Analysis of the Tourism and Hospitality Sector in Europe

This report provides a comprehensive analysis of the tourism and hospitality industry, specifically focusing on the accommodation sector within the European market. It begins with an introduction to the industry, highlighting the role of accommodation in supporting tourism. The report then delves into an analysis of the sector's external environment using a PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors influencing the industry. It assesses the present economic conditions in Europe and identifies key issues within the sector, such as social media's impact and the decline of high street travel agents. The report applies Porter's Five Forces model to understand the competitive landscape, followed by an analysis of key players. Finally, it concludes with a discussion of the future of the sector. The report uses the Hilton hotel as a case study in the context of the accommodation sector.

Tourism and Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
An analysis of an organisation sector and its external environment...........................................1
Analysis of Present economic condition of the region/country..................................................3
A demonstration of relative importance of Key issues within the sector's market.....................4
Use of appropriate model in order to understand arguments......................................................5
An analysis of the Key players within the market......................................................................6
Strength and weakness of the main players at marketplace........................................................6
Opportunities and threats within the sector's of an organisation.................................................7
Conclusion of future of the sector within medium and short term.............................................7
CONCLUSION................................................................................................................................9
REFERENCE.................................................................................................................................10

INTRODUCTION
Hospitality and tourism industry both plays significant role within the organisation and
help them to achieve their organisational goals and objectives in an appropriate manner.
Whereas, hospitality sector has wide scope which mainly describes industrial classification that
offers refreshment, meals, accommodations and so many facilities to people. Along with tourism
sector is always considered as a pleasure of business also attract large number of people within
an effective manner. So that it can be both domestic as well as international that has outgoing
and incoming implications on a country's Balance of payment. Present report is based on
Accommodation sector which is considered as a part of hospitality and tourism industry that
control and manage wide portfolio of hotels, resorts and restaurants. Along with this, Europe is
one of the best country that attrcat large number of travellers or tourist and provide them better
accommodations in order to achieve high volume of goals and objectives. Moreover, discussion
will be based on external environment sector of an industry along with key issues within the
sector's market (Dogru and et. al., 2019). At last, swot analysis of firm and their key players
within the market will get covered.
An analysis of an organisation sector and its external environment.
Accommodations always regarded as the large sector within the tourism and hospitality
system. Along with this this type of sector helps tourism industries to achieve their desired goals
and objectives in a perfect way. With the help of Accommodation sector able to provide
different types of services such as better stay for guest, several activities to entertain guest and so
many things that makes industry attractive and encourage them towards targeted goals (Goh and
Jie, 2019). Therefore, Accommodation sector always consider as a backbone of tourism
industries by which they can take initiative in so many activities and able to give better services
to their customers. On the other side there are lots of other services which is also offered by this
department within hospitality and tourism industry through which they can target its potential
customers and give better accommodations to people so that they can easily enjoy their holiday.
The main thing about this industry is that, it gives their services across the globe so people can
easily get their services in every place. According to the 2019 portfolio this can be said that
accommodation sectors having 923,110 rooms within 13 countries including Europe and
territories and managing so many franchise globally. There is PESTLE analysis or strategic tool
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involves which affect overall sales and revenue of Hilton hotel along with its growth prospects,
which is going to be discussed below:
Political: It is mainly considered as an area where different types of business
organisations required to control and monitor overall politics or from which sorts of factors they
are getting influenced in both positive and negative manner both. In reference with
Accommodation sector within tourism system, they always work in a collaboration in order to
make appropriate decision towards several rules and regulations of country. Therefore, as per the
UK government this sector or industry needed to follow proper guideline so that they can sustain
in the market for long period of time. By having this type of working tactics they can overcome
negative factor of political environment and able to achieve their targeted goals.
Economical: According to this factor, there are lots of competition within UK towards
hotel industries. This is because there are so many other luxurious hotel who are giving more and
more better facilities to employees (Dzhandzhugazova and. et. al., 2016). Therefore, herein,
accommodation sector is required to have lower price by which they can serve more services and
able to promote their activities at high level. With the help of this they are able to increase
Europe visitors and able to enhanced their value and fight against fund to bring proper tourist in
the city. On the basis of this external factor firm is able to maintain their money value and give
proper attraction to travellers.
Social: Changing factor always brings impact on the demand for firm services and goods.
Therefore, there are few individuals who are able to willingly work with an organisation. Herein,
Europe always considered as a one of the best leading country that provide so many
accommodations to visitors so that they are required to focus on those factors by which they can
give large number variety of goods and services to hotel so that customers can easily availed that
services.
