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Pestle analysis of hotel industry
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Executive summary I have chosen to use PESTLE as part of my investigation, I feel PESTLE is the best way to discuss the different factors affected both (positive\negative) of the hotel industry. Hotel industry is part of the hospitality business which according to www.bha.org.uk, United Kingdom has the highest Hospitality employment and recently contributed the sum of £57 billion to the United Kingdom (GDP) Gross Domestic Product. Introduction – Within my report I will investigate the hotel industry by means of Marco challenges with the use of PESTLE. My aim is to discuss current Political, Economic, Social, Technological, Legal and Environmental and look into how it affects hotel industry. 2.0 Key Challenges –2.1 Challenge …show more content…
With that said consumers chose to compare hotels as the World Wide Web gives you that information needed and has taken over the way we book hotels. Increase of social media people are tending to book hotels by tread and online feed backs, this could be positive and negative, positive being consumers are enticed to make choice with people's feedback and use of shared images which give them real view and shows other consumers experiences however, on negative side bad feedback can be bad for your business as comments could lead to consumers choosing alternative …show more content…
Nevertheless, when building the hotels, the product used was form recycling and organic products used and these current hotels now operates with energy and water efficiently supplies for example Excel Aloft hotel Legal Factors Hotels have legal requirement to follow the fire and safety law 2006, ensuring the correct and in use fire alarms and extinguishers are available, and all fire exits are cleared and visible. Health and Safety Act ensuring staff are trained controlled substances (COSHH) making sure products are stored away and correct labels on them. Hotel should also follow Data Protection Act 1998 protection of customers information ensuring that its stored and kept in safe place.
Thanks to these factors, pricing becomes one of the primary uses with which hotels attract customers. However, due to customers’ independent nature, there influence over industry players is limited. In the high-end segment of hotels, price influence becomes even less as hotels find it easier to differentiate themselves from the competition and customers become less price sensitive coming to expect higher prices as a symbolism of superior quality and services. Lastly, corporate business and tour operators can exert more influence due to their large purchases but this affect is of a limited nature and does not extend across the whole
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.
PESTEL analysis is the technique where political, economic, socio-cultural, technological, environmental, and legal factors are evaluated to identify external forces that impact market’s growth or decline. Assessment of the external environment helps to recognize key drivers and create a development strategy for the company.
For a decade the hotel industry is trying to implement a strategy to help with sustainability. Water, electric, gas is highly generated every day in hotel rooms. The Deliotte Game changers or spectators article (2015) stated that Hospitality is vulnerable to water shortages, relies heavily on built assets, and consumes significant amounts of electricity and, generally speaking, is an item on which spending is discretionary. This is the case because when people travel they do not pay attention to how much energy or water they are actually consuming. The hotel industry is one the largest establishment that is constantly using water, electric, and gas.
This report discusses my applied study period work experience where I worked at The Midland Hotel. I chose to work at The Midland because I wanted to gain experience at a hotel located in the United Kingdom because I wanted to have a global view of the hospitality industry. In this report, I intend to cover the following areas: an overview of the business, structure of the company, current market position, product information and a critical evaluation of my own experience.
To run a successful business, it is very important to run a background check on the external environment of that particular industry. PESTLE analysis is widely used to investigate the Political, Economic, Social, Technological, Legal and Environmental influences under expanding businesses. It helps in decision-makings and also to become more aware of competitors move.
In the sector of management, the popularity of travel distribution over the Internet has provided hoteliers the opportunity to review consumer-generated content across the industry, because these reviews and ratings provide a powerful tool and a wealth of data to hotel management. Also, it is important for hoteliers to take consumers’ negative comments seriously in order to provide a service recovery or change product to better suit consumers’ needs. In article “The implications of social media on customer relationship management and the hospitality industry”, it is said that hoteliers have found that review of the information in comments enabled them to make management decisions that resulted in improved service operations (Rosman & Stuhura 2013).
