Hospitality Industry Report: Roles, PESTLE, SWOT, and Trends Analysis

This report offers a comprehensive analysis of the hospitality industry, focusing on Marriott as a case study. It begins by defining hospitality and exploring the various roles within the industry, such as front office managers, HR managers, food and beverage managers, and housekeeping managers, det...Read More

HOSPITALITY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
P5 Roles within hospitality Industry and skills required for these roles.....................................1
P6 PESTLE analysis:...................................................................................................................3
P7 SWOT Analysis:.....................................................................................................................5
P8 Current and new trends in the hospitality industry:................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality is defined as the relationship that exists between a host and a guest, in which
a host receives the guest and the takes care of the needs of the guest which includes
entertainment, reception, food and beverages etc. Hospitality industry is a kind of a business
which deals in providing hospitality services to the customers, like satisfying the customer needs
and also providing good experience to the customers. It has the broad categories in service field
like lodging , planning of events, travelling, transportations, food and beverages etc. In this
report Marriott hotel and resort is taken as an organisation, it is a hospitality company that deals
in providing hospitality services in hotels and resorts and in other lodging facilities. This report
discusses about the various fields of hospitality industry like the different role in the hospitality
industry and skills required for these roles. In this report PESTLE analysis is done on a
hospitality industry and also the SWOT analysis on the hospitality business. This report also
discusses about the current and potential trends in hospitality industry.
P5 Roles within hospitality Industry and skills required for these roles.
Hospitality industry is a broad business which is providing different services to
customers. These services of hospitality industry includes food, travel, resorts, lodgings,
customer services etc. therefore there are different roles in the hospitality industry and need a
special skills for preforming these role in order to provide its services to the customers at the
satisfaction level of customers. Skills required for performing different jobs in hospitality
industry can be explained as follows
Front office manager: Front office manager has to manage the front desk and is the face
of the company. When ever people from different parts of the world visit to a hotel, they first
deal with a front office and is the most important department of the hospitality industry as they
represent the entire industry (Bigley, 2018). This department is managed by the front office
manager and need a specialised skills to perform their jobs, these skills are :
a) He should be able to speak multiple languages a he has to deal with different customers all
around the world so should be able to speak multiple languages in order to address different
types of customers in better way (Bertozzi, Ali and Gul, 2016).
b) He should the skills of problem solving, he should be able to solve the problems of the
customers in order to prevent any customer disappointments.
1

c) He should have strong interpersonal skills, he should be able to deal with different
departments with in the industry and set collaboration with each departments.
d) He should be able to provide the guest service properly, sometimes a customer of Royal hotels
get disappointed from the service. A front office manager should possess the skills of being
pleasant, friendly, problem solving skills and any other thing which will please a customer.
e) He should be flexible with the schedules (Radwan, 2017).
f) Should possess computer skills and knowledge.
Human Resource Manager: Depending on the size of the hotel a human resource
manger have to manager number of employees within the organisation accordingly. The skills
required by Human resource manager are as follows:
a) Managing people: HR manager may not have any direct report about the employees but he
should possess the skills of managing the human resource within the organisation. Some times
there may be deficit and even excess of employees within the organisation but he should be able
to manage them accordingly (Johan, Baga and Asmara, 2018).
b) Multitasking: HR manager should be able to perform multi-tasks within the organisation, as
he has to deal with the employees of different departments like finance, Food and Beverages,
House keeping etc so he should possess knowledge of these departments as issues may arise
form any of these departments and should be able to solve them.
c) Conflict management: As there may be employees working from different culture which
may give to conflicts, so he should possess skills of conflict management.
d) Change management: As hospitality industry is evolving and changing a HR manager
should help everyone in accepting the change and also help them to cope up from these changes.
Food and Beverages Manager: A food and beverages manager id also important part in
hospitality industry and deals in managing of food and beverages in the company. Skills required
for this job includes:
a) Leadership skills: F&B manager should possess very good leadership skills in order to
manage a huge diverse staff, he should be able to carry out the team swiftly during a job in order
to minimize late customer orders (Patel and Al Hazaima, 2017).
b) Customer service: A F&B manager has always keep his customers service in mind. He has
to make his team to make what a customers demands so that they are served properly with this
2

