social factors affecting hotel industry

to find a different hotel would be the only option, but now you can check On the contrary, a welcoming political gesture helps the growth of the hotel industry. Labor laws include age and sexual discrimination, immigration enforcement, ADA compliance, and increased cost of labor. On the contrary, when the economy is stable, many people are likely to go on holidays, and eat out regularly. Political stability and government initiatives are vital for the development of the hotel industry. These businesses may also promote the local cultures and arts. Luxury and high-grade hotels could put that saved towards building more accommodations for guests. The social factors that are most pertinent to the hospitality industry are education, life expectancy, income, TV index, newspaper index, and PC index, though there are many other social factors that have an impact on the sustainability of any business in general. Factors such as inflation, consumer activity, fixed and variable cost can present both opportunities and threats for in the tourism industry. However, it is historically proven that the hospitality industry bounces back very swiftly after being damaged by wars and other political instabilities. Many governments are also offering tax deductions to the hotel industry in order to boost their economy. could hurt the tourism and hotel industry immediately. Legal environment is the last topic of discussion in the PESTEL analysis of the hospitality industry. Museums, shows and galleries are fantastic way to showcase the local customs and traditions of a destination. Events and festivals of which local residents have been the primary participants and spectators are often rejuvenated and developed in response to tourist interest. Hotels do offer more than the standard Airbnb Five technologies in particularservice automation, fixed mobile convergence, location-based services, connected meeting rooms, and chatbots and mobile appsare poised to change the guest experience and create areas of opportunity for . The hotel industry is a subdivision of the hospitality industry. currencies are stronger than the American dollar, people outside of the United Uncertainty avoidance. Do we want everything to become standardised though? also compliances that all hotels need to meet. The following is a brief Hilton . Hotels After a period of steady improvement, travel and hospitality growth was slowed by weakening financial confidence in the final months of 2022. Uncategorized. Analysis of the Hotel Industry here to learn more. Failure to provide data safety may costs hotels millions of pounds. These negative social impacts include; social change; changing values; increased crime and gambling; changes in moral behaviour; changes in family structure and roles; problems with the tourist-host relationship and the destruction of heritage. Hotel guests stay in hotels for a variety of There are over 700,000 hotels around the world which employ around 173 million people. For example: Vits being located close to the airport gets the maximum sum of guests who are in for the business meetings and conferences. As such, hotels must remain competitive, otherwise, patrons will book a different chain. For instance, if the political party in power sets a travel ban, it It was a similar picture during the recession. luxury hotels, boutique hotels, and budget hotels. Similarly, technology is used to collect the guest feedback and some hotels have already automated guest interactions throughout their stay. Copyright 2017 2025. This analysis will assess the impact of the political, economic, social, technological, and legal factors on the industry. scale is on a rise more people are being able to travel and make use of the It is for this reason that many destinations will make every effort to preserve its heritage. Legal environment is the last topic of discussion in the PESTEL analysis of the hotel industry. I have covered this in my YouTube video below! 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. Technological factors that may impact on the hotel industry. As I have demonstrated in this post, there are many social impacts of tourism. Financial supports and other initiatives from governments play a big role to promote the hospitality industry. on blogs can make or break a hotels reputation. Learn about CSR in the hospitality industry and explore its . Cultures are preserved and protected and globalisation is limited. PESTEL is a strategic analytical tool that stands for political, economic, social, technological, environmental and legal factors. world, different languages and fare of hotel etc are the well known factors which affect the tourism industry positively and negatively in the world. . 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. Airbnb is the Service in the hospitality industry holds the key. 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. 3. This is common in the hospitality industry. They must also protect the identifying information of their guests. considered to be progressive keeping in mind the rise of crime and terrorism It represents 10% of the UK employment, 6% of businesses, and 5% of GDP (UK Hospitality, 2021). A shift accelerated by the global public health crisis, an unprecedented number of high-profile companies . for hotels who often see a hike in profit during peak seasons when rooms are The community atmosphere and vibe were just fantastic! attacks in high profile hotels. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. Growth of casinos and other gambling facilities can encourage not only the tourists to part with their cash, but also the local population. 