In this essay I will be discussing and critically analysing each element of the PESTLE analysis within the hospitality industry, with examples to reflect each point. Also this essay will discuss how marketers should adapt to changes in the macro-environment. The PESTLE analysis is a marketing principle used to understand the relation between a company and the external environment. Murray-Webster (2010:88) states PESTLE analysis will help to capture understanding about aspects of the context by using the prompt political, economic, sociological, technological, legal and environment. The political element in PESTLE represents how the government can influence the economy by setting rules and regulations which they have to adhere. An example of this is that the national minimum wage increases and now due to a new law in place, companies must provide pensions to eligible employees and every company needs to comply with this and stay within the law. Another factor is the political unrest in certain countries. This can take effect on the hospitality industry which can in turn affect the economy and business environment. The threats of terrorism are still very much alive; an example of this was the terror attacks in London on the 7th of July 2005 where the suicide attacks left more than 700 people injured according to The Guardian (2005) which brought concern for the people and the economy. It leaves a fear in people’s minds and the way the marketers can adapt to this is by promoting UK based hotels and holidays companies, with the increased threat of terrorism and political instability people will be more concern about their safety and decide not to travel abroad. The economy affects the marketers in many ways and the economy’s perf... ... middle of paper ... ...on. The Stationery Office. Page 88. • Palmer, A (2000), Principle of Marketing, Oxford University Press, USA . Page 27 • Perkins. C (2014) Big Hospitality. [ONLINE] Available at: http://www.bighospitality.co.uk/Business/Starwood-s-keyless-mobile-check-in-not-the-end-for-human-interaction . [Accessed 25 February 14]. • The Telegraph. (2005). July 7 inquiry: timeline of the 7/7 terror attacks - Telegraph. [ONLINE] Available at: http://www.telegraph.co.uk/news/uknews/terrorism-in-the-uk/8055112/July-7-inquiry-timeline-of-the-77-terror-attacks.html. [Accessed 01 March 2014]. • Young. F and Pagoso.C (2008) Principles of Marketing, Rex Bookstore Inc,1st Edition. Page 63 • Yum (2014) Water Conservation Goal. Yum! Brands CSR Report. 2014. Water Conservation Goal [ONLINE] Available at: http://www.yumcsr.com/environment/water-conservation.asp. [Accessed 09 March 2014].
We decided to use the PESTEL model for our analysis of Prince Puckler’s external environment and found that nearly all of the aspects of the model, outside of technological and political, had a strong impact on the company. Economic factors play a sizable role in the industry, for example, when the economy is in a downturn ice cream is seen as a luxury good and people purchase less of it, while in normal economic times more ice cream will be purchased. Several factors affect this change in consumption including unemployment rates and disposable income. Social factors, including education levels, wealth and lifestyle trends in the local population also have an impact on Prince Puckler’s external operating environment. All of these social factors vary wildly in Eugene, as the education level fluctuates from high school to college degrees and wealth can vary wildly. These factors, however, do not have a large impact on Prince Puckler’s because your average person will be able to afford ice cream regardless of their education level.
Emerson, Steven (2004) “Third public hearing of the National Commission on Terrorist Attacks Upon the United States.” National Commission on Terrorist Attacks Upon the United States. Retrieved September 17, 2011 http://www.9-11commission.gov/hearings/hearing3/witness_emerson.htm
The competition in the hospitality industry is increasing. Hilton and Intercontinental Hotels are of same class, offering same quality services; this is making each hotel to face very high threats of substitute products. For model, in the absents of Hilton, Intercontinental will satisfy the customers’ needs perfectively and the same time, if Intercontinental is absent, Hilton will satisfy the needs of the customers perfectly.
The Hotel industry has become very important in the past years due to immense traveling and growth of international business. Hotel industry not only plays an important role in the life of people but as well as the economy of the country. Development and advancement in the Hotel industry have rapidly been taking place and especially since the rapid change in technology, it is very important for hotels to be promptly keeping up to date. When the hotel industry is spoken of, there are many famous hotels but one hotel company that has been outstanding in growth and other aspects of business, like in Leadership, Teamwork (Employee turnover), Motivation (Customer retention and satisfaction, Goals and objectives, (changing the way hotel business has worked), and Change within the company; structurally inside and physically outside, adding elements, like entertainment, gaming, and outdoor activities, is the Hilton Hotel Company.
According Learn Marketing. Net (2014), an organization’s success is influenced by factors operating in its internal and external environment. Before Nespresso makes a decision of what strategy to use in the market, it is important to analysis the external environment (Chinese market) so that the company can choose a proper strategy to adopt to the market situation. And the external environment, which also refers to PESTEL, include these factors below:
PEST Analysis for a Company in the Tourism Industry The Tourism industry is one of the fastest growing industries in the world. The World Travel and Tourism Council estimates that in 2004 Travel and tourism is expected to generate * US$ 5,490.4 billion of economic activity * 10.4% of total GDP * 214,697,000 jobs or 8.1% of total employment * 12.2% of total exports [1] My task is to conduct a PEST analysis for a company within the Tourism industry. Within the tourism industry, I have to select one area of interest like transportation, accommodation and transportation etc. and then one company doing business with these sectors related with the tourism.
