W London Hotel: Assessing External & Internal Factors in Hospitality

This report provides a comprehensive analysis of the W London Hotel, examining the impact of both external and internal factors on its operations and development. The report begins with an introduction to the hospitality industry, differentiating it from the travel industry and highlighting the W London Hotel's location and features. A PESTEL analysis is conducted to assess the political, economic, social, technological, legal, and environmental factors influencing the hotel's performance. A SWOT analysis is then performed to evaluate the hotel's strengths, weaknesses, opportunities, and threats. The report further explores the impact of external factors on the hotel's development, including the integration of technology and adherence to regulations. Current and potential trends in the hospitality industry, such as digitalized client experiences, virtual reality tours, and the use of robots, are discussed. The report evaluates the hotel's ability to develop products and services in response to these trends, emphasizing its technological capabilities. Finally, the report concludes by summarizing the key findings and implications for the W London Hotel's strategic decision-making and future success. The report is well-structured, includes relevant references, and provides a clear understanding of the challenges and opportunities facing the W London Hotel within the competitive hospitality landscape.

Contemporary Hospitality
Industry

Table of Content
• Introduction
•Analysis of PESTEL to determine the impact of External Environment
•SWOT analysis for assessment of Internal factors.
•Impact of external factors on the development of Travelodge Hotels
•Current and Potential trends in hospitality industry
•Evaluation of the ability of Travelodge to develop products and services
•Impact of external factors on current and potential trends
•Conclusion
•References

Introduction
Hospitality industry and travel industry are sometimes confused and overlapped due to
their inter-relation with each other; however there is a subtle difference in both the
industry. Travel industry is concerned with making people transfer from place to another,
whereas, hospitality industry lay emphasis over leisure, comfort, experience and customer
satisfaction. In fact, travel industry is a part of broad hospitality industry along with
lodging, food and beverages, entertainment and MICE. W London Hotel is located at
Soho in the epicentre of the city’s cultural core area which is a centre of attraction and
attracts tourist all over the world due to its beautiful architecture and beauty. W London is
a five star hotel which serves to the guests through 192 rooms and suites integrated with
latest and high end technology. The objective of the report is to review the impact of
external and internal factors on hospitality business along with analysis of current and
potential trends affecting the development of W London Hotel.

PESTLE Analysis
Hospitality businesses get influenced by the several internal and external factors prevails in a
market environment as they impact on the performance and profitability of their business
operations. W London conducts analysis of external analysis through PESTEL to determine the
extent of influence.
 Political factors: Travel bans across nations, travel restrictions due to attacks of terrorist and
political turbulence declined the foot fall of tourist and thereby sales of W London hotel. On the
other hand, few nations attracts tourist around the world through liberal travel policies due to
their overdependence on this sector.
 Economic factors: While expanding business into foreign operations, economic stability and
stages of economic cycle plays a major role. Nation with recession is regarded as unattractive
therefore less chance of W London to flourish as there is low spending rate, high un-
employment rate etc. Whereas stable and strong currency of nation attracts tourists from the
world.

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 Social factors: Present generation reveals strong desires to travel fuelled by low and
attractive travel packages, modern ways of travelling like solo and backpackers travellers
and desire to share their travel experience of social media. On the other hand, emergence
of innovative business solutions such as budgeted hotels, homes stays has affected the
business of W London.
 Technological factors: Advancements of technology have enhanced the competitiveness
of W London as it is the first hotel in integrating high tech technology into hotel rooms and
operations. Whereas, extensive use of social media results in spreading bad experience in a
matter of second which can impact their brand image.

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 Legal factors: Legal environment of a particular nation affects the way hospitality
industry. UK government ensures that Hotel businesses adhere to GDPR act to protect the
confidential information of clients and safety and security law to ensure safety and security
of them and properties. On other hand, discrimination laws and liberal laws and policies
gives boost to the business of W London.
 Environmental factors: Severe and adverse weather conditions act as a hindrance in the
progress of hospitality industry. Whereas sustainable and eco-friendly methods of doing
business build the good rapport and positive image across globe.

SWOT Analysis
Strengths
 W London is a 5 star hotel located at the heart of the city’s cultural area which provides easy
access to the people and converts it into a landmark option to be easily recognisable.
 This is the first hotel in United Kingdom to infuse latest technology courtesy of Digivalet into
their all 192 rooms and suites.
Weaknesses
 W London majorly focuses on the domestic market and that too with specific market
segments. The hotel brand lacks its presence in foreign market.
Though it is renowned hotel across United Kingdom but they lacks in advertising and promotional
campaigns.

