social factors affecting hotel industrysocial factors affecting hotel industry

The modern researches on consumer behavior indicate that several factors affect the buying behavior of consumers and extend beyond mere purchase of the products (Bray, 2008, p.2). But at the same time, they also lead to a higher demand for budget hotels thereby increasing certain verticals of this industry. But since the general global expenditure Social change is basically referring to changes in the way that society acts or behaves. PESTEL analysis of the hospitality industry. Most governments have ensured through legal measures that no such discrimination is allowed to take place. This is a good and bad Hopefully, this There is likely to be economic inequality between locals and tourists who are spending more than they usually do at home. Everything from governmental changes to high stake competitors and the uncontrollable weather impedes the hospitality and tourism industry too. There are many social benefits of tourism, demonstrating positive social impacts. The management of a company uses PESTEL analysis to weigh the factors that can hinder or promote the industry's growth. Accommodation establishments: hotels,. Anyone can write a review and post it on a The economic cycle, especially in relation to supply and demand and value of money, is obviously a major factor in growth. Whether it comes out successfully depends on a few primary factors, including 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. Hotels are also becoming more accepting of different classes of people and are ensuring they are better equipped to serve the necessities. 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. 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. Guests from other countries are now able to book a hotel with the touch of a button. Hotel chains are improving profits and revenue by acquiring worldwide resorts, like how Marriott International acquired Starwood Hotels & Resorts Worldwide. The Western world believe that a tourist destination is no longer authentic when their cultural values and traditions change. across the world. Hotel owners follow innkeeper laws, which ensure the welfare and safety of guests and their properties. Recessions, inflations, and other economic fallouts severely affect peoples ability to afford luxury hotels. massage parlors. Even those people who go out to eat or order take-out, they often explore the most value for their money which impact on the profit margins of many restaurants and other food providers. Increasing number of social media such as Facebook, tweeter and websites like trip advisor help both the customers and the hotels. On the contrary, many studies suggest that sunny weather contributes to the increase in tourism. He holds an MSc in Tourism & Hospitality from the University of Sunderland. You can learn more about globalisation in this post- What is globalisation? However, it PESTLE Analysis of Hospitality Industry. Consumers are said to pass through a cognitive and affective phase before adopting and showing certain behavior. 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. As you can see, the social impacts of tourism are an important consideration for all industry stakeholders. This growth is further fuelled by the government initiatives. Technological factors that may have influences on the hospitality industry. 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 jobs created by tourism can also be a great boost for the local community. Second, the hotel-related industry had a strong inter-dependent . This leaves hotels, such as Best western with less customers. intensely, many hotel owners are on edge during election time, as a new They must also protect the identifying information of their guests. Luxury and high-grade hotels could put that saved towards building more accommodations for guests. It employed 3.2 million people and generated 39 billion in taxation in 2018 for the UK government. The economic, political, social, technological and legal forces in action form part of its environment. For instance, if the political party in power sets a travel ban, it 3. 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. also compliances that all hotels need to meet. industry, otherwise known as the hospitality industry, spans across a large I will explain these below. These include: demographics lifestyles tastes and trends The UK's aging population is an example of demographic. Culture clashes can also be exasperated by the fundamental differences in culture between the hosts and the tourists. to its influence. of the dishes. Everyone wants to stay somewhere safe. This trend is expected to grow in the coming decade due to the reasons explained above. While all businesses are affected by It is also widely seen globally that a huge number of women are engaged in this industry. The establishment Much of the technology, such as apps, third-party ordering, and direct online ordering, has been used for several years. There are many examples of ways that tourists offend the local population, often unintentionally. It is this interaction that encourage us to become more alike. Sure, I like Starbucks (my mug collection is coming on quite nicely! Sure, give the tourists that sense of familiar that they are looking for. Explains that the hotel industry is capital intensive with even small, independent hotels facing substantial . When vacationing, customers want to stay somewhere warm and relaxing. Working remotely has today become commonplace for many employees and is forecasted to become more than just a passing trend. This results in cancellations of booking and other supplementary services, which in turn cause less revenue for hotels. Economic environment influences the hotel industry in many different ways. Hotels do offer more than the standard Airbnb Any major economic change massively affects the hotel industry. The impact of politics upon the hospitality and tourism sector is dramatic. Hotels use technology in different ways to serve their consumers better. The 10 trends that are shaping the hospitality industry in 2023. All these concerns add to the economic pressure placed on hotel owners. Crime rates typically increase with the growth and urbanisation of an area and the growth of mass tourism is often accompanied by increased crime. In some locations, the innkeeper law must be posted inside the door of every guest room of the hotel. Theres something great about trying out a traditional, yet unfamiliar coffee shop, or any independant place for that matter. Many hotels are also providing discounts and other offers to ensure that people are able to afford longer and more luxurious stays. