
 The Premier Inn has excellent
presence on the online platforms and
its website which also provide offers
and deals to the consumers making it
cheap and affordable.
 The hotel is largest hotel brand of UK
with 43000 rooms and approx 600
hotels.
 The hotel brand is large but has the
low global presence compared to the
competitors.
 The Premier inn lack in hygiene and
quality due to low price endue.

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Opportunities Threats
 The removal of trading barriers and travel
ban the company has opportunity to grow
its business into new international
market.
 The hotel has opportunity to tie up or
make partnership with airline firms or
other industry.
 Competitors like easy hotel, Ibis who are
low budget hotel are the threat to the
business of Premier Inn.
 The economic recession has decreased
the disposable income which is threat to
the hotel to attract consumers.

Evaluation of impact of external environment
It is evaluated that external factors have both positive and negative impact on
the hospitality industry development.
Positive impact
The technology factor like digital payment, loyalty cards and e key cards are
developing the operating of the hospitality industry and also making its
business more valuable and safe.
Negative impact
The economic recession and growing concern of people towards health are
impacting badly the hospitality industry as people avoid coming to restaurants
and hotels or to spend on tour or travel for the leisure time.

Current and potential trends
The current potential trends of the hospitality industry are:
Shorter work week: in UK there are 5 days working trend
which makes consumers demand for leisure time during
holidays for which people try to search new restaurants for
dinner or outpace them for the small trip, checking in hotels or
road trips.
Growing trend of yoga, exercise and gym space in hotels: the
travels try to stay fit for which there is new trend in which they
expect the free space for exercise, yoga or gym. In many hotels
in the hospitality industry they provide exclusive premium
service for this.