However, data management and security are real tech challenges for this industry. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. This also helps them to find out all the necessary information with ease. There are many examples throughout the world where local populations have changed because of tourism. For example: Vits being located close to the airport gets the maximum sum of guests who are in for the business meetings and conferences. These factors examine the social environment of the market, and measure factors like cultural trends, demographics, population analytics etc. Likewise, other businesses such as retailers and pharmacies also benefit from the hospitality industry. Second, the hotel-related industry had a strong inter-dependent . Is culture suppose to stay the same or it suppose to evolve throughout each generation? This leaves hotels, such as Best western with less customers. 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. 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. Any major economic change massively affects the hotel industry. Any small step taken by the government bychanging some law it would seriously affect hotel industry . Countries that have severe weather conditions have a difficult time flourishing their hotel industry. Get all the insights . Due to lockdowns in 2020/21 many restaurants around the world were closed, and many had to rely on home delivery services only. 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 . 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). Putting your hotel in front of 600,000+ travel agents. Hotel industry has to take proper measures for such factors and taking control over it on time. You can learn more about what is authenticity in tourism here or see some examples of staged authenticity in this post. Hotels in the EU must comply with the GeneralData Protection Regulation(GDPR)as they collect high volumes of personal data from guests. Along with that economic factors are split into legal factors for the same previously mentioned reason. The current generation has shown a strong trend towards traveling. I personally think that tourism industry stakeholders should proceed with caution when it comes to standardisation. Read also: Business tourism explained: What, why and where. Reviews This is something that world governments must External factors are the factors that occur outside the scope of the company or organization, for example, the economy. Background of Restaurant Industry. Economic factors that may impact on the hotel industry. Accommodation establishments: hotels,. Social factors that may impact on the hotel industry. These are two examples of cultures which have remained unchanged for the sole purpose of tourism. A large part of this industry is composed of luxury hotels. hotel industrys biggest competition. intensely, many hotel owners are on edge during election time, as a new But at the same time, they also lead to a higher demand for budget hotels thereby increasing certain verticals of this industry. PESTEL analysis of the hospitality industry. Tourists travel to Brazil to go to the Rio Carnival, to mention a few. The top sex tourism countries in the world, Components of tourism: Structure of the tourism industry, 10 Economic impacts of tourism + explanations + examples, 150 types of tourism that are trending right now. Hotels are also becoming more strict in terms of the Political instability is also an important factor. Many people now prefer private accommodations, hence the rising demand for Airbnb. The attitude of local residents towards tourism development may unfold through the stages of euphoria, where visitors are very welcome, through apathy, irritation and potentially antagonism when anti-tourist attitudes begin to grow among local people. According to Eurostat (cited in Hotrec, 2018) the hospitality industry created 1.6 million jobs in Europe alone between 2013 and 2016. I send out travel tips, discount coupons and some material designed to get you thinking about the wider impacts of the tourism industry (like this post)- perfect for any tourism student or keen traveller! Take a look at the likes of the long neck tribe in Thailand or the Maasai Tribe in Africa. Or show romantic affection in public in the Middle East? 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. 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. However, 79.6% believe in Christianity, and 18.9% don't believe in any religion. 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. He holds an MSc in Tourism & Hospitality from the University of Sunderland. As you can see, the social impacts of tourism are an important consideration for all industry stakeholders. PESTEL is a strategic analytical tool that stands for political, economic, social, technological, environmental and legal factors. This may help promote traditions that may have become distant. It is of no doubt that the hotel industry is one of the largest in the world, and the growth in the number of luxury hotel is now larger than ever. 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. Eating out in restaurants regularly are strong in some countries and cultures. You can quickly Fast food culture had reached to many developing countries and created opportunities for quick service restaurants such as McDonalds, Burger King, KFC, Subway etc. The Theres something great about trying out a traditional, yet unfamiliar coffee shop, or any independant place for that matter. luxury hotels, boutique hotels, and budget hotels. This trend is expected to grow in the coming decade due to the reasons explained above. Everyone wants to stay somewhere safe. 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. Airbnb is the Sure, give the tourists that sense of familiar that they are looking for. Anyone can write a review and post it on a Hopefully, this Everything from governmental changes to high stake competitors and the uncontrollable weather impedes the hospitality and tourism industry too. PESTEL abbreviation is interpreted as political, economic, social, technological, legal, and environmental factors impacting businesses, and PESTEL is an important framework for assessing external factor impacting business practices. Social factors play a major role in influencing the hospitality industry. Restaurant Industry PESTEL analysis can identify how political, economic, socio-cultural, technological, ecological, and legal issues can impact the conditions of the restaurant industry. Hotel industry is a sub industry of travel and tourism industry, because it influenced with tourism quite strong. We dont walk around in Victorian corsets or smoke pipes anymore, Our social settings have changed immensely over the years. If you enjoyed this article on the social impacts of tourism, I am sure that you will love these too-. websites forces hotels to remain competitive. demand. I certainly felt this was the way when I went to the Running of the Bulls festival in Pamplona, Spain. exchange rates are another economic factor that affects the ability of foreign If a These children would never have eaten such sweets should they not have come into contact with the tourists. adjust accordingly. Whilst some impacts are positive, most unfortunately are negative impacts. The Western world believe that a tourist destination is no longer authentic when their cultural values and traditions change. Legal factors that may have influences on the hospitality industry. Recessions and other economic difficulties impact on peoples selection of hotels. 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. Local economies greatly and directly benefit from the hospitality industry when domestic and international tourists spend money in restaurants, hotels, transports, and entertainment spots. They have learnt to speak English and to eat Western food. 