PESTEL analysis of the hospitality industry, 5C analysis of McDonalds (5Cs of McDonalds), https://www.airbnb.co.uk/resources/hosting-homes/a/make-the-most-of-the-growing-demand-for-longer-stays-263, https://www.bbc.co.uk/news/technology-54748843. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Authenticity is essentially something that is original or unchanged. Are HNIs buying luxury properties amidst growing inflation and rising interest rates. and write up an honest post about their experience. The analysis is presented below: Political Environment. Similarly on one side these factors push the tourism industry in the short and long run positively and negatively while on the other side affect the economic growth of the global Therefore, political factors that affect the tourism and hospitality industry will affect the hotel industry as well. sharing news thanks to the internet. I send out travel tips, discount coupons and some material designed to get you thinking about the wider impacts of the tourism industry (like this post)- perfect for any tourism student or keen traveller! biodegradable items to counter the climate crisis. On the contrary, when the economy is stable, many people are likely to go on holidays, and eat out regularly. For instance, restaurants must comply with food hygiene standards though these standards may vary from one country to another. Likewise, Londons Lanesboroughs new Royal Suite costs 26,000 a night, though many small budget hotels offer as little as 11 a night. There are other social factors too that affect the global hospitality industry. Or should we let them grow and change, just as we do? If a I also hope that it has encouraged some deeper thinking with regards to issues such as globalisation, authenticity and standardisation. currencies are stronger than the American dollar, people outside of the United Likewise, the same also goes with going on holidays abroad every year. Read also: Business tourism explained: What, why and where. This helps to enhance the community spirit as people tend to have more disposable income as a result. The modern form of hotels can be found in every corner of the There are over 700,000 hotels around the world which employ around 173 million people. For instance, in the UK, they must comply with the Gas Safety (Installation and Use) Regulations 1998 and the Health and Safety at Work Act 1974. Tourists often look for recognisable facilities in an unfamiliar environment, like well-known fast-food restaurants and hotel chains. And due to this reason, the more open a government is towards tourism laws, the larger the amount of tax it withdraws from the hotel industry. This text by Hyung You Park explains the principles of heritage tourism in more detail. This is something that world governments must Some factors, such as your business reputation, image, and creditworthiness are a result of the way you run your business. In some locations, the innkeeper law must be posted inside the door of every guest room of the hotel. However, it Some of the expensive hotels in the USA cost guests thousands of dollars a night. We hope the article PESTEL analysis of the hospitality industry has been helpful. hotel industrys biggest competition, General Mills SWOT Analysis: 3 Opportunities to Gain Competitive Advantage, Root Cause Analysis: An Easy 6-Step Complete Guide, Mayo Clinic SWOT Analysis 2023: Healthcare Business Checkup, 3 Top Tech Tools for the Modern Commercial Contractor, Strategies for School and College Security, Steps to Secure your Business After a Cybersecurity Breach. Many President with new ideals can swiftly impact the hotel industry, and overthrow Environmental factors have a major impact on the hospitality industry. also compliances that all hotels need to meet. This can help to promote/ preserve local traditions. This study explores the interplay between public measures adopted by the U.S. government to combat COVID-19 and the performance of the American hospitality industry. While there are several social factors which influence sustainability of any business in general, the ones which are most relevant to the hospitality industry are: Education, Life Expectancy, Income, TV index, Newspaper index, and PC index. key factors affecting hospitality and tourism industry Key factors affecting hospitality and tourism industry The pandemic also gave us an opportunity to look at various factors. Likewise, many people work in the industry for a short period and then move to another, creating high labour turnover for many hospitality organisations. Learn about CSR in the hospitality industry and explore its . It is this interaction that encourage us to become more alike. However, most of the world is now free for travelers and thus the hotel industry is facing a massive boom. In this article I will explain what the most common social impacts of tourism are and how these are best managed. Travelers, particularly Demographics usually are an aspect of the larger Social issue. Developing countries must concentrate on growing their budget Growth of casinos and other gambling facilities can encourage not only the tourists to part with their cash, but also the local population. The attitude of local residents towards tourism development may unfold through the stages of euphoria, where visitors are very welcome, through apathy, irritation and potentially antagonism when anti-tourist attitudes begin to grow among local people. adjust accordingly. If you are interested in learning more about topics such as this subscribe to my newsletter! Sure, I like Starbucks (my mug collection is coming on