Analysis of Intercontinental Hotels in the Hospitality Industry

This report provides a comprehensive analysis of the hospitality industry, with a specific focus on Intercontinental Hotels. It begins with an introduction to the hospitality sector, highlighting its diverse components and the importance of delivering quality service to customers. The report then delves into the external environment analysis using the PESTEL framework, examining the impact of political, economic, social, technological, environmental, and legal factors on the industry. Following this, a SWOT analysis is presented to assess the internal environment, outlining the strengths, weaknesses, opportunities, and threats facing Intercontinental Hotels. The report further evaluates the impact of globalization and economic factors, as well as current and potential trends, such as digital guest experiences, solo travel, and contactless technology. Finally, the report concludes by summarizing the key findings and emphasizing the interplay of internal and external factors on the development of the hospitality sector.

Contemporary
Hospitality
Industry

INTRODUCTION
Hospitality sector refers to diverse industry which includes
accommodation, food and drink. Hospitality sector is able to deliver their
services to their customer which can lead to create best impression
towards mind of customer and they like to consume such type of quality
service again and again. This assignment is based on hospitality industry
which is regarding appropriate decision regarding different challenges
within industry. This report includes Intercontinental hotels which is
considered as a largest Hotel chain which was created in 1946. This hotel is
featuring more than 71045 rooms worldwide. The hotel is able to provide
accommodation which is a big project business based on sustainability of
time and income. In this report, there is a discussion about internal and
external environment analysis of the organization. There is also discussion
about operational rules which can help in exam in different functions.

PESTEL analysis
PESTEL analysis refers to a
framework which allows to
analyse the organizational external
environment. PESTEL analysis
includes political, environmental,
economical, social, technological
and legal factors. These factors are
able to provide information that
can impact business organization
from development.

Cont...
Political- This is one of the most crucial factor which can directly influence
organizational development in hospitality sector. This includes different laws, political
involvement, future legislation, import and export duties, political stability and
different regulations on current basis. These are some of the factor which are directly
impact the organizational development within hospitality industry. This impact
directly overall business of Intercontinental hotel. Tourist get influence and make
their decision according to political stability and rules and regulations. Instability in
Political environment leads to create a difficulty in development of the organization.
Economical factor- This factor also impacts the overall business of the organization
which includes economic trends, exchange rate, minimum wages, general taxation.
Intercontinental Hotel is able to provide effective services to their customer which
lead to create satisfaction among customers. Intercontinental Hotel is directly
impacted due to country economy. This is the one through which consumer like to
invest for consumption of services which is delivered by Intercontinental hotel.

Cont....
Social factor- This factor analyse the social environment which can impact the
organizational development. This factor includes lifestyle trends, demographic
change, media views, advertising and publicity. Ethical factors consumers, attitude,
health, consciousness and opinion towards hospitality sector. These are some of
the factor which directly impact the intercontinental business.
Technological factors- This is the factor which is highly susceptible in all over the
hospitality industry. Intercontinental Hotel uses different latest and advanced
technology for providing safety and security to the customers and to deliver
different advancement which can help to provide a different services like electronic
check-in and check-out system, payment system, ordering system and different
applications. This is able to provide profit and development to the organization.
Due to use of Computer technology development, Global communications and POS
system, Intercontinental Hotel is able to make high level of business with their
consumers.

Cont...
Environmental factor- People are highly attracted towards environment which have
impact over the business. Intercontinental Hotel provides different services which are
not able to negatively impact the environment and also helpful in sustainable
development. Environmental factor includes sustainable sourcing and governmental
policies, food packaging, climate change, wasting of foods and exhaust fumes.
Consumers get attracted towards the organization who are able to handle environment
effectively.
Legal factor- This factor have important role and able to influence customer within
hospitality sector. Due to change in laws and regulations can impact the Intercontinental
hotel business. This includes Consumer Protection law, food and safety act,
discrimination law, automatic payment along with safety and security at workplace.

SWOT analysis
SWOT analysis refers to
a framework which is able to
analyse organizational
strength, weaknesses,
opportunity and threat. This
framework helps to analyse
internal environment of the
organization.

Strength
• Presence on different geographical location with focusing
on markets priority.
• Brand portfolio covers every occasions.
• Successful employee engagement.
• Focus on customer relationship and their experiences.
• Strong implementation of digital outlook and technology.
• Strong financial status.

Weaknesses
• Poor information security system.
• Slipped to third position worldwide.
• No reasonable price according to delivered service.
• Gap between product range and delivered services.
• Problem in maintaining financial planning.
• Days inventory are higher than competitors.

Opportunities
• Attracting customers from online channel.
• Use of Advanced technology.
• Adopting new Trends according to consumer behaviour.
• Market development which can create advantage for
Intercontinental hotel for attracting large customer base.
• Decreasing cost of transportation can create huge
attraction towards Intercontinental hotel.

Threat
• Rising pay level.
• Due to changing consumer buying behaviour from different
online channels.
• Due to change in Environmental regulation.
• Use of Advanced technology by competitor for attracting
large customer base.
• Rising raw material cost.

Evaluation of impact of external factor on development
Globalization and economy can impact external factor
which have high role in development of organization.
Globalization plays crucial role in hospitality industry which
can influence customers decision making process. This is also
helpful in raw material, accessibility of technology and
business relationship along with various Nations.