Environmental Factors, SWOT, and Trends: Hospitality Industry Report

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on Premier Inn and Travelodge. It begins by examining environmental factors impacting organizational development within the sector, followed by a detailed SWOT analysis for a hospitality business, highlighting strengths, weaknesses, opportunities, and threats for both companies. The report delves into the social, economic, technological, legal, and environmental factors influencing the industry. It also explores current and potential trends, including technological advancements, effective promotional tools, and the increasing importance of customer well-being and eco-friendly practices. The analysis covers supply and demand dynamics within the hotel sector and concludes by summarizing the key findings and the interconnectedness of various business aspects within the hospitality industry. The report also includes references to academic sources.

Contemporay
Hospitality
Industry

Table of Contents
 Environmental factors that affect the development of organization
within the hospitality industry.
 SWOT analysis for a hospitality business
 Current and potential trends in the hospitality industry

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Social-
 As with the ongoing changes in the customer demands and
preferences, it is necessary for the Premier Inn hotel to provide
various facilities according to the requirements of the customer
 Increase in changing requirements of the various customers
impacts the sales of the Travelodge hotel.

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Economical-
 After the Brexit, purchasing power of the customers has been
reduced, this creates shortage of demands within Premier Inn
hotel.
 Affordable services should be provided to the customers which
meet their satisfaction level and therefore leads to success and
growth of Travelodge hotel.

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Technological-
 With the growth in the technology, Premier Inn should provide
advanced techno services to the customer such as WiFi facilities,
online reservation of rooms.
 Travelodge hotel has to bear heavy cost for upgrading its
technology, this will impact higher price of hotel service and
impacts profitability.

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Legal-
 This factor includes the laws, legislation relating to the
safety and security of the tourist as taking care of the health
of employees and the customers.
 Travelodge hotel should follows proper wage regulations by
working in various countries so as to enhance their brand
image.

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Environmental-
 This includes functioning business activities in such a manner that
doesn't harm the environment. As Premier Inn hotel has to ensure
that services should provides while using the resources optimally
and therefore reducing the impact on the environment.
 It is necessary for the Travelodge to start cab services at lower
services so as attract larger number of customers and leads to
maximization of profits over long term.

SWOT analysis for a hospitality business
SWOT analysis is an effective tool which is used by Premier Inn to
determine their internal strengths and weakness and analyses the
opportunities available to them in order to grow and enhance their
business. Moreover with the identifies threats it assist the manager
to take proper actions so as to maximise its profit margins and sales

Strengths of Travelodge
Affordable price for hotel services
Travelodge business account card to attract customers.
Larger market presence throughout Uk.

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Weakness
 Respective hotel has a limited market presence over its rival
companies which leads them to capture reduced market share.
 There is some hygiene issues associated with the respective
industry due to which customer demands are not met and results in
decline of the sales and profitability of the business.
 Create political complexities in the functioning of the business
activities.

Weakness of Travelodge Hotel
 Attractive services are not provided .
 Travelodge doesn't have a attractive decorum and boring services
 Bad policy of overbooking

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Opportunities of Premier Inn.
 Premier Inn hotel has the opportunity of enhancing their market
presence in the other countries .
 Respective hotel can change the decorum of the room and can
provide customised services.
 Adopting to advanced technologies will enhance profitability of
the firm.