Impact of Factors on Contemporary Hospitality Industry

This report provides a comprehensive analysis of the contemporary hospitality industry, examining the impact of macro environmental factors using PESTLE analysis. It delves into the strengths, weaknesses, opportunities, and threats (SWOT) of Holiday Inn and Intercontinental. The report also explores current and potential trends shaping the industry, including globalization, safety and security, and the increasing importance of technology. The conclusion highlights the importance of adapting to external factors and industry trends to achieve competitive advantage and foster business development. The report includes references to relevant academic sources.

Contemporary Hospitality Industry

 Introduction
 Impact of Macro Environmental Factors on the Working of Hospitality Industry
 SWOT Analysis of Holiday Innovation
 Current and Potential Trends in Hospitality Industry
 Conclusion
 References
Table of content

Hospitality Industry can be defined as the industry that provides their customers with many services such
as food, lodging, accommodation and many more. The focus is on the satisfaction of customers. The
assignment will cover impact of external factors on hospitality industry, SWOT Analysis of Company and
the current and potential trends in the industry.
Introduction

In order to know about the impact of macro environmental factors on the working of Hospitality Industry,
the use of PESTLE Analysis will be done. The following analysis is used in order to know about the
impact of macro environmental factors on the working of Hospitality Industry is provided as under:
 Political Factors: It refers to those factors that impacts upon the working of an organization due to
changes in governmental policies, rules and regulations of the government. The impact has been drawn
as under:
 This industry is the backbone on UK Government, so the government is making suitable policies that
encourages this business. This is the positive impact.
CONTINUE….

For example- Intercontinental is currently facing a lot of problems and issues due to change in policies
and regulations imposed by the government of UK. This will lead to positive and negative impact on
the working of Travelogue. Its positive impact will be hotel will be able to increase and expand its
business in the best possible manner. While on the other hand its negative impact will be it can create
the chances of risk and uncertainty.
Economic Factors: These are those factors that impacts upon the working of an organization due to
change in interest rates, disposable income of customers, GDP, inflation and many more. The
discussion of this factors on UK Hospitality Industry is provided as under;
 Due to Tourism, many people make their visit or stay in the country and this becomes a source of
income for the country as wells for the industry also because of currency exchange, etc. This is the
positive impact.
CONTINUE….

Example- The management of Intercontinental is also facing problems and challenges due to change in
economical conditions of the economy. Any positive change in inflation rate of the economy will lead
to increase in number of customer's. While it will lead to increase in cost and reduction in tourism of
the country.
Social Factors: These are those factors that impacts upon the working of an organization due to changes
in the taste and preference of people. The impact has been drawn as under:
 The managers in this industry make proper evaluation of the demands of customers that makes the
company able to provide the services in accordance with their demands and needs.
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Example- For reducing negative impact of this social factor on the working of Intercontinental needs to
make plans and strategies for providing appropriate services to the customer's as per their needs and
preferences. Providing services as per their demand can lead to increase in price.
Technological Factors: These are those factors that impacts upon the working of an organization due to
changes in the technological factors. The impact of this factor is discussed as under:
 With the help of improvement in technology, it would be easy for employees to communicate easily to
each other as the queries of customers are solved while sitting in Hotels.
CONTINUE….

Example- It is very much essential for Intercontinental to make best use of available technology so that its negative
impact can be reduced. With the use of latest technology employee in the hotel will be able to solve the problems
of customer's in the systematic manner. While on the other hand use of latest technology can lead to gathering of
irrelevant and unnecessary data of visitors.
Legal Factors: These are those factors that impacts upon the working of an organization due to some specific rules
and regulations made by the government of a country. The discussion has been provided as under:
 The positive impact is all about the performance of activities of companies in relation to the rules and regulation
of government that focuses on security of traveler and reduces the intervention of government.
CONTINUE….

Example- The positive impact of legal factors on the working of Intercontinental is rules and regulations
will be made for the betterment of employee's working the hotel. While its negative impact will be
implication of new polices can lead to increase in cost and expenses of the hotel.
Environmental Factors: These are those factors that impacts upon the working of an organisation due to
the impact created by it on the environment. The discussion is provided as under:
 However, this industry is not impacting much on the environment but the contribution made by
the company towards the environment will help the company in increasing its awareness and creating
good image in the mindset of customers. Such as in peak times, pollution increases, traffic increases
that impacts negatively on the working of Hospitality Industry.
CONTINUE….

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Example- Its positive impact on Intercontinental will be large
number of visitors will be attracted because measures will be
taken for conserving environment. While its negative impact
will be it will lead to increase in uncertainty and risk.
.

The following analysis is used in order to know about the internal capabilities and opportunities and
threats of an organisation. The application of this analysis on Holiday Inn has been provided as under:
STRENGTHS
 High brand recall of the company is included in the strength of the Hotel.
 Good Customer base of the Hotel is also its strength as there are around 1200 Hotels of Holiday Inn in
the country.
Impact of Macro Environmental Factors on the Working of
Hospitality Industry

WEAKNESSES
 In emerging economies, the Hotel is facing issues in increasing their penetration.
 Slow movement of the elevators of the company are included in the weakness of the company.
CONTINUE….