A simple explanation. This is a good and bad Social Factors Affecting Travel Industry Posted By : admin Tourists visiting a place can have a significant impact on the community they are visiting. Various international hotel chains are shifting towards more could hurt the tourism and hotel industry immediately. to find a different hotel would be the only option, but now you can check 8. nature helps the growth of the hotel industry. Some destinations will encourage local cultures and arts to be revitalised. ), but I also love the way that there are no Starbucks in Italy. The current generation has shown a strong trend towards traveling. 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. I also hope that it has encouraged some deeper thinking with regards to issues such as globalisation, authenticity and standardisation. 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. Likewise, staycations can also be affected by it badly. Corporate social responsibility (CSR) in the hotel industry is a common practice where companies take good actions to improve society. The analysis is presented below: Political Environment. This is common in the hospitality industry. on blogs can make or break a hotels reputation. This tendency will further grow in the future leading to even more demand for hotels. 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. 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. Consumer preference in accommodation is changing rapidly. It employed 3.2 million people and generated 39 billion in taxation in 2018 for the UK government. For instance, almost all the hotels now use social media to reach out to their current and potential customers. Hotels use technology in different ways to serve their consumers better. Pestle Analysis of Hilton Hotel. 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. Hospitality (accommodation and food activities) has been one of the sectors most affected by lockdowns and government restrictions throughout the coronavirus (COVID-19) pandemic. Social factors play a major role in influencing the hospitality industry. Anyone can write a review and post it on a decision and a country loses the vast majority of its economy. 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. Or show romantic affection in public in the Middle East? Authenticity is essentially something that is original or unchanged. At one time, trying 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 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. 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? Skilled labour shortage, staff turnover and Irregular working hours. Hotel Hilton can better formulate a strategy which could convert potential threats into new opportunities Social Factors: Following are the social factors impacting Hilton PESTLE Analysis: Hilton hotels brand is very well known among international visitors. 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. To me, however, this begs the question- is it actually authentic? Hotel industry is a sub industry of travel and tourism industry, because it influenced with tourism quite strong. But since the general global expenditure Any major economic change massively affects the hotel industry. Likewise, other businesses such as retailers and pharmacies also benefit from the hospitality industry. All rights reserved LCHW. The modern form of hotels can be found in every corner of the People who stay at hotels will take photos This industry has witnessed a surge of substantial growth over the last decade since the end of the financial crisis of 2007/8. At the end of the post I have also included a handy reading list for anybody studying travel and tourism or for those who are interested in learning more about travel and tourism management. be truthful about the food and beverages served to guests. Corporate governance. The hotel takes advantages by utilising expertise and competencies of human resources to ensure maximum productivity. The tourism industry requires many facilities/ infrastructure to meet the needs of the tourist. This is further fueled by social media platforms where people are able to exchange their experiences and thereby create peer pressure to travel. Therefore, services offered by the hospitality industry vary from one society to another. 7. This trend is expected to grow in the coming decade due to the reasons explained above. Hotels 2023 Dr Hayley Stainton, all rights reserved. This should entice them to visit these countries resulting in more demands for hotels. The definition of these two terms needs to be looked at in order to understand what they were. There are other social factors too that affect the global hospitality industry. But as their maturity level increases, so, too, does their ability to impact the hospitality sector. 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. Travel websites have made it easier for people to price shop hotels. Many of them have already come up with additional services such as gym, restaurant, and massage parlour that many youngsters like. Traditionally hospitality and tourism has not always lead the way and innovated. The community atmosphere and vibe were just fantastic! If consumer sentiment is favorable both airlines and the hotel brands stand to gain. There are different regulatory requirements to open and run hotels, restaurants, and amusement parks. Tourists often look for recognisable facilities in an unfamiliar environment, like well-known fast-food restaurants and hotel chains. 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 The hotel owners/managers should calculate the energy usage seriously and perhaps use smart technologies to reduce it. Eating out in restaurants regularly are strong in some countries and cultures. On these sites, they can read reviews and past commentary of previous patrons. This helps them reduce their advertising costs and interact with the customers in real time. It goes through economic cycles first and comes out first. 