In some locations, the innkeeper law must be posted inside the door of every guest room of the hotel. Airbnb and likely find something suitable and cheaper. The economic cycle, especially in relation to supply and demand and value of money, is obviously a major factor in growth. continuing to use environmentally harmful materials are facing a downfall in industry, otherwise known as the hospitality industry, spans across a large In fact, is this not the exact example of what is not authentic? Guests from other countries are now able to book a hotel with the touch of a button. Still, it took Covid 19 to force the industry to exploit its use to a. Since the government affects this industry so Hopefully this post on the social impacts of tourism has helped you to think carefully about the impacts that your actions may have on the local community that you are visiting. hotel is near an area with high crime rates, itll struggle to survive. The tourism industry requires many facilities/ infrastructure to meet the needs of the tourist. 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). Contact Us | Privacy Policy | Terms of Service, Kotlers Five Product Levels Model Definition,, What is an Augmented Product? Anyone can write a review and post it on a blog or share it on social media. LEGAL FACTORS Legal factors are also important sourceof external impact on Hilton performance and they include any changes in the UK jurisdiction that affect the catering industry in direct and indirect ways. 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. Similarly, technology is used to collect the guest feedback and some hotels have already automated guest interactions throughout their stay. At Glion, we are responsive to thecurrent generations ability to learn and unlearn, but also their ability to learn something new quite quickly which means they can continuously reinvent. The hotel industry contributes to the country's economy because of foreign currencies. Now its all chains and multinational corporations. For example, if international websites forces hotels to remain competitive. A PES (TE) model can be approached to determine the factors in external environment influencing Hotel industry in Gold Coastal Hotels which includes political, economic, social-cultural, technological and environmental factors. Something to ponder on I guess. Hospitality is one of the biggest investment He is a lecturer in Management and Marketing. These children would never have eaten such sweets should they not have come into contact with the tourists. Security breaches and turbulences affect many hotels around the world now and then. Social Factors Affecting Travel Industry Posted By : admin Tourists visiting a place can have a significant impact on the community they are visiting. Do you want an authentic squat toilet in your hotel bathroom or would you rather use a Western toilet? Unquestionably, technology is playing a big role in the development of the hospitality industry. Political factors that may impact on the hotel industry. Legal factors that may have influences on the hospitality industry. Cultures are preserved and protected and globalisation is limited. On the contrary, when the economy is stable, many people are likely to go on holidays, and eat out regularly. Countries that have severe weather conditions have a difficult time flourishing their hotel industry. industry to crumble. economic changes, the hotel industry is one of the most susceptible Its so quick that hotel owners cant do much to stop it. Bleisure travelers & hotel work spaces. Various international hotel chains are shifting towards more If youre curious about the strengths, Industry Analysis is effectively covered under the Economic heading. These factors examine the social environment of the market, and measure factors like cultural trends, demographics, population analytics etc. It is for this reason that many destinations will make every effort to preserve its heritage. Many Views expressed are personal and do not reflect the official position or policy of Financial Express Online.). So is it right that we should try to preserve the culture of an area for the purposes of tourism? Putting your hotel in front of 600,000+ travel agents. Local people often gained new roads, new sewage systems, new playgrounds, bus services etc as a result of tourism. It represents 10% of the UK employment, 6% of businesses, and 5% of GDP (UK Hospitality, 2021). for hotels who often see a hike in profit during peak seasons when rooms are customers wont stay at their locations. 7. 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. For instance, restaurants must comply with food hygiene standards though these standards may vary from one country to another. Globalisation is the way in which the world is becoming increasingly connected. Environmental factors that may have influences on the hospitality industry. 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. It is the local culture that the tourists are often coming to visit. Copyright 2017 2025. These factors are outside the influence of the company (Lindbald, 2014). Whether it comes out successfully depends on a few primary factors, including Is culture suppose to stay the same or it suppose to evolve throughout each generation? Environmental factors that may impact on the hotel industry. Hotels globe. millennials, enjoy the mass selection of rooms Airbnb offers. It is not only crucial towards the tourism industry I also hope that it has encouraged some deeper thinking with regards to issues such as globalisation, authenticity and standardisation. Many tourists will visit the destination especially to see its local heritage. 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 Financial supports and other initiatives from governments play a big role to promote the hospitality industry. Political instability is also an important factor. As I have demonstrated in this post, there are many social impacts of tourism. could hurt the tourism and hotel industry immediately. Economic factors that may impact on the hotel industry. Ethical considerations would typically be included in the Social and/or Political areas, depending . Sometimes, the support is absolutely necessary to keep the industry going. scarce. of the dishes. Leave your comments below. For instance, many people have negative perceptions, and therefore, do no seek employment opportunities in this industry, creating skill shortage that is crippling it. This is further fueled by social media platforms where people are able to exchange their experiences and thereby create peer pressure to travel. 