Or should we let them grow and change, just as we do? Pestle Analysis of Hilton Hotel. Choosing a spot with low crime is crucial for all hotel owners, otherwise, The Say's Law. Almost all of them are fitted with CCTV cameras to provide security and other features that make the guests stay more comfortable. Methodology This study is based on secondary data. You can learn more about what is authenticity in tourism here or see some examples of staged authenticity in this post. demand. Any hotel with food or beverage establishments Its so quick that hotel owners cant do much to stop it. Explains that the hotel industry is capital intensive with even small, independent hotels facing substantial . Or show the sole of your feet to a Thai person? Since this industry uses a ), but I also love the way that there are no Starbucks in Italy. The jobs created by tourism can also be a great boost for the local community. This detailed PESTEL analysis of the hospitality industry aims to examine some of the macro factors that have impacts on the global hospitality industry. room. concerns. Social media, like Facebook, and mobile apps are the most prominent tools hotel owners can use, but must also be wary of. If they dont, they may find themselves on the receiving end of scathing reviews online, lack of customers because of environmental issues like the weather, or into legal trouble like if hotel owners were to violate innkeeper laws. This can provide a great boost to their quality of life and is a great example of a positive social impact of tourism. sharing news thanks to the internet. will grab attention and the hotel chain will gain new customers. only takes one scathing review to destroy a reputation. In addition, Airbnb (2020) reports that there is a growing demand for long-term stays in hotels. The compound annual growth rate for food tourism is expected to increase by 9% between the years 2019-2023 according to a recent report by Technavio, a market research company in the United Kingdom. Are you happy to eat rice and curry for breakfast as the locals would do or do you want your cornflakes? COVID-19 was, or rather still is, an extreme event that forced the shutdown of the hospitality and tourism industry overnight. Tourism can be a catalyst for strengthening a local community. Tourism can see rise to many commercial business, which can be a positive social impact of tourism. Likewise, Londons Lanesboroughs new Royal Suite costs 26,000 a night, though many small budget hotels offer as little as 11 a night. It is an industry which offers opportunities to youngsters to step into their career ladder. Putting your hotel in front of 600,000+ travel agents. It employed 3.2 million people and generated 39 billion in taxation in 2018 for the UK government. Many These include: demographics lifestyles tastes and trends The UK's aging population is an example of demographic. industry, otherwise known as the hospitality industry, spans across a large How social factors affect hospitality industry? Recessions, inflations, and other economic fallouts severely affect peoples ability to afford luxury hotels. These are the economic factors that can affect the hotel industry - Economic conditions like inflation, unemployment, recession, and economic instability directly impact the hotel business. Sure, I like Starbucks (my mug collection is coming on quite nicely! currencies are stronger than the American dollar, people outside of the United Environmental factors that may impact on the hotel industry. All these concerns add to the economic pressure placed on hotel owners. Likewise, the same also goes with going on holidays abroad every year. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. Do you want an authentic squat toilet in your hotel bathroom or would you rather use a Western toilet? Uber Eats, Just Eat, Hungry House, and many other apps have enabled people to order their food instantly and receive the delivery with a very short time. 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. In this article PESTLE Analysis of the Hotel Industry. Hotels and restaurants put increased pressure on the environment as they have massive needs for water, lighting, fuel, and others. competition with corporations like Airbnb, which offer a variety of rooms for Analysis of the Hotel Industry here to learn more. Hotel industry has to take proper measures for such factors and taking control over it on time. needs to be honest about the calories in the good and nutritional ingredients in asia, many teenagers and young adults follow the fashion trends of music icons in korean pop culture. Anyone can write a review and post it on a Hilton Hotels PESTEL analysis involves the analysis of potential effect of these factors on Hilton's revenues and its long-term growth prospects. Therefore, tourism can contribute to rises in the numbers of sex workers in a given area. These are just a few examples of the negative social impacts of tourism. Skilled labour shortage, staff turnover and Irregular working hours. This can cause resentment from the hosts towards the tourists, particularly when they see them wearing expensive jewellery or using plush cameras etc that they know they cant afford themselves. Many hotels have additional facilities, like pools, a gym, and even Uncertainty avoidance. Now its all chains and multinational corporations. Corporate social responsibility (CSR) in the hotel industry is a common practice where companies take good actions to improve society. BUT, there are also some positives. Specialists in providing advice and services to the hotel industry. 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. Likewise, other businesses such as retailers and pharmacies also benefit from the hospitality industry. It is also widely seen globally that a huge number of women are engaged in this industry. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. Likewise, the same also goes with going on holidays abroad every year. The country has a high standard of living, education, the healthcare system as compared to the other Latin American . This will help to minimize troubles and team of hotel industry can handle such situation easily. Also, the competing enterprises, governments, courts . 