Strategic Analysis of the Contemporary Hospitality Industry

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on Travel Lodge and IHG. It employs PESTLE analysis to examine political, economic, social, technological, environmental, and legal factors impacting the industry. A SWOT analysis identifies the strengths, weaknesses, opportunities, and threats faced by these organizations, including profitability, IT security, and market competition. The report also explores current trends in the hospitality sector, such as global visitor increases, technological advancements, and sustainable practices, highlighting the importance of adapting to these trends for organizational success. The conclusion emphasizes the collaborative efforts of various departments within hospitality companies and their significant contribution to local, national, and international economic development.

Contemporary
Hospitality Industry

Table of Content
 Introduction
 PESTLE Analysis
 SWOT Analysis
 Hospitality Trends
 Conclusion
 References

INTRODUCTION
The term hospitality can be defined as relationship between host and guest. In
which host play the major role of welcoming and entertaining the paying
guest or customers. Hospitality services operates the business of amusing
clients, managing and organising conference meetings etc.

PESTLE Analysis
PESTLE is a strategic planning method through which an organisation predict
the market environment before entering in other country. This task cover
PESTLE analysis of travel-lodge.

Political factor
Intercontinental- Political factors include rules and regulations, policy and
plans that are formulated by ruling government of country. In context of
hospitality sector it involves the anti-trust law and taxation policy of
country in which they operate their business.
Travel lodge- All the policy, rules, regulation that are formulated by
government are included in political factor. It includes tax policy, foreign
exchange policy etc. Travel-lodge executed this laws strictly in the
organisation to perform their operation effectively in the organisation.

Economical
Intercontinental- Monetary factors such as inflation rate, savings and interest
rate and foreign exchange of company are included under economical
factor. In context of IHG management identify the economical stability of
country. Apart from this it also helps to identify exchange rate between
two countries.
Travel-lodge- The term economic includes all factors which impacts on
monetary policy of organisation. Like travel-lodge is operating their
business in UK which is a developed country so there economy is stable. It
helps them to provide effective services to their customers.

Social
IHG- Society culture and the way of performing different activities that is
performed by an individual are under social factor of an organisation. The
particular of society of an country share similar beliefs, attitude and value.
Travel lodge- Each and every organisation is operating their business to earn
profits by satisfy the demand of customers. It governs that society play
crucial role in organisation therefore it travel-lodge need to perform their
activities through analysing that their operations will not negatively impact
on society.

Technological
IHG- Innovation and technology are the major factor that impacts on the
business operations of an organisation. Some recent trends that are
generated by IHG group is product offering which helps to increase more
value in their products. This results that management expand their business
in other areas of countries also.
Travel lodge- The term technology is impacting on all operations of market
which determines that it is covering several aspects of business. Travel-
lodge invested good amount in purchasing new technology. This helps
them to gain competitive advantages in industry among their rivals.

Environmental
Inter Continental- Different countries has different norms and standards
relates to their environmental policy through which they protect their
natural resources. Inter Continental Group maintain organise different CSR
activities through which they increase goodwill in market it helps to
increase their customer base.
Travel lodge- In present scenario countries are aware about safety of their
environment it determines that safety of environment is essential for each
country. It helps them to save their natural resources due to which more
customers are attracted towards their country.

Legal
IHG- Countries which are at developing stage are not formulated strict
framework to complete to bring more investment in country. For this IHG
explore ways through which they gain competitive advantage to open their
venture in those countries also this create positive results for organisation
by filling less number of formalities.
Travel lodge- Laws such employment law, consumer law etc. and policy such
legal policy and nominations are the major factor that impact on business
and its operations. Therefore it is essential for travel-lodge to follow all
laws due to complete their operations in ethical way.

SWOT analysis of both organisation
 Strengths-
 Profitability- The profitability of the group is increasing and there is a increase in
revenue of the group from $69m to $1,784m till the end of 31 December 2017. This
hotel group posses strong growth rate and has highest number of hotels which
allows them to earn more revenue.
 Travel-lodge provides different their rooms for all segments of customers. It
increases their strength through providing their services to most customers.
 Organisation developed positive relations with their customers and partners which
helps to increase their goodwill in market.
 Travel-lodge established their hotels among overall world due to the market size
of them is expanded day by day.