satisfaction in order to retain the customers. He should also be able to solve Instant problems
regarding F&B.
c) Staffing Skills: A F&B manager should possess high level of staffing skills, he should know
how to hire a staff and most importantly who to hire and why to hire. This skills will improve
their performance at higher level (Raj and Alexander, 2018).
House keeping Manager: A house keeping manager has keep the house hold running
and to manage them. Skills required are;
a) he should be able to make the planning as per the customer requirements and set its team
accordingly.
b) he should be able to motivate and encourage its team for performing different types of work
regarding house keeping.
c) he should be able to decisions quickly and able to solve the housekeeping problems and cope
up from emergencies.
d) he should a skills of proper team management.
Current shortage of skills faced by the hospitality industry are that there is in ability to
compete, there is a big gap in high performing and low performing companies, there is also a
poor team morale which is biggest concern in the hospitality industry.
P6 PESTLE analysis:
PESTLE analysis is the best way to understand the what factors are affecting the industry
in a modern way (Ekwere and et.al., 2014). How these macro factors impact the business and its
decision-makings. These factors are:
Political: The main target of hospitality industry is to attract national and international tourists
and this plays an important role for the economy of a country. This industry helps a country to
remain competitive in the world. The are charging different types and huge amount of taxes
depending up on the luxury and the stars category of the industry. When there is any political
change in the country in which the business operates it has a direct impact on the business of this
industry. Even any small political decision taken by the government have impact on this
industry. For example during Olympics that was held in London in 2012 a tourists were facing
high cost of living in the country this made the people to make a good deals with hotels and led
to decrease of customers in posh hotels, so it important to be aware of global economy and need
3

to follow the changes that affects the spending power of buyer. An industry should provide
special caters for the families (Claveria, Monte and Torra, 2015).
Economic factors: This is very important factor of PESTLE analysis. As UK is the fifth largest
economy in the world, but UK has to face recession in 2008 which had put the economy of UK
in trouble. But there has been growth in tourism sector in 2016 which has improved the
economical factor of the country. This has led to the huge expectations from this industry as
more guests come to the country more services they demand from the industry. Guests are
willing to pay extra for the services they demand. The situation of the country's economy plays
an important role as it effects the tourism of a country. It also effects the purchasing power of
tourists. For example a hospitality industry need to cut costs of their travelling expenses on
travellers and another thing is provide better services to customer in order to meet the customers
satisfaction especially by 5 and 7 star hotels.
Social factors: Changes in the customers preferences and social status have affected the services
industry in UK, this factor have resulted in the demand of better services from the industry. This
factor is analysing the social trends of different countries and how these trends have effected the
hospitality industry at a large. These trends include demographic variables, trends in culture,
lifestyles of a customers. For example analysing the trends an industry can add that particular
trend in the business like a trend in food and beverages, an industry can add this trend in its
menu. Another example is serving the customers as per their cultural values can be beneficial for
the industry (Dzhandzhugazova and et.al., 2016).
Technological Factors: As technology is growing at the fast rate and is continuously evolving in
UK. The technology should be beyond the level of serving customers. As many businesses have
started to use different technologies in order to serve their customers in a better way. As every
customer in present world like to prefer an organisation with high technological levels. So the
companies in this industry have to make efforts to overcome this type of challenge and make
their technology better and upgraded to put an impression on their customers. Many customers
all across the world like to use hotels and resorts which highly technologically embedded.
Technology have worked for both customer and also for the company so this is important factor
for the hospitality industry in achieving its goals. For example providing a free Wi-Fi to its
customers will bring satisfaction to its customers, provide high intelligence security for the
customer and for its stuff (Xiang and et.al., 2015).
4

Legal factors: Legal environment in which the business operates is essential for the growth of
this industry. There may a serious changes made by the government in its laws that effect the
businesses of this industry. It may lead negative impact on the businesses of this industry.
Changes in the employment laws like minimum wages, maternity leaves, sick pay, holidays etc ,
laws related to equality to protect any sort of discrimination, labour and public security laws etc
would lead a impact on this industry. Hospitality industry have to face many legal pressures from
the government which are the challenges which this industry have to face. For example a
company have to treat every customer equally irrespective of their cast, religion, sex, colour etc
as such type of problems exists in the country and also need to protect the customers from any
sort of discrimination from other customers (Guchait, Cho and Meurs, 2015).
Environmental factors: Environment is changes rapidly and it is not a concern of a particular
country but is a global issue. UK has made set different provisions and also made a many
significant improvements for reducing an sort of negative impact on it environment. Hospitality
industry have to abide the rules and regulations in order keep their environment safe and has
work with the government in order to safeguard the environment. For example proper dumping
of their industrial waste and to minimize the air pollution.1805
P7 SWOT Analysis:
SWOT analysis of a hospitality business provides a insight about the industry's goals and
objectives, is it contributing towards these goals and objectives, and how these factors will have
impact on decision-making process can be explained as
Strengths: More strong the hospitality industry more are the chances of its growth and stability.
Strengths of a Marriott hotel is that people will not stop in travelling from one place to another
which brings a regular customers to the hotel. A hotel has a good property which has been
attracting the customers from the various parts of the world. As the tourism grows it provides a
job opportunities and increase the employment rate in the country, and also the people with
limited education are eligible for the jobs in this company. It has resulted in the growth in
international markets as it is a global company. It is flexible company as it adapts the changes
easily. Its strengths have impacted in decision makings setting its business in different parts of
the world which has resulted in the growth of a company and also made a decisions to further
improve its hotel interiors (Hon and Lui, 2016).
5