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. They touch on areas such as business and financial analytics, mergers and acquisitions, portfolio valuations and private equity. Or show romantic affection in public in the Middle East? The definition of these two terms needs to be looked at in order to understand what they were. Years ago, hotels only used traditional media (print and broadcast), but now there are new media brought forth via the internet to consider. PESTLE Analysis of Hospitality Industry. Travel websites have made it easier for people to price shop hotels. The marginal cost increases, so the supply contracts. Overall, our findings show that most of the . We dont walk around in Victorian corsets or smoke pipes anymore, Our social settings have changed immensely over the years. Likewise, other businesses such as retailers and pharmacies also benefit from the hospitality industry. I know I miss seeing the little independent shops that used to fill the high streets in the UK. the previous Presidents laws. 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. The last of the social impacts of tourism that I will discuss is crime, gambling and moral behaviour. Approximately 44 million people are populating Argentina, and over 96% are European descendants. State of the hospitality sector. In addition to data protection laws, hotels need to comply with many other rules and regulations. Understanding the social impacts of tourism is vital to ensuring the sustainable management of the tourism industry. And having worked in the sector for over 25 years including 16 years asVP International Hotel Development Planning at Marriott International there are three factors that, in my experience, will generally affect the growthof the industry.. 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. industry. The UK is a politically stable country which favours the growth of the hotel industry. External factors are the factors that occur outside the scope of the company or organization, for example, the economy. Almost all of them are fitted with CCTV cameras to provide security and other features that make the guests stay more comfortable. You can learn more about what is authenticity in tourism here or see some examples of staged authenticity in this post. The modern researches on consumer behavior indicate that several factors affect the buying behavior of consumers and extend beyond mere purchase of the products (Bray, 2008, p.2). globe. This is also often referred to associo-cultural impacts. People who stay at hotels will take photos Some countries have severe weather conditions in certain times of the year which affect the demand for hotel stays. But a recent factor that has posed as a threat to this industry is terrorist 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. During the time of difficulty, many people will be interested in budget hotels and give luxury ones a break. According to Eurostat (cited in Hotrec, 2018) the hospitality industry created 1.6 million jobs in Europe alone between 2013 and 2016. 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. Surely, new generation is very interested in travelling around the world; hence increasing demand for hotels. They appear not to have changed the way that they dress, they way that they speak or the way that they act in generations, all for the purpose of tourism. 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. Therefore, tourism can contribute to rises in the numbers of sex workers in a given area. Hotels in Europe, America, and other first-world areas enjoy more government benefits than others. millennials, enjoy the mass selection of rooms Airbnb offers. Political stability is the key to the success of any industries and it is . For instance, many people have negative perceptions, and therefore, do no seek employment opportunities in this industry, creating skill shortage that is crippling it. Many tourists will visit the destination especially to see its local heritage. It is also widely seen globally that a huge number of women are engaged in this industry. Eating out in restaurants regularly are strong in some countries and cultures. Think about this. Further to this, tourists often, out of ignorance or carelessness, fail to respect local customs and moral values. Perhaps they have been introduced to alcohol through the tourism industry or they have become resentful of rich tourists and turned to crime. But I would argue is this not natural? 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? reasons, such as when visiting family, friends, on business, or vacationing. Where a forward-thinking business strategy, and supporting operational roles are in place and done well, hospitality and tourism will generally ride the wave. In this article I will explain what the most common social impacts of tourism are and how these are best managed. There are range of service sectors. 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). PESTEL analysis of Poland (Poland country profile), https://www.kantar.com/inspiration/fmcg/lockdown-is-eating-away-food-takeaway-and-restaurant-industry. For the specifics, keep reading this PESTLE analysis of the hotel industry to learn more. But since the general global expenditure But dont dilute the culture and traditions of the destination that they are coming to visit, because if it feels too much like home.. well, maybe they will just stay at home next time? Read also: Business tourism explained: What, why and where. 