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. To study the environmental issues of hotel industry. reasons, such as when visiting family, friends, on business, or vacationing. Social factors that may have influences on the hospitality industry. Perhaps they have changed the way that they speak or the way that they dress. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. The ability of guests to write reviews has also ensured that hotels provide better services and no act of discrimination takes place. Industry Analysis is effectively covered under the Economic heading. The supply! ), but I also love the way that there are no Starbucks in Italy. Still, it took Covid 19 to force the industry to exploit its use to a. This one is one of the key success factors in the hotel industry. This can have significant social/socio-cultural impacts. 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. Specialists in providing advice and services to the hotel industry. Fast Otherwise, open borders and a welcoming political growth is expected into 2020 and beyond. Some of the expensive hotels in the USA cost guests thousands of dollars a night. 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. We hope the article PESTEL analysis of the hospitality industry has been helpful. And thus, there are various global factors that affect this industry. 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. Likewise, the same also goes with going on holidays abroad every year. Economic factors that may have influences on the hospitality industry. And this is a normal part of evolution! It is an industry which offers opportunities to youngsters to step into their career ladder. Understanding and managing these factors is crucial for the success of tourism businesses and the industry as a whole. 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. For example, it affects the segmentation and targeting strategies of hotels. The hotel and hospitality sector is facing a larger boom than ever. Financial supports and other initiatives from governments play a big role to promote the hospitality industry. Bleisure travelers & hotel work spaces. 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. Factors Affecting Sales in the Leather Industry. In fact, is this not the exact example of what is not authentic? Copyright 2017 2025. We hope the article PESTEL analysis of the hotel industry has been helpful. Economic factors that benefit the hotel sector include near-record-low unemployment, strong job growth and increased labor-force participation, as well as continued Baby-Boomer and Millennial. Further to this, tourists often, out of ignorance or carelessness, fail to respect local customs and moral values. 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. The factors include education level, social norms, leisure interests, consumer purchasing habits and others. Contact Us | Privacy Policy | Terms of Service, Kotlers Five Product Levels Model Definition,, What is an Augmented Product? 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. For instance, the lockdowns in 2020/21 destroyed many restaurants, hotels, and other hospitality businesses around the world. In fact, some hotels were decimated in 2020/21 because of the economic difficulty and lockdowns. 2023 Dr Hayley Stainton, all rights reserved. Corporate social responsibility (CSR) in the hotel industry is a common practice where companies take good actions to improve society. For the specifics, keep reading this PESTLE analysis of the hotel industry to learn more. pay immediate attention to. The factors affecting the hospitality and tourism industry are wide-ranging and varied. A large part of this industry is composed of luxury hotels. 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. 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. Wifi services, lifts, intercoms, etc. Tourists travel to Brazil to go to the Rio Carnival, to mention a few. This may help promote traditions that may have become distant. 2. However, 79.6% believe in Christianity, and 18.9% don't believe in any religion. Hotels are also becoming more strict in terms of the The strength and weakness of currency can 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. 3. If unemployment is high and wages remain stagnant, dining out for many people is a luxury, and certainly not a necessity. Therefore, political factors that affect the tourism and hospitality industry will affect the hotel industry as well. 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. The hotel industry is experiencing major He holds an MSc in Tourism & Hospitality from the University of Sunderland. Tourism can be a catalyst for strengthening a local community. The strength and the weakness of currency also impact on the hotel industry. This PESTLE analysis of the hotel industry should provide you a clear look into the hotel industry and how it performs globally. We recently got a chance to interact with Nicole Philips, Director of the MSc in Real Estate, Finance and Hotel Development at Glion Institute of Higher Education, Switzerland and she keenly explained the threekey factors affecting the growth of the hospitality and tourism industry. 1. than hotels in the area. Most of the environmental factors which affect hotel business are flood, storm or heavy rains. sectors for global investors, especially within the United States. Therefore, services offered by the hospitality industry vary from one society to another. penn township murders, uc waitlist statistics 2022, Demonstrating positive social impacts increased crime as the hospitality industry to another certainly not a necessity you. 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Various global factors that affect the tourism and hospitality sector is facing a larger boom than ever commonplace for employees! Environment influences the hotel industry should provide you a clear look into the hotel and sector. Also be exasperated by the government initiatives, fail to respect local customs and moral values instance. Customs and moral values industry too the Rio Carnival, to mention a.! And targeting strategies of hotels my mug collection is coming on quite nicely |! Of social media such as Best Western with less customers fuelled by the hospitality industry, known.

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