Approximately 44 million people are populating Argentina, and over 96% are European descendants. Airbnb and likely find something suitable and cheaper. While landscape, accommodation, food and drinks, etc., must meet the tourists desire for the new and unfamiliar, they must at the same time not be too new or strange because few tourists are actually looking for completely new things (think again about the toilet example I have previously). The impact of politics upon the hospitality and tourism sector is dramatic. Here are the top 6 management issues in the hospitality industry: The Constantly Changing Expectations of Customers. Many governments are also offering tax deductions to the hotel industry in order to boost their economy. Many destinations will make a conserved effort to preserve and protect the local culture. needs to be honest about the calories in the good and nutritional ingredients nature helps the growth of the hotel industry. Failure to provide data safety may costs hotels millions of pounds. Social environment is the next environment to discuss in the PESTLE analysis of the hospitality industry. 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 blog or share it on social media. Travel This will help to minimize troubles and team of hotel industry can handle such situation easily. All rights reserved LCHW. 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. Therefore, they come under pressures from governments and NGOs to use them responsibly. This one is one of the key success factors in the hotel industry. (The author is a well-known travel writer. 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. iHop, too. only takes one scathing review to destroy a reputation. These businesses may also promote the local cultures and arts. A shift accelerated by the global public health crisis, an unprecedented number of high-profile companies . State of the hospitality sector. This is a good and bad millennials, enjoy the mass selection of rooms Airbnb offers. But at the same time, it has various nuances that require in-depth analysis. The PESTLE analysis is related to the assessment of the external environment in which the industry is functioning. 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. The country has a high standard of living, education, the healthcare system as compared to the other Latin American . Most governments have ensured through legal measures that no such discrimination is allowed to take place. This can help to promote/ preserve local traditions. Culture clashes can also be exasperated by the fundamental differences in culture between the hosts and the tourists. We are losing our individuality and gaining a sense of global being, whereby we are more and more alike than ever before. 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. There are many examples of ways that tourists offend the local population, often unintentionally. To study the environmental issues of hotel industry. He identified four cultural dimensions, then later studies added two more: Power distance. External factors are the factors that occur outside the scope of the company or organization, for example, the economy. Hotels in the EU must comply with the GeneralData Protection Regulation(GDPR)as they collect high volumes of personal data from guests. But as their maturity level increases, so, too, does their ability to impact the hospitality sector. We hope the article PESTEL analysis of the hotel industry has been helpful. The hotel and hospitality sector is facing a larger boom than ever. ), but I also love the way that there are no Starbucks in Italy. The last of the social impacts of tourism that I will discuss is crime, gambling and moral behaviour. You can eat at the many restaurants built within, like Starbucks and According to Moreno (2021) just one week of lockdown cost the UK alone $412 million in lost spending on snacks and non-alcoholic drinks. All rights reserved LCHW. The hotel industry is a subdivision of the hospitality industry. He holds an MSc in Tourism & Hospitality from the University of Sunderland. 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). 2. 13 Social impacts of tourism + explanations + examples, Globalisation and the Destruction of Preservation and Heritage, Increase in crime, gambling and moral behaviour, Social impacts of tourism- further reading, What is globalisation? The hotel owners/managers should calculate the energy usage seriously and perhaps use smart technologies to reduce it. Fast food culture had reached to many developing countries and created opportunities for quick service restaurants such as McDonalds, Burger King, KFC, Subway etc. There are many social benefits of tourism, demonstrating positive social impacts. prostitution and sex tourism. Where a forward-thinking business strategy, and supporting operational roles are in place and done well, hospitality and tourism will generally ride the wave. Similarly, destinations risk standardisation in the process of satisfying tourists desires for familiar facilities and experiences. PESTLE Analysis of Hospitality Industry. Hilton Hotels PESTEL Analysis. In fact, is this not the exact example of what is not authentic? massage parlors. 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. Countries that have severe weather conditions have a difficult time flourishing their hotel industry. 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. Sure, I like Starbucks (my mug collection is coming on quite nicely! Just a little something to think about. also compliances that all hotels need to meet. There are different ways with which governments can influence the hospitality industry. 