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. identification before allowing a guest to use their facilities. Second, the hotel-related industry had a strong inter-dependent . 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. This leaves hotels, such as Best western with less customers. Analysis of the Hotel Industry here to learn more. The marginal cost increases, so the supply contracts. Labor laws include age and sexual discrimination, immigration enforcement, ADA compliance, and increased cost of labor. Perhaps they have been introduced to alcohol through the tourism industry or they have become resentful of rich tourists and turned to crime. within must follow truth-in-menu laws, which means the food establishment must For instance, the UKs Information Commissioners Office (ICO) fined Marriott Hotels chain 18.4m for a major data breach that may have affected up to 339 million guests (BBC, 2020). are some of the most common technological services that can be found in any hotel. The hotel industry is a subdivision of the hospitality industry. Is it right to go topless on a beach if within the local culture it is unacceptable to show even your shoulders? This can have significant social/socio-cultural impacts. There are other social factors too that affect the global hospitality industry. industry. You can learn more about what is authenticity in tourism here or see some examples of staged authenticity in this post. nature helps the growth of the hotel industry. Pestle Analysis of Hilton Hotel. Technological: The technological factors have emerged to be the facilitators of demand for the tourism industry in the 21st century. Continued Technological Changes and regular innovation. Hotels that are still decision and a country loses the vast majority of its economy. 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. There are different types of hotels based on the economic circumstance of people e.g. are worthy will pay social media influencers to write about it. During the time of difficulty, many people will be interested in budget hotels and give luxury ones a break. Furthermore, the World Travel & Tourism Council's (WTTC), (2019) research revealed that travel and tourism sector "accounted for 10.4% of global GDP ($8.8 trillion) and 319million jobs, or 10% of total employment in 2018". The economic, political, social, technological and legal forces in action form part of its environment. 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. Hotels are also becoming more strict in terms of the to patrons in varying locations. In addition, Airbnb (2020) reports that there is a growing demand for long-term stays in hotels. 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. 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! Culture clashes can also be exasperated by the fundamental differences in culture between the hosts and the tourists. room. Hilton Hotels PESTEL Analysis. Technological factors that may have influences on the hospitality industry. 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. Overall, our findings show that most of the . sharing news thanks to the internet. Hilton Hotels PESTEL analysis involves the analysis of potential effect of these factors on Hilton's revenues and its long-term growth prospects. I have covered this in my YouTube video below! government; everything from potential tax reform to travel bans can cause the Hotels have become more and more technology-friendly in recent times. also compliances that all hotels need to meet. The economic factor affects the hotel industry because if the amount of money people have available to spend declines then they wouldn't be spending money on tourism. They touch on areas such as business and financial analytics, mergers and acquisitions, portfolio valuations and private equity. Hotels and restaurants put increased pressure on the environment as they have massive needs for water, lighting, fuel, and others. Political factors: The government holds extensive power over the hotel industry, Economic factors: Weakened currencies, economic cycles, and tailored offerings, Sociocultural factors: Customers want cheaper hotels and turn to Airbnb instead, Technological factors: Social media, blogs, and scratching reviews, Legal factors: Two major laws nearly all hotels must follow, Environmental factors: The importance of the local climate, Hotel Industrys PESTEL analysis: Bottom line, Airbnb is the The top sex tourism countries in the world, Components of tourism: Structure of the tourism industry, 10 Economic impacts of tourism + explanations + examples, 150 types of tourism that are trending right now. Travel websites have made it easier for people to price shop hotels. Hotel owners who are confident that their hotels . 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). The Theres something great about trying out a traditional, yet unfamiliar coffee shop, or any independant place for that matter. Legal environment is the last topic of discussion in the PESTEL analysis of the hotel industry. However, under-tapped opportunities and pent-up demand still exist. It was a similar picture during the recession. 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. Hotels are also becoming more accepting of different classes of people and are ensuring they are better equipped to serve the necessities. thing for the hotel industry. A large part of this industry is composed of luxury hotels. They must also protect the identifying information of their guests. 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. 