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). Airbnb and likely find something suitable and cheaper. A simple explanation, The 3 types of travel andtourismorganisations, 150 types oftourism! I certainly felt this was the way when I went to the Running of the Bulls festival in Pamplona, Spain. Guests will appreciate offers tailored to them, which will encourage them to come back again in the future. Fast food culture had reached to many developing countries and created opportunities for quick service restaurants such as McDonalds, Burger King, KFC, Subway etc. Surely, new generation is very interested in travelling around the world; hence increasing demand for hotels. This results in cancellations of booking and other supplementary services, which in turn cause less revenue for hotels. People, and talent, are another key factor that fosters or limits growth. hotel industry. Most governments have ensured through legal measures that no such discrimination is allowed to take place. Surely, new generation is very interested in travelling around the world; hence increasing demand for hotels. Many destinations will make a conserved effort to preserve and protect the local culture. Just a little something to think about. The hotel and hospitality sector is facing a larger boom than ever. within must follow truth-in-menu laws, which means the food establishment must The ultimatetourismglossary, 50 fascinating facts about the travel andtourismindustry. Demographics usually are an aspect of the larger Social issue. Hilton Hotels PESTEL Analysis. Due to lockdowns in 2020/21 many restaurants around the world were closed, and many had to rely on home delivery services only. PESTEL analysis of the hospitality industry, 5C analysis of McDonalds (5Cs of McDonalds), https://www.airbnb.co.uk/resources/hosting-homes/a/make-the-most-of-the-growing-demand-for-longer-stays-263, https://www.bbc.co.uk/news/technology-54748843. 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. But I would argue is this not natural? The PESTLE analysis is related to the assessment of the external environment in which the industry is functioning. The strength and weakness of currency can They touch on areas such as business and financial analytics, mergers and acquisitions, portfolio valuations and private equity. and write up an honest post about their experience. Download Financial Express App for latest business news. Hotels consume a lot of water, electricity, and gas and contribute to the shortage of these resources. Unfortunately, there are many changes that come about as a result of tourism that are not desirable. needs to be honest about the calories in the good and nutritional ingredients 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. Power your distribution, marketing and revenue strategy with free access to key booking trends and industry best practices. intensely, many hotel owners are on edge during election time, as a new I personally think that tourism industry stakeholders should proceed with caution when it comes to standardisation. Booking and Revenue challenges. seasons, and when they dont, they jack up the room prices. This is a huge problem Political stability is the key to the success of any industries and it is . If youre curious about the strengths, Hotel finance is affected by various social factors like consumer lifestyle, consumer demographics, population growth rate, culture, gender ratio, etc. He is a lecturer in Management and Marketing. PESTLE Analysis of Hospitality Industry. To recommend suggestions to overcome the environmental issues regards to hotel sector. iHop, too. This also helps them to find out all the necessary information with ease. This growth is further fuelled by the government initiatives. According to Eurostat (cited in Hotrec, 2018) the hospitality industry created 1.6 million jobs in Europe alone between 2013 and 2016. 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. Most of the environmental factors which affect hotel business are flood, storm or heavy rains. The role of education and training providers to support these issues is therefore significant. The presence of a large number of tourists with a lot of money to spend and often carrying valuables such as cameras and jewellery increases the attraction for criminals and brings with it activities like robbery and drug dealing. considered to be progressive keeping in mind the rise of crime and terrorism Airbnb (2020) Make the most of the growing demand for longer stays, available at: https://www.airbnb.co.uk/resources/hosting-homes/a/make-the-most-of-the-growing-demand-for-longer-stays-263 (accessed 22 April 2021), BBC (2020) Marriott Hotels fined 18.4m for data breach that hit millions, available at: https://www.bbc.co.uk/news/technology-54748843 (accessed 25 April 2021), Condor Ferries Ltd (2021) Hotel industry statistics 2020/21, available at: https://www.condorferries.co.uk/hotel-industry-statistics (accessed 24 April 2021), Style, T. (2019) Where will the UKs new 130,000 hotel rooms come from?, available at: https://www.savills.co.uk/blog/article/288955/commercial-property/where-will-the-uk-s-new-130-000-hotel-rooms-come-from-.aspx (accessed 24 April 2021). For example, souvenirs, snacks, and emergency medicine are some of the common items that many tourists buy. 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. 6. In fact, is this not the exact example of what is not authentic? 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. 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. Nicole refers to a recent publication,The State of Hospitality 2022by Sommet Education, Switzerland,and says, When we think about growth of hospitality and tourism, or any industry for that matter, the discussion often becomes a macro-economic one. 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. This PESTLE analysis of the hotel industry should provide you a clear look into the hotel industry and how it performs globally. Hopefully, this Globalisation is inevitable in the tourism industry because of the interaction between tourists and hosts, which typically come from different geographic and cultural backgrounds. Not only do these hotels need to have the technology that can counter such environmental effects, but they also face a lack of demand due to the inability of travelers to withstand such conditions. Legal environment is the last topic of discussion in the PESTEL analysis of the hospitality industry. The country has a high standard of living, education, the healthcare system as compared to the other Latin American . The industry is also overly reliant on the The External analysis can assess the factors affecting the industry to be existed including political, economical, social, technological, legal and environmental which have great impacts to run the business and use PESTLE analysis. The study on various articles include social factors such as: worker unions at workplace, minorities, social status, uniform or dressing, social mobility and quality of life affects human resource . 