Tourism industry has many pillars which makes it effective, destinations, products, infrastructure, tourist security, marketing and so on, one of them is re branding of a destination, which is considered immensely important to cater the needs and wants of tourist and destination itself. This essay will critically evaluate the destination chosen which is London, its current situation for tourism activities, places and services which are offering to tourist and then moving onto the other side discussing the products or places which has not been promoted as like others, re branding them, creating a new slogan for marketing strategies, attracting and giving information to tourist via promotional activities to sell these brands.
Hilton Worldwide carries out business through three segments: (1) management and franchise; (2) ownership; and (3) time-share. These business segments enable management to capitalize on strengths like brand recognition and economies of scale. The company focuses primarily on the management and franchise segment which consist of 3,918 hotels with 610,413 rooms. Managing the properties, rather than owning them, allows the company t...
Every business enterprises whether it is small or large, aim to meet the needs of their potential and actual customers. There are some sorts of concepts and theories that they need to follow to do it. The essay will be looking at the marketing concepts and marketing theories which are portrayed in the PESTEL theory analysis and how they have application in guiding business marketing practice. In addition, there will be comparison between PESTEL with Porter’s 5 forces to discuss how both theories relate to each other.
As the marketing consultant for a hospitality management company, it is often my responsibility to define target markets for various restaurants and hotels. In fact, I have been tasked with creating a fictional hospitality operation, to utilize as an illustration to define a marketing strategy and target market. In addition, I must identify and analyze the product life cycle of an organization that has been in business for a minimum of twenty-five years.
Kotler (1998) claims that PEST analysis is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. The headings of PEST are a framework for reviewing a situation, and can in addition to SWOT and Porter's Five Forces models, be applied by companies to review a strategic directions, including marketing proposition. The use of PEST analysis can be seen effective for business and strategic planning, marketing planning, business and product development and research reports. PEST also ensures that company's performance is aligned positively with the powerful forces of change that are affecting business environment (Porter, 1985). PEST is useful when a company decides to enter its business operations into new markets and new countries. The use of PEST, in this case, helps to break free of unconscious assumptions, and help to effectively adapt to the realities of the new environment.
Whitla, P., Walters, P., Davies, H. 2007, Global strategies in the international hotel industry, Hospitality Management, vol. 26, pp. 777–792.
Hospitality is the relation between the guest and host, or the act or the practice of being hospitable. This includes the reception, entertainment and generally looking after the guests, visitors or strangers. The word hospitality is derived from the Latin hospes which means “host”, “guest”, or “stranger”. Hospes is formed from hostis which means stranger. Today in many areas hospitality has developed in various ways, no two ways of hospitality are the same such as in India the term atithi devo bhava is used and guest is considered god like and we are told to respect them as such by touching their feet, in other countries such as the western people prefer a handshake and hospitality is more formal. This is one of the few industries that are directly involved with serving its customers in many significant areas for their wellness that are eating, drinking and sleeping which are some of the most important needs of an individual that a hospitality professional looks after, these are basic things we can provide but the times are changing we are in the 21st century now and the hospitality industry has as any industry been heavily impacted by it. Technology today has completely changed the industry which is why it is important to see which sectors have been affected, where many things have been changed and a new generation of professionals has emerged, which understands it and continues to expand it. This project has given me a new insight into the types of technology that are emerging to improve not only the experience of the guest but also the employees in this industry and their employers. This is why I have chosen five technologies which vary in functioning and development the technologies are Global Positioning Sys...
The hospitality industry is a broad industry enjoyed by many members of the public. it holds a lot of diversity ranging from the services of a 5 star hotel to a small cafe on the corner of a street. Although the hospitality industry is so big and diverse all of the businesses in it have one thing in common, They are looking for returning customers. To gain more returning customers businesses are always looking for new content to make them the next best thing. Australians are regarded as people who are always looking for a good time. This good time is most commonly paired with heavy alcohol use and in return australia’s hospitality industry has responded with selling and supplying alcohol to customers and directly caters towards them by the
The Hotel industry has become very important in the past years due to immense traveling and growth of international business. The Hotel industry not only plays an important role in the life of people but as well as the economy of the country. I spent an hour of my day relaxing in the lobby at the Fontainebleau resort in Miami, while on vacation with my family visiting from out of state. It was my first time staying at the resort so I was eager to check it out, after seeing such great reviews on Yelp and hearing great things from friends who have been there in the past. The employees working at the resort were very welcoming, professional and willing to go above and beyond to help their guests. The check-in process was very quick due to having