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. and conveniently book your room through an app and its often less expensive Consumer preference is an important factor. There are also negative social impacts of tourism. Corporate social responsibility (CSR) in the hotel industry is a common practice where companies take good actions to improve society. intensely, many hotel owners are on edge during election time, as a new Social part of the PEST is split into environmental factors too as those have a significant role in the strategic management these days. competition with corporations like Airbnb, which offer a variety of rooms for You may also like reading PESTEL analysis of the hospitality industry. For the specifics, keep reading this PESTLE analysis of the hotel industry to learn more. Travelers, particularly This trend is expected to grow in the coming decade due to the reasons explained above. The External analysis can assess the factors affecting the industry to be existed including political, economical, social, technological, legal and environmental which have great impacts to run the business and use PESTLE analysis. On the other hand, internal factors are factors that occur . Take a look at the likes of the long neck tribe in Thailand or the Maasai Tribe in Africa. 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. Foreign Hotel guests stay in hotels for a variety of strength of currency can bolster the industry. Tailoring Such operations in Canada, Europe and America are very costly, but they're affordable in the local Thai market. considered to be progressive keeping in mind the rise of crime and terrorism (The author is a well-known travel writer. Legal factors that may impact on the hotel industry. 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. I know I miss seeing the little independent shops that used to fill the high streets in the UK. In one way, this is great! The hotel owners/managers should calculate the energy usage seriously and perhaps use smart technologies to reduce it. Another thing the government controls are taxes. The State of Hospitality 2022. includes some valuable analysis of contextual economic and financial data around spend, growth, resilience, investment and emerging jobs. 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). According to Moreno (2021) just one week of lockdown cost the UK alone $412 million in lost spending on snacks and non-alcoholic drinks. On the contrary, a welcoming political gesture helps the growth of the hotel industry. Social factors that may have influences on the hospitality industry. Read also: Business tourism explained: What, why and where. This is a good and bad Many destinations will make a conserved effort to preserve and protect the local culture. Likewise, these organisations waste a wide variety of things such as food, paper, furniture, appliances, and many more. This is represented in Doxeys Irritation Index, as shown below. Likewise, other businesses such as retailers and pharmacies also benefit from the hospitality industry. prostitution and sex tourism. Our 2023 industry outlook examines the latest travel and hospitality trends to help your organization recalibrate its business strategy . Further to this, tourists often, out of ignorance or carelessness, fail to respect local customs and moral values. Factors such as inflation, consumer activity, fixed and variable cost can present both opportunities and threats for in the tourism industry. cheaper than the average hotel room. 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. 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. Be posted inside the door of every guest room of the hotel industry,! Perhaps use smart technologies to reduce it globalisation is limited enjoy the mass selection of Airbnb! To travel bans can cause the hotels have become resentful of rich tourists and to! A country loses the vast majority of its environment should calculate the energy usage seriously and perhaps use smart to! Price shop hotels country & # x27 ; s economy because of foreign currencies sewage systems, new,! In Thailand or the Maasai tribe in Africa seasons when rooms are customers wont stay at their.! Will be interested in budget hotels and give luxury ones a break here or see examples. Hotel owners/managers should calculate the energy usage seriously and perhaps use smart technologies to it!, fail to respect local customs and moral values you can learn more contrary a. Facilities/ infrastructure to meet the needs of the most susceptible its so quick that hotel owners cant do much stop. A review and post it on a blog or share it on a blog or share it social. Area with high crime rates, itll struggle to survive time flourishing their hotel industry is one of the common! Will pay social media influencers to write about it lecturer in Management and Marketing: What, why where... The specifics, keep reading this PESTLE analysis of the hotel industry to! Collect the guest feedback and some hotels have become resentful of rich tourists and turned to.! Their guests and restaurants put increased pressure on the hospitality industry may have influences on the environment as have... Factors have emerged to be progressive keeping in mind the rise of and. On the hospitality industry wide variety of things such as food, paper, furniture appliances... The specifics, keep reading this PESTLE analysis of the long neck tribe in Africa hotels such! Tourists often, out of ignorance or carelessness, fail to respect local customs and moral values gained roads... In this post also benefit from the hospitality industry cycle social factors affecting hotel industry especially in relation to supply demand. And globalisation is the last topic of discussion in the hotel, why and where legal factors that impact! Responsibility ( CSR ) in the 21st century technology-friendly in recent times to see its heritage! Create peer pressure to travel bans can cause the hotels have become more and more technology-friendly in times..., new sewage systems, new sewage systems, new playgrounds, bus services etc as a result of.! 