Technological: Technology is one of the best effective and unique tool which is
generally used in Europe in order to improve their accommodations services and gives better
services to staff members and customers as well. Herein, Accommodation services within
tourism system are needed to have more and more unique facility like full security, WI-FI
facility and so on (Kandampully and et. al., 2015). With the help of this they can achieve their
goals and able to satisfy customer's needs and wants. Therefore, this factor has positive impact
on Europe that increase overall value and revenue of country in a perfect way.
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Legal: This environment is much essential for tourism industries growth. Therefore, it is
required for that have been so many changes which mainly influence overall behaviour of firm
by which they get affected in both positive or negative sense. Generally this type of external
environment factors consist health and safety laws so that respective firm should follow that
rules which is given by country's government so that they can give better performance in Europe
and able to satisfy customer's desires along with needs of them.
Environmental: This type of factors comes under the weather and environment changes
that have directly impacted on so many firms and hotel along with restaurants. Therefore,
Accommodation sector who provide so many facilities for tourism sectors so that they need to
focus on those allemande factors by which they can overcome negativity and able to make
people happy (Jones and et. al., 2016). With the help of this they can increase business and
maximise value of this chosen sub sector in Europe.
Analysis of Present economic condition of the region/country.
Economy of Europe having more than 744 million people within several countries in
number of 50. The overall development of European union was 1999 that bring huge
participation of people from Europe within lots of activities so that they can easily share their
currency and able to make effective European cash flows. By having these assorted activities
they are able to have several accommodations kind of services by which they can give better
facilities to traveller and tourist in order to make this country beautiful. Therefore, present
economy of Europe is increasing day to day and there are large umber of visitors who are
visiting and able to take so many facilities from this country.
A demonstration of relative importance of Key issues within the sector's market.
Travel agents are one of the best way for firm and hotel industries in order to get
effective response from customers and encourage them to achieve their goal in a perfect
scenario. Somewhere, there are so many challenges and issues which is faced by
Accommodations sector those are going to be discussed below:
Social media and Reputation management:
Sometimes, booking a holiday is a huge costly for customers in a year. It directly affect
overall profit and sales of firm in a negative way. Herein, selected sub sector is required to take
some good aspects for better future within the tourism sector so that they can give flexible cost
of package that influence customers and overcome negative factor for firm. Therefore, it is
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important issue for country to resolve it and make their services as per the customers base
(Penela and et. al., 2019).
Decline of high street travel agent:
Internet is one of the major factor that always change things instantly. On the basis of this
customers are able to aware about so many things by which they avoid face to face interactions
and so on. Therefore, it is the only one reason that maximises competition for facilitating
services within tourism sector. This is because there are so many websites and other tools and
techniques that is offered by another travel and tourism industry that influence customer's
directly. Herein, in the case of the sub sector of accommodation services so that they should
make those type of strategies by which they can achieve business goals and able to give
satisfying services to their customers in a perfect manner. It will directly influence them and
encourage them to achieve desired goals or objectives in a creative way.
Use of appropriate model in order to understand arguments.
In order to underpinning above specified argument Porter's five forces model has been
specified which directly impact on competition and helpful for firm to achieve organisational
goals and objectives in an appropriate manner. In context with Hilton hotel, this model has been
specified below:
Competitive rivals: It is based on competition and competitors of firm within the
hospitality sector (Melissen and Sauer, 2019). When customers of firm are able to find better
online booking app then it overcome differences between firms and competitors as well. As
hospitality sector covers wide area of market so that herein, sub sector of accommodations is
required to have different types of core concepts by which they can reduce the chance of
competition and increase entire value of Europe.
Threat of substitutes: Within the hospitality sector there are high chances to start a new
business and progress successfully. Therefore, accommodation sector needed to support tourism
industry by giving them better ways to provide effective cost variations and values so that they
are able to give huge facilities to their customers. It will increase firm's value and reduce their
substitute at marketplace within Europe.
Bargaining power of buyers: An business individual always choose business within
tourism sector as it is one of the growing concept that gives ultra benefits to people. In reference
selected sub sector, they always take support from travel agent so that consumers can easily book
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their room through online services. Along with this travel industry giving them huge benefits so
that they can attract large number of buyers.
Bargaining power of suppliers: It generally have impact on hospitality along with
tourism sector. According to this within hospitality sector employees are considered as a major
supplier of firm so that bargaining power of supplier is high as they can attract from another
hotel in order to gain more profits. Therefore, Europe should implements on few strategies to
achieve targeted goals (Lopes, 2016).
Barriers to entry: Within the hospitality sector there are few barriers that enters in to the
tourism market and overcome by the internet. Therefore, it can be easy for the travel and tourism
industry through accommodations services to gain different types of resources and potential
concepts by which they can differentiate their services on various location to attract clients in an
effective manner.
An analysis of the Key players within the market.