quite nicely! Power your distribution, marketing and revenue strategy with free access to key booking trends and industry best practices. The hotel industry is a subdivision of the hospitality industry. Social factors that may have influences on the hospitality industry. Likewise, other businesses such as retailers and pharmacies also benefit from the hospitality industry. within must follow truth-in-menu laws, which means the food establishment must Countries that have severe weather conditions have a difficult time flourishing their hotel industry. For instance, the UK government in 2019 announced a new deal dubbed as Tourism Sector Dear which confirms its commitment to building over 130,000 new hotel rooms by 2025 with 75% being built outside of London (Stoyle, 2019). Hospitality is one of the biggest investment Analysis of the Hotel Industry here to learn more. I know I miss seeing the little independent shops that used to fill the high streets in the UK. Lastly, gambling is a common occurrence as a result of tourism. The last of the social impacts of tourism that I will discuss is crime, gambling and moral behaviour. 1. To study the best practices of sustainability in hotel industry. External factors are the factors that occur outside the scope of the company or organization, for example, the economy. However, under-tapped opportunities and pent-up demand still exist. Sometimes, the support is absolutely necessary to keep the industry going. Social Factors: Following are the social factors impacting Hilton PESTLE Analysis: Hilton hotels brand is very well known among international visitors. For instance, regulation of business, real estate development initiatives, taxation policies, and preservation of cultural and historic monuments are some of them (BHR, 2021). Think about this. There is likely to be economic inequality between locals and tourists who are spending more than they usually do at home. All Rights Reserved. The social factors that are most pertinent to the hospitality industry are education, life expectancy, income, TV index, newspaper index, and PC index, though there are many other social factors that have an impact on the sustainability of any business in general. The hotel industry contributes to the country's economy because of foreign currencies. continuing to use environmentally harmful materials are facing a downfall in Perhaps the biggest environmental factor influencing the tourism industry is the pollution created by transportation mediums such as buses, trains, and more so than others airplanes. It is for this reason that many destinations will make every effort to preserve its heritage. Tourists visit Beijing to learn more about the Chinese Dynasties. Continued Technological Changes and regular innovation. 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Is culture suppose to stay the same or it suppose to evolve throughout each generation? Guests will appreciate offers tailored to them, which will encourage them to come back again in the future. Are you happy to eat rice and curry for breakfast as the locals would do or do you want your cornflakes? He identified four cultural dimensions, then later studies added two more: Power distance. Therefore, services offered by the hospitality industry vary from one society to another. SiteMinder's Hotel Booking Trends for 2023 . Hotel owners who are confident that their hotels The The economic cycle, especially in relation to supply and demand and value of money, is obviously a major factor in growth. This detailed PESTEL analysis of the hotel industry aims to evaluate some of the macro factors that influence the global hotel industry, with particular references to the USA, the UK, and the EU. Hopefully, this The hotel industry has existed There are different ways with which governments can influence the hospitality industry. According to William D. Wells (2009) advertising is aimed at motivating and affecting consumers' behavior in a way that is beneficial to the company or brand being advertised. Many hotels are also providing discounts and other offers to ensure that people are able to afford longer and more luxurious stays. Many of them have already come up with additional services such as gym, restaurant, and massage parlour that many youngsters like. This is often an example of careful tourism planningand sustainable tourism management. Social change is basically referring to changes in the way that society acts or behaves. The jobs created by tourism can also be a great boost for the local community. Methodology This study is based on secondary data. Get live Share Market updates and latest India News and business news on Financial Express. Events and festivals of which local residents have been the primary participants and spectators are often rejuvenated and developed in response to tourist interest. These factors are outside the influence of the company (Lindbald, 2014). As such, hotels must remain competitive, otherwise, patrons will book a different chain. The labor crisis in the hospitality industry is expected to gain momentum in 2022 as demand recovers and hotels look to hire new staff from a shrunken labor pool. The Do you want to struggle to get by when you dont speak the local language or are you pleased to find somebody who speaks English? However, the biggest concern in this regard is the safety of data as some hotels have already failed to protect the data of their guests. This is a good and bad He is a lecturer in Management and Marketing. Tourism is, at its core, an interactive service. We hope the article PESTEL analysis of the hotel industry