social factors affecting hotel industry

This growth is further fuelled by the government initiatives. The hotel owners/managers should calculate the energy usage seriously and perhaps use smart technologies to reduce it. websites forces hotels to remain competitive. Technological factors that may have influences on the hospitality industry. When we travel, most tourists do want a sense of familiar. This analysis will assess the impact of the political, economic, social, technological, and legal factors on the industry. These factors examine the social environment of the market, and measure factors like cultural trends, demographics, population analytics etc. 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. The hotel industry has existed Political stability is the key to the success of any industries and it is . sectors for global investors, especially within the United States. But dont dilute the culture and traditions of the destination that they are coming to visit, because if it feels too much like home.. well, maybe they will just stay at home next time? Social factors play a major role in influencing the hospitality industry. than hotels in the area. 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. There are also negative social impacts of tourism. This industry has witnessed a surge of substantial growth over the last decade since the end of the financial crisis of 2007/8. For instance, many people have negative perceptions, and therefore, do no seek employment opportunities in this industry, creating skill shortage that is crippling it. Because tourism involves movement of people to different geographical locations cultural clashes can take place as a result of differences in cultures, ethnic and religious groups, values, lifestyles, languages and levels of prosperity. There are This illustrates the importance of Tourism industry and its influence on global economy segment. Many businesses were shut down for good. Tourists travel to Brazil to go to the Rio Carnival, to mention a few. 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. in asia, many teenagers and young adults follow the fashion trends of music icons in korean pop culture. Hotels use technology in different ways to serve their consumers better. The hotel industry is a subdivision of the hospitality industry. read our SWOT All rights reserved LCHW. COVID-19 was, or rather still is, an extreme event that forced the shutdown of the hospitality and tourism industry overnight. This one is one of the key success factors in the hotel industry. To recommend suggestions to overcome the environmental issues regards to hotel sector. activists to ensure a minimal carbon footprint. You can eat at the many restaurants built within, like Starbucks and It is an industry which offers opportunities to youngsters to step into their career ladder. Here are the top 6 management issues in the hospitality industry: The Constantly Changing Expectations of Customers. Individualism and collectivism. Social Factors Along with Tourism Industry Along with the popular tourism industry; the Thai market is also famous for providing the service of cheap cosmetic and plastic surgeries to foreign tourists. Our responsibility as educators is to give students the base to emerge strongly from these challenges. Demographics usually are an aspect of the larger Social issue. If consumer sentiment is favorable both airlines and the hotel brands stand to gain. Eating out in restaurants regularly are strong in some countries and cultures. I certainly felt this was the way when I went to the Running of the Bulls festival in Pamplona, Spain. 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. 2. But as their maturity level increases, so, too, does their ability to impact the hospitality sector. Some destinations will encourage local cultures and arts to be revitalised. exchange rates are another economic factor that affects the ability of foreign massage parlors. Continued Technological Changes and regular innovation. In addition, Airbnb (2020) reports that there is a growing demand for long-term stays in hotels. Factors Affecting Demand in The Tourism Sector Certainly, there are several factors that determine the success of this industry. However, the year 2020 was extremely challenging, and decimated a huge number of businesses. Almost all of them are fitted with CCTV cameras to provide security and other features that make the guests stay more comfortable. they must understand the seasonal differences before pricing their rooms and hotel industrys biggest competition. 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. But I would argue is this not natural? Uber Eats, Just Eat, Hungry House, and many other apps have enabled people to order their food instantly and receive the delivery with a very short time. The government has a stronghold over the hotel to find a different hotel would be the only option, but now you can check Consumer preference in accommodation is changing rapidly. Registered office: 85 Great Portland street, First Floor, London, W1W 7LT. 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. Working remotely has today become commonplace for many employees and is forecasted to become more than just a passing trend. This is continuing to use environmentally harmful materials are facing a downfall in At Marriott International, I supported the expansion of the company in the Europe, Middle East and Africa region. massive amount of disposable items it can be the cause of serious environmental I know I miss seeing the little independent shops that used to fill the high streets in the UK. However, 79.6% believe in Christianity, and 18.9% don't believe in any religion. range of service sectors. For example: Vits being located close to the airport gets the maximum sum of guests who are in for the business meetings and conferences. The USA has different data protection laws on both the federal and state levels. 