to find a different hotel would be the only option, but now you can check Economic factors that may impact on the hotel industry. Think about this. The strength and the weakness of currency also impact on the hotel industry. This tendency will further grow in the future leading to even more demand for hotels. Eating out in restaurants regularly are strong in some countries and cultures. Ethical considerations would typically be included in the Social and/or Political areas, depending . Tourists often look for recognisable facilities in an unfamiliar environment, like well-known fast-food restaurants and hotel chains. This article shares his insights into the impact of coronavirus on the hotel and leisure market, together with views discussed at the conference. Tourism can see rise to many commercial business, which can be a positive social impact of tourism. If youre curious about the strengths, Further to this, tourists often, out of ignorance or carelessness, fail to respect local customs and moral values. On the other hand, internal factors are factors that occur . It was a similar picture during the recession. Aside from the economic impacts created by enhanced employment prospects, people with jobs are happier and more social than those without a disposable income. Many Tourists visit Thailand to taste authentic Thai food. Copyright 2017 2025. This is Customers can now book their holidays and restaurant tables online. Take a look at the likes of the long neck tribe in Thailand or the Maasai Tribe in Africa. On these sites, they can read reviews and past commentary of previous patrons. Overall, our findings show that most of 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? The USA has different data protection laws on both the federal and state levels. industry, otherwise known as the hospitality industry, spans across a large The ultimatetourismglossary, 50 fascinating facts about the travel andtourismindustry. weaknesses, opportunities, and threats this industry faces, read our SWOT 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. Read also: Business tourism explained: What, why and where. These social impacts can be seen as benefits or costs (good or bad). Years ago, hotels only used traditional media (print and broadcast), but now there are new media brought forth via the internet to consider. Registered office: 85 Great Portland street, First Floor, London, W1W 7LT. sectors for global investors, especially within the United States. Hilton Hotels PESTEL analysis involves the analysis of potential effect of these factors on Hilton's revenues and its long-term growth prospects. While all businesses are affected by There are different regulatory requirements to open and run hotels, restaurants, and amusement parks. Globalisation is the way in which the world is becoming increasingly connected. First, the two hotel industries impacted the state economy due to a high induced effect from output and a considerable direct, indirect and induced effect from labor income and employment, despite their relatively lower multipliers and the economic downturn in the state. For example, if international Hotel industry has to take proper measures for such factors and taking control over it on time. This analysis enables me to explain what happens in this industry nowadays. The establishment Our responsibility as educators is to give students the base to emerge strongly from these challenges. PESTEL abbreviation is interpreted as political, economic, social, technological, legal, and environmental factors impacting businesses, and PESTEL is an important framework for assessing external factor impacting business practices. 3. Other relevant articles for you are: PESTEL analysis of the aviation (airline) industry, Competition in the US quick service restaurant (QSR) industry, PESTEL analysis of the pharmaceutical industry, Social and cultural impacts of mass tourism on the host community. BUT, there are also some positives. 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. The hotel industry contributes trillions of dollars to the global economy. To me, however, this begs the question- is it actually authentic? Likewise, they must comply with the Health and Safety at Work Act 1974 which requires them to take notice of substances potentially causing harm or ailment to their members of staff. A simple explanation. industry to crumble. You may also like reading PESTEL analysis of the hospitality industry. Legal factors that may impact on the hotel industry. Tourists visit Beijing to learn more about the Chinese Dynasties. For instance, many people have negative perceptions, and therefore, do no seek employment opportunities in this industry, creating skill shortage that is crippling it. Therefore, they come under pressures from governments and NGOs to use them responsibly. For instance, almost all the hotels now use social media to reach out to their current and potential customers. Are you happy to eat rice and curry for breakfast as the locals would do or do you want your cornflakes? Hotel Hilton can better formulate a strategy which could convert potential threats into new opportunities Hotel owners who are confident that their hotels in asia, many teenagers and young adults follow the fashion trends of music icons in korean pop culture. This can vary from crowds behaviour and use of drugs along with crime related activities. This detailed PESTEL analysis of the hospitality industry aims to examine some of the macro factors that have impacts on the global hospitality industry. I am going to explain how different factors can affect the industry as in positive as in negative way. This can have significant social/socio-cultural impacts. 8. 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! This PESTLE analysis of the hotel industry should provide you a clear look into the hotel industry and how it performs globally. It is this interaction that encourage us to become more alike. 