Contemporary Hotel Marketing: Macro-Environment Analysis Report

This report provides an analysis of the contemporary hotel marketing landscape, specifically focusing on the Australian hospitality industry. It examines the macro-environmental factors that significantly influence the industry's operations and success. The report delves into demographics, highlighting their impact on tailoring services and food offerings to diverse tourist groups. Economic conditions, including stability, government support, and transportation infrastructure, are discussed as crucial determinants of tourism. Competition among hotels is explored, categorizing competitors and emphasizing the importance of providing superior services. Social and cultural factors, including the rich culture of Australia and the promotion of healthy living, are identified as key attractors for tourists. Political and legal factors, such as stability, government initiatives, and regulations, are also analyzed for their impact on facilitating tourism. Finally, the report underscores the role of technological advancements in enhancing hotel services and achieving competitive advantages, concluding with a synthesis of these factors' combined influence on the industry's overall performance.

Running head: CONTEMPORARY HOTEL MARKETING
Contemporary Hotel Marketing
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1. Introduction
The hospitality industry is one of the fastest growing industries of Australia. This
industry includes hotels and resorts that offer luxurious stay to the tourists visiting Australia,
along with catering to the needs of business travellers. This assignment highlights the macro-
external factors that have a key role to play in affecting the hospitality industry of Australia. The
various factors that constitute the macro-external factors include the demographic factors,
political and legal factors, economic factors, social and cultural factors, technological factors,
and demographics. The significance of each of these factors has been described in details thus
shedding light upon the extent of significance that each of these factors have.
2. External macro-environment
 Demographics
The demographics is one of the most important factors that have a significant effect on the
working of the hospitality industry. The demographics include the age of the people visiting
Australia, along with shedding light upon the gender of the majority of the people affecting the
hospitality industry. The demographics have a key role to play in the hospitality industry. This is
because depending upon the age , gender and nationality of the majority of the tourists visiting
Australia, the hotels and resorts well equipped themselves to Cater to the needs of tourist (Mok
Sparks & Kadampully, 2013). For example if the majority of the tourists visiting Australia are
from Asia, then the Asian culture and Asian food needs to be catered to the tourists by the hotels
(Amelung & Nicholls, 2014). However if the European tourist dominate, the requirements will
change accordingly. Hence the demographics are an essential macro environmental factors
that has a significant effect on the hotel and hospitality industry of Australia. Moreover with the

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popularity of Australia as a tourist industry, a large cultural diversity among the tourists has been
observed. This cultural diversity affects the hospitality industry to incorporate the same diversity
in the services and the food they offer to the guests. Hospitality industry needs to equip them to
understand the cultural diversity, so that out of ignorance they do not hurt the culture of any
tourist visiting the hotels.
 Economic conditions
The economic condition of any country is one of the major determining external factors that
affect the hospitality and tourism industry positively or adversely. Economic stability in a
country ensures prosperity that attracts more tourists. Strong economy along with high
affordability among the people encourages tourism (Buhalis & Crotts, 2013). However natural
calamities such as drought or flood, or the break out of any disease provide an adverb situation
for tourism and hospitality industry (Dwyer et al., 2013). Encouragement from the government
and promotion of tourism in the country attracts more tourists (Wang, 2013). High availability
of world class transportation facilities such as flight and ships helps tourists to visit Australia
regularly (Randle & Hoye, 2016). The steady growth of Australia is also one of the important
factors that affect tourism industry positively.
 Competitions
Competitions among the various hotels in Australia are common. In order to remain in
competitive advantage most of the hotels will ensure that they provide the best services to the
guests. Competitors are mainly of 4 types (Baum, 2016). These include the direct competitors
the product competitors the service computers and the discretionary competitors. Direct
competitors and service competitors how many in numbers since a lot of hotels and resorts cater

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to the tourists coming to Australia (McPhail et al., 2015). However in order to remain ahead in
the competition the best services needs you provided to the tourists.
 Society and culture
The society and culture also has a strong effect on the enhancement of tourism and hospitality
industry. The quality of life needs to be maintained, along with emphasising on healthy living of
the tourists. The culture of Australia is rich (de Grosbois, 2016). Hence, it attracts huge number
of tourists to Australia. The hospitality industry needs to ensure that the rich culture of Australia
is displayed to the tourists by the way their needs are catered. The healthy living and positive
lifestyle of the tourists have to be ensured, in order to attract more tourists (Ruhanen, Mclennan
& Moyle (2015). A country lacking culture and positivity is not a tourist attractive place. Hence,
cultural richness and diversity are essential.
 Political and legal factors
The political and legal factors also have a key role to play in enhancing the tourism industry.
Political stability in Australia, along with the initiatives taken up by the government, in order to
ensure the promotion of Australian tourism is important for the hospitality industry (Ruhanen,
Mclennan & Moyle, 2013). Moreover, the new and improved Airport, along with approval for
high-rise hotels at the beachfronts, attract more tourists, thus facilitating the tourism industry
(Chon, 2013). Along with the political factors, the legal factors also have a key role to play. The
monetary and fiscal policies taken up by Australia, along with social legislations and regulations
ensure that the tourism industry is facilitated (Goodall & Ashworth, 2013). The taxation policies
as well as the policies of seeking trade licence is easy thus facilitating the business of the hotels.
 Technology

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With the enhancement in the technology, the hospitality industry of Australia needs to upgrade
their technologies, such that they are able to ensure the success of their business with the help of
technology. The hotels have been modified and equipped with workstations and high-speed
internet facilities, such that the needs of the business travellers could be fulfilled. Moreover,
with technology up-gradation, satellite tracking systems and sophisticated communication
network have to be designed, in order to ensure achievement of competitive advantages (Jones,
Hillier& Comfort, 2016).
3. Conclusion
The macro-environment has a key influence on the hospitality industry of Australia. The
influence of each of the factors affects this industry positively or adversely. The demographics
have a major influence on the industry, in order to ensure that the industry is able to carter to the
needs of the tourists of various demographics. The political stability and the transparency of the
legal procedures ensure the success of the hospitality industry. Moreover, the rich culture and the
social factors also facilitate the hotel industry of Australia.

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