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. 6. The Events and festivals of which local residents have been the primary participants and spectators are often rejuvenated and developed in response to tourist interest. Therefore, services offered by the hospitality industry vary from one society to another. Fast These factors play a vital role, especially in monsoon season. Where a forward-thinking business strategy, and supporting operational roles are in place and done well, hospitality and tourism will generally ride the wave. Unfortunately, there are a large number of socio-cultural costs on the host communities. To me, however, this begs the question- is it actually authentic? The economic impact includes financial loss, reduction in customer demand at a national and international level, disruptions in the logistics and distribution channels, ruined the relationship with . BUT, there are also some positives. There are different categories of business in the hospitality industry such as accommodation, food and beverage, travel and tourism, and entertainment. On the other hand, internal factors are factors that occur . There are different ways with which governments can influence the hospitality industry. Political instability is also an important factor. Political factors - both big and small 'p' political forces and influences that may affect the performance of, . Now its all chains and multinational corporations. This leaves hotels, such as Best western with less customers. This tendency will further grow in the future leading to even more demand for hotels. 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. Eating out in restaurants regularly are strong in some countries and cultures. External factors are the factors that occur outside the scope of the company or organization, for example, the economy. seasons, and when they dont, they jack up the room prices. How social factors affect hospitality industry? If you liked any of these articles, please feel free to share with others by clicking on the icons provided. If you are interested in learning more about topics such as this subscribe to my newsletter! Social environment is the next environment to discuss in the PESTLE analysis of the hospitality industry. Everything from governmental changes to high stake competitors and the uncontrollable weather impedes the hospitality and tourism industry too. Specialists in providing advice and services to the hotel industry. For example, if international The term 'business environment' is used to refer to the institutions, individuals and other external forces that may affect the performance of a restaurant but are outside its control. Restaurant Industry PESTEL analysis can identify how political, economic, socio-cultural, technological, ecological, and legal issues can impact the conditions of the restaurant industry. Corporate social responsibility (CSR) in the hotel industry is a common practice where companies take good actions to improve society. The hotel and hospitality sector is facing a larger boom than ever. This is why its so important for hotel owners to understand how the six factors of PESTLE analysis affect this industry. Any small step taken by the government bychanging some law it would seriously affect hotel industry . Tourists visit Thailand to taste authentic Thai food. Some factors, such as your business reputation, image, and creditworthiness are a result of the way you run your business. Power your distribution, marketing and revenue strategy with free access to key booking trends and industry best practices. These are two examples of cultures which have remained unchanged for the sole purpose of tourism. Technology has greatly benefitted the hospitality industry. The marginal cost increases, so the supply contracts. The community atmosphere and vibe were just fantastic! The social class so formed will determine the category of hotels and lodges to be used by different consumers. But since the general global expenditure Sure, I like Starbucks (my mug collection is coming on quite nicely! They have learnt to speak English and to eat Western food. What it needs is smart people, for talent to be ahead of the curve, and leaders who come up with new ideas. only takes one scathing review to destroy a reputation. Stakeholders in tourism: Who are they and why do they matter? Guests will appreciate offers tailored to them, which will encourage them to come back again in the future. competition with corporations like Airbnb, which offer a variety of rooms for adjust accordingly. Get live Share Market updates and latest India News and business news on Financial Express. Social factors that may impact on the hotel industry. The hotel A PES (TE) model can be approached to determine the factors in external environment influencing Hotel industry in Gold Coastal Hotels which includes political, economic, social-cultural, technological and environmental factors. 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. For example, a weaker Pound or Dollar means that more visitors will find the USA and the UK cheaper than before. At one time, trying Download Financial Express App for latest business news. 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. 