Hospitality Management: A PESTLE and SWOT Analysis of UK Hotels

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Unit 1: HOSPITALITY MANAGEMENT
Student Name

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Table of Contents
Business Planning Report:...............................................................................................................3
PESTLE Analysis........................................................................................................................3
SWOT analysis:...........................................................................................................................5
Market Research Report:.................................................................................................................7
Trend analysis:.............................................................................................................................7
The ability of the hotel chain to develop products and services to meet current trends:.............8
Reference List:...............................................................................................................................10

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Business Planning Report:
It is usually observed that some essential marketing trends and strategies have influenced the
hospitality industry to change its product and service range, to develop and make a place in the
international market. In this regard, the current will focus on the current trends and the
capabilities of the UK hospitality industry to mark its presence in global business. It will also
focus on external factors and the company’s strength and weakness while developing their
products and service ranges.
PESTLE Analysis
Political  The political instability in EU and other European countries disrupts
the tourists' travel pattern in the region.
 Policies such as Food and Service Quality, Trade policies, tax
policies, exchange rates, etc. are strictly monitored and regulated by
the government.
Economic  There is increased growth in the business in Italy due to the increase
in the number of tourists.
 Proper maintenance of balance sheet by properly paying tax, VAT,
etc. to the government.
 The cash flow has increased from 2.2% to 6.5%. It likewise
represents the FDI (direct foreign speculation) obligated on certain
correct enterprises that are encountering this examination. Like an
ascent in the expansion rate of any economy would aggravate the
way company's price their items and offices.
 The economic growth of Hotels in the UK has reached 61%, which
is the highest since the global financial crisis (Fraj et al. 2015).
Social  Change in the lifestyle of the people has resulted in the development
of Hotels in the UK within the hospitality industry.
 The cultural diversity and ethnicity has influenced people to visit

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new places, resulting in the development of Hotels in the UK
 Hotels in the UK generate substantial revenue, as Italy has become
one of the favourite tourist destinations.
Technological  Hotels in the UK provide an easy method of digital booking that
offers convenience to tourists.
 Technological advancement in social media has attracted some
people. Innovative variables notice to motorisation, motivating
forces, the rate of mechanical change and R&D movement. These
highlights permanently impact regions, for example, the base
proficient creation level, quality, costs and notwithstanding
subcontracting choices.
 Technological advancement results in creating brand recognition and
awareness among people (Neirotti et al. 2016).
Legal  The different tourism laws and regulations at different places affect
the development of Hotels in the UK.
 Issues in applying for a visa also hinder the growth.
Environmental  Hotels in the UK works towards the green environment by engaging
strict business practices such as strictly following environmental
laws and use of environmental-friendly products.
SWOT analysis:
Strengths:
 High level of customer satisfaction,
Weakness:
 Gaps in the product range sold by

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which further enhanced the company’s
relationship management with
customers
 The stable distribution network of this
company which make to reach its
potential international market.
 Useful track record of developing new
products and services.
 Availability of reliable suppliers further
enables the company to overcome any
supply chain bottlenecks.
 High skilled workforce through
successful training and learning
sessions.
 Majority of the hotels in the UK
hospitality industry are using advanced
technology. It is helping in digital
marketing that is gaining consumer
perspective accordingly.
 Majority of hotels in the UK are
simultaneously following social media
blogs and reviews of customers. It is
also making a huge impact to make
customer satisfy and understand their
needs.
Hotels in the UK, which further gives a
new competitor a strong foothold in the
market
 Inventory is high as compared to its
competitors makes the company
increase more capital for investment in
its product channels (Salazar, 2018).
 Less investment in research and
development
 The organisational structure is only
compatible with the present business
model, which further limits its
expansion within different product
segments.
Opportunities:
 Lower inflation rate can bring market
Threats:
 Rising raw material can pose a threat to

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stability and thereby enable credit at a
lower interest rate for the customers of
this company (Sitawati et al. 2015).
 Expansion of new markets because of
government new agreements and the
adoption o new technology and free
trade agreement
 New trends in the behaviour of the
customers, which can further open up a
new market for the company
 Decreasing cost of transportation
because of having lower shipping
prices
the Hotels in the UK
 New environment regulations under
Paris agreement (2016) can serve as a
threat to different product and service
categories of Belmont Ltd.
 New technologies developed by the
competitors can serve as a threat to this
company.