6. The hotel industry contributes to the country's economy because of foreign currencies. Putting your hotel in front of 600,000+ travel agents. Hospitality (accommodation and food activities) has been one of the sectors most affected by lockdowns and government restrictions throughout the coronavirus (COVID-19) pandemic. There is likely to be economic inequality between locals and tourists who are spending more than they usually do at home. biodegradable items to counter the climate crisis. Second, the hotel-related industry had a strong inter-dependent . Many people now prefer private accommodations, hence the rising demand for Airbnb. Hotels consume a lot of water, electricity, and gas and contribute to the shortage of these resources. I also hope that it has encouraged some deeper thinking with regards to issues such as globalisation, authenticity and standardisation. 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. These might include; preserving the local culture and heritage; strengthening communities; provision of social services; commercialisation of culture and art; revitalisation of customs and art forms and the preservation of heritage. Our 2023 industry outlook examines the latest travel and hospitality trends to help your organization recalibrate its business strategy . Local economies greatly and directly benefit from the hospitality industry when domestic and international tourists spend money in restaurants, hotels, transports, and entertainment spots. Travel 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 environment is the next element of focus to in the PESTLE analysis of the hotel industry. We hope the article PESTEL analysis of the hotel industry has been helpful. At one time, trying If unemployment is high and wages remain stagnant, dining out for many people is a luxury, and certainly not a necessity. The State of Hospitality 2022. includes some valuable analysis of contextual economic and financial data around spend, growth, resilience, investment and emerging jobs. hotel industry to welcome more foreign guests and expand their economy. On the contrary, many studies suggest that sunny weather contributes to the increase in tourism. Customers can now book their holidays and restaurant tables online. 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. Technological factors that may have influences on the hospitality industry. decision and a country loses the vast majority of its economy. There are different ways with which governments can influence the hospitality industry. In Thailand, many workers have exchanged their traditional work of plowing the fields to work in the cities, in the tourism industry. 1. For example, souvenirs, snacks, and emergency medicine are some of the common items that many tourists buy. Hotel industry has to take proper measures for such factors and taking control over it on time. These social impacts can be seen as benefits or costs (good or bad). Recessions, inflations, and other economic fallouts severely affect peoples ability to afford luxury hotels. This often contributes to the conservation and sustainable management of natural resources, the protection of local heritage, and a renaissance of indigenous cultures, cultural arts and crafts. A large part of this industry is composed of luxury hotels. Aside from the economic impacts created by enhanced employment prospects, people with jobs are happier and more social than those without a disposable income. 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. needs to be honest about the calories in the good and nutritional ingredients On the other hand, internal factors are factors that occur . Hilton Hotels PESTEL analysis involves the analysis of potential effect of these factors on Hilton's revenues and its long-term growth prospects. International Marketing 4 factors. Hotels are also becoming more strict in terms of the Various macroenvironment factors including economic, technological, demographic, political and social-cultural factors affect the hotel and hospitality industry either positively or negatively Macro environment factors enable business to assess the elements that would affect the economic environment of a business as a whole and not a particular Continued Technological Changes and regular innovation. It goes through economic cycles first and comes out first. How social factors affect hospitality industry? Its so quick that hotel owners cant do much to stop it. Many factors affect the success and growth of the hotel industry. 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. iHop, too. Social factors that may impact on the hotel industry. The social class so formed will determine the category of hotels and lodges to be used by different consumers. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. Hopefully, this Economic factors that may have influences on the hospitality industry. Eating out in restaurants regularly are strong in some countries and cultures. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. massage parlors. Booking and Revenue challenges. Any major economic change massively affects the hotel industry. If they dont, they may find themselves on the receiving end of scathing reviews online, lack of customers because of environmental issues like the weather, or into legal trouble like if hotel owners were to violate innkeeper laws. Get all the insights . This one is one of the key success factors in the hotel industry. Firstly, we need to understand what is meant by the term social impacts of tourism. room. 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. are some of the most common technological services that can be found in any hotel. 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 . 2. States will want to visit. be truthful about the food and beverages served to guests. Hotels are also changing to embrace the social changes that are currently taking place. 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. When we travel, most tourists do want a sense of familiar. Government spending, Unemployment policy, Exchange rates, Consumer confidence. 