Government spending, Unemployment policy, Exchange rates, Consumer confidence. 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. Hopefully, this 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. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. Likewise, these organisations waste a wide variety of things such as food, paper, furniture, appliances, and many more. will grab attention and the hotel chain will gain new customers. According to Moreno (2021) just one week of lockdown cost the UK alone $412 million in lost spending on snacks and non-alcoholic drinks. For instance, regulation of business, real estate development initiatives, taxation policies, and preservation of cultural and historic monuments are some of them (BHR, 2021). However, most of the world is now free for travelers and thus the hotel industry is facing a massive boom. Any major economic change massively affects the hotel industry. Where a forward-thinking business strategy, and supporting operational roles are in place and done well, hospitality and tourism will generally ride the wave. The study reveals as what and how various social factors affects an organisations strategic human resource planning and decision making. Millions of jobs were lost, and well known brands ran into losses. At Marriott International, I supported the expansion of the company in the Europe, Middle East and Africa region. The hotel industry contributes to the country's economy because of foreign currencies. For instance, almost all the hotels now use social media to reach out to their current and potential customers. Growth of casinos and other gambling facilities can encourage not only the tourists to part with their cash, but also the local population. but it also helps travelers within a country. If you enjoyed this article on the social impacts of tourism, I am sure that you will love these too-. The widespread popularity of food television programs and related social media have impacted local industries, and have become a catalyst for the . Eating out in restaurants regularly are strong in some countries and cultures. The hotel industry is a subdivision of the hospitality industry. The hotel takes advantages by utilising expertise and competencies of human resources to ensure maximum productivity. Authenticity is essentially something that is original or unchanged. Consumers are said to pass through a cognitive and affective phase before adopting and showing certain behavior. Likewise, staycations can also be affected by it badly. thing for the hotel industry. This could include putting restrictions in place or limiting tourist numbers, if necessary. government; everything from potential tax reform to travel bans can cause the This is a huge problem Hotels have become more and more technology-friendly in recent times. Technology has greatly benefitted the hospitality industry. stay at a certain hotel. Foreign Read also: Economic leakage in tourism explained. Legal factors that may have influences on the hospitality industry. They must also protect the identifying information of their guests. Factors Affecting Demand in The Tourism Sector Explains how social factors affect and influence buyer behaviour, such as buying products to fit in with a certain social group. biodegradable items to counter the climate crisis. Industry Analysis is effectively covered under the Economic heading. 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. You may also like reading PESTEL analysis of the hospitality industry. 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". Therefore, they come under pressures from governments and NGOs to use them responsibly. Hotel finance is affected by various social factors like consumer lifestyle, consumer demographics, population growth rate, culture, gender ratio, etc. Environmental factors that may impact on the hotel industry. Social Factors Affecting Travel Industry Posted By : admin Tourists visiting a place can have a significant impact on the community they are visiting. These are two examples of cultures which have remained unchanged for the sole purpose of tourism. I know I miss seeing the little independent shops that used to fill the high streets in the UK. The ultimatetourismglossary, 50 fascinating facts about the travel andtourismindustry. intensely, many hotel owners are on edge during election time, as a new Stakeholders in tourism: Who are they and why do they matter? PESTEL analysis of Poland (Poland country profile), https://www.kantar.com/inspiration/fmcg/lockdown-is-eating-away-food-takeaway-and-restaurant-industry. 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. How social factors affect hospitality industry? The industry is also overly reliant on the Reviews For the specifics, keep reading this PESTLE analysis of the hotel industry to learn more. President with new ideals can swiftly impact the hotel industry, and overthrow Legal environment is the last topic of discussion in the PESTEL analysis of the hotel industry. The current generation has shown a strong trend towards traveling. This one is one of the key success factors in the hotel industry. Almost unlimited are the ways in which governments influence the delivery of hospitality and tourism products, whether through regulation of commerce, business and real estate development initiatives, cultural and historic preservation strategies, and taxation policies. 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. unemployment rates, job growth, and travel spent. The factors include education level, social norms, leisure interests, consumer purchasing habits and others. Do you have any comments on the social impacts of tourism? sectors for global investors, especially within the United States. 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 . Everyone wants to stay somewhere safe. Tourists visit Beijing to learn more about the Chinese Dynasties. We hope the article PESTEL analysis of the hotel industry has been helpful. Many businesses were shut down for good. 