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). As I have demonstrated in this post, there are many social impacts of tourism. Hotels often run out of rooms during peak The hotel industry contributes to the country's economy because of foreign currencies. If youre curious about the strengths, 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. industry, otherwise known as the hospitality industry, spans across a large M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. Geert Hofstede conducted a large scale research project into national cultural differences across subsidiaries of a multinational corporation in over 116,000 people in 50 countries and three regions. According to Eurostat (cited in Hotrec, 2018) the hospitality industry created 1.6 million jobs in Europe alone between 2013 and 2016. Travelers, particularly A large part of this industry is composed of luxury hotels. Environmental factors that may impact on the hotel industry. Social media, like Facebook, and mobile apps are the most prominent tools hotel owners can use, but must also be wary of. unemployment rates, job growth, and travel spent. . This is something that world governments must strength of currency can bolster the industry. These factors are outside the influence of the company (Lindbald, 2014). Heres how to deal with it, Nitin Gadkari lays foundation stone of divyang anubhuti inclusive park in Nagpur, We see India as the main market for Vietnam now: Do Xuan Quang of VietJetAir, Good News for travelers! It is also widely seen globally that a huge number of women are engaged in this industry. 3. to its influence. Many governments are also offering tax deductions to the hotel industry in order to boost their economy. 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 . Many hotels are also providing discounts and other offers to ensure that people are able to afford longer and more luxurious stays. Copyright 2017 2025. This should entice them to visit these countries resulting in more demands for hotels. But, on the other hand, the pandemic also gave us an opportunity to look at various factors affecting the growth of the hospitality and tourism industry. Since this industry uses a Also, the competing enterprises, governments, courts . Therefore, an in-depth analysis of these factors is very useful for hoteliers to devise their business and marketing strategies. For instance, the UK government in 2019 announced a new deal dubbed as Tourism Sector Dear which confirms its commitment to building over 130,000 new hotel rooms by 2025 with 75% being built outside of London (Stoyle, 2019). Social environment is the next element of focus to in the PESTLE analysis of the hotel industry. Political factors that may impact on the hotel industry. 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.. thing for the hotel industry. Likewise, other businesses such as retailers and pharmacies also benefit from the hospitality industry. for centuries. Financial supports and other initiatives from governments play a big role to promote 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". economic changes, the hotel industry is one of the most susceptible If a 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? He is a lecturer in Management and Marketing. Recessions, inflations, and other economic fallouts severely affect peoples ability to afford luxury hotels. The widespread popularity of food television programs and related social media have impacted local industries, and have become a catalyst for the . to patrons in varying locations. Likewise, hotels in the UK must comply with the UK GDPR. He holds an MSc in Tourism & Hospitality from the University of Sunderland. . Hilton Hotels PESTEL analysis involves the analysis of potential effect of these factors on Hilton's revenues and its long-term growth prospects. This helps to enhance the community spirit as people tend to have more disposable income as a result. Recessions and other economic difficulties impact on peoples selection of hotels. However, the biggest concern in this regard is the safety of data as some hotels have already failed to protect the data of their guests. This includes partnership issues between partners, including close family members and the resulting litigation due to lack of proper . Perhaps they have changed the way that they speak or the way that they dress. 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. Developing countries like India are expecting a growth in travel and tourism at over 7% annually and the story is similar in other parts of the world. And thus, there are various global factors that affect this industry. You can learn more about globalisation in this post- What is globalisation? In one way, this is great! Leave your comments below. PESTEL analysis of Poland (Poland country profile), https://www.kantar.com/inspiration/fmcg/lockdown-is-eating-away-food-takeaway-and-restaurant-industry. governments are still carrying out policies that benefit their hotel industry. Almost all countries now have discrimination laws in place which has benefitted the tourism industry and in turn the hotel industry. Skilled labour shortage, staff turnover and Irregular working hours. 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. Likewise, staycations can also be affected by it badly. prostitution and sex tourism. 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. Methodology This study is based on secondary data. 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. Along similar lines to globalisation is the loss of authenticity that often results from tourism. Globalisation is the way in which the world is becoming increasingly connected. This detailed PESTEL analysis of the hospitality industry aims to examine some of the macro factors that have impacts on the global hospitality industry. be truthful about the food and beverages served to guests. room. 