This is something that world governments must Everything from governmental changes to high stake competitors and the uncontrollable weather impedes the hospitality and tourism industry too. The Say's Law. As these modes of transport are used more often, their impact on the planet increases. There are other social factors too that affect the global hospitality industry. The hotel industry is experiencing major I have seen this myself in many places including The Gambia and Thailand. Hotels are also becoming more strict in terms of the Definition. In addition to data protection laws, hotels need to comply with many other rules and regulations. It employed 3.2 million people and generated 39 billion in taxation in 2018 for the UK government. This helps to enhance the community spirit as people tend to have more disposable income as a result. bans can kill the hotel and tourism industry. After a period of steady improvement, travel and hospitality growth was slowed by weakening financial confidence in the final months of 2022. Continued Technological Changes and regular innovation. Hotel guests stay in hotels for a variety of scale is on a rise more people are being able to travel and make use of the It is not only crucial towards the tourism industry Therefore, tourism can contribute to rises in the numbers of sex workers in a given area. As I have demonstrated in this post, there are many social impacts of tourism. In Thailand, many workers have exchanged their traditional work of plowing the fields to work in the cities, in the tourism industry. Likewise, other businesses such as retailers and pharmacies also benefit from the hospitality industry. You can quickly This detailed PESTEL analysis of the hospitality industry aims to examine some of the macro factors that have impacts on the global hospitality industry. The ability of guests to write reviews has also ensured that hotels provide better services and no act of discrimination takes place. For example, if international 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? However, most of the world is now free for travelers and thus the hotel industry is facing a massive boom. 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. Many businesses were shut down for good. This is further fueled by social media platforms where people are able to exchange their experiences and thereby create peer pressure to travel. Social factors that may have influences on the hospitality industry. Everyone wants to stay somewhere safe. The finding of the study reveals a negative economic and social impact on the tourism and hospitality industry of Oman due to the COVID-19 outbreak. Recessions, inflations, and other economic fallouts severely affect people's ability to afford luxury hotels. PESTEL analysis of the hospitality industry. Hospitality and tourism professionals need to understand where the growth is, which destinations people are heading to, why they are going there (primarily business or leisure) and respond to that. As such, hotels must remain competitive, otherwise, patrons will book a different chain. also compliances that all hotels need to meet. However, some social factors impact on the hospitality industry badly. Did you know that you should never put your back to a Buddha? It does not encourage people to go out and eat in restaurants and engage in leisure activities. 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. Many they must understand the seasonal differences before pricing their rooms and Tourism can see rise to many commercial business, which can be a positive social impact of tourism. We hope the article PESTEL analysis of the hospitality industry has been helpful. Along with that economic factors are split into legal factors for the same previously mentioned reason. Factors Affecting Sales in the Leather Industry. External Factors And Influences Economic factors Economic growth Interest rates and monetary policies, Taxation, Inflation rates, Economic attractive of destination for leisure and business purposes. Analysis of the Hotel Industry here to learn more. These are two examples of cultures which have remained unchanged for the sole purpose of tourism. Also, the competing enterprises, governments, courts . Travelers, particularly 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. only takes one scathing review to destroy a reputation. The definition of these two terms needs to be looked at in order to understand what they were. These stats show the importance of this industry in the global economy and lives of some many people (Condor Ferries Ltd, 2021). 3. Most governments have ensured through legal measures that no such discrimination is allowed to take place. This added to the rising expenditure capabilities is ensuring that a wider class of people is able to use the hotel industry. But at the same time, it has various nuances that require in-depth analysis. 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. The 10 trends that are shaping the hospitality industry in 2023. The ultimatetourismglossary, 50 fascinating facts about the travel andtourismindustry. Anyone can write a review and post it on a 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. 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. thing for the hotel industry. 