Ritz London: Contemporary Hospitality Industry Analysis Report

This report provides a comprehensive analysis of the contemporary hospitality industry, with a specific focus on the Ritz London hotel. It begins with an introduction to the hospitality sector, encompassing lodging, food and beverage, event planning, and tourism. The report utilizes PESTLE analysis to examine the political, economic, social, technological, legal, and environmental factors affecting Ritz London. A SWOT analysis evaluates the hotel's strengths, weaknesses, opportunities, and threats. Furthermore, the report explores the implications of current and potential trends, such as globalization and diversity, within the hospitality industry. The conclusion emphasizes the industry's importance to economic development and the utility of analytical tools like SWOT and PESTLE for strategic decision-making. The report is well-referenced, and it presents a detailed understanding of the industry's dynamics and the strategic considerations for businesses within it.

The Contemporary Hospitality
Industry

• Introduction
• Environmental components that affect the development of company
• SWOT analysis for a hospitality business
• The implications of current and potential trends in hospitality industry
• Conclusion
• References
Table of content

Introduction
Main objective of this report is to better understand the concept of contemporary
hospitality industry. It is a boarder term within the service industry as it will include
lodging, food and drink service, event planning, theme parks, travel & tourism etc. in
other words hospitality industry will include all hotels, tourism agencies, restaurants and
bars. In relevance of UK economy, this sector will play an important role as it will provide
employment to almost 4.50 million people.

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For this report Ritz hotel is taking into consideration. It is a 5 star hotel which is
located in Piccadilly in London, England, U.K. The hotel is one of the world’s most
prestigious and best known hotels which define a symbol of high society & luxury hotel. It
was founded by Abdulhadi Mana Al-Hahri in 1906. This presentation will include SWOT,
PESTLE

For analyzing the environmental aspects and its impact on the development of Ritz London,
the higher authorities of respective organization make use of pestle analysis framework. It is
defined as a strategic analysis tool which consider factors such as political, social, economical,
environmental and technological which impact on the overall operations and functions of an
organization. The Pestle analysis of Ritz London is given below:
PESTLE analysis

Political factor: This factor involved aspects such as taxation policy, foreign exchange,
political balance and instability, trade restrictions and many more
Economical factor: This factor consist of elements such as exchange price, employment
price, inflation rate, interest rate, economic increases, forex rate and so on. With reference to
Ritz London, foreign money price and inflation rate are main aspect which has impact on the
business of Ritz London.
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Economical factor: This factor consist of elements such as exchange price, employment
price, inflation rate, interest rate, economic increases, forex rate and so on. With reference to
Ritz London, foreign money price and inflation rate are main aspect which has impact on the
business of Ritz London.
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Social factor: This factor plays vital role and involve aspects such as traditions, preferences,
income distribution, taste and desire, values, beliefs and many more.
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Technological factor: In the present time, it is important for an organization to adopt
innovative technologies in order to retain and marketplace and attain competitive advantage
as well. In relation to Ritz London, it make use of new and innovative technology that attract
large number of customers to buy its services.
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Legal factor: This factor involve various regulations and guidelines which is
formulated with the objective to implement all the activities ethically and legally
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Environmental factor: It is the duty of every organization to protect the
environment and develop such offerings that did not harm the environment. In the
present time, clients are extra vigilant and mainly favourable for the organization
that cares about atmosphere.
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It is defined as a strategic framework which is used by an organization in order to determine
ability, know about opportunities and to develop strategies for declining the level of threats. The
SWOT analysis of Ritz London is given below:
Strength
One of the major strength of Ritz London is its market presence and the number of services it
provide as it help company to capture large market share and gain higher profitability.
SWOT analysis for a hospitality business