It is not only crucial towards the tourism industry Copyright 2017 2025. Traveling industry. These are two examples of cultures which have remained unchanged for the sole purpose of tourism. These factors are outside the influence of the company (Lindbald, 2014). It is for this reason that many destinations will make every effort to preserve its heritage. Along similar lines to globalisation is the loss of authenticity that often results from tourism. Do you want an authentic squat toilet in your hotel bathroom or would you rather use a Western toilet? The factors include education level, social norms, leisure interests, consumer purchasing habits and others. To study the best practices of sustainability in hotel industry. Airbnb (2020) Make the most of the growing demand for longer stays, available at: https://www.airbnb.co.uk/resources/hosting-homes/a/make-the-most-of-the-growing-demand-for-longer-stays-263 (accessed 22 April 2021), BBC (2020) Marriott Hotels fined 18.4m for data breach that hit millions, available at: https://www.bbc.co.uk/news/technology-54748843 (accessed 25 April 2021), Condor Ferries Ltd (2021) Hotel industry statistics 2020/21, available at: https://www.condorferries.co.uk/hotel-industry-statistics (accessed 24 April 2021), Style, T. (2019) Where will the UKs new 130,000 hotel rooms come from?, available at: https://www.savills.co.uk/blog/article/288955/commercial-property/where-will-the-uk-s-new-130-000-hotel-rooms-come-from-.aspx (accessed 24 April 2021). The factors affecting the hospitality and tourism industry are wide-ranging and varied. This results in cancellations of booking and other supplementary services, which in turn cause less revenue for hotels. Hilton Hotels PESTEL Analysis. Are HNIs buying luxury properties amidst growing inflation and rising interest rates. Because of social media, the news is available and updated 24/7. Of course, some countries may still experience some local impacts due to factors such as changes to employment markets and consumer travelling behaviours but generally when economic conditions are favourable people want to travel. Lastly, gambling is a common occurrence as a result of tourism. State of the hospitality sector. concerns. Due to lockdowns in 2020/21 many restaurants around the world were closed, and many had to rely on home delivery services only. If a 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. Tourism is, at its core, an interactive service. After a period of steady improvement, travel and hospitality growth was slowed by weakening financial confidence in the final months of 2022. for centuries. Just a little something to think about. Globalisation is inevitable in the tourism industry because of the interaction between tourists and hosts, which typically come from different geographic and cultural backgrounds. 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. And having worked in the sector for over 25 years including 16 years asVP International Hotel Development Planning at Marriott International there are three factors that, in my experience, will generally affect the growthof the industry.. decision and a country loses the vast majority of its economy. Technology has greatly benefitted the hospitality industry. Where tourism has grown exponentially many different positive and negative impacts have been noted, and the greater the dependence on tourism the community has, the more inclined locals and the local tourist industry are to change local traditions and lifestyles to adapt to tourists' needs. 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. Globalisation is the way in which the world is becoming increasingly connected. However, under-tapped opportunities and pent-up demand still exist. Economic environment influences the hotel industry in many different ways. Wifi services, lifts, intercoms, etc. When we travel, most tourists do want a sense of familiar. Many tourists will visit the destination especially to see its local heritage. Recessions, inflations, and other economic fallouts severely affect peoples ability to afford luxury hotels. range of service sectors. Think about it. 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). Or should we let them grow and change, just as we do? Specialists in providing advice and services to the hotel industry. Most governments have ensured through legal measures that no such discrimination is allowed to take place. laws among others. These factors play a vital role, especially in monsoon season. To me, however, this begs the question- is it actually authentic? Most of the environmental factors which affect hotel business are flood, storm or heavy rains. The management of a company uses PESTEL analysis to weigh the factors that can hinder or promote the industry's growth. I am going to explain how different factors can affect the industry as in positive as in negative way. You can quickly 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 You can learn more about what is authenticity in tourism here or see some examples of staged authenticity in this post. scale is on a rise more people are being able to travel and make use of the industry, otherwise known as the hospitality industry, spans across a large activists to ensure a minimal carbon footprint. This is a huge problem However, issues such as political strife and environmental crisis pose a serious threat to its growth. The hotel owners/managers should calculate the energy usage seriously and perhaps use smart technologies to reduce it. According to Moreno (2021) just one week of lockdown cost the UK alone $412 million in lost spending on snacks and non-alcoholic drinks. Millions of jobs were lost, and well known brands ran into losses. Hospitality (accommodation and food activities) has been one of the sectors most affected by lockdowns and government restrictions throughout the coronavirus (COVID-19) pandemic. It represents 10% of the UK employment, 6% of businesses, and 5% of GDP (UK Hospitality, 2021). 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. Preserving Local Culture Leave your comments below. The analysis is presented below: Political Environment. 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There are different categories of business in the hospitality industry such as accommodation, food and beverage, travel and tourism, and entertainment. This can provide a great boost to their quality of life and is a great example of a positive social impact of tourism. governments are still carrying out policies that benefit their 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. Aside from pandemic protocols and travel restrictions, other factors expected to affect hotel performance in 2022 include: Staffing shortages. The State of Hospitality 2022highlights the current employment and skills shortages in the sector and initiatives in place to address these gaps. For instance, if the U.S. or the UK governments impose travel bans, it will hurt the hotel industry immediately as demand for accommodation from tourists will be very low or none. However, it is historically proven that the hospitality industry bounces back very swiftly after being damaged by wars and other political instabilities. Background of Restaurant Industry. At Marriott International, I supported the expansion of the company in the Europe, Middle East and Africa region. prostitution and sex tourism. Such operations in Canada, Europe and America are very costly, but they're affordable in the local Thai market. The hotel industry contributes trillions of dollars to the global economy. Almost all of them are fitted with CCTV cameras to provide security and other features that make the guests stay more comfortable. Recessions, inflations, and other economic fallouts severely affect people's ability to afford luxury hotels. 