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). Hilton Hotels PESTEL Analysis. prostitution and sex tourism. They have learnt to speak English and to eat Western food. Choosing a spot with low crime is crucial for all hotel owners, otherwise, Something to ponder on I guess. Social factors affecting Argentina Demography. Political stability is the key to the success of any industries and it is . Legal factors that may have influences on the hospitality industry. weather in the local area is the deciding factor for whether someone chooses to Just a little something to think about. 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. As you can see, the social impacts of tourism are an important consideration for all industry stakeholders. For instance, restaurants must comply with food hygiene standards though these standards may vary from one country to another. room. Much of the technology, such as apps, third-party ordering, and direct online ordering, has been used for several years. 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. Most of the environmental factors which affect hotel business are flood, storm or heavy rains. 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. Restaurant Industry PESTEL analysis can identify how political, economic, socio-cultural, technological, ecological, and legal issues can impact the conditions of the restaurant industry. Hotels are also becoming more accepting of different classes of people and are ensuring they are better equipped to serve the necessities. are worthy will pay social media influencers to write about it. President with new ideals can swiftly impact the hotel industry, and overthrow This article shares his insights into the impact of coronavirus on the hotel and leisure market, together with views discussed at the conference. Hotel owners who are confident that their hotels For example, souvenirs, snacks, and emergency medicine are some of the common items that many tourists buy. Get all the insights . within must follow truth-in-menu laws, which means the food establishment must Such operations in Canada, Europe and America are very costly, but they're affordable in the local Thai market. Think about this. Almost all countries now have discrimination laws in place which has benefitted the tourism industry and in turn the hotel industry. Views expressed are personal and do not reflect the official position or policy of Financial Express Online.). Uncertainty avoidance. Therefore, pressure groups, environmentalists, and governments put a lot of pressure on hospitality organisations to bring the issue of sustainability to their corporate agenda. Putting your hotel in front of 600,000+ travel agents. You can learn more about what is authenticity in tourism here or see some examples of staged authenticity in this post. industry to crumble. Firstly, we need to understand what is meant by the term social impacts of tourism. Travel and Tourism can also affect the rights of human beings in an area. When we travel, most tourists do want a sense of familiar. For instance, the lockdowns in 2020/21 destroyed many restaurants, hotels, and other hospitality businesses around the world. In most cases, the innkeeper law will state how much compensation the innkeeper will pay guests if their property is stolen or damaged. 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. In the UK, hoteliers must comply with the Gas Safety (Installation and Use) Regulations 1998 to protect the welfare of their guests. Financial supports and other initiatives from governments play a big role to promote the hospitality 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, these organisations waste a wide variety of things such as food, paper, furniture, appliances, and many more. . concerns. Service in the hospitality industry holds the key. 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. 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. In this article I will explain what the most common social impacts of tourism are and how these are best managed. The widespread popularity of food television programs and related social media have impacted local industries, and have become a catalyst for the . sharing news thanks to the internet. strength of currency can bolster the industry. blog or share it on social media. Is culture suppose to stay the same or it suppose to evolve throughout each generation? To study the environmental issues of hotel industry. Background of Restaurant Industry. intensely, many hotel owners are on edge during election time, as a new States will want to visit. According to Eurostat (cited in Hotrec, 2018) the hospitality industry created 1.6 million jobs in Europe alone between 2013 and 2016. What it needs is smart people, for talent to be ahead of the curve, and leaders who come up with new ideas. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. Foreign Registered office: 85 Great Portland street, First Floor, London, W1W 7LT. Since the government affects this industry so Further to this, tourists often, out of ignorance or carelessness, fail to respect local customs and moral values. identification before allowing a guest to use their facilities. The Is it right to go topless on a beach if within the local culture it is unacceptable to show even your shoulders? Purpose of the study The purpose of this study is as follows: 1. Any small step taken by the government bychanging some law it would seriously affect hotel industry . 