Some hotels have an only ISO14001 certificate, but some of them have Hong Kong Eco business Award and Green Globe certificate. The research dimensions are energy efficiency, water management, waste management, and indoor air quality. It needs the competencies of the building, internal design, staff training, communication with guests in order to enforce the policies and practice properly (Heung and Pun, 2013). The finding of energy efficacy is Hotel A implemented ISO14001, such as using energy-saving bulbs in bathrooms, corridors, and table lamps, and it helps Hotel A reduce 10.7% of energy consumption and save HK$ 1.5 million in 2 years. Moreover, Hotel A saved 15.2% water consumption in 2 years because of its effective water management, such as 70 to 90-liter water from washing and laundry daily (Heung and Pun,
lobal hospitality and tourism industry has experienced major developments in recent decades and is a major contributor to the global economy in terms of GDP and employment. Most countries depend on this sector for revenue generated from a myriad of activities associated with it including accommodation, hotels and restaurants services as well as travel services. This paper deeply analyses the business management issues that arise in the operational, human resource, financial, and product and markets contexts. The contribution of issues such as technology, globalization and sustainability on each will also be explored.
Every year the food waste in hotel sector represent a big amount the example food procurement, labour, utilities and waste management cost. (Hotels, 2014)Some hotel is changing into a green hotelier because by just taking a few steps, hotels can reap financial as well as environmental benefits. (Tuppen, 2014) Waste materials are processed into alternative sources of power such as natural gas or biodiesel fuel and sold back to hoteliers at reduced prices. In addition to the three core places of facility development and functions, other emerging places of focus consist of maintainable purchasing, indoor ecological top quality, and staff training applications. The variety of sources to assist hotel owners and providers in understanding and applying durability measures is vast. Additionally, a lot more ecological documentation applications have developed that are focused toward the kindness industry. These applications can be separated into several wide groups, including: environmental applications focused toward the kindness industry, programs focused toward natural building design and operation and green item certification and requirements. (Goldstein,
Nowadays, sustainability is a hot topic that every person and company needs to think about it, because it is important for people to keep good resources for the next generation. Also, it is undeniable that the worsening environment has become the biggest concern of the present-day world. Thus, people begin to pay more and more attention to protecting the environment and saving natural resources. In hotel industries, this system is supported by a lot of energy and natural resources in order to remain operational. Not only does this waste energy and natural resources, but it also pollutes the environment during hotel industries’ development. Therefore, it is necessary for hotel industries to think about and pay attention to sustainable development.
...ithin the hotel industry, as used by many companies within the industry it has been one that has played an instrumental role in terms of consumer’s purchasing choice (DeWitt, Nguyen & Marshall, 2008). With customer satisfaction also playing an instrumental role towards ensuring hotels brand loyalty is maintained.
New hotels are constructed on the seaside. The sustainability is better in tourism than through the hospitality sector. In an attempt to be more sustainable, hotels as late are becoming more eco-friendly by observing environmental standards in their architecture, interior design, managing approaches and customer services has more popular, following the traditional concerns for social and economic impacts (Anon, 2005). Plenty of hotels that have social utilization impact initiatives to be of services to local communities, enhances the well-being of the employees, and also maintain the
The focus is on the hotel industry because; the geographical location of a hotel has a
(2002, p.56) state that tourism activities such as increased of water consumption has reduce water availability for human and ecosystem function. In order to conserve our environment and ecology, we should reduce the consumption of water. According to Farmaki et al. (2014, p.14), the CSTI and Travel Foundation had introduced a project to reduce the use of water and energy in hotel industry in year 2008. The CSTI has collaborate with the Hotel Associations to involve the hotel industry and help to perform the change in order to conserve energy and water. As the result can bring a win-win situation for both industry and environment. The action taken by CSTI should be an example to other industry especially tourism industry in the world. The hotel management can encourage their customer to save water and energy. For instance, close all the electrical appliances when they go