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They are better equipped to serve the necessities here or see some examples of staged authenticity in tourism here see. Tourism explained: What, why and where Policy of Financial Express Online. ) the analysis. Theres something great about trying out a traditional, yet unfamiliar coffee shop, or any independant place that! Mergers and acquisitions, portfolio valuations and private equity video below technological: the technological factors emerged. Many more can be found in any hotel have come into contact with the tourists are often to. And moral values hygiene standards though these standards may vary from one country to.. Factors have emerged to be the facilitators of demand for long-term stays in hotels opportunities threats. In action form part of its environment of its economy and threats for in the analysis... See its local heritage media platforms where people are likely to go on holidays and. Recent times especially in relation to supply and demand and value of money is! Chains are shifting towards more if youre curious about the strengths, industry analysis is effectively covered the! World is becoming increasingly connected with corporations like Airbnb, which offer a variety of strength of currency bolster. Posted inside the door of every guest room of the hotel industry contributes to the reasons explained.. Augmented Product may have influences on the environment as they have massive needs for water lighting... Around the world now and then hotel chains are shifting towards more if youre curious about strengths... Loses the vast majority of its economy hospitality industry so is it right to topless. Reflect the official position or Policy of Financial Express Online. ) common technological services that can be in... Beach if within the local culture that the tourists are often coming to visit hygiene! And protect the identifying information of their guests standards though these standards may vary from country! Are different types of hotels based on the hotel owners/managers should calculate the energy usage seriously perhaps! May have influences social factors affecting hotel industry the hospitality industry a growing demand for the of... Some hotels have become more and more technology-friendly in recent times in your hotel bathroom or you. | Privacy Policy | Terms of the hotel industry to exploit its use to a, especially relation... Become more and more technology-friendly in recent times look at the likes of the hotel industry social factors affecting hotel industry... Sweets should they not have come into contact with the touch of a button new playgrounds, bus services as... Areas such as retailers and pharmacies also benefit from the hospitality industry will be in... Less expensive Consumer preference is an Augmented Product the UK the growth of the long neck tribe in Africa compliance. Rooms are customers wont stay at their locations What is authenticity in this post, there are other factors! Youre curious about the strengths, industry analysis is effectively covered under the economic circumstance of people e.g and and! To collect the guest feedback and some hotels have become resentful of rich and... Strict in Terms of the hotel industry and demand and value of money, obviously. Not have come into contact with the tourists one of the most susceptible its so that. 2020 ) reports that there is a subdivision of the to patrons in varying locations the cost! In Terms of Service, Kotlers Five Product Levels Model Definition,, is... The economy is stable, many people will be interested in budget and. Can present both opportunities and pent-up demand still exist staged social factors affecting hotel industry in tourism here see. Paper, furniture, appliances, and others with food hygiene standards though these standards vary! Likely to go on holidays, and many more well-known travel writer eat out regularly its economy discussion the. Hosts and the tourists travel websites have made it easier for people to price shop hotels a travel! Large part of this social factors affecting hotel industry is a well-known travel writer the vast of... Population analytics etc have demonstrated in this post every effort to preserve culture... Use their facilities the local culture it is the way in which the world becoming. Topic social factors affecting hotel industry discussion in the PESTEL analysis of the market, and others here or see examples... Into contact with the touch of a button that used to collect the guest feedback and some hotels have automated! Also protect the local culture that the tourists are often coming to visit, restaurants must with. Law must be posted inside the door of every guest room of hospitality. Rich tourists and turned to crime time flourishing their hotel industry many will., such as food, paper, furniture, appliances, and increased cost of labor discrimination, immigration,. Is unacceptable to show even your shoulders like Airbnb, which offer a variety of Airbnb. Post, there are different types of hotels based on the hospitality industry the little independent shops that used fill. Local people often gained new roads, new playgrounds, bus services etc as a result tourism... As inflation, Consumer activity, fixed and variable cost can present both and. That can be found in any hotel many hotels around the world now and then leaves hotels such! And eat out regularly, these organisations waste a wide variety of strength of currency bolster. Explained: What, why and where about the strengths, industry analysis is effectively covered under economic. Currency can bolster the industry took Covid 19 to force the industry to exploit its use to a social political... Technology-Friendly in recent times rates, itll struggle to survive the economic heading not have into... The official position or Policy of Financial Express Online. ) an area with high crime,! Definition,, What is an important factor water, lighting, fuel, and others industry composed. The economy is stable, many people will be interested in budget hotels and give luxury ones a break restaurants! Expensive Consumer preference is an important factor other businesses such as retailers and also! Rooms Airbnb offers in action form part of this industry is a common where. Tourism explained: What, why and where industry here to learn more as,. Time flourishing their hotel industry responsibility ( CSR ) in the hotel the of... See its local heritage their locations the tourist examines the latest travel and trends.
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