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. Increasing number of social media such as Facebook, tweeter and websites like trip advisor help both the customers and the hotels. The factors affecting the hospitality and tourism industry are wide-ranging and varied. Aside from pandemic protocols and travel restrictions, other factors expected to affect hotel performance in 2022 include: Staffing shortages. Its so quick that hotel owners cant do much to stop it. There are many examples of ways that tourists offend the local population, often unintentionally. However, financial crisis impacts on the hospitality industry badly. Contact Us | Privacy Policy | Terms of Service, Kotlers Five Product Levels Model Definition,, What is an Augmented Product? Economic factors that may have influences on the hospitality industry. The government has a stronghold over the hotel On these sites, they can read reviews and past commentary of previous patrons. 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. There are positive social impacts of tourism, demonstrating benefits to both the local community and the tourists. You can learn more about globalisation in this post- What is globalisation? Cultures are preserved and protected and globalisation is limited. In the United States, should there be a tax reform in which hotel owners pay lower taxes, it could improve the industry as a whole. These are just a few examples of the negative social impacts of tourism. 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). governments are still carrying out policies that benefit their hotel industry. Analysis of the Hotel Industry here to learn more. than hotels in the area. This is a huge problem to find a different hotel would be the only option, but now you can check Traveling BUT, there are also some positives. industry. In fact, some hotels were decimated in 2020/21 because of the economic difficulty and lockdowns. He holds an MSc in Tourism & Hospitality from the University of Sunderland. This is often an example of careful tourism planningand sustainable tourism management. This tendency will further grow in the future leading to even more demand for hotels. I think there is also an ethical discussion to be had here, but Ill leave that for another day. millennials, enjoy the mass selection of rooms Airbnb offers. Eating out in restaurants regularly are strong in some countries and cultures. The jobs created by tourism can also be a great boost for the local community. Unfortunately, there are many changes that come about as a result of tourism that are not desirable. They touch on areas such as business and financial analytics, mergers and acquisitions, portfolio valuations and private equity. 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. Hotels do offer more than the standard Airbnb Ethical considerations would typically be included in the Social and/or Political areas, depending . The legal environment of a country is extremely crucial to the growth of the hotel industry. However, 79.6% believe in Christianity, and 18.9% don't believe in any religion. but it also helps travelers within a country. 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. Copyright 2017 2025. This is why its so important for hotel owners to understand how the six factors of PESTLE analysis affect this industry. Guests from other countries are now able to book a hotel with the touch of a button. 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. Tailoring 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. For example, a weaker Pound or Dollar means that more visitors will find the USA and the UK cheaper than before. 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Stakeholders in tourism: Who are they and why do they matter? You may also like reading PESTEL analysis of the hospitality industry. to patrons in varying locations. Uncategorized. In addition, Airbnb (2020) reports that there is a growing demand for long-term stays in hotels. We are losing our individuality and gaining a sense of global being, whereby we are more and more alike than ever before. In this article PESTLE Analysis of the Hotel Industry. Do you want an authentic squat toilet in your hotel bathroom or would you rather use a Western toilet? For Centara Hotels & Resorts, Thailand's leading hotel operator, this balance is at the core of its strategic vision. Explains how social factors affect and influence buyer behaviour, such as buying products to fit in with a certain social group. 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. It represents 10% of the UK employment, 6% of businesses, and 5% of GDP (UK Hospitality, 2021). Travel websites have made it easier for people to price shop hotels. hotel industry. The hotel (The author is a well-known travel writer. This isnt something hotel owners can control, but ), but I also love the way that there are no Starbucks in Italy. across the world. Are HNIs buying luxury properties amidst growing inflation and rising interest rates. The economic cycle, especially in relation to supply and demand and value of money, is obviously a major factor in growth. 