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. For example, if international For instance, restaurants must comply with food hygiene standards though these standards may vary from one country to another. 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. Social factors play a major role in influencing the hospitality industry. are worthy will pay social media influencers to write about it. The economic cycle, especially in relation to supply and demand and value of money, is obviously a major factor in growth. All rights reserved LCHW. Many destinations will make a conserved effort to preserve and protect the local culture. hotel industry to welcome more foreign guests and expand their economy. The establishment Copyright 2017 2025. Hotel Hilton can better formulate a strategy which could convert potential threats into new opportunities Think about this. 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! 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. Here are the top 6 management issues in the hospitality industry: The Constantly Changing Expectations of Customers. In one way, this is great! 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. Security breaches and turbulences affect many hotels around the world now and then. Legal factors that may impact on the hotel industry. The last of the social impacts of tourism that I will discuss is crime, gambling and moral behaviour. government; everything from potential tax reform to travel bans can cause the 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. Hotels consume a lot of water, electricity, and gas and contribute to the shortage of these resources. And this is a normal part of evolution! sectors for global investors, especially within the United States. I have seen this myself in many places including The Gambia and Thailand. Some countries have severe weather conditions in certain times of the year which affect the demand for hotel stays. Developing countries must concentrate on growing their budget cheaper than the average hotel room. in asia, many teenagers and young adults follow the fashion trends of music icons in korean pop culture. Social factors that may impact on the hotel industry Social environment is the next element of focus to in the PESTLE analysis of the hotel industry. While all businesses are affected by Other relevant articles for you are: 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. Political factors that may have influences on the hospitality industry. This can vary from crowds behaviour and use of drugs along with crime related activities. Tourists travel to Brazil to go to the Rio Carnival, to mention a few. According to Eurostat (cited in Hotrec, 2018) the hospitality industry created 1.6 million jobs in Europe alone between 2013 and 2016. Pestle Analysis of Hilton Hotel. It is the local culture that the tourists are often coming to visit. As I have demonstrated in this post, there are many social impacts of tourism. The hotel and hospitality sector is facing a larger boom than ever. The supply! Social media, like Facebook, and mobile apps are the most prominent tools hotel owners can use, but must also be wary of. They have learnt to speak English and to eat Western food. They touch on areas such as business and financial analytics, mergers and acquisitions, portfolio valuations and private equity. luxury hotels, boutique hotels, and budget hotels. Check risks, rewards for both, Xiaomi 13 series, Watch S1 Pro, Buds 4 Pro global launch today: How to watch live stream and what to expect. On the other hand, internal factors are factors that occur . 7. Hotels and restaurants put increased pressure on the environment as they have massive needs for water, lighting, fuel, and others. Social Factors: Following are the social factors impacting Hilton PESTLE Analysis: Hilton hotels brand is very well known among international visitors. but it also helps travelers within a country. 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). Ethical considerations would typically be included in the Social and/or Political areas, depending . Purpose of the study The purpose of this study is as follows: 1. Tailoring The hotel industry has existed Are you happy to eat rice and curry for breakfast as the locals would do or do you want your cornflakes? But as their maturity level increases, so, too, does their ability to impact the hospitality sector. It is also widely seen globally that a huge number of women are engaged in this industry. Take a look at the likes of the long neck tribe in Thailand or the Maasai Tribe in Africa. 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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. Power your distribution, marketing and revenue strategy with free access to key booking trends and industry best practices. Political and Security challenges. Likewise, hotels in the UK must comply with the UK GDPR. Environmental factors that may have influences on the hospitality industry. Hotels do offer more than the standard Airbnb On the contrary, when the economy is stable, many people are likely to go on holidays, and eat out regularly. Hotel owners follow innkeeper laws, which ensure the welfare and safety of guests and their properties. and conveniently book your room through an app and its often less expensive Various international hotel chains are shifting towards more Geert Hofstede conducted a large scale research project into national cultural differences across subsidiaries of a multinational corporation in over 116,000 people in 50 countries and three regions. But at the same time, they also lead to a higher demand for budget hotels thereby increasing certain verticals of this industry. The finding of the study reveals a negative economic and social impact on the tourism and hospitality industry of Oman due to the COVID-19 outbreak. This helps them reduce their advertising costs and interact with the customers in real time. Many of them have already come up with additional services such as gym, restaurant, and massage parlour that many youngsters like. 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The Europe, Middle East and Africa region million jobs in Europe between! On the hospitality industry cultures which have remained unchanged for the sole purpose of the in... Come up with additional services such as accommodation, food and beverage, travel and tourism industry Copyright 2025. A common occurrence as a result of tourism, it is for this reason that many youngsters.! Afford luxury hotels gambling is a great boost to their quality of life is... Impacting Hilton PESTLE Analysis: Hilton hotels brand is very well known brands ran into.. Opportunities and threats for in the tourism industry Copyright 2017 2025 formulate a strategy which could convert threats. To a higher demand for budget hotels icons in korean pop culture verticals of industry... Distribution, marketing and revenue strategy with free access to key booking trends and industry best practices of in. 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