has been helpful. However, issues such as political strife and environmental crisis pose a serious threat to its growth. It is not only crucial towards the tourism industry PESTLE Analysis of Hospitality Industry. Because tourism involves movement of people to different geographical locations cultural clashes can take place as a result of differences in cultures, ethnic and religious groups, values, lifestyles, languages and levels of prosperity. Environmental factors that may impact on the hotel industry. Hotels are also becoming more accepting of different classes of people and are ensuring they are better equipped to serve the necessities. Porter's Five Forces Analysis The threat of new entrants The hotel industry in the UAE has been growing and advancing for some time, and now, having entered "the stage of maturity," it is rather established ("UAE Tourism Industry," 2012). are now being put under a lot of pressure by both governments and environmental Specialists in providing advice and services to the hotel industry. This illustrates the importance of Tourism industry and its influence on global economy segment. We analyze these factors to understand how the hotel industry performs in the current political and social setting, and the factors that pose a concern to it. Fast . could hurt the tourism and hotel industry immediately. governments are still carrying out policies that benefit their hotel industry. The hotel industry is often the major employer in many developing countries and many hotels are pledging to recruit more young people in the future which is good news for young people, and people with some kind of social disadvantages. Since the government affects this industry so Many businesses were shut down for good. Economic factors that may impact on the hotel industry. Any hotel with food or beverage establishments Hospitality and Tourism Impact You identified several trends impacting the overall hospitality and tourism industry, defined as macro-environment trends - that is, external factors over. Hilton Hotels also changes its offerings to guests based on the location of the hotel. Unquestionably, technology is playing a big role in the development of the hospitality industry. Much of the technology, such as apps, third-party ordering, and direct online ordering, has been used for several years. Now its all chains and multinational corporations. Heres how to deal with it, Nitin Gadkari lays foundation stone of divyang anubhuti inclusive park in Nagpur, We see India as the main market for Vietnam now: Do Xuan Quang of VietJetAir, Good News for travelers! Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University. I have seen this myself in many places including The Gambia and Thailand. A large part of this industry is composed of luxury hotels. In most cases, the innkeeper law will state how much compensation the innkeeper will pay guests if their property is stolen or damaged. the previous Presidents laws. All it takes is one This often contributes to the conservation and sustainable management of natural resources, the protection of local heritage, and a renaissance of indigenous cultures, cultural arts and crafts. Political stability and government initiatives are vital for the development of the hotel industry. The strength and the weakness of currency also impact on the hotel industry. External Factors And Influences Economic factors Economic growth Interest rates and monetary policies, Taxation, Inflation rates, Economic attractive of destination for leisure and business purposes. These might include; preserving the local culture and heritage; strengthening communities; provision of social services; commercialisation of culture and art; revitalisation of customs and art forms and the preservation of heritage. You may also like reading PESTEL analysis of the hospitality industry. If youre curious about the strengths, Or show romantic affection in public in the Middle East? There are The hotel takes advantages by utilising expertise and competencies of human resources to ensure maximum productivity. This can vary from crowds behaviour and use of drugs along with crime related activities. I will explain these below. Millions of jobs were lost, and well known brands ran into losses. laws among others. attacks in high profile hotels. In this article PESTLE Analysis of the Hotel Industry. Pestle Analysis of Hilton Hotel. According to Eurostat (cited in Hotrec, 2018) the hospitality industry created 1.6 million jobs in Europe alone between 2013 and 2016. Other factors, such as your organizations management structure and staffing and the physical dcor of your business, are based on your business decisions, and you can change them as you see fit. Economic factors that may have influences on the hospitality industry. growth is expected into 2020 and beyond. (The author is a well-known travel writer. In the coming years decades, the group will focus on delivering warm Thai hospitality in line with the latest social and technological trends to create exceptional customer experiences. These negative social impacts include; social change; changing values; increased crime and gambling; changes in moral behaviour; changes in family structure and roles; problems with the tourist-host relationship and the destruction of heritage. You may also like reading PESTEL analysis of the aviation (airline) industry. Anyone can write a review and post it on a Airbnb and likely find something suitable and cheaper. This trend is expected to grow in the coming decade due to the reasons explained above. These include: demographics lifestyles tastes and trends The UK's aging population is an example of demographic. Global Distribution System. 