hotel industry to welcome more foreign guests and expand their economy. on blogs can make or break a hotels reputation. Therefore, they come under pressures from governments and NGOs to use them responsibly. On a less philosophical note, another of the negative social impacts of tourism is that it can have significant consequences is culture clashes. hotel industrys biggest competition. The legal environment of a country is extremely crucial to the growth of the hotel industry. Along with that economic factors are split into legal factors for the same previously mentioned reason. Unquestionably, technology is playing a big role in the development of 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. adjust accordingly. 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. Because of social media, the news is available and updated 24/7. Social Factors: Following are the social factors impacting Hilton PESTLE Analysis: Hilton hotels brand is very well known among international visitors. Years ago, hotels only used traditional media (print and broadcast), but now there are new media brought forth via the internet to consider. Booking and Revenue challenges. Labor laws include age and sexual discrimination, immigration enforcement, ADA compliance, and increased cost of labor. 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. Hotel owners follow innkeeper laws, which ensure the welfare and safety of guests and their properties. The economic cycle, especially in relation to supply and demand and value of money, is obviously a major factor in growth. Uncategorized. Financial supports and other initiatives from governments play a big role to promote the hospitality industry. Airbnb is the Many people believe globalisation to be a bad thing. The hotel industry is a subdivision of the hospitality industry. Economic 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. 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. These include safety and health Wifi services, lifts, intercoms, etc. Perhaps they have been introduced to alcohol through the tourism industry or they have become resentful of rich tourists and turned to crime. are some of the most common technological services that can be found in any hotel. Since this industry uses a Environmental factors that may impact on the hotel industry. Similarly, many people prefer private accommodation now-a-days that has created opportunities for companies such as Airbnb. 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. Firstly, we need to understand what is meant by the term social impacts of tourism. Museums, shows and galleries are fantastic way to showcase the local customs and traditions of a destination. for centuries. This will further drive up wages and . The countries that have some of the toughest food safety laws in the world are the UK, the EU, the USA, Singapore, Australia, and Japan. This is why its so important for hotel owners to understand how the six factors of PESTLE analysis affect this industry. This one is one of the key success factors in the hotel industry. They appear not to have changed the way that they dress, they way that they speak or the way that they act in generations, all for the purpose of tourism. Hotels are also changing to embrace the social changes that are currently taking place. This is a good and bad These steps can help you get back, Copyright 2020 Weberience LLC. weaknesses, opportunities, and threats this industry faces, read our SWOT Many governments are also offering tax deductions to the hotel industry in order to boost their economy. This tendency will further grow in the future leading to even more demand for hotels. It was a similar picture during the recession. Local economies greatly and directly benefit from the hospitality industry when domestic and international tourists spend money in restaurants, hotels, transports, and entertainment spots. 2023 Dr Hayley Stainton, all rights reserved. Everyone wants to stay somewhere safe. 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. States will want to visit. I personally think that tourism industry stakeholders should proceed with caution when it comes to standardisation. Our responsibility as educators is to give students the base to emerge strongly from these challenges. Legal factors that may impact on the hotel industry. They have learnt to speak English and to eat Western food. The impact of politics upon the hospitality and tourism sector is dramatic. There is likely to be economic inequality between locals and tourists who are spending more than they usually do at home. We hope the article PESTEL analysis of the hospitality industry has been helpful. There are also negative social impacts of tourism. While all businesses are affected by Likewise, the same also goes with going on holidays abroad every year. Likewise, many people work in the industry for a short period and then move to another, creating high labour turnover for many hospitality organisations. They must also protect the identifying information of their guests. stay at a certain hotel. Our General Mills SWOT Analysis examines internal and external factors that impact the company's operations, What is root cause analysis, the goal, and why is it important? 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. 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). travelers to employ hotel services. Stakeholders in tourism: Who are they and why do they matter? Legal environment is the last topic of discussion in the PESTEL analysis of the hotel industry. Social part of the PEST is split into environmental factors too as those have a significant role in the strategic management these days. Restaurant Industry PESTEL analysis can identify how political, economic, socio-cultural, technological, ecological, and legal issues can impact the conditions of the restaurant industry. Reviews Pestle Analysis of Hilton Hotel. A simple explanation, The 3 types of travel andtourismorganisations, 150 types oftourism! 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. 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. 3. 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. If youre curious about the strengths, Copyright 2017 2025. Now its all chains and multinational corporations. 13 Social impacts of tourism + explanations + examples, Globalisation and the Destruction of Preservation and Heritage, Increase in crime, gambling and moral behaviour, Social impacts of tourism- further reading, What is globalisation? When I travelled to The Gambia I met a local worker (known as a . Or show the sole of your feet to a Thai person? 1. You can learn more about what is authenticity in tourism here or see some examples of staged authenticity in this post. 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. Any major economic change massively affects the hotel industry. After a period of steady improvement, travel and hospitality growth was slowed by weakening financial confidence in the final months of 2022. cheaper than the average hotel room. For Centara Hotels & Resorts, Thailand's leading hotel operator, this balance is at the core of its strategic vision. Recessions and other economic difficulties impact on peoples selection of hotels. But at the same time, they also lead to a higher demand for budget hotels thereby increasing certain verticals of this industry. It is the local culture that the tourists are often coming to visit. The strength and the weakness of currency also impact on the hotel industry. Likewise, hotels in the UK must comply with the UK GDPR. Tourism is, at its core, an interactive service. scale is on a rise more people are being able to travel and make use of the Culture clashes can also be exasperated by the fundamental differences in culture between the hosts and the tourists. 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.. The hotel industry is often the major employer in many developing countries and many hotels are pledging to recruit more young people in the future which is good news for young people, and people with some kind of social disadvantages. 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. 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