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The study reveals as what and how various social factors affects an organisations strategic human resource planning and decision making. (The author is a well-known travel writer. Uncategorized. This text by Hyung You Park explains the principles of heritage tourism in more detail. Another thing the government controls are taxes. Hotels consume a lot of water, electricity, and gas and contribute to the shortage of these resources. The hotel industry contributes to the country's economy because of foreign currencies. Wifi services, lifts, intercoms, etc. Perhaps they have changed the way that they speak or the way that they dress. Get live Share Market updates and latest India News and business news on Financial Express. However, it is historically proven that the hospitality industry bounces back very swiftly after being damaged by wars and other political instabilities. Hotels that are still The rising weather crisis has incremented such factors in certain places. Skilled labour shortage, staff turnover and Irregular working hours. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. industry, otherwise known as the hospitality industry, spans across a large Years ago, hotels only used traditional media (print and broadcast), but now there are new media brought forth via the internet to consider. The industry is also overly reliant on the Millions of jobs were lost, and well known brands ran into losses. Such operations in Canada, Europe and America are very costly, but they're affordable in the local Thai market. 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. However, the biggest concern in this regard is the safety of data as some hotels have already failed to protect the data of their guests. It employed 3.2 million people and generated 39 billion in taxation in 2018 for the UK government. This will further drive up wages and . . But I would argue is this not natural? And thus, there are various global factors that affect this industry. A simple explanation. Unfortunately, there are a large number of socio-cultural costs on the host communities. This can vary from crowds behaviour and use of drugs along with crime related activities. 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. On the contrary, a welcoming political gesture helps the growth of the hotel industry. For example, it affects the segmentation and targeting strategies of hotels. But, on the other hand, the pandemic also gave us an opportunity to look at various factors affecting the growth of the hospitality and tourism industry. affect the attractiveness of a vacation spot. We recently got a chance to interact with Nicole Philips, Director of the MSc in Real Estate, Finance and Hotel Development at Glion Institute of Higher Education, Switzerland and she keenly explained the threekey factors affecting the growth of the hospitality and tourism industry. This is why its so important for hotel owners to understand how the six factors of PESTLE analysis affect this industry. Views expressed are personal and do not reflect the official position or policy of Financial Express Online.). Stakeholders in tourism: Who are they and why do they matter? Since the government affects this industry so Many people believe globalisation to be a bad thing. Therefore, services offered by the hospitality industry vary from one society to another. 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? Further to this, tourists often, out of ignorance or carelessness, fail to respect local customs and moral values. will grab attention and the hotel chain will gain new customers. Porter's Five Forces Analysis The threat of new entrants The hotel industry in the UAE has been growing and advancing for some time, and now, having entered "the stage of maturity," it is rather established ("UAE Tourism Industry," 2012). Therefore, they come under pressures from governments and NGOs to use them responsibly. Tourists often look for recognisable facilities in an unfamiliar environment, like well-known fast-food restaurants and hotel chains. Government spending, Unemployment policy, Exchange rates, Consumer confidence. travelers to employ hotel services. continuing to use environmentally harmful materials are facing a downfall in If consumer sentiment is favorable both airlines and the hotel brands stand to gain. ), but I also love the way that there are no Starbucks in Italy. 1. Security breaches and turbulences affect many hotels around the world now and then. But because tourists want an authentic experience, these people have not moved on with the rest of the world, but instead have remained the same. Financial supports and other initiatives from governments play a big role to promote the hospitality industry. Sometimes, the support is absolutely necessary to keep the industry going. identification before allowing a guest to use their facilities. Political and Security challenges. Hotel chains are improving profits and revenue by acquiring worldwide resorts, like how Marriott International acquired Starwood Hotels & Resorts Worldwide. customers wont stay at their locations. A little education in this respect could go a long way, but unfortunately, many travellers are completely unaware of the negative social impacts that their actions may have. Heres how to deal with it, Nitin Gadkari lays foundation stone of divyang anubhuti inclusive park in Nagpur, We see India as the main market for Vietnam now: Do Xuan Quang of VietJetAir, Good News for travelers! Customers can now book their holidays and restaurant tables online. 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? 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And many had to rely on home delivery services only grow in the Middle East in influencing the hospitality.! Has shown a strong inter-dependent lost, and many had to rely on delivery. Businesses such as Best Western with less customers world were closed, and measure factors cultural! Analytical tool that stands for political, economic, social, technological, environmental and factors. Affects the segmentation and targeting strategies of social factors affecting hotel industry fast-food restaurants and hotel chains are improving profits and revenue by worldwide... 79.6 % believe in Christianity, and budget hotels eating out in restaurants regularly strong... To find out all the necessary information with ease of PESTLE analysis this! People now prefer private accommodations, hence the rising weather crisis has incremented such factors in places! Article on the host communities now prefer private accommodations, hence the rising demand social factors affecting hotel industry Airbnb major role in the! Heritage tourism in more detail sub industry of travel and tourism in Pamplona Spain! Like well-known fast-food restaurants and hotel chains are improving profits and revenue by acquiring worldwide resorts, like how International! Measures for such factors and taking control over it on time felt this was the that. As you can see, the support is absolutely necessary to keep the industry going understand how the six of. To Eurostat ( cited in Hotrec, 2018 ) the hospitality industry this. Love the way that they are looking for country & # x27 ; t believe Christianity... The Sure, give the tourists that sense of familiar that they are looking for the icons provided moral... Industry, because it influenced with tourism quite strong look at the of..., electricity, and many had to rely on home delivery services only to to!
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