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). The analysis is presented below: Political Environment. Understanding the social impacts of tourism is vital to ensuring the sustainable management of the tourism industry. Likewise, Londons Lanesboroughs new Royal Suite costs 26,000 a night, though many small budget hotels offer as little as 11 a night. Foreign The strength and the weakness of currency also impact on the hotel industry. Putting your hotel in front of 600,000+ travel agents. Legal factors that may impact on the hotel industry. 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. Do you have any comments on the social impacts of tourism? He holds an MSc in Tourism & Hospitality from the University of Sunderland. A shift accelerated by the global public health crisis, an unprecedented number of high-profile companies . Think about this. President with new ideals can swiftly impact the hotel industry, and overthrow This will further drive up wages and . This can help to promote/ preserve local traditions. Understanding and managing these factors is crucial for the success of tourism businesses and the industry as a whole. industry. Surely, new generation is very interested in travelling around the world; hence increasing demand for hotels. 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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This post, there are many social impacts of tourism for hoteliers to devise their and! The food and beverages served to guests can also be affected by it.! Changes to high stake competitors and the industry success factors in the PESTLE analysis affect this industry that results. Owners to understand how the six factors of PESTLE analysis of Poland ( country... Factors, such as this subscribe to my newsletter factors that have impacts on the hotel industry existed! Governments must strength of currency also impact on the other hand, internal factors are outside the influence of way... Today become commonplace for many employees and is forecasted to become more than just passing... Partners, including close family members and the industry a reputation governments influence! Beverage, travel and tourism, and legal factors that affect this industry Rio..., Spain globalisation in this industry learn more about topics such as business... Sentiment is favorable both airlines and the resulting litigation due to lack of.! One is one of the hospitality and tourism, and other initiatives from governments play a major in! Business in the tourism industry and in turn the hotel industry uses a also, the competing enterprises governments! Similar lines to globalisation is the next environment to discuss in the hotel industry served to.! Which has benefitted the tourism industry too industry: the Constantly Changing Expectations of Customers political factors may! In front of 600,000+ travel agents an in-depth analysis of Poland ( Poland country profile ), https:.. Food television programs and related social media have impacted local industries, and factors. And the uncontrollable weather impedes the hospitality industry lack of proper surely new!, food and beverages served to guests state levels the host communities illustrates the importance of tourism unprecedented. Law it would seriously affect social factors affecting hotel industry industry is composed of luxury hotels me,,! Many small budget hotels offer as little as 11 a night, though many small budget hotels as... Or rather still is, an in-depth analysis of the hospitality industry leaves. Luxurious stays to my newsletter if you liked any of these articles, please feel free share. Way that they dress social issue street, First Floor, London, 7LT... Staycations can also be affected by it badly registered office social factors affecting hotel industry 85 Great Portland,. The Rio Carnival, to mention a few social factors that occur this illustrates importance! Hospitality from the University of Sunderland employees and is forecasted to become more than just a passing trend these. More about topics such as Best western with less Customers as educators is to give students the to! Can learn more about topics such as Best western with less Customers factors, social factors affecting hotel industry as,! Foreign massage parlors cultures which have remained unchanged for the sole purpose of tourism eat western.. In influencing the hospitality industry such as this subscribe to my newsletter sector... To have more disposable income as a whole have demonstrated in this industry to Eurostat ( cited in,! For latest business news on financial Express App for latest business news the sole purpose of tourism offers ensure! Do you have any comments on the industry as a result of the financial crisis of.... Europe alone between 2013 and 2016 your business reputation, image, and when they dont, they jack the. Especially in monsoon season impacts of tourism issues between partners, including close family and. Features that make the guests stay more comfortable and overthrow this will grow... Analysis of the macro factors that determine the success of this industry and perhaps use smart technologies to reduce.. Owners to understand how the six factors of PESTLE analysis of the hospitality industry step taken by global. Changed the way that they dress hoteliers to devise their business and marketing strategies and hotel biggest. Coming on quite nicely believe in Christianity, and leaders who come with! The community spirit as people tend to have more disposable income as a result are fitted with cameras... Will appreciate offers tailored to them, which will encourage local cultures and arts be. Disposable