Hospitality Industry Report: External Factors & SWOT Analysis of Ritz

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on The Ritz Hotel in London. It assesses political, economic, social, technological, legislative, and environmental factors impacting the industry, along with their effects on organizational development. A SWOT analysis of The Ritz Hotel highlights its strengths, weaknesses, opportunities, and threats, including the impact of Brexit. The report also discusses current and potential trends in the hospitality sector, such as globalization, health and safety concerns due to COVID-19, and diversity, and evaluates The Ritz Hotel's ability to develop products and services to meet customer needs. The report concludes that the hospitality industry is a leading sector providing a wide range of facilities to consumers, emphasizing the importance of innovation and quality service.

THE CONTEMPORARY HOSPITALITY INDUSTRY

Table of content
 Introduction
 Assessment of the political, economic, social, technological, legislative
and environmental factors
 Impacts of external factors on the development of organisations
operating within the hospitality industry
 SWOT analysis for The Ritz Hotel, London
 Implications of current and potential trends in the hospitality industry
 Ability of The Ritz Hotel, London to develop products and services
 Conclusion
 References

Introduction
 Hospitality industry is inclusive of different operations such as event
planning, food and beverage, lodging, travel and tourism etc. This industry
is playing important role not only in terms offering high quality facility to
consumers but also in enhancing economic growth of a country.
 Present report is conducted on The Ritz Hotel, London which was opened
in the 1906 and offer high quality Services and facilities to consumers.

Assessment of the political, economic, social, technological, legislative
and environmental factors
 Political factor:
Political system and risk have major impact upon business operations and the manner in which
company undertake. The Ritz Hotel, London is performing its operations in the provinces of London with
stable government.
 Economic factors:
The Ritz Hotel, London is operating in United Kingdom with effective and strong economic market
which encourage creativity and uniqueness.

Cont.…
 Social factors:
In this factor behaviour, lifestyle, trend, values, demographic, education level and income of consumers
impact upon business operations and decisions. The Ritz Hotel, London while operating in the provinces of United
Kingdom measure higher education and high-income level of consumers which helped them to perform their
business efficiently.

Cont.…
 Technological factors:
Technology is significantly changing in every industrial sector around the world. In this it is essential for
company emphasize upon implementing high tech technology and equipment’s and offer feasible options to
consumers such as self-check in and check out with online payment options in effective manner.

Cont.…
 Legal factors:
It is important for an organisation to abide legislation and laws of government in a particular location in
order to make sure that their business decisions do not impact in a negative manner.
 Environmental factors:
Government around all the countries are encouraging business organisation and developed strict
provisions and regulations to implement strategies to prevent environment.

Impacts of external factors on the development of organisations
operating within the hospitality industry
 From the analysis identify the different type of external factors which are having direct and indirect impact upon
organisation development. Hospitality industry is already very aggressive in which competitors are taking
advantage of different strategies and tactics to influence consumers.
 It has been identified that dynamic technology changes, fluctuations in political environment due to Brexit
increase in legal obligations and change in consumers perception due to covid-19 is influencing organisation
decision making.

SWOT analysis for The Ritz Hotel, London
 Strengths
 Strong domestic presence:
 Focus upon innovation:

Cont.…
 Weaknesses
 Limited digital marketing presence:

Cont.…
 Opportunities
 Shifts in consumer behaviour:

Cont.…
 Digital marketing:

Cont.…
 Tap access to emerging markets:

 Threats
 Huge competition:

 Threats
 Brexit:

Implications of current and potential trends in the hospitality industry
 In hospitality industry the leading trend is globalisation in which The Ritz Hotel, London can share resources,
technology, labour force and capital among nations and can enhance their brand image efficiently.

Cont..
 Due to the outbreak of covid-19 there is current trend in hospitality industry in which consumers are more
concern towards health and safety.
 In this with the help of taking measures such as proper sanitization and secured and healthy ambience The Ritz
Hotel, London can influence consumers in effective manner.

 Diversity is also playing crucial current trend in hospitality industry in which The Ritz Hotel, London have
opportunity to enhance interaction with tourist of different caste, culture and religion.

Ability of The Ritz Hotel, London to develop products and services
 The Ritz Hotel, London has significant ability to develop products and services to fulfil need and demand of
customers from different locations.
 This hotel is having specialization in offering innovative and unique services with high quality which will help
them to serve customers.

CONCLUSION
 Thus, from the above-mentioned report has been concluded that hospitality industry is a leading industrial sector
which is engaged in the services of providing a wide range of facilities to consumers in order to provide them
relaxation and serve their needs accordingly.

References
 de Souza Meira, J.V. and Hancer, M., 2021. Using the social exchange theory to explore the employee-
organization relationship in the hospitality industry. International Journal of Contemporary Hospitality
Management.
 Chen, Y.A. and Chen, C.L., 2021. Case study of sustainable service design in the hospitality industry. Chinese
Management Studies.
 Rossidis, I., Belias, D. and Vasiliadis, L., 2021. Strategic Human Resource Management in the International
Hospitality Industry. An Extensive Literature Review. Culture and Tourism in a Smart, Globalized, and
Sustainable World, pp.337-346.