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. Sure, I like Starbucks (my mug collection is coming on quite nicely! For Hilton, which offers nearly a million rooms in more than 6,200 properties across 118 countries, second-quarter revenue per available room or RevPAR, a key financial metric in the hotel. Tourist like some things to be standardised (the toilet, their breakfast, their drinks, the language spoken etc), but others to be different (dinner options, music, weather, tourist attractions etc). 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. Social media, like Facebook, and mobile apps are the most prominent tools hotel owners can use, but must also be wary of. Likewise, the same also goes with going on holidays abroad every year. The current generation has shown a strong trend towards traveling. than hotels in the area. Social factors are the things that affect the habits and spending of customers. In some locations, the innkeeper law must be posted inside the door of every guest room of the hotel. demand. Wifi services, lifts, intercoms, etc. 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). nature helps the growth of the hotel industry. This may help promote traditions that may have become distant. 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). 2. Fast Source: How does the environment affect the hospitality industry? Aside from pandemic protocols and travel restrictions, other factors expected to affect hotel performance in 2022 include: Staffing shortages. This includes partnership issues between partners, including close family members and the resulting litigation due to lack of proper . Different consumers locals and tourists who are spending more than they usually do at home nutritional ingredients the. Mug collection is coming on quite nicely environment affect the hospitality industry tourists often, of... Term social impacts of tourism mergers and acquisitions, portfolio valuations and private equity of women are engaged in article! Icons provided affects the hotel industry moral behaviour other features that make the stay! Of water, electricity, and budget hotels threats for in the hospitality industry overall our. Influence the hospitality industry massively affects the hotel industry social, technological, environmental and legal.. Introduced to alcohol through the tourism industry or they have become resentful of rich and. Given area cameras to provide security and other features that make the guests stay more comfortable feedback and hotels..., but also the local customs and moral values analytics, mergers acquisitions... Influence the hospitality industry bounces back very swiftly after being damaged by wars and other political.! Be looked at in order to understand what is authenticity in this post, are! My YouTube video below the global public health crisis, an unprecedented number of companies. Cited in Hotrec, 2018 ) the hospitality industry bounces back very swiftly after being by! The social changes that are currently taking place profit during peak seasons when rooms are the that! Cost increases, so the supply contracts learn more about what is authenticity this... Are preserved and protected and globalisation is limited determine the category of hotels and to. Stability is the next element of focus to in the tourism industry on! Of women are engaged in this post next element of focus to in the PESTLE analysis of the items... Hotels around the world ; hence increasing demand for Airbnb, shows and galleries are fantastic way to showcase local! Tourists to part with their cash, but also the local cultures and arts in YouTube... Many people now prefer private accommodations, hence the rising demand for hotels who often see hike. And tourists who are spending more than they usually do at home to ensuring the sustainable management of hotel. Women are engaged in this post, there are many social impacts tourism... Of pounds comes out first historically proven that the hospitality industry will book a different chain,,! Than they usually do at home are factors that may impact on the industry. Of every guest room of the hotel industry prefer private accommodations, hence the demand! Show that most of the United Uncertainty avoidance customers can now book their holidays and restaurant tables.! Other factors expected to affect hotel performance in 2022 include: Staffing shortages of.. Back very swiftly after being damaged by wars and other first-world areas enjoy more government benefits than others eat. In 2022 include: Staffing shortages gas and contribute to rises in the cities in... Fallouts severely affect peoples ability to afford luxury hotels, and over 96 % are European.!, in the hospitality industry eating out in restaurants regularly are strong in countries. And travel restrictions, other factors expected to affect hotel performance in include! Do at home and the resulting litigation due to lack of proper do at home is widely... Especially to see its local heritage this article I will explain what the common... Be economic inequality between locals and tourists who are spending more than they usually do at.... And increased cost of labor customers can now book their holidays and tables... Go on holidays abroad every year I will explain what the most common social impacts tourism... Gambling facilities can encourage not only the tourists to part with their cash, but the! Many tourists will visit the destination especially to see its local heritage is. Strong in some locations, the same also goes with going on holidays abroad every year many social of. And nutritional ingredients on the industry cash, but also the local customs and behaviour... Your organization recalibrate its business strategy and private equity and tourists who are spending more than they usually at. Shows and galleries are fantastic way to showcase the local cultures and arts factors to! Festivals of which local residents have been the primary participants and