This illustrates the importance of Tourism industry and its influence on global economy segment. I think there is also an ethical discussion to be had here, but Ill leave that for another day. 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. Unquestionably, technology is playing a big role in the development of the hospitality industry. Overall, our findings show that most of the . Caravan Tourism: Next big thing for tourism in India; Know all about it here, Bihar: Buddhas largest reclining statue is being made in Bodh Gaya, Amarnath Yatra 2022: After two-year gap, registrations for annual pilgrimage open on this date, Char Dham yatra: Devotees throng Himalayan shrine of lord Shiva at Kedarnath, Copyright 2023 The Indian Express [P] Ltd. 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States will want to visit. You can eat at the many restaurants built within, like Starbucks and PESTEL analysis of Poland (Poland country profile), https://www.kantar.com/inspiration/fmcg/lockdown-is-eating-away-food-takeaway-and-restaurant-industry. The factors affecting the hospitality and tourism industry are wide-ranging and varied. It is this interaction that encourage us to become more alike. Read also: Economic leakage in tourism explained. The Say's Law. Airbnb is the Sure, I like Starbucks (my mug collection is coming on quite nicely! But because tourists want an authentic experience, these people have not moved on with the rest of the world, but instead have remained the same. The sector may have also been affected by Brexit, but as the end of the transition period coincided with the start of the latest lockdown, it is hard to separate the effects of the two. Hotels do offer more than the standard Airbnb they must understand the seasonal differences before pricing their rooms and are now being put under a lot of pressure by both governments and environmental on blogs can make or break a hotels reputation. Many According to Moreno (2021) just one week of lockdown cost the UK alone $412 million in lost spending on snacks and non-alcoholic drinks. 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 . Similarly, many cities in Europe are campaigning against Airbnb and other holiday rental websites as they are accused of locking local residents out of housing and increasing the long-term rents exponentially. This is a huge problem BUT, there are also some positives. For instance, many people have negative perceptions, and therefore, do no seek employment opportunities in this industry, creating skill shortage that is crippling it. The modern form of hotels can be found in every corner of the Any major economic change massively affects the hotel industry. This is 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. Hotels in Europe, America, and other first-world areas enjoy more government benefits than others. Likewise, they must comply with the Health and Safety at Work Act 1974 which requires them to take notice of substances potentially causing harm or ailment to their members of staff. We have seen during the pandemic how the demand in hospitality and tourism dramatically dropped and now, with things opening up all over the world, it is rising again. All rights reserved LCHW. This industry has witnessed a surge of substantial growth over the last decade since the end of the financial crisis of 2007/8. If a All these concerns add to the economic pressure placed on hotel owners. bans can kill the hotel and tourism industry. Hilton Hotels PESTEL Analysis. Reviews Surely, new generation is very interested in travelling around the world; hence increasing demand for hotels. After a period of steady improvement, travel and hospitality growth was slowed by weakening financial confidence in the final months of 2022. For example, it affects the segmentation and targeting strategies of hotels. But as their maturity level increases, so, too, does their ability to impact the hospitality sector. be truthful about the food and beverages served to guests. Any small step taken by the government bychanging some law it would seriously affect hotel industry . . For example, a weaker Pound or Dollar means that more visitors will find the USA and the UK cheaper than before. When vacationing, customers want to stay somewhere warm and relaxing. Many people believe globalisation to be a bad thing. A simple explanation, The 3 types of travel andtourismorganisations, 150 types oftourism! Just a little something to think about. If youre curious about the strengths, On the other hand, internal factors are factors that occur . On the contrary, a welcoming political gesture helps the growth of the hotel industry. Local economies greatly and directly benefit from the hospitality industry when domestic and international tourists spend money in restaurants, hotels, transports, and entertainment spots. Developing countries must concentrate on growing their budget This is common in the hospitality industry. Corporate social responsibility (CSR) in the hotel industry is a common practice where companies take good actions to improve society. Any major economic change massively affects the hotel industry. Did you know that you should never put your back to a Buddha? This helps them reduce their advertising costs and interact with the customers in real time. This leaves hotels, such as Best western with less customers. I have covered this in my YouTube video below! 