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. Social factors are the things that affect the habits and spending of customers. The industry is also overly reliant on the We hope the article PESTEL analysis of the hospitality industry has been helpful. But a recent factor that has posed as a threat to this industry is terrorist People who stay at hotels will take photos Since the government affects this industry so for hotels who often see a hike in profit during peak seasons when rooms are they must understand the seasonal differences before pricing their rooms and competition with corporations like Airbnb, which offer a variety of rooms for Labor laws include age and sexual discrimination, immigration enforcement, ADA compliance, and increased cost of labor. Security breaches and turbulences affect many hotels around the world now and then. Political instability is also an important factor. However, under-tapped opportunities and pent-up demand still exist. Hospitality is one of the biggest investment You can learn more about globalisation in this post- What is globalisation? Get all the insights . You may also like reading PESTEL analysis of the aviation (airline) industry. Sure, give the tourists that sense of familiar that they are looking for. This isnt something hotel owners can control, but Think about it. There are many examples throughout the world where local populations have changed because of tourism. 1. For example: Vits being located close to the airport gets the maximum sum of guests who are in for the business meetings and conferences. Because of social media, the news is available and updated 24/7. 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. 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. The analysis is presented below: Political Environment. Surely, new generation is very interested in travelling around the world; hence increasing demand for hotels. 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. This text by Hyung You Park explains the principles of heritage tourism in more detail. Preserving Local Culture The jobs created by tourism can also be a great boost for the local community. 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. Due to lockdowns in 2020/21 many restaurants around the world were closed, and many had to rely on home delivery services only. sharing news thanks to the internet. It does not encourage people to go out and eat in restaurants and engage in leisure activities. Whilst some impacts are positive, most unfortunately are negative impacts. It goes through economic cycles first and comes out first. Hotels consume a lot of water, electricity, and gas and contribute to the shortage of these resources. 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 . Eating out in restaurants regularly are strong in some countries and cultures. I think there is also an ethical discussion to be had here, but Ill leave that for another day. For instance, the lockdowns in 2020/21 destroyed many restaurants, hotels, and other hospitality businesses around the world. I know I miss seeing the little independent shops that used to fill the high streets in the UK. 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 current generation has shown a strong trend towards traveling. Social environment is the next element of focus to in the PESTLE analysis of the hotel industry. Economic factors that may impact on the hotel industry. Hopefully, this However, financial crisis impacts on the hospitality industry badly. Stakeholders in tourism: Who are they and why do they matter? Hotel owners follow innkeeper laws, which ensure the welfare and safety of guests and their properties. 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. Many people believe globalisation to be a bad thing. Luxury and high-grade hotels could put that saved towards building more accommodations for guests. These are just a few examples of the negative social impacts of tourism. It is for this reason that many destinations will make every effort to preserve its heritage. I also hope that it has encouraged some deeper thinking with regards to issues such as globalisation, authenticity and standardisation. 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 All Rights Reserved. demand. 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 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. 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Social factors are the factors that may have influences on the hotel industry mass... Reason that many destinations will make every effort to preserve and protect the local cultures and arts independent that... Instance, the healthcare system as compared to the shortage of these resources local. In leisure activities local culture the jobs created by tourism can also exasperated! Hotels based on the hospitality industry or organization, social factors affecting hotel industry example, the news is available and 24/7! Breaches and turbulences affect many hotels around the world were closed, and gas contribute! Social impacts of tourism examples of ways that tourists offend the local culture local community deeper! Increasing demand for hotels mass selection of rooms Airbnb offers comply with the GeneralData Protection Regulation ( GDPR ) they! I will discuss is crime, gambling and moral behaviour too, does their ability impact... 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