Hospitality Industry Analysis: PESTLE, SWOT, Trends - IHG & Whitbread

This presentation provides a comprehensive analysis of the contemporary hospitality industry, focusing on PESTLE and SWOT factors for Intercontinental Hotel Group (IHG) and Whitbread. It examines the political, economic, social, technological, legal, and environmental factors influencing these companies. The SWOT analysis identifies strengths, weaknesses, opportunities, and threats, highlighting their influence on decision-making. The presentation also discusses supply and demand dynamics, current trends like online services and medical precautions, and potential trends such as organized trips. The analysis concludes that the hospitality industry is a vital part of the economy, emphasizing the importance of adapting to changes and leveraging trends for profitability. Desklib is your go-to resource for more solved assignments and past papers.

Contemporary Hospitality Industry

Introduction
 Hospitality industry emphasize on meeting the requirement of traveler
by providing them quality services and making their stay worthy.
 Such industry basically emphasize on three areas such as
accommodation which include hotel and motels facility, food and
beverages as well as travel and tourism.

PESTLE factors
PESTLE is part of macroeconomic
analysis that include the external factor
that can affect the performance of
business

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POLITICAL FACTOR
Political factor of IHG hotel: IHG hotel consider this factor as other than
develop country it has presence in an emerging economy like Asian
market as well where the market regulation keeps on changing.
Political factor of Whitbread: Whitbread is expanding its operations due
to which it bear huge risk associated with external political issue and can
lead restrictions in diversification of business.

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ECONOMIC FACTOR
Economic factor of IHG: Within western area IGH hotel usually bear
stable demand because of high disposable income of consumer. This helps
the firm to maintain the liquidity and this fund is basically utilize for the
expansion of business.
Economic factor of Whitbread: Whitbread company evaluate economic
factor and according they make the decision regarding their existence or
operations of business. The skill level of manpower is moderate to high so
it is an opportunity for the business to enhance the skill of their workforce
in order to leverage the profitability

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SOCIAL FACTOR
Social factor of IHG: So the strong presence of IHG hotel can help the
hotel to enhance its profitability and productivity. Moreover, people
nowadays are more prone to go for outings and explore new places this
represent that hotel must access all the advantage successfully for the
expansion of industry.
Social factor of Whitbread: In terms of Whitbread, expand on the basis
of culture for which they even hire the local people.

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TECHNOLOGY FACTOR
Technology factor of IHG: The IHG hotel adopts the latest innovation
that helps them to gain the deep insight like where they have to head
forward. Along with that it helps in eliminating the waiting time of
customer as everything is processed rapidly that save service cost as well.
Technology factor of Whitbread: Whitbread examine the use of latest
technology and transform their technology accordingly to cope up with
huge competition in terms of launching new innovation.

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LEGAL FACTOR
Legal factor of IHG: IHG hotel follows all the norm of different country
successfully like they provide their staff safe place to work. Along with
that company provide fair remuneration based on their roles and
responsibility. This help the company to retain their staff and does not
include the interference of government
Legal factor of Whitbread: Whitbread hotel they need to ensure that they
are follow all of the legal laws like employment wages act, health and
safety act 1974 etc. else heavy penalties will be charged.

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ENVIRONMENT FACTOR
Environment factor of IHG: IHG hotel manage their waste successfully
by designing the policy which are favourable for environment. This
helps in maintain the goodwill of company in-front of public.
Environment factor Whitbread: Whitbread company perform the
operations by managing the risk and performing the functions based on
external climatic condition.

SWOT Analysis of hospitality
industry
Strength of IHG
 Huge brand awareness
 Conduct loyalty programme
Strength of Whitbread
 Strong base of customer
 Conduct effective recruitment cycle

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Opportunity to IHG
 Formulate strategic alliance
 Technology prone
Opportunity to Whitbread
 Encourage online dealings
 Expand in new market

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Threat to IHG
 Competitive pressure from existing rivalry
 Delay in delivering services
Threat to Whitbread
 Wide number of rivalries
 Risk to change strategy