2. Hotel industry is a sub industry of travel and tourism industry, because it influenced with tourism quite strong. The Say's Law. We hope the article PESTEL analysis of the hotel industry has been helpful. Travel Social factors that may impact on the hotel industry. There are many examples of ways that tourists offend the local population, often unintentionally. Political factors that may have influences on the hospitality industry. When vacationing, customers want to stay somewhere warm and relaxing. Legal environment is the last topic of discussion in the PESTEL analysis of the hospitality industry. Source: How does the environment affect the hospitality industry? The role of education and training providers to support these issues is therefore significant. This helps them reduce their advertising costs and interact with the customers in real time. Social media, like Facebook, and mobile apps are the most prominent tools hotel owners can use, but must also be wary of. globe. Social distancing imposes a sheet of Plexiglas between one person and another, reduces working hours, lowers productivity and lowers the capacity of our stores, restaurants and trains. This is why its so important for hotel owners to understand how the six factors of PESTLE analysis affect this industry. Along with that economic factors are split into legal factors for the same previously mentioned reason. Leave your comments below. Hotels are also changing to embrace the social changes that are currently taking place. Copyright 2017 2025. There are other social factors too that affect the global hospitality industry. This can help to promote/ preserve local traditions. Preserving Local Culture Customer Insights and Going Online. 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. These factors examine the social environment of the market, and measure factors like cultural trends, demographics, population analytics etc. Recessions and other economic difficulties impact on peoples selection of hotels. Failure to provide data safety may costs hotels millions of pounds. Hotels are also becoming more strict in terms of the He is a lecturer in Management and Marketing. Is it right to go topless on a beach if within the local culture it is unacceptable to show even your shoulders? But, on the other hand, the pandemic also gave us an opportunity to look at various factors affecting the growth of the hospitality and tourism industry. They must also protect the identifying information of their guests. They have learnt to speak English and to eat Western food. Industry Analysis is effectively covered under the Economic heading. Many tourists will visit the destination especially to see its local heritage. I certainly felt this was the way when I went to the Running of the Bulls festival in Pamplona, Spain. Five technologies in particularservice automation, fixed mobile convergence, location-based services, connected meeting rooms, and chatbots and mobile appsare poised to change the guest experience and create areas of opportunity for . There are over 700,000 hotels around the world which employ around 173 million people. Social change is basically referring to changes in the way that society acts or behaves. Any major economic change massively affects the hotel industry. This is also often referred to associo-cultural impacts. When I travelled to The Gambia I met a local worker (known as a . Overall, the tourism industry is influenced by a complex interplay of economic, political, cultural, social, and natural factors. Social factors are the things that affect the habits and spending of customers. 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. A shift accelerated by the global public health crisis, an unprecedented number of high-profile companies . 2. The hotel industry in any country is largely dependent on tourism and thereby on the government regulations of the country. On the contrary, when the economy is stable, many people are likely to go on holidays, and eat out regularly. Tourism can be a catalyst for strengthening a local community. only takes one scathing review to destroy a reputation. Contact Us | Privacy Policy | Terms of Service, Kotlers Five Product Levels Model Definition,, What is an Augmented Product? Consumer preference is an important factor. customers wont stay at their locations. This growth is further fuelled by the government initiatives. and write up an honest post about their experience. But because tourists want an authentic experience, these people have not moved on with the rest of the world, but instead have remained the same. The impact of politics upon the hospitality and tourism sector is dramatic. Many factors affect the success and growth of the hotel industry. Sure, I like Starbucks (my mug collection is coming on quite nicely! 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. The factors affecting the hospitality and tourism industry are wide-ranging and varied. To study the environmental issues of hotel industry. The supply! . Museums, shows and galleries are fantastic way to showcase the local customs and traditions of a destination. 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. Guests will appreciate offers tailored to them, which will encourage them to come back again in the future. Environmental factors that may impact on the hotel industry. For example, it affects the segmentation and targeting strategies of hotels. He is a regular panel speaker at the International Hotel Investment Forum in Berlin. 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. 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). You can eat at the many restaurants built within, like Starbucks and The current generation has shown a strong trend towards traveling. Many of them have already come up with additional services such as gym, restaurant, and massage parlour that many youngsters like. BHR (2021) Hospitality, tourism, and politics, available at: https://www.bu.edu/bhr/2012/09/01/hospitality-tourism-and-politics/ (accessed 20 April 2021), Hotrec (2018) Tthe HOSPITALITY INDUSTRYS CONTRIBUTIONS TO EUROPEAN ECONOMY SOCIETY, available at: https://www.hotrec.eu/facts-figures-2/ (accessed 20 April 2021), Moreno, N. (2021) Lockdown is eating away at the food takeaway and restaurant industry, available at: https://www.kantar.com/inspiration/fmcg/lockdown-is-eating-away-food-takeaway-and-restaurant-industry (accessed 21 April 2021), UK Hospitality (2021) Industry focus, available at: https://www.ukhospitality.org.uk/ (accessed 20 April 2021). Countries that have severe weather conditions have a difficult time flourishing their hotel industry. Various macroenvironment factors including economic, technological, demographic, political and social-cultural factors affect the hotel and hospitality industry either positively or negatively Macro environment factors enable business to assess the elements that would affect the economic environment of a business as a whole and not a particular Social environment is the next environment to discuss in the PESTLE analysis of the hospitality industry. ), but I also love the way that there are no Starbucks in Italy. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism.
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