Impact of External Factors on Hospitality Industry Development

This report delves into the contemporary hospitality industry, focusing on Premier Inn as a case study. It begins with an introduction to the industry, followed by a PESTEL analysis to assess the impact of political, economic, social, technological, environmental, and legal factors on Premier Inn's development. A SWOT analysis is then presented to evaluate the company's strengths, weaknesses, opportunities, and threats. The report further examines the impact of external factors on the organization, evaluates its ability to adapt to current trends, and critically analyzes the influence of external factors on the industry's evolution. Finally, it discusses the implications of current and potential trends, such as globalization, on the hospitality sector, and concludes with references to relevant literature. The analysis provides a comprehensive overview of the challenges and opportunities within the hospitality industry.

The Contemporary Hospitality
Industry

Table of content
•Introduction
•PESTEL analysis that affect the development of venture
•SWOT analysis for a hospitality business
•The evaluation of the impact of the external factors on the
development of the organisation operating within the hospitality
industry:
•Evaluation of the ability of the hospitality business to develop the product and service
that will meet the current trends:
• A critical evaluation of the how the external factor have impact on the current and
potential trends and development in the hospitality industry:
•The implications of current and potential trends in hospitality industry
•Conclusion
•Refernces

Introduction
 The hospitality industry refers to the involvement
of the various different service such as planning of
the different events and accommodation facilities
and various kinds of the transportation provided
by the organisation to the its tourist people . it is
business which organisation can earn the desire
level of the profits by offering the comfortable
serviced to it customer. under this report , the
Premier inn organisation which offer the
hospitality services under its hotel chain and
having the headquarter in the England , UK
market place

External factors :
To determine these environmental factors and their impact over the
development of Premier Inn, the administration of respective firm
can use PESTEL analysis framework which a model that is used by
business venture to determine the impact of environmental factors.
The description of this analysis in context of Premier Inn is as under:
 Political- It include different elements such as national
authorities policies and laws, taxation policy, political stability and
instability, foreign trade, trade restrictions and many more.

Continue
Economical- In consist several aspects like currency rate,
exchange rate, economic growth, employment rate, interest rate,
inflation and deflation.
Social- This component plays an essential role in the
development and success of the business venture. It include
different components such as culture, beliefs, values, needs,
demands, culture, taste and preference, living standards, income
distribution and diverse demographic components.

Continue
Technological- This factor consider diverse components like
technical advancement, technical innovation, artificial intelligence,
research and development and many more.
Environmental- The care of environment and social responsibility
are included as the centre phase of client’s preferences and
expectations.
Legal- It involves diverse laws and regulations that formulated by
government of the country for effective running of company.

SWOT analysis for a hospitality business
SWOT Analysis
 It is a strategic framework that is implemented by a company
to monitor the internal environment of the firm in form of analysing
capability, weaknesses, opportunities and threats.
Strengths
• The company as an effective brand image and market position in
hospitality sector. it is largest and rapidly growing brand in UK with
estimated 590 budget hotels and more than 43000 rooms.

Weaknesses
• The main weakness of this venture is limited and restricted presence that affect the
business operations and its progress.
Opportunities
• The management of company can make development in its business making
business expansion by adopting option of partnership, joint venture and many more.
Threats
Economic recession and high competition are major threat and risk that affect the
business of respective hospitality firm in term of affecting its market share and
profitability.

The evaluation of the impact of the external factors on the development of the organisation operating within the hospitality
industry:
The external factors includes the
understanding of the political, social ,
economic , environment, technology and legal
issues in the relation of the organisation. the
political factor helps the organisation to
develop their operational activities by
following the government laws , for example,
the hospitality industry have different
government laws which they needs to apply
in their management

Evaluation of the ability of the hospitality business to develop the product and service that will meet the
current trends:
While working in the hospitality sector, the
Premier In organisation have to provide the
good and service which are lasted in the
market place so that they can take the
competitive advantage in the international
market places . the organisation have the
resource which are needed to make the
product and service according to the demand
of the customer so that they can serve its
customer and build the brand name in the
market places.

A critical evaluation of the how the external factor have impact on the current and
potential trends and development in the hospitality industry:
As the hospitality industry is a growing
industry as they are able to examine the new
current trends in the market and produce
new service in accordance to the potential
trends so that customer are stratified with
the organisation service . for example, the
demand of the entertainment facilities are
growing in this sector at the place of the
organisation, the premier in are able to
provide these facilities with the increasing
demand of the food and beverages , helps
the organisation to grow to next level.

The implications of current and potential trends in hospitality industry
There are diverse kinds of current trends that are existing in hospitality
industry and influence functioning of companies in favourable and
unfavourable form.
• Globalisation is one of the most crucial components that are needed to
by properly undertaken by the firm. It permits modification associated
to accessibility of raw material, technology and business relationship
with other nations. It is important for Premier Inn to efficiently consider
this component in to their business functioning and formulate plan of
actions as to take benefits of all components.