Marriott & Hilton Hotels: A Strategic PESTLE & SWOT Analysis Report

This report provides a comprehensive analysis of the hospitality industry, focusing on Marriott and Hilton hotels. It employs PESTLE and SWOT analyses to evaluate the strengths, weaknesses, opportunities, and threats faced by these leading hotel chains. The PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors impacting their operations, while the SWOT analysis identifies internal and external strategic elements. The report further explores supply and demand dynamics, current industry trends such as bachelor trips, green tourism, and the integration of artificial intelligence, assessing their potential impact on the companies' profitability and growth. The conclusion emphasizes the importance of these analyses for organizations to understand their competitive landscape and improve service delivery, making it a valuable resource for students studying business strategy and hospitality management. Desklib provides access to similar solved assignments and resources for students.

Contemporary Hospitality Industry

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PESTLE Analysis
Political factor
Marriott hotel
 There are different types of compliances issued by UK Government on those industries who are dealing their
operations in hospitality sectors.
Hilton Hotel
 This factor create impact on the business of Hilton in London as act of Terrorism in 2005.
Economic factors
Marriott hotel
 Taxation and foreign exchange rate of different nations that may influence their business in numerous ways.
Hilton Hotel
 In UK, there are various economical crisis are arise in 2009 whcich make decrement in th sale of the Hilton
hotel by 20% and profit by 40%. It also affect the economic condition of the nation as well company.

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Social factors
Marriott hotel
 Every region have separate set of values, believes and culture that are followed by individual’s large base
of population in that region.
Hilton Hotel
There are various changes occurred in the needs and demands of the customers and they required product
and services according to them. This affect the business and business strategies of Hilton hotel in unfavourable
manner.
Technological factors
Marriott hotel
Technology is rising in fast manner as hospitality industry is one of the leading and fastest growing
industries with large competition
Hilton Hotel
Advance technology, artificial intelligence and online booking etc. can influence the business of Hilton
hotel.

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Legal factors
Marriott hotel
There are different types of laws and legislation complied on hospitality industry some of these
legislation include employee health and safety measure, workplace safety, daily basis wage rate and more.
Hilton Hotel
Hilton hotel operate its business internationally so when the government make change in its policies are
legislation like trading and entry policies then it negatively affect it.
Environmental factors
Marriott hotel
There are different types of environmental measures which are required to adopt by industries within
Hospitality in order to conduct their services in well effective manner.
Hilton Hotels
However the working of this hotel will not impact upon the environment but the contribution made by
this hotel towards environment will help in creating positive image of the business in the mindset of
customers and hence will impact positively.

SWOT analysis
Strengths (Marriott Hotel )
 Higher international brand name recognition
 Worldwide reservation system
 Technological advancements in their organisational structure
Strengths (Hilton hotel)
 Strong brand image in the marketplace
 Good employee retention
 Technical innovations

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Weakness( Marriott Hotel)
 Inconsistency in their operational segment
 Fewer promoters
 Less advertisement
Weakness( Hilton Hotel)
 Limited market share
 Higher dependencies of proprietor
 Different government policies and parameters

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Opportunities( Marriott hotel)
 Advancement of working in a partnership with foreign firms
 Facilitating Eco-tourism
 Standardize service and offer training programs to employee’s
Opportunities( Hilton hotel)
 Making innovation in customer services
 Digitalization and better use of technology
 Expanding business in different geographical locations

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Threats( Marriott Hotel)
 Threat from economic downturn
 Strict laws and legislation
 Numerous obstacles and acts
Threats( Hilton Hotel)
 High level of competition in the market
 High salary of the employees
 Economic and political turbulence

SWOT analysis of Marriott Hotel
From the above analysis it can be determined that poor and lack use of promotion channels are weakness of
the company while the strong brand image of the hotel is its strengths. By making expansion of the
business in foreign market provide growth opportunities to it. Competitor and economic down turn
generate threats for the business of it.

SWOT analysis of Hilton Hotel
From the swot analysis of Hilton, it can be defined that technical innovation and strong brand reputation are the
strengths of the company whereas limited market share is the weakness of the company. Digitalisation help
in providing development opportunities of the business and high level of competition and economical
turbulence create threat for company.

Supply demand of Marriott Hotel
According the present time performance of Marriott hotel, it can be understand it operate its business
internationally and offer its services all over the world. But due to terrorist attack activities, the business of
this organisation influence in negative manner.

Supply demand of Hilton hotels
As per the current performance of this hotel, it can be determined that higher competition in hospitality sector
affect profit an d productivity of the firm. Poor use and utilization of latest technologies affect business
operations and activities of the company.

Trend 1
In current era, bachelor trips are in trend and people prefer them at high level. If these hospitality
firm follow these trends then it can be beneficial for making improvement in the business,
profit and productivity of the firm.

Trend 2
Green tourism, underwater tourism and entertainment tour package are in trend in now these days
so if these hospitality firm offer these kind of tour package then they can increment in their profit
and productivity.

Trend 3
Artificial intelligence and online booking type technologies are in trend and also preferred by customers. Target
audience of these hospitality firm are also interested in that services which are constructed with these kind
of technologies.

Trend evaluator
From the above information, it can be evaluate that these all trends are helpful for the growth and
development of the firm and create positive impact. They are also beneficial for expansion of the business
in foreign market.

Current/ future trends specification
In the above mentioned trend, different type of tour package are helpful at current time because customer
prefer these kind of tourism and it will be helpful for the growth of the companies. Artificial intelligence
will helpful for future and will help in development in the business of the company in forthcoming.

Conclusion
As per the above mentioned report it has been concluded that, hospitality industry is a broader aspect and is
currently one of the leading and fastest growing sector in all over the world. Report includes PESTLE and
SWOT analysis with the help of which organisations can able to identify their strengths and weaknesses and
cope with them in best effective manner as to provide satisfactory services to customers.

References
Segovia-Pérez, M., and et. al., 2019. Incorporating a gender approach in the hospitality industry: Female
executives’ perceptions. International Journal of Hospitality Management, 76. pp.184-193.
Su, N. and Reynolds, D., 2019. Categorical differences of hotel brand personality: Identifying competition
across hotel categories. International Journal of Contemporary Hospitality Management.
Teng, H. Y., 2019. Job crafting and customer service behaviors in the hospitality industry: Mediating effect of
job passion. International Journal of Hospitality Management, 81, pp.34-42.

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