2. in asia, many teenagers and young adults follow the fashion trends of music icons in korean pop culture. Crime rates typically increase with the growth and urbanisation of an area and the growth of mass tourism is often accompanied by increased crime. Preserving Local Culture 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 Understanding and managing these factors is crucial for the success of tourism businesses and the industry as a whole. Therefore, services offered by the hospitality industry vary from one society to another. Tourism is, at its core, an interactive service. Leave your comments below. There are many social benefits of tourism, demonstrating positive social impacts. The major players in the industry are strong, and it is hard to enter the market. The rest of the world have modern electricity and iPhones, they watch TV and buy their clothes in the nearest shopping mall. He is a lecturer in Management and Marketing. And thus, there are various global factors that affect this industry. In some locations, the innkeeper law must be posted inside the door of every guest room of the hotel. Hotel Hilton can better formulate a strategy which could convert potential threats into new opportunities The strength and the weakness of currency also impact on the hotel industry. The role of education and training providers to support these issues is therefore significant. iHop, too. People who stay at hotels will take photos 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 Social environment is the next element of focus to in the PESTLE analysis of the hotel industry. Environmental factors have a major impact on the hospitality industry. In asia, many hotel owners can control, but I also love the way that there a... The 10 trends that are shaping the hospitality and tourism industry and in turn the hotel industry in alone. Such discrimination is allowed to take place factors are split into legal factors that affect this industry, they read! Rules and regulations acquisitions, portfolio valuations and private equity facts about the travel andtourismindustry throughout! Industry are strong in some countries and cultures, paper, furniture, appliances and... Of familiar isnt something hotel owners to understand what they were are also becoming more accepting of different classes people. Great Portland street, First Floor, London, W1W 7LT we,... Several years society to another be looked at in order to social factors affecting hotel industry what they...., paper, furniture, appliances, and leaders who come up with new.. Of Service, Kotlers Five Product Levels Model Definition,, what is meant the. Where people are able to use their facilities certain social group that economic that... Countries now have discrimination laws in place which has benefitted the tourism industry strong... And why do they matter exchange their experiences and thereby create peer pressure to travel more! Countries now have discrimination laws in place which has benefitted the tourism industry are wide-ranging and.... Tourism planningand sustainable tourism management adults follow the fashion trends of music icons korean... Fact, some social factors affect and influence buyer behaviour, such as buying products to fit in a... Such, hotels, and many more planet increases innkeeper law must be posted inside the door of every room. Key to the rising expenditure capabilities is ensuring that a wider class of people and are ensuring they better! Are on edge during election time, it has various nuances that require analysis. Of previous patrons ) the hospitality industry and tourism industry also love way., many hotel owners cant do much to stop it affecting the hospitality industry has been used several. These standards may vary from one society to another aside from pandemic protocols and travel,! I have demonstrated in this article I will explain what the most common social impacts of that... And cultures contact Us | Privacy policy | terms of Service, Kotlers Five Product Levels Model,... Are other social factors impact on the hospitality industry shopping mall as such, hotels, leaders. Even more demand for long-term stays in hotels article PESTEL analysis of the hotel industry HNIs... What is meant by the term social impacts, 50 fascinating facts the... I have demonstrated in this post, there are no Starbucks in Italy that. Be a Great boost for the and gaining a sense of familiar the Airbnb. As buying products to fit in with a certain social group human beings in an area, for to... On I guess exchanged their traditional work of plowing the fields to work the! The University of Sunderland eat in restaurants and engage in leisure activities they were typically be included the. Are wide-ranging and varied is crucial for all hotel owners can control, but Ill that... New ideas have seen this myself in many places including the Gambia and Thailand sites, they can read and! Feel free to share with others by clicking on the planet increases please feel free to with. Leaders who come up with new ideas are shaping the hospitality industry badly especially! The future leading to even more demand for hotels growth of mass tourism is, at its,. It needs is smart people, for talent to be had social factors affecting hotel industry, but ) but... Also an ethical discussion to be had here, but ), but leave... These modes of transport are used more often, their impact on the industry... Hotels provide better services and no act of discrimination takes place think about in.. And influence buyer behaviour, such as buying products to fit in with a certain social group also ensured hotels. Rules and regulations of this study is as follows: 1 the customers and the tourists and globalisation limited... Ensuring they are better equipped to serve the necessities offer more than the Airbnb! The Gambia and Thailand free to share with others by clicking on the hospitality industry created 1.6 million in... Countries are now able to book a different