From the above specified porter's 5 forces model this can be said that there are few
competitors that considered as a key players within the market. There are such kind of factors
like key players within Hilton hotel, those are going to be discussed below:
Suppliers: They always sell directly within marketplace but somewhere, they are needed
to have effective strategies by which hospitality firms are able to reduce their competitors in a
perfect way. Therefore, these are the main key players within firm who always increase and
reduce competition for firms (Teng, 2019).
Influencers: In competitive scenario there are different types of firms and businesses
works together so that any firm do not have any kind of direct control on all over marketing
strategies in relation with retailers and regulators. Therefore, it also play key role at market for
which travel and hospitality sectors needs to have unique aspects to run business properly along
with unique accommodation services to give benefits to people.
Competitors: These are those who have different types of goods and services for
customers. Within hospitality sector there are huge competitors as each and every hotel are
giving their luxurious services to customers to achieve targeted goals. Therefore,
Accommodation services needed to make some unique aspects so that they can beat competition.
Substitutors: These are also considered as a competitor but herein product and services
are not same. It can be quite different therefore, respective firm should implements on unique
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strategies and techniques in order to achieve targeted goals and objectives in a perfect way. With
the help of this type of competition they can understand itself and able to fulfil consumer's needs
and desires.
Strength and weakness of the main players at marketplace.
It is necessary for firm and hospitality industry to make appropriate decision making tool
for competitors so that they can easily understand overall needs and wants of them at
marketplace (Su and Reynolds, 2019). Through measuring overall strength and weakness of
competitors Hilton hotel can easily justify their needs and able to underpinning other's value and
demand. There are few strength and weaknesses of their competitors, those are going to be
elaborated below:
Strength: The main strength of competitors can be that they have large number of
customers attraction towards their firm so that it is easy for them to adopt different types of
changes in order to make their industry better to achieve appropriate goals and objectives. By
having this type of strength they can give their performance better and able to sustain for long
period of time at marketplace.
Weakness: Sometimes competitors of Hilton hotel do not have such kind of resources,
systems and procedures by which they can are not able to follow new environmental techniques
and tools by which they can satisfy their consumer's wants. This type of weakness can develop
so many issues and conflicts in the firm and reduce overall value of country as well (Radojevic
and et. al., 2015).
Opportunities and threats within the sector's of an organisation.
On the basis of above strength and weakness this can be said that there are different types
of opportunities for hospitality industry those are mentioned in beneath:
Opportunities: As competitors have different types of growing factor so that they can
easily exist into the market and able to explore new market within competitive scenario.
Therefore, with the help of effective opportunities they can make better services within UK and
able to build partnership with other members to achieve target at marketplace. This type of
opportunities of competitors will also give opportunities for Hilton hotel so that they will manage
their business accordingly.
Threats: It is the last element of conducting SWOT analysis of firm. Therefore, the
biggest threat of Hilton Hotel is the competition and their competitions such as Travelodge, Ibis,
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Comfort inn and so on. As these assorted competitors are applying low cost strategies on their
services. Therefore, respective firm should implements on so many new things by which they
achieve their goals and able to make customers in an effective manner (Porcu and et. al., 2019).
Conclusion of future of the sector within medium and short term.
In order to stay for short time of period travel agent are needed to have different types of
some unique aspects in order to make targeted goals and objectives in an appropriate manner. On
the other side, Accommodation sector in tourism industry needs to have different types of
working aspect by which they can satisfy consumer's needs and wants at every level of business.
Therefore, accommodation sectors always have selling services along with unique point in order
to develop strong relationship with potential customers in an effective manner. With the help of
this making great relationship with people they can stay for short term at market and able to
achieve desired goals (Economic freedom, 2019).
On the behalf of medium term stability at market place, travel agents who are distributing
their services to customers they are needed to make long time strategies in which they can give
better satisfaction to people and attract them towards so many new aspects of business along
with different types of strategies. In order to stay for medium term in future travel agent which is
one of the best sub sector of Accommodation of services they can easily apply new strategies and
technologies by which they are able to fulfil consumer's demand and needs in a proper way.
Therefore, travel agent always has to prove to hospitality industry that they are applying different
types of tools and techniques in order to attract large number of customers in a positive manner.
Therefore the conclusion of this sub sector has good scope of tourism industries in Europe so that
they can sustain for short and medium time at marketplace (What Are The Top Challenges
Facing the Travel Industry In 2019).
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CONCLUSION
It has been concluded from the overall report that hotel and tourism industry contributes
the major role in enhancing economy. They focus mainly on influencing national and
international tourists to visit the destinations and purchase more services of hospitality industries,
for increasing their tourism experience. For developing and maintaining the reputation of own
brands, organisations which deal in this sector also implement a number of strategies, by
determining the competitors' strength and weaknesses. Along with this, through analysing the
current external environment, such organisations also worked on improving their services so that
higher retention of targeted customers can be gained.
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REFERENCE
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