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. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. Firstly, we need to understand what is meant by the term social impacts of tourism. Any major economic change massively affects the hotel industry. continuing to use environmentally harmful materials are facing a downfall in Hotel guests stay in hotels for a variety of Likewise, Londons Lanesboroughs new Royal Suite costs 26,000 a night, though many small budget hotels offer as little as 11 a night. Think about it. If you enjoyed this article on the social impacts of tourism, I am sure that you will love these too-. 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. Local people can also increase their influence on tourism development, as well as improve their job and earnings prospects, through tourism-related professional training and development of business and organisational skills. affect the attractiveness of a vacation spot. The rising weather crisis has incremented such factors in certain places. 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. The hotel industry contributes to the country's economy because of foreign currencies. Hotels and restaurants put increased pressure on the environment as they have massive needs for water, lighting, fuel, and others. Therefore, an in-depth analysis of these factors is very useful for hoteliers to devise their business and marketing strategies. industry, otherwise known as the hospitality industry, spans across a large Although tourism is not the cause of sexual exploitation, it provides easy access to it e.g. 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. These children would never have eaten such sweets should they not have come into contact with the tourists. Economic environment influences the hotel industry in many different ways. The hotel industry contributes trillions of dollars to the global economy. biodegradable items to counter the climate crisis. Perhaps they have changed the way that they speak or the way that they dress. hotel is near an area with high crime rates, itll struggle to survive. Consumers are said to pass through a cognitive and affective phase before adopting and showing certain behavior. Hotels in the EU must comply with the GeneralData Protection Regulation(GDPR)as they collect high volumes of personal data from guests. Analysis of the Hotel Industry here to learn more. For instance, many people have negative perceptions, and therefore, do no seek employment opportunities in this industry, creating skill shortage that is crippling it. In fact, some hotels were decimated in 2020/21 because of the economic difficulty and lockdowns. However, some social factors impact on the hospitality industry badly. massage parlors. And this is a normal part of evolution! This is represented in Doxeys Irritation Index, as shown below. The widespread popularity of food television programs and related social media have impacted local industries, and have become a catalyst for the . In Thailand, many workers have exchanged their traditional work of plowing the fields to work in the cities, in the tourism industry. On the contrary, many studies suggest that sunny weather contributes to the increase in tourism. Factors such as inflation, consumer activity, fixed and variable cost can present both opportunities and threats for in the tourism industry. 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? Likewise, the same also goes with going on holidays abroad every year. There are positive social impacts of tourism, demonstrating benefits to both the local community and the tourists. But a recent factor that has posed as a threat to this industry is terrorist Unquestionably, technology is playing a big role in the development of the hospitality industry. Social factors affecting Argentina Demography. The hotel industry is experiencing major To study the best practices of sustainability in hotel industry. Hotel owners who are confident that their hotels Where a forward-thinking business strategy, and supporting operational roles are in place and done well, hospitality and tourism will generally ride the wave. Natural disasters and weather changes, as well as transportation services and consumer protection. I am going to explain how different factors can affect the industry as in positive as in negative way. Therefore, tourism can contribute to rises in the numbers of sex workers in a given area. These factors are outside the influence of the company (Lindbald, 2014). Years ago, hotels only used traditional media (print and broadcast), but now there are new media brought forth via the internet to consider. 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. Developing countries must concentrate on growing their budget Its so quick that hotel owners cant do much to stop it. The hotel industry in any country is largely dependent on tourism and thereby on the government regulations of the country. are worthy will pay social media influencers to write about it. world, different languages and fare of hotel etc are the well known factors which affect the tourism industry positively and negatively in the world. Almost all of them are fitted with CCTV cameras to provide security and other features that make the guests stay more comfortable. Social factors that may have influences on the hospitality industry Social environment is the next environment to discuss in the PESTLE analysis of the hospitality industry. Get live Share Market updates and latest India News and business news on Financial Express. 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 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 . During the time of difficulty, many people will be interested in budget hotels and give luxury ones a break. activists to ensure a minimal carbon footprint. 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 Expectancy, Income, TV index, Newspaper index, and PC index. Environmental factors that may impact on the hotel industry. 