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. Similarly, technology is used to collect the guest feedback and some hotels have already automated guest interactions throughout their stay. I personally think that tourism industry stakeholders should proceed with caution when it comes to standardisation. 6. Customer Insights and Going Online. 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. On the contrary, when the economy is stable, many people are likely to go on holidays, and eat out regularly. Failure to provide data safety may costs hotels millions of pounds. If it were not for the tourists they would have a different line of work, they would not speak English and they would not choose to eat burger and chips for their dinner. While landscape, accommodation, food and drinks, etc., must meet the tourists desire for the new and unfamiliar, they must at the same time not be too new or strange because few tourists are actually looking for completely new things (think again about the toilet example I have previously). of the dishes. 3. 3. 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. Though some people have negative perception about working in hotels, it is worth mentioning that hotel industry offers career opportunities to many people who face socio-economic challenges and disadvantages. This PESTLE analysis of the hotel industry should provide you a clear look into the hotel industry and how it performs globally. A simple explanation. To recommend suggestions to overcome the environmental issues regards to hotel sector. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. Various international hotel chains are shifting towards more Unquestionably, technology is playing a big role in the development of the hospitality industry. Airbnb is the Due to lockdowns in 2020/21 many restaurants around the world were closed, and many had to rely on home delivery services only. hotel industry to welcome more foreign guests and expand their economy. Social change is basically referring to changes in the way that society acts or behaves. Events and festivals of which local residents have been the primary participants and spectators are often rejuvenated and developed in response to tourist interest. Almost all countries now have discrimination laws in place which has benefitted the tourism industry and in turn the hotel industry. 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. Ethical considerations would typically be included in the Social and/or Political areas, depending . activists to ensure a minimal carbon footprint. The Western world believe that a tourist destination is no longer authentic when their cultural values and traditions change. Structural Equation Modeling using Partial Least Square Method was used as the research methodology. Similarly, hotels are using information technology in various ways to serve their consumers better. Hotels in the EU must comply with the GeneralData Protection Regulation(GDPR)as they collect high volumes of personal data from guests. Social factors that may impact on the hotel industry. This may be in the form of museum exhibitions, in the way that restaurants and shops are decorated and in the entertainment on offer, for example. Luxury and high-grade hotels could put that saved towards building more accommodations for guests. Most of the environmental factors which affect hotel business are flood, storm or heavy rains. The USA has different data protection laws on both the federal and state levels. 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. 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. massive amount of disposable items it can be the cause of serious environmental customers wont stay at their locations. Think about this. This text by Hyung You Park explains the principles of heritage tourism in more detail. But at the same time, they also lead to a higher demand for budget hotels thereby increasing certain verticals of this industry. Security breaches and turbulences affect many hotels around the world now and then. could hurt the tourism and hotel industry immediately. . Hotels are also becoming more accepting of different classes of people and are ensuring they are better equipped to serve the necessities. Is culture suppose to stay the same or it suppose to evolve throughout each generation? Technology has greatly benefitted the hospitality industry. Otherwise, open borders and a welcoming political within must follow truth-in-menu laws, which means the food establishment must In some locations, the innkeeper law must be posted inside the door of every guest room of the hotel. Many tourists will visit the destination especially to see its local heritage. For Hilton, which offers nearly a million rooms in more than 6,200 properties across 118 countries, second-quarter revenue per available room or RevPAR, a key financial metric in the hotel. Understanding the social impacts of tourism is vital to ensuring the sustainable management of the tourism industry. industry to crumble. He is a regular panel speaker at the International Hotel Investment Forum in Berlin. For instance, the lockdowns in 2020/21 destroyed many restaurants, hotels, and other hospitality businesses around the world. The economic, political, social, technological and legal forces in action form part of its environment. Many of them have already come up with additional services such as gym, restaurant, and massage parlour that many youngsters like. As these modes of transport are used more often, their impact on the planet increases. Purpose of the study The purpose of this study is as follows: 1. 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. stay at a certain hotel. Travel websites have made it easier for people to price shop hotels. This includes partnership issues between partners, including close family members and the resulting litigation due to lack of proper . Corporate governance. Likewise, these organisations waste a wide variety of things such as food, paper, furniture, appliances, and many more. Services such as gym, and others Airbnb ( 2020 ) reports that there no... 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