This can vary from crowds behaviour and use of drugs along with crime related activities. Technology has greatly benefitted the hospitality industry. It does not encourage people to go out and eat in restaurants and engage in leisure activities. on blogs can make or break a hotels reputation. Perhaps the biggest environmental factor influencing the tourism industry is the pollution created by transportation mediums such as buses, trains, and more so than others airplanes. Tourists often look for recognisable facilities in an unfamiliar environment, like well-known fast-food restaurants and hotel chains. Social factors that may impact on the hotel industry. What it needs is smart people, for talent to be ahead of the curve, and leaders who come up with new ideas. Aside from the economic impacts created by enhanced employment prospects, people with jobs are happier and more social than those without a disposable income. Some factors, such as your business reputation, image, and creditworthiness are a result of the way you run your business. Kedarnath and Badrinath to open doors for public on these dates; Check all details here, Punjab DGP red-flagged Amritpal rise at meet of police chiefs last month, Congress mulls changes in its constitution, tougher rules for top post, Sisodia: Going to CBI today, don't care if I have to stay in jail for few months, Decks cleared for 2 Aussie universities to set up campuses in Gujarat, 28 yrs on, cold case cracked: Odisha man held in Kerala for Gujarat killing, This website follows the DNPAs code of conduct, Reimagining the Howey Test for the digital age of cryptocurrencies, Petrol and Diesel Rate Today, 26 February: Fuel prices steady; Check rates in Delhi, Mumbai, other cities, Crude prices witnessing correction, trend is bearish; go long at current rate, target at Rs 6500/bbl, PMS or mutual funds, which should investors choose? A simple explanation, The 3 types of travel andtourismorganisations, 150 types oftourism! 2. Due to lockdowns in 2020/21 many restaurants around the world were closed, and many had to rely on home delivery services only. 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. The widespread popularity of food television programs and related social media have impacted local industries, and have become a catalyst for the . hotel industrys biggest competition. In Thailand, many workers have exchanged their traditional work of plowing the fields to work in the cities, in the tourism industry. Such operations in Canada, Europe and America are very costly, but they're affordable in the local Thai market. President with new ideals can swiftly impact the hotel industry, and overthrow Tailoring massage parlors. Many hotels have additional facilities, like pools, a gym, and even weather in the local area is the deciding factor for whether someone chooses to Similarly on one side these factors push the tourism industry in the short and long run positively and negatively while on the other side affect the economic growth of the global Some destinations will encourage local cultures and arts to be revitalised. Unfortunately, there are a large number of socio-cultural costs on the host communities. Likewise, many people work in the industry for a short period and then move to another, creating high labour turnover for many hospitality organisations. Source: How does the environment affect the hospitality industry? Accommodation establishments: hotels,. demand. LEGAL FACTORS Legal factors are also important sourceof external impact on Hilton performance and they include any changes in the UK jurisdiction that affect the catering industry in direct and indirect ways. But I would argue is this not natural? strength of currency can bolster the industry. Corporate governance. Most of the environmental factors which affect hotel business are flood, storm or heavy rains. also compliances that all hotels need to meet. Consumer preference is changing rapidly. We hope the article PESTEL analysis of the hospitality industry has been helpful. 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. Labor laws include age and sexual discrimination, immigration enforcement, ADA compliance, and increased cost of labor. Environmental factors that may impact on the hotel 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. This growth is further fuelled by the government initiatives. You may also like reading PESTEL analysis of the aviation (airline) industry. 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. 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. If the spending patterns of customers are favorable, for example the demand for hotel reservations are increasing then this would be a positive effect since revenue would be coming into the industry. The factors affecting the hospitality and tourism industry are wide-ranging and varied. These are just a few examples of the negative social impacts of tourism. 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. Perhaps they have been introduced to alcohol through the tourism industry or they have become resentful of rich tourists and turned to crime. This can have significant social/socio-cultural impacts. Likewise, the same also goes with going on holidays abroad every year. If a Consumer preference is an important factor. This may be in the form of museum exhibitions, in the way that restaurants and shops are decorated and in the entertainment on offer, for example. Other relevant articles for you are: PESTEL analysis of the aviation (airline) industry, 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. And this is a normal part of evolution! identification before allowing a guest to use their facilities. This can cause resentment from the hosts towards the tourists, particularly when they see them wearing expensive jewellery or using plush cameras etc that they know they cant afford themselves. A shift accelerated by the global public health crisis, an unprecedented number of high-profile companies . The hotel industry is experiencing major When I went on the Jungle Book tour on my travels through Goa, the tourists were giving the Goan children who lived in the area sweets. Local people often gained new roads, new sewage systems, new playgrounds, bus services etc as a result of tourism. Recessions and other economic difficulties impact on peoples selection of hotels. Globalisation is the way in which the world is becoming increasingly connected. 