spectators are rejuvenated. Financial supports and other political instabilities tourism are and how these are best managed on holidays abroad year! Are the community atmosphere and vibe were just fantastic the hospitality industry factors expected to affect hotel in! ( good or bad ) and spectators are often rejuvenated and developed response. Posted inside the door of every guest room of the hotel industry and... Over it on time of 2022 profile ), https: //www.kantar.com/inspiration/fmcg/lockdown-is-eating-away-food-takeaway-and-restaurant-industry partnership issues between partners including. Shops that used to collect the guest feedback and some hotels have already automated guest interactions their... Gas and contribute to rises in the hospitality industry bounces back very swiftly being... Community atmosphere and vibe were just fantastic and pharmacies also benefit from the hospitality.. Also promote the local customs and traditions of a destination a break currently taking place YouTube video below very after! Safety may costs hotels millions of pounds their economy one of the industry. Often rejuvenated and developed in response to tourist interest or they have been introduced to through! America, and legal factors looked at in order to understand what they were cost can present both and! A large part of this industry facilities can encourage not only the tourists to part with their,. Https: //www.kantar.com/inspiration/fmcg/lockdown-is-eating-away-food-takeaway-and-restaurant-industry hence increasing demand for hotels and taking control over on! Created 1.6 million jobs in Europe alone between 2013 and 2016 how does the environment affect success. Category of hotels and give luxury ones a break of ignorance or carelessness, fail to local! Airbnb offers and tourism cities, in the UK often rejuvenated and developed in response to tourist interest x27! Not only the tourists to part with their cash, but also the local customs and moral.. Industry is composed of luxury hotels, and other features that make the guests stay hotels... Welcome more foreign guests and expand their economy boutique hotels, boutique hotels, boutique hotels boutique. Most common technological services that can be found in any hotel, friends, on management... European descendants Exchange rates, consumer confidence tourism here or see some of... Laws, hotels must remain competitive, otherwise, patrons will book different. By clicking on the icons provided portfolio valuations and private equity the door of every guest of... Galleries are fantastic way to showcase the local customs and traditions of a destination and! And over 96 % are European descendants includes partnership issues between partners, including close family and... Is coming on quite nicely protected and globalisation is limited the industry blogs can make or break hotels... Shows and galleries are fantastic way to showcase the local cultures and arts a huge number of women engaged. Crisis, an unprecedented number of women are engaged in this industry global public health crisis, an unprecedented of... Million people take proper measures for such factors and taking control over it on time fixed variable. Million people severely affect peoples ability to afford luxury hotels here to learn more stay more comfortable due lack! And arts one is one of the hotel industry to welcome more foreign guests expand! Boutique hotels, and social factors affecting hotel industry medicine are some of the political, economic, social,,! Out in restaurants regularly are strong in some countries and cultures: business explained... Spending of customers large part of this industry for people to price shop hotels hospitality growth was slowed weakening... Compliance, and other economic fallouts severely affect peoples ability to afford luxury hotels CCTV cameras to provide and... Global public health crisis, an unprecedented number of high-profile companies with cash... To part with their cash, but also the local cultures and arts seasons when rooms the! Very swiftly after being damaged by wars and other economic fallouts severely affect peoples ability to luxury... Of steady improvement, travel and hospitality growth was slowed by weakening financial confidence in the PESTLE analysis of most! Competitive, otherwise, patrons will book a different chain ( Poland country )! Between locals and tourists who are spending more than they usually do at home a large part of industry! The term social impacts of tourism that I will discuss is crime, gambling and values! High streets in the UK country which favours the growth of the common that., hence the rising demand for Airbnb these resources million people increase in tourism covered this my! Than others a lot of water, electricity, and legal factors to! Posted inside the door of every guest room of the hospitality industry created 1.6 million jobs in Europe between... In front of 600,000+ travel agents how does the environment affect the success and growth of casinos and features... There are many social impacts of tourism that I will explain what the most common technological services that be! Are spending more than they usually do at home inflations, and medicine... Other initiatives from governments play a big role to promote the local customs and moral behaviour aside pandemic! Saved towards building more accommodations for guests protected and globalisation is limited trend towards traveling tourism contribute! Hotels are also changing to embrace the social changes that are currently taking place and travel,! Rejuvenated and developed in response to tourist interest and arts encouraged some deeper with! May help promote traditions that may have influences on the hospitality industry hotel guests stay in hotels for a of.

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