Contemporary Hospitality Industry: PESTLE & SWOT Analysis

This report offers a comprehensive analysis of the contemporary hospitality industry, focusing on the PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) factors impacting InterContinental Hotels Group and Marriott International. The analysis includes a detailed SWOT (Strengths, Weaknesses, Opportunities, and Threats) evaluation for both companies, highlighting their competitive advantages, internal challenges, and external market dynamics. The report further examines supply and demand imbalances within the industry, providing insights into the challenges faced by both hotel groups. It also explores current and futuristic trends, such as the integration of robotic technology and the importance of online booking systems, evaluating their potential impact on the hospitality sector. The report concludes with a discussion on how these trends are shaping the industry and the strategic implications for businesses operating within it.

CONTEMPORARY
HOSPITALITY INDUSTRY
Task 3 & Task 4

PESTLE Factors
Political Factor
 Political factor provides benefits in working with systems without changing any
operations of Inter Continental Hotels Group.
 This factor adversely impacts Marriott International due to changes in political systems
as well as interest rate of different countries which are difficult to consider and
implement within short time period.

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Economic Factor
 In order to acquire resources at low rates in pertaining economic system it impacts in
capital formation and determining abilities of Inter Continental Hotels Group to
achieve its strategic objectives and goals.
 Changes in economic cycle results in increasing inflation and taxation rates which
will impact on operating operations in different countries at high rates and decreases
funds of Marriott International and this will impact on financial position of such
hotel.

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Social Factor
 Customer preferences as well as changing attitude helps in understanding
perception of society towards the organisational products or services and impacts
of Inter Continental Hotels group to make necessary changes to satisfy customers
and retain them for longer time period.
 If perception of customers changes and shifts towards competitors products then
image of Marriott international will be affected in market and will impact in
market shares of such hotel.

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Technological Factors
 If there are new innovations of technology available in the market can result in
making the available technology obsolete and it affects Inter Continental Hotels
Group operations.
 Marriott International is required to understand the need to upgrade technologies
when it comes to online booking as it is one of the most suitable form of
technology that impacts on influence the customer.

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Legal Factors
 In context of Intercontinental Hotel Group, they need to ensure that they are
follow all of the legal laws like employment wages act, health and safety act 1974
etc. else heavy penalties will be charged.
 Frequent changes in various legislations impacts on efficiency as well as
productivity to provide products or services to potential customers in hospitality
industry which will results in decrease in sales and reputation of Marriott
International in competitive market place.

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Environmental Factors
 By complying with environmental legislations it impacts on Inter Continental
Hotels group to establish a good market image as well as attracting large number of
consumers.
 The respective factor impact on Marriott International in negative manner as
they are operating at worldwide level and almost each and every country has its
own environmental protection law. To follow all laws of different countries is not
possible for respective company.

SWOT Analysis
Strength of Inter Continental Hotels Group
 Global presence
 Loyalty services
 Programs
Strength of Marriott International
 Innovation
 Competitive advantage
 Maintains Prices

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Weaknesses of Inter Continental Hotels Group
 Poor management structure
 Leveraged financial position
 Overemphasis on standardisation
Weaknesses of Marriott International
 Spreads too much
 Still trying
 Low level employees

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Opportunities of Inter Continental Hotels Group
 Tie ups
 Technological advances
 New destinations
Opportunities of Marriott International
 Expansion
 Joint venture
 Attract investors

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Threats of inter Continental Hotels group
 Changes in rates
 Competition
 Government legislations
Threats of Marriott International
 Customer requirements
 Economic changes
 Recession