Contemporary Hospitality Industry Analysis and Pestana Hotel Report

This report provides a comprehensive analysis of the contemporary hospitality industry, utilizing Pestana Chelsea Bridge Hotel as a case study. The introduction highlights the industry's growth and key departments. The main body includes an external environment analysis using the PESTEL model, examining political, economic, social, and technological factors. An internal analysis employs the SWOT model, evaluating the hotel's strengths, weaknesses, opportunities, and threats. The report explores the impact of external factors on Pestana Hotel's development, discusses current and potential trends such as virtual reality tours and robotics, and assesses the hotel's ability to meet these trends. It also examines how external factors influence the industry's growth and concludes by emphasizing the importance of analyzing both internal and external environments for strategic decision-making. The report concludes with a list of relevant references.

The Contemporary Hospitality
Industry

Table of Content
•Introduction
•Main Body
• External environment analysis (PESTEL model)
•Internal environment analysis (SWOT model)
• Impact of external environment for the development of Pestana hotel
• Current and potential trends of hospitality industry
• Ability of Pestana hotel to meet the current trends in their hotel
•Impact of external factors on current and potential industry for the growth of hospitality sector
•Conclusion
•References

Introduction
Hospitality industry is one of fastest growing industry in this world. It consist of
service providing industry which cover various businesses like lodging
administration, travel and tourism, food and beverages and many others. There
are various department in an hotel like HR department, front desk department,
housekeeping department and many others. It is essential to investigate marketing
conditions and customers preference before opening a branch in another country.
It is essential to know whether the business will grow well or not in particular
country. Pestana Chelsea Bridge Hotel is founded in 1972 by Jose Pestana and
Manuel Pestana. It is the hotel for travellers which provide best experiences from
their sea themes inside their hotel.

External analysis (PESTEL model)
Political factor- It consist of factors such as political stability, tax rates, government power/control and many others.
In context of hospitality industry, there is a huge control of government and due to this the industry get impacted
when political power changes in a country. On the other hand many countries including Asian countries set low tax
rates for the hotels so that they can use their earnings to develop their buildings and other assets.
Economical factor- It consist of investment level, exchange rate, growth rate and many others. In context to
hospitality industry, it is essential to have high investment to grow well in another country. It also impacted by
different currency values at different countries and regular fluctuation of currency at international level will impact
badly upon pricing strategies of hotel.
Social Factor- It include living standards, values, beliefs and many others of a population. In context of hospitality
industry, they operate to develop living standards of their customers by providing best services.

Internal analysis (SWOT model)
SWOT analysis of Pestana Chelsea Bridge Hotel are mentioned below-
Strength-
• High brand image help the hotel to gain more customers.
This will help in decision making process by recognizing
how they can use this factor to increase the prices of their
services.
• Beautiful interior help to create a interest in customers to
stay in hotel and use their facilities. They have the interior as
sea theme. This strength will help them in decision making
process by analyzing and making decisions to choose
furniture which will match their interior theme of hotel.
Weakness-
• Their high prices always makes their customers to switch
their brand and use another resort and hotels. Here, they need
to consider this weakness in their decision making process
and make some good strategies for lowering the prices of
their services.
• Conflicts between employees always impacted bad upon
their image. It is essential to make decisions on good
management for the hotel which manage all conflicts.

Continue…
Opportunities-
• It is a good opportunity for Pestana hotel to grow well
in Asian countries with the same theme of sea and
oceans. Hence, here they are required to make
decisions on their growth strategies. They may choose
franchising for this purpose.
• Having casino area, children playing area and few
more additional features will help them to target few
more segment of customers.
Threat-
• Their competitors are their biggest threats and they
always try to spread humors to degrade their brand
image from their customers mind to snatch their
customers.
•Their unchanged strategies impacted a lot on their
business. They are unable to change their strategies for
operations of business from longer time. Hence,
managers are required to make strong strategies and
dynamic too so that their strategies will change
according to environment.

Impact of external environment for the
development of Pestana hotel
Political factor- Low tax rates help them to spend their money for the development of their hotel building and other assets
such as interior designing and decors. On the other hand high involvement of government in hospitality industry loses
flexibility in decision making process.
Economical factor- They need high level of investment for their growth in other countries. Different value of currencies
makes it difficult for them to set the prices of their services in different locations.
Social factor- Analysing customers behaviour and attitude toward hospitality sector is essential. Hence, in case of their
growth in Asian countries impact upon their promotional tools. Asian people are more sensitive and attracted toward the
advertisements. Hence, their good advertisements help them to grow well.
Technological factor- This factor help them to utilize effective technology of economies like internet source for their
promotion. They also adopt modern technology in their hotels like cameras for monitoring the performance of employees.

Current and potential trends of hospitality
industry
Virtual Reality Tours- This is one of the famous trend in hospitality industry nowadays. Here, hotels adopt virtual
effect to manage different themes of their hotel to create a temporary environment. Hotels, provide this facilities to
their customers to show them how they wok and what are the benefits of staying in their hotels.
Robotics staff- This is also trendy nowadays. Most of the hotels adopt robotics staff for their hotel to gain good
reputation and to attract customers because customers are interested to have communication with robots. Robots serve
foods to customers and customers provide them additional orders and then robots convey the order to chef and cooks.

Ability of Pestana hotel to meet the current trends
in their hotel
To meet current trends of hospitality sector Pestana hotel work harder to gain more profit so that they can utilize their
profit earning money to adopt modern technology such as robotics staff and virtual effects. It is essential for them to
first analyze the marketing conditions because after analyzing marketing conditions only they will get to know about
new trends in their industry. Hence, for analyzing their marketing situations they have marketing department which
investigate the marketing conditions of different countries to analyze in which country new trend helps the hotels to
grow.

Impact of external factors on current and
potential industry for the growth of hospitality
sector
Technological and social factors are most impactful factors of external environment upon hospitality
sector. Technological factor help the hotel to analyze their current trends like robotics and virtual
effects and uses them in a particular hotel. Whereas Social factor help the hotel to analyze that the
trends which they are adopting will be liked by their customers or not after analyzing their perception
toward the new change. Hence, it is essential to adopt those trends only which will provide benefits
to hotel. Social factor help the hospitality to grow by gaining the knowledge of customers attitude,
values and many others and then introduce the new trend in their industry which help to gain more
customers. Most of the recent trends of hospitality are considered as successful just because of their
advance and modern technology.

Conclusion
From the above information it is concluded that analyzing external and internal business environment
is of the most essential way of adopting new strategies or trends to a business. In context of
hospitality industry there are various types of trends and growth strategies but it is necessary to study
the i9mpact of current trends upon the hotel then adopt that tread in case they found it beneficial. It is
also concluded that external environment impacted upon marketing trends to grow.

References
Yong, K.H., 2019. The impacts of minimum wage on employers’ employment strategies and employees’
behaviour in Malaysia’s hospitality industry: A pitch. Journal of Accounting and Management Information
Systems. 18(1). pp.126-132.
Yang, L., Henthorne, T.L. and George, B., 2020. Artificial intelligence and robotics technology in the
hospitality industry: Current applications and future trends. Digital transformation in business and society,
pp.211-228.
Horng, J.S. and et. al., 2018. Developing a sustainable service innovation framework for the hospitality
industry. International journal of contemporary hospitality management.

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