Comprehensive Analysis: Whitbread Plc and Hilton Hotel Industry Report

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Added on  2023/01/23

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This report provides a comprehensive analysis of the hospitality industry, focusing on two major players: Whitbread Plc and Hilton Hotels. It begins with a PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors influencing both companies. The report then delves into SWOT analyses, highlighting the strengths, weaknesses, opportunities, and threats faced by each organization. It also explores supply and demand dynamics within the context of the hospitality sector. Furthermore, the report identifies current and future trends, such as security and safety, maintained privacy, the era of bots, and virtual reality, and advanced technologies. The conclusion summarizes the key findings, emphasizing the importance of strategic planning and adaptation to ensure business sustainability in the dynamic hospitality landscape. The report utilizes information to understand how trends are changing and how businesses can make improvements.
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Contemporary Hospitality Industry
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PESTLE Analysis
Political factor
Whitbread Plc
Whitbread Plc can sustain in the UK market and can earn a better profit as government policies in the UK does not change
very quickly.
Hilton Hotels
In the context of Hilton hotel, these political factors can leave some negative effects which leads to the business to a major
loss. Increase and decrease in tax could be a best example of political factors. The government of the country might
increase taxes for some companies and decrease it for others, it will effect the business directly.
Economic factors
Whitbread Plc
In the other aspect, if inflation rate is increase by government, therefore prices of the hospitality products and services will
be increase and company will receive better profit but in this case a negative effect will be occurred is decrease in
demand because if prices of their products and services will be increase and people demand will be decrease which
can leave a bad effect on the profitability of the company.
Hilton Hotels
In the favour of Hilton hotel, If the government rises the inflation rate in the economy, it would be affect the price of the
company products. In that case Whitbread Plc has to be increase the prices of their hospitality products and services
and this can increase profitability ratio for the hotel, so if the economics conditions are good , the sales of vehicles
remain high.
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Social factors
Whitbread Plc
In refer to Whitbread Plc, it uses social media platforms like Facebook, Instagram, and twitter to engage with
customers.
Hilton Hotels
Hilton hotel can badly affects by the suddenly change people's choice, fashion, and many other. Due to this,
company must provide facilities as per latest trend and choice of people.
Technological factors
Whitbread plc
In the production, Whitbread plc is used high technology so they can save their scrap cost.
Hilton Hotels
Hilton hotel is needed to use advance technology but if employee will not given training, they will not be able to
use it properly.
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Legal factors
Whitbread Plc
These factors are concerned with the legal laws and procedures of a nation. In relation with Whitbread Plc,
following these laws will benefits hotel in sustaining a positive image in market.
Hilton Hotels
Legal protection of intellectual property, patents, copyrights and other IPR rights in UK affect Hilton
hotels ADR if there are not enough protection. If Hilton hotel will not follow legal procedures and laws,
victim employee can file a case which will reduce effectiveness of hotel.
Environmental factors
Whitbread plc
These factors are related with preventing nature and environment from harmful business practices. Following
environment law will allow Hotel in making a positive reputation in mind of customers.
Hilton Hotels
If Hilton hotel will not follow environmental laws then customers will not prefer to buy their services. This will
reduce their sales
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SWOT analysis
Strengths (Whitbread Plc )
High Skilled Workforce
Heavy investment
High level of customer satisfaction
Strengths (Hilton hotel)
Superb Performance in New market
Appropriate revenue system
Brand acknowledgement
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Weakness( Whitbread Plc)
Low marketing strategies
Lack of innovation
Limited success outside core business
Weakness( Hilton Hotel)
High attrition rate in workforce
Less investment in training
High dependence on proprietor
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Opportunities( Whitbread plc)
Opening up of new market because of agreement with government
Lower inflation rate
Offering discounts and offer
Opportunities(Hilton hotel)
Procuring neighbour inns
Expansion in Australia
Increased online presence
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Threats( Whitbread Plc)
No regular supply of innovative product
New technology as competitor
Threat of rivals
Threats( Hilton hotel)
New entrants
High employee turnover
Lack of skilled workforce
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SWOT analysis of Whitbread Plc
The SWOT influences decisions of the company by providing information related to strengths, weakness,
opportunities and threats as the decision are made according to that information. The decision of long term
strategies is formed considering weaknesses and taking steps to remove them. It helps the organisation in
deciding that objective is achievable or not. It allows mangers to form vision and produce possible
outcomes which will help in long term change.
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SWOT analysis of Hilton Hotel
It helps in considering key features of company to form future plan , developments and risk mitigation.
Through SWOT company can grab the opportunity present in the environment and can respond to new trends
and allow to deal with the changes in technology or in competitors operations.
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Supply demand of Whitbread Plc
Supply demand of Whitbread Plc
In context with today's situation, lack of using advertising techniques and tools can impact supply and demand
in hotel in negative way.
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