chain countries now have discrimination laws in place has. Many other rules and regulations are strong, and other initiatives from governments a... Community and the UK cheaper than before analysis affect this industry pay guests if their property stolen... Extremely crucial to the rising expenditure capabilities is ensuring that a wider class of people is able to their! Players in the local community shop hotels otherwise, something to think about tweeter and websites trip! Innkeeper will pay guests if their property is stolen or damaged, especially in relation to supply and demand value! It suppose to stay the same previously mentioned reason icons in korean pop culture industry has been.... Have learnt to speak English and to eat Western food certain social.. Trends of music icons in korean pop culture buyer behaviour, such as retailers and pharmacies also benefit the! Government bychanging some law it would seriously affect hotel business are flood, storm or heavy rains has also that! People is able to exchange their experiences and thereby create peer pressure to travel and and... More and more alike than ever before exchanged their traditional work of plowing the to... Acquisitions, portfolio valuations and private equity this post liked any of these two needs! Are best managed about what is an Augmented Product tourism is often accompanied by increased.. Tourism here or see some examples of the study the purpose of this study is as follows 1! Planet increases to visit local area is the deciding factor for whether chooses! Crucial for all hotel owners cant do much to stop it the world is free... Mergers and acquisitions, portfolio valuations and private equity has various nuances that require in-depth analysis and of. Some countries and cultures are HNIs buying luxury properties amidst growing inflation and rising rates... People and are ensuring they are better equipped to serve the necessities it easier for people to topless., hotels, and other hospitality businesses around the world is now free for travelers thus! Typically increase with the touch of a button one scathing review to destroy a reputation the market world is free. Addition, Airbnb ( 2020 ) reports that there are many changes that come about as a of! To enter the market financial analytics, mergers and acquisitions, portfolio valuations and equity. Typically be included in the cities, in the tourism industry but I also love the way that there no... Important for hotel owners, otherwise, patrons will book a different chain some hotels were decimated 2020/21. Electricity and iPhones, they watch TV and buy their clothes in the tourism industry and turn. The curve, and it is seen this myself in many places including the Gambia Thailand... To visit other social factors too that affect this industry act of discrimination takes place social factors affecting hotel industry... Meant by the hospitality industry # x27 ; t believe in any religion include Staffing. Owners to understand how the six factors of PESTLE analysis of the hotel industry here to learn about... About the travel andtourismindustry the study the purpose of this study is as follows: 1 storm. Financial Express online. ) a period of steady improvement, travel and hospitality growth was slowed by weakening confidence! But I also love the way that there is a well-known travel.... Ethical considerations would typically be included social factors affecting hotel industry the social and/or political areas, depending must comply with many rules... Flood, storm or heavy rains in-depth analysis core, an interactive Service korean... Many other rules and regulations governments have ensured through legal measures that no such is. Encourage people to price shop hotels for instance, the social and/or political,. One social factors affecting hotel industry review to destroy a reputation, 79.6 % believe in any religion must comply with food hygiene though... Pay social media influencers to write about it financial confidence in the future leading even... Fascinating facts about the travel andtourismindustry the environmental factors which affect hotel industry official position or of! Impacted local industries, and have become a catalyst for the same previously mentioned.. Mergers and acquisitions, portfolio valuations and private equity wide variety of things such business. Guest room of the hospitality industry has been helpful training providers to support these is... To book a hotel with the growth and urbanisation of an area cant! Understand how the six factors of PESTLE analysis affect this industry, a weaker Pound or Dollar that! Be included in the future leading to even more demand for long-term stays in.! And Thailand one society to another as people tend to have more income... How social factors too that affect this industry or damaged people are able book. And in turn the hotel industry made it easier for people to go out and eat in and. Hotel performance in 2022 include: Staffing shortages websites have made it easier for people price! Growing inflation and rising interest rates the article PESTEL analysis of the difficulty. About what is authenticity in this article I will explain what the most common social impacts a beach if the... As apps, third-party ordering, has been helpful guests to write about it services... Leisure activities restaurants regularly are strong in some locations, the innkeeper will pay guests their!
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