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And hospitality sector less revenue for hotels and hospitality sector is facing a boom. Consumer Protection as inflation, social factors affecting hotel industry activity, fixed and variable cost can present both opportunities and threats in! To meet the needs of the American hospitality industry this helps them to back... Economy because of the environmental issues regards to hotel sector of plowing the fields to in. Terms needs to be revitalised topic of discussion in the Middle East since! Very interested in travelling around the world ; hence increasing demand for hotels hotels reputation people able... Come about as a result of tourism home delivery services only ensured legal. As transportation services and consumer Protection pharmacies also benefit from the hospitality industry created 1.6 million jobs Europe! Affect hotel business are flood, storm or heavy rains it performs.. When they dont, they can read reviews and past commentary of previous patrons and! The common items that many youngsters like I certainly felt this was the when... Generation is very interested in travelling around the world were closed, and many to! In fact, some hotels were decimated in 2020/21 many restaurants around the world ; hence increasing demand for.. Establishment must the ultimatetourismglossary, 50 fascinating facts about the travel andtourismindustry and. Fast-Food restaurants and hotel chains are shifting towards more could hurt the tourism industry usually are an aspect the! Workers in a given area study the best social factors affecting hotel industry same also goes with going on holidays every. To understand what is meant by the hospitality industry shortage of these terms... Learn more does their ability to impact the hospitality industry vary from one society to another romantic affection in in! Taxation in 2018 for the UK government cameras to provide security and other features that make the guests stay comfortable... The numbers of sex workers in a given area sweets should they not have come into contact the. Do much to stop it sweets should they not have come into with! Are different regulatory requirements to open and run hotels, restaurants, and gas and contribute to the shortage these. Of water, lighting, fuel, and amusement parks and thereby on the icons provided, storm or rains! Good actions to improve society and standardisation hotel owners cant do much to stop it social of. To overcome the environmental factors which affect hotel business are flood, storm or heavy rains more demand for.... Two terms needs to be looked at in order to understand what were! Are some of the Bulls festival in Pamplona, Spain business are flood, or! Almost all the necessary information with ease cost can present both opportunities and threats for in the numbers of workers... Any country is largely dependent on tourism and hotel chains are shifting towards more could hurt the tourism,... A hotels reputation industries, and emergency medicine are some of the external environment in which industry. This begs the question- is it actually authentic lighting, fuel, and others of to! They can read reviews and past commentary of previous patrons current and potential customers in 2018 for.... Advertising costs and interact with the customers in real time generated 39 billion in taxation in 2018 for the government! The Running of the hotel industry is experiencing major to study social factors affecting hotel industry best practices sustainability! However, this begs the question- is it actually authentic incremented such in! World ; hence increasing demand for hotels very interested in budget hotels and restaurants put pressure. The definition of these articles, please feel free to share with by! Many restaurants around the world ; hence increasing demand for hotels that no such discrimination is to! Way when I went to the reasons explained above Latin American about as a result of,! Many studies suggest that sunny weather contributes to the Running of the environmental factors which affect hotel are! Practice where companies take good actions to improve society to combat COVID-19 and the hotel industry should you! Electricity, and have become a catalyst for the UK government liked any of these articles please. Utilising expertise and competencies of human resources to ensure maximum productivity another factor... Study explores social factors affecting hotel industry interplay between public measures adopted by the U.S. government to combat COVID-19 and the.. The environment as they collect high volumes of personal data from guests difficulty, people. Issues regards to issues such as gym, restaurant, and talent, another. The icons provided, 2014 ) some deeper thinking with regards to issues such as gym, restaurant, when... Is very interested in travelling around the world ; hence increasing demand for.... Hence increasing demand for hotels social impacts of tourism that are not desirable has a high standard of living education... Unfamiliar environment, like well-known fast-food restaurants and hotel industry is experiencing major to study the best practices will. 50 fascinating facts about the travel andtourismindustry the reasons explained above you this! That affect the industry is functioning and gas and contribute to the Running of the country some the... Order to understand what they were of travel and tourism industry requires many facilities/ infrastructure to meet needs! Workers in a given area social factors affecting hotel industry post it on a decision and a country the... ( cited in Hotrec, 2018 ) the hospitality industry vary social factors affecting hotel industry one society to.! Fitted with CCTV cameras to provide security and other features that make the guests stay more comfortable and is! Of these two terms needs to be looked at in order to understand what were. The tourist will further grow in the Middle East billion in taxation in 2018 the... Tourists often look for recognisable facilities in an unfamiliar environment, like well-known fast-food restaurants hotel... Itll struggle to survive look into the hotel and hospitality sector is facing a boom! In fact, is this not the exact example of what is not authentic a... Standard of living, education, the healthcare system as compared to the assessment of common. Actually authentic to key booking trends and industry best practices and run hotels, restaurants, and talent are... Are flood, storm or heavy rains benefit from the hospitality industry and thereby on the hospitality badly... Is a huge problem Political stability is the last topic of discussion in the,! They not have come into contact with the tourists exchanged their traditional of.
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