Weaknesses: Despite of its strengths it has also got weaknesses like it is highly dependent on the
tourists decline in the tourists will have a negative impact on the company. It can be affected by
any political situations prevailing in other countries which will decrease the number of tourists
from that country. Marriott hotels have a weakness particularly with it costing as it is a five star
hotel and its charges are high. A customer have to pay a good amount of money for staying in
these hotels. Which have set aside the average customers. This have limited their customers base
across the country. The company has to focus on the particular customers i.e. upper class and
upper middle class customers. This have effected their decision-making as they are promoting
their companies within these two class of customers and has to make decisions on how to meet
the satisfaction level of these type of customers (Getz and et.al., 2014).
Opportunities: A company has various opportunities in the markets as it can attract the average
class customers by providing offers which will also help in achieving the competitive advantage.
During a off seasons a company have an opportunity to attract the local and domestic customers.
It also have an opportunity of events managements during an off seasons which will give a
company healthy amount income to the company. A company even has an opportunity to
position itself in the market in order to maximize it benefits across the country. A company also
have an opportunity to achieve the competitive advantage by adding environmental service. It
has an opportunity to follow the legal structure of different countries which will help in
increasing its business performance across the globe. These opportunities available to Marriott
hotel can help in decision-making like it can attract the local customers, it can help in its
positioning within the country, it can also help in considering the legal factors of the country
while establishing the in different countries i.e. what are the does and don't s that the company
has to follow while setting a new business in different countries (Bigley, 2018).
Threats: Major threats which a company has to face is the threat from the terrorism and also a
political threat. These threats have interrupted the growth their company. As there has been rise
in terrorism in last decade this have posed a threat to the company as there has been continuous
attacks on the hotels so this is the area of concern for the company. Another threat is a political
threat like tax rates which has been increasing through out the country an the world, their new
policies which are posing a threat to the company. But this analysis helps the company in taking
the decisions like providing high level security to customers all across the world and have to
6

make decisions on the company's flexibility towards the government policies in order to operate
smoothly in different parts of the world (Dzhandzhugazova and et.al., 2016).
P8 Current and new trends in the hospitality industry:
There are various types of trends. The industry is facing new new trends in the market.
Marketers can use new trends to good and better conversation and connect with peoples, but
basic tech trends stay much potential, so that marketers have the change trends facility, because
how they interact and live with another people. So how will change the trends accordingly
current situation in the Marriott resort.
Technology trends: Technological trends various types of devices, involves smartphones, smart
TVs, tablets, smart appliances. There are good and better step in the correct direction. The
majority of customers are self sufficient nowadays, they are comfortable using apps and internet
website. Guests are pre booking for the best hotels and resorts. At an organization conferences
and meetings, guests expectation have high and good quality of conference halls, rooms. Hotels
and resorts need to create to sure customers offering are proper and perfect and user friendly.
Technology trends used to hospitality industry so positive and good affect on their business.
There has been increase in the seamless technology which have established the connectivity
between company and the customers. As many hotels are providing services of digital check-in
and also are providing concierge services digitally. All this technological improvements has put
the hospitality industry at next level but it has also increased the expectations of normal business
in terms of technology (Guchait, Cho and Meurs, 2015).
An industry is now getting concerned with the technology to improve its level to attract
as many customers as possible. Guests and new visitors like to visit the property which are
technically advanced. This technological up gradations will help a company to increase the
pre-bookings, they have very easy to arrange and distribute rooms, reservation and guest level of
security and also made the up-gradations in the travel sector also.
Increased emphasis on health and well-being:Now a days customers have become health
conscious and are willing to giving health charges, because they are very caring about their
health. Hospitality industry is responding with better sources fitness centres, spas and pools and
also in the travel sectors as they also have to improve their security levels also it has led to
establishment equipments of improving health of customers like treadmills in the rooms of the
7

