Overall, our findings show that most of the . concerns. Hotel owners follow innkeeper laws, which ensure the welfare and safety of guests and their properties. For instance, the lockdowns in 2020/21 destroyed many restaurants, hotels, and other hospitality businesses around the world. Accommodation establishments: hotels,. Read also: Business tourism explained: What, why and where. Traditionally hospitality and tourism has not always lead the way and innovated. However, some social factors impact on the hospitality industry badly. There are many social benefits of tourism, demonstrating positive social impacts. I also hope that it has encouraged some deeper thinking with regards to issues such as globalisation, authenticity and standardisation. Perhaps they have changed the way that they speak or the way that they dress. The management of a company uses PESTEL analysis to weigh the factors that can hinder or promote the industry's growth. Take a look at the likes of the long neck tribe in Thailand or the Maasai Tribe in Africa. This one is one of the key success factors in the hotel industry. room. President with new ideals can swiftly impact the hotel industry, and overthrow Tourists travel to Brazil to go to the Rio Carnival, to mention a few. The economic cycle, especially in relation to supply and demand and value of money, is obviously a major factor in growth. The economic, political, social, technological and legal forces in action form part of its environment. To recommend suggestions to overcome the environmental issues regards to hotel sector. 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Some destinations will encourage local cultures and arts to be revitalised. hotel is near an area with high crime rates, itll struggle to survive. of the dishes. Likewise, other businesses such as retailers and pharmacies also benefit from the hospitality industry. So is it right that we should try to preserve the culture of an area for the purposes of tourism? and write up an honest post about their experience. I certainly felt this was the way when I went to the Running of the Bulls festival in Pamplona, Spain. This is often an example of careful tourism planningand sustainable tourism management. Tourism can see rise to many commercial business, which can be a positive social impact of tourism. SiteMinder's Hotel Booking Trends for 2023 . Working remotely has today become commonplace for many employees and is forecasted to become more than just a passing trend. If a Political stability is the key to the success of any industries and it is . 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 Local economies greatly and directly benefit from the hospitality industry when domestic and international tourists spend money in restaurants, hotels, transports, and entertainment spots. We hope the article PESTEL analysis of the hotel industry has been helpful. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. As you can see, the social impacts of tourism are an important consideration for all industry stakeholders. Political factors - both big and small 'p' political forces and influences that may affect the performance of, . Download Financial Express App for latest business news. 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. Here are the top 6 management issues in the hospitality industry: The Constantly Changing Expectations of Customers. world, different languages and fare of hotel etc are the well known factors which affect the tourism industry positively and negatively in the world. It was a similar picture during the recession. 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. Many people believe globalisation to be a bad thing. Guests will appreciate offers tailored to them, which will encourage them to come back again in the future. However, under-tapped opportunities and pent-up demand still exist. 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. government; everything from potential tax reform to travel bans can cause the 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. 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). The hotel takes advantages by utilising expertise and competencies of human resources to ensure maximum productivity. Much of the technology, such as apps, third-party ordering, and direct online ordering, has been used for several years. Hospitality is one of the biggest investment Specialists in providing advice and services to the hotel industry. Technological: The technological factors have emerged to be the facilitators of demand for the tourism industry in the 21st century. competition with corporations like Airbnb, which offer a variety of rooms for In the UK, hoteliers must comply with the Gas Safety (Installation and Use) Regulations 1998 to protect the welfare of their guests. The role of education and training providers to support these issues is therefore significant. Hilton Hotels PESTEL Analysis. Or show the sole of your feet to a Thai person? Reviews This industry has witnessed a surge of substantial growth over the last decade since the end of the financial crisis of 2007/8. Hotel guests stay in hotels for a variety of He holds an MSc in Tourism & Hospitality from the University of Sunderland. PESTLE Analysis of Hospitality Industry. When vacationing, customers want to stay somewhere warm and relaxing. than hotels in the area. ), but I also love the way that there are no Starbucks in Italy. (The author is a well-known travel writer. Various international hotel chains are shifting towards more This isnt something hotel owners can control, but However, it is historically proven that the hospitality industry bounces back very swiftly after being damaged by wars and other political instabilities. 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. Similarly, technology is used to collect the guest feedback and some hotels have already automated guest interactions throughout their stay. 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. Everything from governmental changes to high stake competitors and the uncontrollable weather impedes the hospitality and tourism industry too. Tailoring Consumer preference is an important factor. There are many examples throughout the world where local populations have changed because of tourism. Security breaches and turbulences affect many hotels around the world now and then. 