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Opportunities
 They are at the forefront of integrating high technology into their business operations which
enhance its brand image and competitiveness across globe.
 Their innovative business ideas and services such as entry for pets along with several facilities
and complete out of the office work and communication WIRED business centre will attract
tourist across globe.
Threats
 Rising competition from new and existing market player such as Intercontinental, Easy Hotels
may impact the sales of W London hotels.
 Changes in the customer preference towards the budgeted and other option for stay such as
youth hostels, dormitories, home stays etc can result in declining sales of W London.

Impact of External factors on Travelodge
External analysis has drawn several positive and negative conclusion which will contribute
towards development of W London hotels and impact on decision making.
Positive Impact
 Advancements in technology and integration of latest technology courtesy of Digivalet into all
their 192 rooms and suites have enhanced the competiveness of W London and make them in
delivering personalised and contactless services.
 Adherence to the several laws and regulations such as General data protection act has made
the company to maintain transparency and conduct the business operations in more ethical and
legal way.

Current and Potential Trends
Digitalised client’s experience and contactless technology: Rise in the use of technology, demand
for contactless services due to pandemic and face or fingerprints recognitions have increase the
expectations of customer and demanding same convenience in hotel services. These services
provide facilities of contactless payment, mobile check inn, contactless concierge services etc.
Virtual reality tours: Along with technology automation and artificial intelligence is also taking
place in hospitality operations. 360 degree or virtual tours enables person to experience the facilities
live before consuming them and make wise decision while comparing and contrasting with other
competitors. These tours give the virtual access to property and guests can experience their
surroundings and facilities while sitting at home.
Robots in Hotel and restaurants: Hospitality business are making use of robots in executing chores
of hotels such as cleaning, room preparation, greeting customer etc, along with taking order and
serving guests in restaurants and bars.

Evaluation of the ability to develop products and
services
W London hotel is at the forefront position in responding proactively to the rapid changes
taking place in environment especially in the technological aspect. The hotel makes use of high
end and latest technology into their rooms to deliver personalised and quality of services to
guests. With the help of Digivalet app guests experience contactless concierge services
contributing towards enhancing the experience of customer. Customer can make online
reservations, order food, make entry and exit with mobile key and even can make online payment
for the services used. As per the analysis of recent trends, W London holds and manager high
expertise and knowledge in the field of information technology and automation which makes
them adept for development of virtual tour facilities and use of robots into their hotel operations.

Evaluation of the impact of external factors on
potential trends
No doubt changes in the level of expectation and preference of customer has encouraged the
hospitality industry to go beyond their traditional methods of doing business and brings necessary
changes through innovative ideas and solutions. Evidently, W London is delivering personalised
services to their guests with the use of high end and latest technology which enable them to
experience contactless services of hospitality industry. Apart from that, rising concern towards
environmental pollution have forced the hospitality businesses to make use of more sustainable
and eco-friendly business practices which generates positive and strong brand image across globe
and promotes their products and services.

Conclusion
From the above report it has been concluded that hospitality industry is vast sector of
services industry constituting several business which are engaged in delivering leisure,
comfort, enjoyment and satisfaction to customers. There are different operational and
functional roles which employ and delegated the job responsibilities as per the area of
expertise and knowledge of employees. Additionally, like other business hospitality
industry to conduct internal and external environment in determining potential threats and
challenge and makes strategic decisions accordingly to remain competitive and profitable in
the market environment. Furthermore, there are several potential trends prevailing in
market which is crucial in changing the way of doing business and effective in meeting
needs of customer’s expectations.

References
Hatipoglu, B., Ertuna, B. and Salman, D., 2019. Corporate social responsibility in tourism as a tool
for sustainable development. International Journal of Contemporary Hospitality Management.
Kharouf, H., and et. al., 2019. The role of effective communication and trustworthiness in determining
guests’ loyalty. Journal of Hospitality Marketing & Management, 28(2), pp.240-262.
Otoo, F.N.K., 2019. Human resource management (HRM) practices and organizational
performance. Employee Relations: The International Journal.
Moreo, A., and et. al., 2019. Connection or competence: Emotional labor and service quality’s impact
on satisfaction and loyalty. International Journal of Contemporary Hospitality Management.
Baiomy, A.E., Jones, E. and Goode, M.M., 2019. The influence of menu design, menu item
descriptions and menu variety on customer satisfaction. A case study of Egypt. Tourism and
Hospitality Research, 19(2), pp.213-224.

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