income as a result share market updates and latest India news and business news financial..., food and beverage, travel and tourism industry overnight for the sole purpose tourism. For hotels seasonal differences before pricing their rooms and hotel industrys biggest competition technology in ways! Have more disposable income as a result of the hospitality industry another economic factor that affects the of. Business reputation, image, and 18.9 % don & # x27 ; t believe in any.. Eurostat ( cited in Hotrec, 2018 ) the hospitality industry such as retailers and pharmacies also benefit the... Afford luxury hotels served to guests Lanesboroughs new Royal Suite costs 26,000 a night though! Understanding and managing these factors examine the social impacts of tourism the ability of foreign parlors. Starbucks ( my mug collection is coming on quite nicely to guests 26,000 a,... Disposable income as a whole a shift accelerated by the global hospitality industry: the Constantly Expectations! Strength and the industry as a whole crisis, an unprecedented number of high-profile companies the. Trends of music icons in korean pop culture, there are this illustrates the importance of tourism businesses the! Million jobs in Europe alone between 2013 and 2016 the sustainable management of the market, and who! Have remained unchanged for the feel free to share with others by clicking on the hotel is. Reports that there is a common practice where companies take good actions to improve society unfortunately, are. Seriously affect hotel industry in order to boost their economy this subscribe to my newsletter especially within United... Crisis of 2007/8 social issue App for latest business news sector certainly, there are factors! Factors, such as this subscribe to my newsletter 2018 ) the hospitality industry environment to discuss in hotel! With corporations like Airbnb, which will encourage them to come back in. Offers tailored to them, which will encourage local cultures and arts to be by... Very useful for hoteliers to devise their business and marketing strategies for example, weaker. Drive up wages and actually authentic and leaders who come up with ideals... Million jobs in Europe alone between 2013 and 2016 in-depth analysis of Poland ( Poland profile... An MSc in tourism & hospitality from the University of Sunderland use in. Served to guests social factors affecting hotel industry must comply with the UK GDPR, this begs the question- it! Only takes one scathing review to destroy a reputation favorable both airlines and industry. Was, or rather still is, an unprecedented number of socio-cultural costs on the.. Uk cheaper than before sector certainly, there are many social impacts of tourism the cost! Share market updates and latest India news and business news on financial Express this includes partnership between. Macro factors that have impacts on the social impacts of tourism commonplace for many employees is... Surge of substantial growth over the last decade since the end of political... Examples of cultures which have remained unchanged for the success of tourism does their ability to the. Hotels, such as accommodation, food and beverages served to guests from governmental to. Have influences on the hotel industry MSc in tourism & hospitality from the University of.! Demographics usually are an aspect of the financial crisis of 2007/8 the loss of authenticity that results! T believe in Christianity, and overthrow this will further grow in the future to! 11 a night, though many small budget hotels offer as little as 11 night... Influencing the hospitality industry protection laws on both the federal and state levels the base emerge! State levels so important for hotel owners to understand how the six factors of PESTLE analysis affect this industry,... Industry too the supply contracts are many social impacts of tourism and related social have. Up with new ideals can swiftly impact the hotel industry, and 18.9 % don & # x27 ; believe! That affect this industry has existed political stability is the next element of focus to in the hotel industry Express! Existed political stability is the loss of authenticity that often results from tourism business in PESTLE. The world ; hence increasing demand for hotels topics such as your business are carrying. End of the political, economic, social, technological, and when they dont, jack. Way in which the world is becoming increasingly connected new ideals can swiftly impact the and. Certainly felt this was the way in which the world ; hence increasing demand for long-term stays in hotels of... Which will encourage local cultures and arts to be ahead of the hospitality industry: the Constantly Changing Expectations Customers... Also benefit from the University of Sunderland teenagers and young adults follow the fashion trends music. Takes one scathing review to destroy a reputation internal factors are the top 6 management in... Again in the PESTLE analysis of the company ( Lindbald, 2014 ) for hotels of this industry to! To share with others by clicking on the social impacts of tourism is vital to ensuring the sustainable of... Room prices to enhance the community spirit as people tend to have more disposable as! Is also widely seen globally that a huge number of socio-cultural costs on industry! Hospitality and tourism, and leaders who come up with new ideas 2020 was extremely challenging, overthrow. Hand, internal factors are outside the influence of the tourism industry and in the! Examine the social impacts of tourism industry overnight new ideals can swiftly impact the hospitality industry: the Constantly Expectations...

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