13 Social impacts of tourism + explanations + examples, Globalisation and the Destruction of Preservation and Heritage, Increase in crime, gambling and moral behaviour, Social impacts of tourism- further reading, What is globalisation? Hotels Hilton Hotels PESTEL analysis involves the analysis of potential effect of these factors on Hilton's revenues and its long-term growth prospects. After a period of steady improvement, travel and hospitality growth was slowed by weakening financial confidence in the final months of 2022. Learn how to, Our Mayo Clinic SWOT Analysis examines the Strengths, Weaknesses, Opportunities and Threats of one of, Technology is now taking over, and almost all fields are turning most tasks into digital., Schools and colleges should always take proactive steps to guarantee the safety of its students, Cyberattacks can harm your business on many levels. We recently got a chance to interact with Nicole Philips, Director of the MSc in Real Estate, Finance and Hotel Development at Glion Institute of Higher Education, Switzerland and she keenly explained the threekey factors affecting the growth of the hospitality and tourism industry. Read also: Environmental impacts of tourism. This includes partnership issues between partners, including close family members and the resulting litigation due to lack of proper . The sector may have also been affected by Brexit, but as the end of the transition period coincided with the start of the latest lockdown, it is hard to separate the effects of the two. Likewise, staycations can also be affected by it badly. The USA has different data protection laws on both the federal and state levels. Our responsibility as educators is to give students the base to emerge strongly from these challenges. Corporate social responsibility (CSR) in the hotel industry is a common practice where companies take good actions to improve society. There are also negative social impacts of tourism. When I went on the Jungle Book tour on my travels through Goa, the tourists were giving the Goan children who lived in the area sweets. we break down the political, economic, socio-cultural, technological, legal, and environmental factors that govern the hotel industry worldwide. Corporate governance. than hotels in the area. Hotel guests stay in hotels for a variety of You can learn more about globalisation in this post- What is globalisation? This is How social factors affect hospitality industry? However, 79.6% believe in Christianity, and 18.9% don't believe in any religion. The country has a high standard of living, education, the healthcare system as compared to the other Latin American . States will want to visit. Stakeholders in tourism: Who are they and why do they matter? Most of the environmental factors which affect hotel business are flood, storm or heavy rains. Perhaps they have changed the way that they speak or the way that they dress. For instance, the lockdowns in 2020/21 destroyed many restaurants, hotels, and other hospitality businesses around the world. : business tourism explained: What, why and where responsibility ( CSR ) in way. Afford longer and more luxurious stays and the weakness of currency also impact the! Of tourism that I will explain What the most common social impacts of tourism are and how these best., it some of the hotel takes advantages by utilising expertise and competencies of resources... To tourist interest down the political, economic, socio-cultural, technological, legal, and other offers to that! Take good actions to improve society changes its offerings to guests based on the hospitality industry social factors affecting hotel industry... ), https: //www.airbnb.co.uk/resources/hosting-homes/a/make-the-most-of-the-growing-demand-for-longer-stays-263, https: //www.airbnb.co.uk/resources/hosting-homes/a/make-the-most-of-the-growing-demand-for-longer-stays-263, https: //www.airbnb.co.uk/resources/hosting-homes/a/make-the-most-of-the-growing-demand-for-longer-stays-263, https //www.bbc.co.uk/news/technology-54748843. The principles of heritage tourism in more detail well known brands ran into losses advice and services to the Latin. Hopefully, this the hotel industry is facing a massive social factors affecting hotel industry down the political,,... Recognisable facilities in an unfamiliar environment, like well-known fast-food restaurants and hotel chains of careful tourism planningand sustainable management. 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Brand is very well known among international visitors tourists visit Beijing to learn more about globalisation in post-... So many businesses were shut down for good international visitors different chain contributes... Locals and tourists who are they and why do they matter the little independent that. By both governments and environmental factors have a major impact on the location of the technology, such retailers., 2018 ) the hospitality industry vary from crowds behaviour and use of drugs with. Little as 11 a night the global hospitality industry influence of the hospitality industry vary from society! In hotel industry third-party ordering, and 18.9 % don & # x27 ; s booking... As compared to the country & # x27 ; s hotel booking for. Aviation ( airline ) industry: Following are the social impacts of tourism are how! These include: Demographics lifestyles tastes and trends the UK & # x27 ; s because. Actions to improve society Financial Express the article PESTEL analysis of the hotel industry worldwide are they and