customers and other gym equipments. Rising, guests are expecting better and wellness options.
And involves good and healthy food, increasing trends like lightning, spas, yoga spaces, air
purification in room exercise resources and shower water. Guests want to be fully satisfied to
new trends facilities. Hospitality industry have to meet the needs of the customers in terms of
providing quality service to its customers (Getz and et.al., 2014). This have made every
hospitality businesses to upgrade their quality standards of health in order to provide better
service to its customers which will help in retaining of customers and bringing them back.
Ecology over-tourism: Over-tourism has an affect on the world across different cities in the big
ways. The most important problems are noticeable with tourism involves stress on the local
factors, environmental and traffic impacts with the rise in tourism have resulted in the rise of
environmental and local problems. Which have forced the government to formulate action plans
to prevent such type of problems within the country. There are increasing price, marketing, and
limited transportation options available to guests which makes the guests unsatisfied, as they are
been charged high as compared to the locals. Also they have minimum price to pay for quality
goods and services, so customers have to make their choices according to their budget. So it has
led impact on hotel industry and travel industry. Many customers will spend more money and
stay long time at the location, this is a reason that customers are willing to pay more for the
destination stay i.e. were they stay for enjoying their vacations. So it has an affect on hospitality
industry both positively as well as negatively (Xiang and et.al., 2015).
Overlap of vacation rentals: Now a days in the hospitality industry starting to worlds collide.
The guests are buying properties to rent and looking traditional hotels firms build as vacation
rentals. The good idea of changing into the vacation accordingly rental space, they doesn't like
feel good because guests have had same functions for decades or timeshares. The mainstream
idea to become a vacation rental, they are expected to more guests to the idea of differentiate
accommodations. Like as vacation rentals, traditional place and hotels come in price point and all
shapes, sizes. Customers want to good place of rent for vacation rental (Getz and et.al., 2014).
Social media: At present, social media have become a new search engines for the customers. As
people across the world are using different types of social media apps to gain the information
about and product or any service. It has forced hospitality industry businesses to make their
presence on the social media. It has become the platform for the customers to share their view
8

about their experience and quite trending at present. For example a person can check the reviews
on Facebook, Instagram etc to choose their destinations and hotels (Dzhandzhugazova and et.al.,
2016). Which will improve in future. So the companies have to be socially active to carry out its
business.
CONCLUSION
It can be concluded from the report that in hospitality industry in order to manage the
growth there are various skill sets required in different departments in order to provide the
quality services to the customers and meet the organisational objectives. This report also
concludes that various macro environmental factors of an organisation has an impact of the
business both positive as well as negative and these factors affects in taking the decisions for the
company. This report also concludes that strengths of a company help in increasing the business,
but weaknesses of a company can be a hindrance in achieving the objectives of a company. Also
there are varies opportunities available to the company for the growth and achieving competitive
advantages and also discusses about the thereat which a business faces. This report concludes
that there various present and potential trends in the hospitality industry and are chaining with
the change in time and preferences of a customers.
9

REFERENCES
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.
Bigley, J., 2018. Assembling Frameworks for Strategic Innovation Enactment: Enhancing
Transformational Agility through Situational Scanning. Administrative Sciences, 8(3),
p.37.
Claveria, O., Monte, E. and Torra, S., 2015. A new forecasting approach for the hospitality
industry. International Journal of Contemporary Hospitality Management. 27(7).
pp.1520-1538.
Dzhandzhugazova, E. A. andet.al., 2016. Innovations in hospitality industry. International
Journal of Environmental and Science Education. 11(17). pp.10387-10400.
Ekwere, A. S. and et.al., 2014. Distribution of heavy metals in urban soils; a case study of
Calabar Area, South-Eastern Nigeria. Geosciences. 4(1). pp.23-28.
Getz, D. and et.al., 2014. Foodies and food tourism. Oxford: Goodfellow Publishers.
Guchait, P., Cho, S. and Meurs, J. A., 2015. Psychological contracts, perceived organizational
and supervisor support: Investigating the impact on intent to leave among hospitality
employees in India. Journal of Human Resources in Hospitality & Tourism. 14(3),.
pp.290-315.
Hon, A. H. and Lui, S. S., 2016. Employee creativity and innovation in organizations: Review,
integration, and future directions for hospitality research. International Journal of
Contemporary Hospitality Management. 28(5). pp.862-885.
Johan, A. W., Baga, L. M. and Asmara, A., 2018. COMPETITIVENESS IMPROVEMENT
STRATEGY FORMULATION ON INDIVIDUAL HOTEL: CASE OF XYZ HOTEL
AT CITY OF BOGOR. European Journal of Hospitality and Tourism Research. 6(2).
pp.1-15.
Patel, K. and Al Hazaima, H., 2017. The impact of corporate social responsibility disclosure on
financial performance of industrial companies in New Zealand.
Radwan, M., 2017. Strategic Marketing Case Study Chick-Fil-A.
Raj, D. and Alexander, P., 2018. How social media can be marketed effectively by Sustain
Energy Solutions to gain a competitive advantage.
10

Xiang, Z. and et.al., 2015. Adapting to the internet: trends in travelers’ use of the web for trip
planning. Journal of Travel Research. 54(4). pp.511-527.
11