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. Another thing the government controls are taxes. The Tourist like some things to be standardised (the toilet, their breakfast, their drinks, the language spoken etc), but others to be different (dinner options, music, weather, tourist attractions etc). Social part of the PEST is split into environmental factors too as those have a significant role in the strategic management these days. laws among others. The hotel industry contributes to the country's economy because of foreign currencies. As these modes of transport are used more often, their impact on the planet increases. This helps to enhance the community spirit as people tend to have more disposable income as a result. 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. Or should we let them grow and change, just as we do? Not only do these hotels need to have the technology that can counter such environmental effects, but they also face a lack of demand due to the inability of travelers to withstand such conditions. industry, otherwise known as the hospitality industry, spans across a large nature helps the growth of 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. There are different categories of business in the hospitality industry such as accommodation, food and beverage, travel and tourism, and entertainment. 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. They must also protect the identifying information of their guests. Although COVID-19 really spelled doom and forced the shutdown of hospitality and tourism overnight, the industry should always have a longer-term eye on growth which helps it to mitigate short-term fluctuations in the market. All Rights Reserved. But a recent factor that has posed as a threat to this industry is terrorist There is likely to be economic inequality between locals and tourists who are spending more than they usually do at home. Hotel industry has to take proper measures for such factors and taking control over it on time. There are International Marketing 4 factors. Economic factors that may impact on the hotel industry. A large part of this industry is composed of luxury hotels. Likewise, many people work in the industry for a short period and then move to another, creating high labour turnover for many hospitality organisations. 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. Customers can now book their holidays and restaurant tables online. Known by its initials, F&B is the largest segment of the hospitality industry and is estimated to provide around half of all meals eaten in the U.S. today. And globalisation helps us to get that! sharing news thanks to the internet. What it needs is smart people, for talent to be ahead of the curve, and leaders who come up with new ideas. If unemployment is high and wages remain stagnant, dining out for many people is a luxury, and certainly not a necessity. Social factors that may have influences on the hospitality industry Social environment is the next environment to discuss in the PESTLE analysis of the hospitality industry. It goes through economic cycles first and comes out first. The community atmosphere and vibe were just fantastic! Any major economic change massively affects the hotel industry. The State of Hospitality 2022. includes some valuable analysis of contextual economic and financial data around spend, growth, resilience, investment and emerging jobs. blog or share it on social media. Foreign Where a forward-thinking business strategy, and supporting operational roles are in place and done well, hospitality and tourism will generally ride the wave. This may help promote traditions that may have become distant. Recessions and other economic difficulties impact on peoples selection of hotels. Likewise, staycations can also be affected by it badly. The supply! 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. Learn about CSR in the hospitality industry and explore its . PESTEL analysis of Poland (Poland country profile), https://www.kantar.com/inspiration/fmcg/lockdown-is-eating-away-food-takeaway-and-restaurant-industry. Choosing a spot with low crime is crucial for all hotel owners, otherwise, There are other social factors too that affect the global hospitality industry. Approximately 44 million people are populating Argentina, and over 96% are European descendants. Millions of jobs were lost, and well known brands ran into losses. economic changes, the hotel industry is one of the most susceptible You may also like reading PESTEL analysis of the aviation (airline) industry. unemployment rates, job growth, and travel spent. Anyone can write a review and post it on a strength of currency can bolster the industry. In the United States, should there be a tax reform in which hotel owners pay lower taxes, it could improve the industry as a whole. This is represented in Doxeys Irritation Index, as shown below. It is also widely seen globally that a huge number of women are engaged in this industry. Firstly, we need to understand what is meant by the term social impacts of tourism. BUT, I cant help but wonder if this is always natural? Hotel finance is affected by various social factors like consumer lifestyle, consumer demographics, population growth rate, culture, gender ratio, etc. On the contrary, a welcoming political gesture helps the growth of the hotel industry. A simple explanation, The 3 types of travel andtourismorganisations, 150 types oftourism! This detailed PESTEL analysis of the hospitality industry aims to examine some of the macro factors that have impacts on the global hospitality industry. 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. Travel websites have made it easier for people to price shop hotels. Copyright 2017 2025. In addition to data protection laws, hotels need to comply with many other rules and regulations. This results in cancellations of booking and other supplementary services, which in turn cause less revenue for hotels. In Thailand, many workers have exchanged their traditional work of plowing the fields to work in the cities, in the tourism industry. Purpose of the study The purpose of this study is as follows: 1. Otherwise, open borders and a welcoming political The 10 trends that are shaping the hospitality industry in 2023. This added to the rising expenditure capabilities is ensuring that a wider class of people is able to use the hotel industry. Many workers have exchanged their traditional work of plowing the fields to work the... 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