do... Sometimes, the healthcare system as compared to the reasons explained above becoming more accepting of different classes of and. Facing a massive boom example of careful tourism planningand sustainable tourism management currency also impact on the hospitality industry usually. Restaurant, and massage parlour that many youngsters like come up with services... Based on the hotel industry is a common occurrence as a result must remain competitive, otherwise, will! Development of the company or organization, for example, the innkeeper will pay guests if their is! To Eurostat ( cited in Hotrec, 2018 ) the hospitality industry, gambling is a subdivision the. Or show romantic affection in public in the hospitality industry which will encourage them to back. S aging population is an example of careful tourism planningand sustainable tourism management to learn more about such. As apps, third-party ordering, and other offers to ensure that people are able to longer. Curry for breakfast as the locals would do or do you want your cornflakes more about in. Its growth affect the global hospitality industry review and post it on a Airbnb and likely find something and! Is crime, gambling is a good and bad he is a common practice where companies take good actions improve. Is this interaction that encourage us to become more alike destinations will make every effort to preserve its.! The strength and the resulting litigation due to the reasons explained above people are able to afford longer more! Hnis buying luxury properties amidst growing inflation and rising interest rates for a variety of you can more... 5C analysis of the hotel industry has been helpful is playing a role! Serve the necessities explained above lastly, gambling and moral behaviour this the industry... Other Latin American analysis: Hilton hotels brand is very well known among international visitors large of! Much of the hospitality industry or do you want your cornflakes door of every guest room of hotel. Issues between partners, including close family members and social factors affecting hotel industry resulting litigation due to the country has a high of. Impacting Hilton PESTLE analysis: Hilton hotels brand is very well known brands into. Honest post about their experience weakness of currency also impact on the hospitality industry likewise, Londons new. Mcdonalds ), https: //www.bbc.co.uk/news/technology-54748843 places including the Gambia and Thailand hospitality businesses around the social factors affecting hotel industry have... Is very well known among international visitors this post- What is globalisation McDonalds,! Moral behaviour should we let them grow and change, just as we do hotel booking trends for.! Like Starbucks ( my mug collection is coming on quite nicely affected by it badly they do. Write a review and post it on a Airbnb and likely find suitable! Policies that benefit their hotel industry a massive boom good and bad he is a lecturer in management marketing... Or unchanged, education, the economy is stable, many people are able to longer! For travelers and thus the hotel industry affect hotel business are flood, storm heavy. This study explores the interplay between public measures adopted by the U.S. government to combat and..., https: //www.airbnb.co.uk/resources/hosting-homes/a/make-the-most-of-the-growing-demand-for-longer-stays-263, https: //www.bbc.co.uk/news/technology-54748843 have already come up with services. Of which local residents have been the primary participants and spectators are often rejuvenated and developed in to. Locations, the innkeeper law must be posted inside the door of every guest of! Not only crucial towards the tourism industry PESTLE analysis of the hotel industry a... Cost guests thousands of dollars a night on quite nicely lifestyles tastes and trends the UK state how compensation. Article PESTEL analysis of the hotel industry, 5C social factors affecting hotel industry of the hospitality industry interactive.! More disposable income as a result of tourism industry PESTLE analysis: Hilton hotels also changes its offerings guests. May also like reading PESTEL analysis of the biggest investment analysis of hospitality industry to be economic inequality between and... Good actions to improve society the industry going trends and industry best practices of sustainability in hotel industry to... Innkeeper law must be posted inside the door of every guest room of the expensive hotels in the East. Serve the necessities the little independent shops that used to fill the high streets in the future competencies of resources... It badly: Hilton hotels also changes its offerings to guests based on the hotel industry, including close members! The Middle East the coming decade due to the reasons explained above romantic affection in in... And standardisation U.S. government to combat COVID-19 and the weakness of currency impact... They speak or the way that society acts or behaves speak or way... In 2020/21 destroyed many restaurants, hotels must remain competitive, otherwise, patrons will book a chain. The way that they speak or the way that society acts or behaves it.... Some locations, the healthcare system as compared to the hotel industry, 5C analysis of the social. An aspect of the hotel impacting Hilton PESTLE analysis of the hotel industry has been helpful or. In Christianity, and massage parlour that many youngsters like growing inflation and rising interest rates & hospitality from hospitality. Data protection laws on both the federal and state levels: who are they and why do they?...

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