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. Any incidents close to the hotel can be reported within minutes, shared online by thousands, and have articles written up by media outlets in seconds. Whilst some impacts are positive, most unfortunately are negative impacts. The government has a stronghold over the hotel Surely, new generation is very interested in travelling around the world; hence increasing demand for hotels. Airbnb and likely find something suitable and cheaper. Hotel industry is a sub industry of travel and tourism industry, because it influenced with tourism quite strong. A shift accelerated by the global public health crisis, an unprecedented number of high-profile companies . But a recent factor that has posed as a threat to this industry is terrorist 3. External factors are the factors that occur outside the scope of the company or organization, for example, the economy. The State of Hospitality 2022. includes some valuable analysis of contextual economic and financial data around spend, growth, resilience, investment and emerging jobs. Therefore, an in-depth analysis of these factors is very useful for hoteliers to devise their business and marketing strategies. . 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? Overall, our findings show that most of the . The role of education and training providers to support these issues is therefore significant. 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). Although tourism is not the cause of sexual exploitation, it provides easy access to it e.g. This helps them reduce their advertising costs and interact with the customers in real time. Local economies greatly and directly benefit from the hospitality industry when domestic and international tourists spend money in restaurants, hotels, transports, and entertainment spots. across the world. room. Our responsibility as educators is to give students the base to emerge strongly from these challenges. Skilled labour shortage, staff turnover and Irregular working hours. This also helps them to find out all the necessary information with ease. Likewise, hotels in the UK must comply with the UK GDPR. On the other hand, internal factors are factors that occur . Therefore, political factors that affect the tourism and hospitality industry will affect the hotel industry as well. And globalisation helps us to get that! In this article PESTLE Analysis of the Hotel Industry. Eating out in restaurants regularly are strong in some countries and cultures. In one way, this is great! Booking and Revenue challenges. 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. You can learn more about what is authenticity in tourism here or see some examples of staged authenticity in this post. Are HNIs buying luxury properties amidst growing inflation and rising interest rates. only takes one scathing review to destroy a reputation. The social class so formed will determine the category of hotels and lodges to be used by different consumers. Leave your comments below. Continued Technological Changes and regular innovation. This will help to minimize troubles and team of hotel industry can handle such situation easily. weaknesses, opportunities, and threats this industry faces, read our SWOT The He holds an MSc in Tourism & Hospitality from the University of Sunderland. This is why its so important for hotel owners to understand how the six factors of PESTLE analysis affect this industry. reasons, such as when visiting family, friends, on business, or vacationing. Explains that the hotel industry is capital intensive with even small, independent hotels facing substantial . Hotels use technology in different ways to serve their consumers better. This industry has witnessed a surge of substantial growth over the last decade since the end of the financial crisis of 2007/8. There are also negative social impacts of tourism. This growth is further fuelled by the government initiatives. Consumer preference is an important factor. 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. 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 sharing news thanks to the internet. Most of the environmental factors which affect hotel business are flood, storm or heavy rains. Get live Share Market updates and latest India News and business news on Financial Express. Perhaps they have been introduced to alcohol through the tourism industry or they have become resentful of rich tourists and turned to crime. Social part of the PEST is split into environmental factors too as those have a significant role in the strategic management these days. 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. Many hotels have additional facilities, like pools, a gym, and even BUT, I cant help but wonder if this is always natural? This article shares his insights into the impact of coronavirus on the hotel and leisure market, together with views discussed at the conference. Customers can now book their holidays and restaurant tables online. In areas that are under political strife, the hotel industry performs poorly. During the time of difficulty, many people will be interested in budget hotels and give luxury ones a break. On these sites, they can read reviews and past commentary of previous patrons. Social factors play a major role in influencing the hospitality industry. Many people now prefer private accommodations, hence the rising demand for Airbnb. Restaurant Industry PESTEL analysis can identify how political, economic, socio-cultural, technological, ecological, and legal issues can impact the conditions of the restaurant industry. There are different types of hotels based on the economic circumstance of people e.g. 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. Similarly, technology is used to collect the guest feedback and some hotels have already automated guest interactions throughout their stay. As I have demonstrated in this post, there are many social impacts of tourism. You may also like reading PESTEL analysis of the aviation (airline) industry. , because it influenced with tourism quite strong takes one scathing review to a. Has posed as a threat to this industry has witnessed a surge of substantial growth the... Discussed at the conference millions of jobs were lost, and well known brands ran into losses in... Expansion of the PEST is split into environmental factors which affect hotel business are,... Insights into the impact of coronavirus on the hotel industry as well admin visiting! Of staged authenticity in this post in some countries and cultures working hours, are. Out in restaurants regularly are strong in some countries and cultures ( Poland profile! 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