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Market Research Report:
Trend analysis:
Tech explosion: The majority of guests of this company are self-sufficient and tech-savvy
travellers, which further make them comfortable to use apps on their mobiles to search for best
services. In this regard, the hotel also needs to make sure that their offerings are entirely up to
date as per the demand of their potential customers. Zaitseva et al. (2016) opined that technology
players the leading role in developing as well as enhancing the operation process of hotel
business in the UK. Technology is changing rapidly which is making the increasing demand in
the hospitality industry as well. To provide effective and efficient service in the hospitality
industry, hotels of UK must integrate auto check-in and check-out system through mobile.
Customers must be allowed to book the ticket and pay online from social media page directly.
Promotional emails must be set to mass customers nationally. Apart from that, creative and
innovative ideas like free wi-fi with high-speed internet, direct booking to kitchen or bar must be
integrated. This will helps the business in providing quality service to the guests.
The influx of international visitors: According to Udunuwara and Sanders (2016), as
international visitors are rising, the hotel also must be able to provide products and service within
multitudes of languages, so that tailored experiences adequately suited to the unique culture of
each guest in the hospital industry. To attract or retain the global customer, hotels of UK must
include luxury service including spa, massage, golf court, pick and drop facilities, local tour
guide, etc. It will help hotel business in gaining more guests — the hospitality industry of UK in
making high growth in their business.
Sustainability rules: Eco-friendly practices are becoming the trend nowadays, as hospitality
properties are focusing on renewable energy resources and concerning about water pollution. In
this regard, Hotels in the UK has also installed solar panels and updated systems so that air
conditioners and lights automatically switch off, when guest leave their respective rooms.
Operational Trends: Hospitality is always a changing environment where practices emerge of
resources and allocation is limelight. Hence, government support and techno-grants are required

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to increase the business scope for hotel chain business. Hotels in the UK hospitality industry
need to develop a new business model for making a competitive advantage. Hotel chain business
within UK hospitality industry has to launch franchising services, contracting services,
individual entrepreneurs, etc. to reach the highest success within the markets.
The ability of the hotel chain to develop products and services to meet current trends:
Real-time damage control: If the hotel guests get dissatisfied by any product or services, the
company has made a system to get the feedback of customers through social media channels.
The hotel has taken the strategy to engage with customers and responding to their needs through
the public forum to meet with current trends (Zaitseva et al. 2016). Sustenance is the necessity
for living. The present patterns inside the market have demonstrated that nourishment isn't just
the wellspring of living however it is one of the significant elements for recreation and
stimulations also. Advancement of the stable and imaginative menu will help organisations in
improving the interest of items and administrations inside focused market.
Increased emphasis on health and well being of customers: Belmont Ltd. has taken charge to
respond with well-equipped fitness centres, pools and spas to meet the demands of the customers
concerning their health and well being. In addition to healthy food options, the hotel has also
focused on other growing trends like air purification, yoga spaces and in-room exercise pieces of
equipment. According to Salazar (2018), it has also implemented vitamin-infused shower water
for customers regarding their health and well being.
The requirement for legitimate and government financing will help in building up a compelling
and aggressive structure for the business. Besides, arrangements identified with business
openings, financing and setting quality models will help the business in making tremendous
improvement and aggressiveness inside an industry. Additionally, restricting smoking and
appropriate waste administration will lead a robust domain to the general population of the
nation. The partners will pass on corporate social obligations and comparable action to
concentrate on social welfare. It has been observed that Belmont Ltd. has implemented an
effective marketing strategy to deal with potential trends influenced by the external environment.
Besides, to survive in the hospitality industry, it has shown rapid and non-stop pace of

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innovation and product developments with the help of updated technology system within the
business environment.

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Reference List:
Fraj, E., Matute, J. and Melero, I., 2015. Environmental strategies and organisational
competitiveness in the hotel industry: The role of learning and innovation as determinants of
environmental success. Tourism Management, 46, pp.30-42.
Neirotti, P., Raguseo, E. and Paolucci, E., 2016. Our customers' reviews creating value in the
hospitality industry? Exploring the moderating effects of market positioning. International
Journal of Information Management, 36(6), pp.1133-1143.
Salazar, A., 2018. Hospitality trends: opportunities and challenges. Worldwide Hospitality and
Tourism Themes, 10(6), pp.674-679.
Sitawati, R., Winata, L. and Mia, L., 2015. Competitive Strategy and Sustainable Performance:
The Application of Sustainable Balanced Scorecard. Issues in Social & Environmental
Accounting, 9(1).
Udunuwara, M. and Sanders, D., 2016. Trends and Issues in Hospitality and Tourism. Colombo
Business Journal: International Journal of Theory and Practice, 7(2).
Zaitseva, N.A., Larionova, A.A., Mekush, G.E., Mayorova, A.N. and Povorina, E.V., 2016.
Methodological aspects of the financial justification of development strategies of hotel industry
enterprises. International Electronic Journal of Mathematics Education, 11(7), pp.2559-2570.