UK Hospitality Industry Analysis: Trends, PESTLE, and SWOT

This presentation offers a comprehensive analysis of the UK hospitality industry, employing PESTLE and SWOT frameworks to examine factors influencing business development. It delves into political, economic, social, technological, legal, and environmental factors, highlighting both advantages and disadvantages. The presentation conducts a SWOT analysis specifically for the Hilton hotel, identifying strengths, weaknesses, opportunities, and threats. Furthermore, it explores current and potential trends within the hospitality sector, such as smart rooms and wedding planning, and assesses their impact on the industry. The analysis concludes with a discussion of how these trends affect the sector's overall development and profitability, offering insights into strategic decision-making for hospitality businesses. The presentation references key academic sources to support its findings.

UK HOSPITALITY
PART 2

Table of contents
 PESTLE analysis
 SWOT analysis for Hotel industry
 Potential current trends in Hospitality industry
 Impact of potential trend on hospitality sector

INTRODUCTION
 The present presentation explain PESTLE analysis showing factors that
influence development of hospitality industry firms, poses with disadvantages or
advantages of each factors.
 This presentation clarifies SWOT analysis for Hilton hotel and also explain potential
and current trends in hospitality industry.
 It clarifies impact of these trends on hospitality industry

PESTLE analysis
PESTLE define political factors, economic, social, technology, legal and
environment factors that affect businesses. This model is used to analyse elements that
impact development of hospitality industry companies.
Political factor-
Political factor is signified by exact fields such as tax policy, trade limits, labour
law and more. Labour law make impact on hospitality industry companies development the
most. Disadvantage- Sudden changes in this law affect development of hospitality sector
firms, as they need to pay wages according to law to its staff and focus on their needs.
Advantages- If hospitality industry company's implement overall rules in this law under
their employment contract they can retain talented people with them for longer.

CONTI..
Economic factor-
Saving rates, foreign exchange rate, competitive norms, aggregate investment in
economy is the factors include in economic components. Disadvantage- In economy while
businesses competition is much higher that impact on development of hospitality sector
organization as they just start business in UK economy. Competitive environment affect its
start up business process and influence on financial budgets. Advantage- Competitive
environment make hospitality industry companies more able to develop their businesses
stronger and powerful as starting base

CONTI…
Social factor-
Population attitudes in context of health, environment consciousness and more
make effect development of hospitality industry companies as whole. Disadvantage-
customers requirements or needs change according to current trends, in which they expect
different kinds of services that is very difficult for Hotels who is currently in process of
development. Advantage- if hospitality sector firms understand needs of people and offer
facilities accordant to it they can develop it businesses successfully.
Technology factor-
the rate of technology change make impact on hospitality industry firms and its
development. Disadvantage- competitive environment required technology implication
within organizations which make influence on hospitality industry companies development
procedure as whole they need to invest a lot of money from beginning that can not be
possible. Advantage- If they implement new technology for preparing food quick they can
be able to serve fast food services.

CONTI…
Environment factor-
Recycling or sustainability is one of the main concern within UK economy.
Advantage- hospitality industry companies recycle all the used materials such as plastic
water bottles and another things they can sustain in market for longer and it is very
beneficial for health environment. Disadvantage- If organization under this sector cannot
set the standards of sustainability within businesses structure they can not be able to
develop their businesses which impact on development of whole hospitality sector.
Legal factors-
Consumer laws, labour laws and safety standards is included in legal factors.
Advantage- safety standards is based on customers and staff safety, organization under
hospitality industry focus on safety level in context of retaining staff and consumers for
longer, if they focus on it they can build high position in hospitality sector. Disadvantage-
if companies cannot implement safety standards in their businesses they can not be able to
assure clients about its safety concern and this will decrease their profitability

SWOT analysis for Hotel industry
It is the acronym that stands for weakness, strengths, opportunities and threats
connected to businesses. SWOT analysis helps to identify Hilton abilities that support business
owner to take their decision as improvement.
Strength of Hilton hotel-
Hilton hotel within UK provide customers the best services, they make effective
consumer retention schemes. They have effective and strong leadership by Christopher
Nassetta that makes businesses more successful.
Weakness-
Hilton hotel is over dependence on US market which is not beneficial for them. Due to large
size of business they are not flexible that reduce chance of implementing any changes macro
factors.

CONTI…
Opportunities-
Hilton hotel focus on development and research methods that help to spread their
business in all over the world.
Threat-
New entrants within hospitality industry poses threat situation for Hilton hotel
that impact on its functions and overall operations.
After identify strength and weakness of organization its business owner will take
their decision. They try to less dependent on US market and restructure their businesses
structure and make some flexibility to adopt any changes, as it helps to grow more and
more in marketplace.

Potential and current trends in
Hospitality industry
 Current trend- Many people prefer give order for wedding arrangements to
wedding planner or organizer that helps to make wedding event successful.
 Potential trend- Smart rooms is poses as future trend in hospitality industry,
rooms that know customers preferences and cares about their needs is the most
beneficial trend that can give many opportunities to overall industry.
 Hotel Hilton offer its best room services to guests that helps to satisfy them
according to needs, if company conduct market research and identify future trends in
hospitality sector they can implement it.

Impact of potential trend on
hospitality sector
 Smart rooms potential trends impacts on hospitality sector as whole, thus
organizations under this industry need to adopt this future change that contribute to
development of overall industry.
 If Hotel Hilton restructure luxuries rooms according to smart rooms they can garb the
attention of potential and new guests.
 By identify positive impact after implement smart room's concept within Hilton hotel
another organizations in hospitality sector also adopt this future trend and
 Another organizations try to make changes in their services just like smart rooms that
helps to attract customers and increase profitability more than before.

CONCLUSION
 The present presentation discuss about PESTLE analysis and consider as the best
strategic tool for identify impact of factors on hospitality industry companies
development.
 By providing the best customer services Hilton hotel poses as strength to offer the best,
new entrants in hospitality industry make some impact on their business.
 It has been concluded Smart rooms and weeding planning trends is very beneficial for
Hilton hotel and whole hospitality sector.

REFERENCES
 Vasquez, D., 2014. Employee retention for economic stabilization: A qualitative
phenomenological study in the hospitality sector. International Journal of
Management, Economics and Social Sciences. 3(1).pp.1-17.
 Manhas, P.S. and Tukamushaba, E.K., 2015. Understanding service experience and its
impact on brand image in hospitality sector. International Journal of Hospitality
Management. 45. pp.77-87.
 Rao, R.S., 2014. Emerging trends in hospitality and tourism. International Journal of
Research–Granthaalayah. 1(1). pp.1-8.