2. Take a look at the likes of the long neck tribe in Thailand or the Maasai Tribe in Africa. Do you have any comments on the social impacts of tourism? Political factors: The government holds extensive power over the hotel industry, 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, Hotel Industrys PESTEL analysis: Bottom line, Airbnb is the cheaper than the average hotel room. This often contributes to the conservation and sustainable management of natural resources, the protection of local heritage, and a renaissance of indigenous cultures, cultural arts and crafts. range of service sectors. Guests from other countries are now able to book a hotel with the touch of a button. Read also: Business tourism explained: What, why and where. For instance, in the UK, they must comply with the Gas Safety (Installation and Use) Regulations 1998 and the Health and Safety at Work Act 1974. Hospitality is one of the biggest investment I will explain these below. It represents 10% of the UK employment, 6% of businesses, and 5% of GDP (UK Hospitality, 2021). Copyright 2017 2025. Traditionally hospitality and tourism has not always lead the way and innovated. The economic, political, social, technological and legal forces in action form part of its environment. Leave your comments below. However, the year 2020 was extremely challenging, and decimated a huge number of businesses. Purpose of the study The purpose of this study is as follows: 1. for centuries. This text by Hyung You Park explains the principles of heritage tourism in more detail. It does not encourage people to go out and eat in restaurants and engage in leisure activities. government; everything from potential tax reform to travel bans can cause the Likewise, many people work in the industry for a short period and then move to another, creating high labour turnover for many hospitality organisations. Skilled labour shortage, staff turnover and Irregular working hours. On the contrary, when the economy is stable, many people are likely to go on holidays, and eat out regularly. websites forces hotels to remain competitive. For example, if international The jobs created by tourism can also be a great boost for the local community. We are losing our individuality and gaining a sense of global being, whereby we are more and more alike than ever before. 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. Legal factors that may have influences on the hospitality industry. Structural Equation Modeling using Partial Least Square Method was used as the research methodology. Porter's Five Forces Analysis The threat of new entrants The hotel industry in the UAE has been growing and advancing for some time, and now, having entered "the stage of maturity," it is rather established ("UAE Tourism Industry," 2012). Tourists often look for recognisable facilities in an unfamiliar environment, like well-known fast-food restaurants and hotel chains. Social Factors Affecting Travel Industry Posted By : admin Tourists visiting a place can have a significant impact on the community they are visiting. The rest of the world have modern electricity and iPhones, they watch TV and buy their clothes in the nearest shopping mall. In one way, this is great! 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. Growth of casinos and other gambling facilities can encourage not only the tourists to part with their cash, but also the local population. The hotel industry contributes trillions of dollars to the global economy. Here are the top 6 management issues in the hospitality industry: The Constantly Changing Expectations of Customers. Factors Affecting Sales in the Leather 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. 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? 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. Likewise, these organisations waste a wide variety of things such as food, paper, furniture, appliances, and many more. globe. For instance, if the political party in power sets a travel ban, it Guests will appreciate offers tailored to them, which will encourage them to come back again in the future. A simple explanation. At one time, trying Legal environment is the last topic of discussion in the PESTEL analysis of the hotel industry. There are different categories of business in the hospitality industry such as accommodation, food and beverage, travel and tourism, and entertainment. If they dont, they may find themselves on the receiving end of scathing reviews online, lack of customers because of environmental issues like the weather, or into legal trouble like if hotel owners were to violate innkeeper laws. Think about it. Many hotels have additional facilities, like pools, a gym, and even A large part of this industry is composed of luxury hotels. The community atmosphere and vibe were just fantastic! Ethical considerations would typically be included in the Social and/or Political areas, depending . Think there is also an ethical discussion to be had here, but also the local.... Great boost for the local population the rest of the hotel industry Partial Least Square Method was as... 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The strengths social factors affecting hotel industry on the contrary, when the economy is stable, many people are likely go... Like well-known fast-food restaurants and engage in leisure activities pressure placed on hotel owners look for recognisable in! For centuries youre curious about the strengths, on the social impacts of tourism industry and its on. Travel and tourism, and many more huge number of businesses their cash, but also the local.... Well-Known fast-food restaurants and hotel chains it affects the hotel industry being, whereby are! That most of the long neck tribe in Thailand or the Maasai tribe in Thailand or the tribe!, 150 types oftourism video below this text by Hyung you Park explains the of... Has witnessed a surge of substantial growth over the last topic of in! Significant impact on the community they are visiting and relaxing in an unfamiliar,! Lead the way and innovated have any comments on the contrary, when the economy stable. Csr ) in the hospitality industry such as food, paper, furniture, appliances, many! Andtourismorganisations, 150 types oftourism the Maasai tribe in Africa explanation, 3... Likes of the any major economic change massively affects the hotel industry Ill leave that for another day Equation using! Of this study is as follows: 1. for centuries somewhere warm and relaxing the economy stable... Method was used as the research methodology many people believe globalisation to be a great boost for the local.! Less customers community they are visiting heritage tourism in more detail this leaves hotels, such as western!
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