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. Where tourism has grown exponentially many different positive and negative impacts have been noted, and the greater the dependence on tourism the community has, the more inclined locals and the local tourist industry are to change local traditions and lifestyles to adapt to tourists' needs. Therefore, political factors that affect the tourism and hospitality industry will affect the hotel industry as well. Political factors that may impact on the hotel industry. to its influence. So is it right that we should try to preserve the culture of an area for the purposes of tourism? Therefore, services offered by the hospitality industry vary from one society to another. Legal factors that may have influences on the hospitality industry. Perhaps they have changed the way that they speak or the way that they dress. 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 Legal factors that may impact on the hotel industry. Read also: Business tourism explained: What, why and where. Leave your comments below. When we travel, most tourists do want a sense of familiar. across the world. intensely, many hotel owners are on edge during election time, as a new Do we want everything to become standardised though? The hotel industry is a subdivision of the hospitality industry. This also helps them to find out all the necessary information with ease. Most governments have ensured through legal measures that no such discrimination is allowed to take place. Learn how to, Our Mayo Clinic SWOT Analysis examines the Strengths, Weaknesses, Opportunities and Threats of one of, Technology is now taking over, and almost all fields are turning most tasks into digital., Schools and colleges should always take proactive steps to guarantee the safety of its students, Cyberattacks can harm your business on many levels. Natural disasters and weather changes, as well as transportation services and consumer protection. It represents 10% of the UK employment, 6% of businesses, and 5% of GDP (UK Hospitality, 2021). 2. This is common in the hospitality industry. 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. Social change is basically referring to changes in the way that society acts or behaves. State of the hospitality sector. Tourists visit Beijing to learn more about the Chinese Dynasties. Another thing the government controls are taxes. For the specifics, keep reading this PESTLE analysis of the hotel industry to learn more. Likewise, the same also goes with going on holidays abroad every year. However, 79.6% believe in Christianity, and 18.9% don't believe in any religion. 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. To study the environmental issues of hotel industry. To recommend suggestions to overcome the environmental issues regards to hotel sector. 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. continuing to use environmentally harmful materials are facing a downfall in 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. Pestle Analysis of Hilton Hotel. Our 2023 industry outlook examines the latest travel and hospitality trends to help your organization recalibrate its business strategy . In fact, some hotels were decimated in 2020/21 because of the economic difficulty and lockdowns. Still, it took Covid 19 to force the industry to exploit its use to a. Second, the hotel-related industry had a strong inter-dependent . Many destinations will make a conserved effort to preserve and protect the local culture. However, data management and security are real tech challenges for this industry. This PESTLE analysis of the hotel industry should provide you a clear look into the hotel industry and how it performs globally. Reviews Increasing number of social media such as Facebook, tweeter and websites like trip advisor help both the customers and the hotels. The hotel industry has existed to find a different hotel would be the only option, but now you can check 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. Countries that have severe weather conditions have a difficult time flourishing their hotel industry. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Hotels in the EU must comply with the GeneralData Protection Regulation(GDPR)as they collect high volumes of personal data from guests. Surely, new generation is very interested in travelling around the world; hence increasing demand for hotels. This means that host-guest interaction is inevitable. I have seen this myself in many places including The Gambia and Thailand. SiteMinder's Hotel Booking Trends for 2023 . In addition to data protection laws, hotels need to comply with many other rules and regulations. The compound annual growth rate for food tourism is expected to increase by 9% between the years 2019-2023 according to a recent report by Technavio, a market research company in the United Kingdom. In one way, this is great! Certainly, there are several factors that determine the success of this industry. It is not fake or reproduced in any way. Hotel Hilton can better formulate a strategy which could convert potential threats into new opportunities Check risks, rewards for both, Xiaomi 13 series, Watch S1 Pro, Buds 4 Pro global launch today: How to watch live stream and what to expect. 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. A simple explanation. Hotels are also becoming more accepting of different classes of people and are ensuring they are better equipped to serve the necessities. It was a similar picture during the recession. Our responsibility as educators is to give students the base to emerge strongly from these challenges. It is the local culture that the tourists are often coming to visit. A large part of this industry is composed of luxury hotels. Factors such as inflation, consumer activity, fixed and variable cost can present both opportunities and threats for in the tourism 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. Copyright 2017 2025. I am going to explain how different factors can affect the industry as in positive as in negative way. It is also widely seen globally that a huge number of women are engaged in this industry. Putting your hotel in front of 600,000+ travel agents. 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. cheaper than the average hotel room. The hotel owners/managers should calculate the energy usage seriously and perhaps use smart technologies to reduce it. Government spending, Unemployment policy, Exchange rates, Consumer confidence. If you enjoyed this article on the social impacts of tourism, I am sure that you will love these too-. prostitution and sex tourism. The Say's Law. Or show the sole of your feet to a Thai person? This can help to promote/ preserve local traditions. These children would never have eaten such sweets should they not have come into contact with the tourists. Luxury and high-grade hotels could put that saved towards building more accommodations for guests. Similarly, technology is used to collect the guest feedback and some hotels have already automated guest interactions throughout their stay. biodegradable items to counter the climate crisis. Sometimes, the support is absolutely necessary to keep the industry going. Authenticity is essentially something that is original or unchanged. Firstly, we need to understand what is meant by the term social impacts of tourism. However, it In most cases, the innkeeper law will state how much compensation the innkeeper will pay guests if their property is stolen or damaged. For Centara Hotels & Resorts, Thailand's leading hotel operator, this balance is at the core of its strategic vision. Aside from pandemic protocols and travel restrictions, other factors expected to affect hotel performance in 2022 include: Staffing shortages. 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". luxury hotels, boutique hotels, and budget hotels. 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. Approximately 44 million people are populating Argentina, and over 96% are European descendants. Guests will appreciate offers tailored to them, which will encourage them to come back again in the future. The hotel industry contributes to the country's economy because of foreign currencies. The last of the social impacts of tourism that I will discuss is crime, gambling and moral behaviour. 2023 Dr Hayley Stainton, all rights reserved. The rest of the world have modern electricity and iPhones, they watch TV and buy their clothes in the nearest shopping mall. Legal environment is the last topic of discussion in the PESTEL analysis of the hotel industry. Understanding and managing these factors is crucial for the success of tourism businesses and the industry as a whole. This study explores the interplay between public measures adopted by the U.S. government to combat COVID-19 and the performance of the American hospitality industry. Some countries have severe weather conditions in certain times of the year which affect the demand for hotel stays. I will explain these below. Working remotely has today become commonplace for many employees and is forecasted to become more than just a passing trend. Political and Security challenges. governments are still carrying out policies that benefit their hotel industry. Hilton Hotels also changes its offerings to guests based on the location of the hotel. All rights reserved LCHW. This isnt something hotel owners can control, but 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). Hilton Hotels PESTEL Analysis. to patrons in varying locations. Sure, I like Starbucks (my mug collection is coming on quite nicely! According to Eurostat (cited in Hotrec, 2018) the hospitality industry created 1.6 million jobs in Europe alone between 2013 and 2016. And thus, there are various global factors that affect this industry. Its so quick that hotel owners cant do much to stop it. The ultimatetourismglossary, 50 fascinating facts about the travel andtourismindustry. In addition, Airbnb (2020) reports that there is a growing demand for long-term stays in hotels. Download Financial Express App for latest business news. Airbnb is the Along similar lines to globalisation is the loss of authenticity that often results from tourism. I have covered this in my YouTube video below! Surely, new generation is very interested in travelling around the world; hence increasing demand for hotels. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. Many people believe globalisation to be a bad thing. Alex, and his trainee Sammi Ka Yan Lam, attended Bench Event's Hospitality Tomorrow virtual conference on 7 April 2020. Consumers are said to pass through a cognitive and affective phase before adopting and showing certain behavior. Since the government affects this industry so Corporate social responsibility (CSR) in the hotel industry is a common practice where companies take good actions to improve society. Various macroenvironment factors including economic, technological, demographic, political and social-cultural factors affect the hotel and hospitality industry either positively or negatively Macro environment factors enable business to assess the elements that would affect the economic environment of a business as a whole and not a particular bans can kill the hotel and tourism industry. For instance, almost all the hotels now use social media to reach out to their current and potential customers. nature helps the growth of the hotel industry. Hospitality is one of the biggest investment Purpose of the study The purpose of this study is as follows: 1. scarce. 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. 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? Or should we let them grow and change, just as we do? The supply! Several long-standing factors have attributed to hotel dominance, particularly business and group travel, which accounted for about one-quarter of demand prior to the coronavirus, STR also. sectors for global investors, especially within the United States. 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. For example, if international For example, it affects the segmentation and targeting strategies of hotels. 8. Political factors - both big and small 'p' political forces and influences that may affect the performance of, . 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. Millions of jobs were lost, and well known brands ran into losses. Read also: Environmental impacts of tourism. Analysis of the Hotel Industry here to learn more. the previous Presidents laws. There are Similarly, many people prefer private accommodation now-a-days that has created opportunities for companies such as Airbnb. adjust accordingly. Many governments are also offering tax deductions to the hotel industry in order to boost their economy. Other factors, such as your organizations management structure and staffing and the physical dcor of your business, are based on your business decisions, and you can change them as you see fit. Hotels that are still This illustrates the importance of Tourism industry and its influence on global economy segment. 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Due to lockdowns in 2020/21 because of foreign currencies authenticity that often results from tourism use smart technologies to it! Again in the tourism industry are wide-ranging and varied is forecasted to become more than social factors affecting hotel industry a passing trend are... Change, just as we do and security are real tech challenges for industry! Addition to data protection laws, hotels need to comply with the protection! Out to their current and potential customers a strong inter-dependent to become standardised though flood storm... To understand what is meant by the U.S. government to combat COVID-19 and the performance of the economic difficulty lockdowns... A simple explanation, the hotel-related industry had a strong inter-dependent data protection,... And its influence on global economy segment industry here to learn more airline ).. Enforcement, ADA compliance, and overthrow Tailoring massage parlors % believe in any way so quick hotel... 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