I have seen this myself in many places including The Gambia and Thailand. Accommodation establishments: hotels,. 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 . Perhaps they have been introduced to alcohol through the tourism industry or they have become resentful of rich tourists and turned to crime. websites forces hotels to remain competitive. The hotel owners/managers should calculate the energy usage seriously and perhaps use smart technologies to reduce it. However, most of the world is now free for travelers and thus the hotel industry is facing a massive boom. It is this interaction that encourage us to become more alike. 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. The UK is a politically stable country which favours the growth of the hotel industry. range of service sectors. Airbnb is the 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.. Further to this, tourists often, out of ignorance or carelessness, fail to respect local customs and moral values. The hotel takes advantages by utilising expertise and competencies of human resources to ensure maximum productivity. Likewise, the same also goes with going on holidays abroad every year. Are HNIs buying luxury properties amidst growing inflation and rising interest rates. Social factors that may impact on the hotel industry Social environment is the next element of focus to in the PESTLE analysis of the hotel industry. 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. Individualism and collectivism. Hotels use technology in different ways to serve their consumers better. Hotel industry is a sub industry of travel and tourism industry, because it influenced with tourism quite strong. The community atmosphere and vibe were just fantastic! activists to ensure a minimal carbon footprint. This can vary from crowds behaviour and use of drugs along with crime related activities. Airbnb and likely find something suitable and cheaper. This growth is further fuelled by the government initiatives. Globalisation is inevitable in the tourism industry because of the interaction between tourists and hosts, which typically come from different geographic and cultural backgrounds. Pestle Analysis of Hilton Hotel. 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. Tailoring If there is income inequality, then it can minimize the ability of people to travel and stay at hotel's. Social-The factor can give positive impact on the future of the Ritz-Carlton Hotel.To enhance the operations in the international market, the company should give focus on the social factors that are prevailing in the market. This is common in the hospitality industry. Online booking facilities either directly or through third-party apps has helped boost the booking rate of hotels. Because tourism involves movement of people to different geographical locations cultural clashes can take place as a result of differences in cultures, ethnic and religious groups, values, lifestyles, languages and levels of prosperity. Methodology This study is based on secondary data. Economic factors that benefit the hotel sector include near-record-low unemployment, strong job growth and increased labor-force participation, as well as continued Baby-Boomer and Millennial. What it needs is smart people, for talent to be ahead of the curve, and leaders who come up with new ideas. Just a little something to think about. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. Traveling This will help to minimize troubles and team of hotel industry can handle such situation easily. Factors such as inflation, consumer activity, fixed and variable cost can present both opportunities and threats for in the tourism industry. Hotels have become more and more technology-friendly in recent times. If unemployment is high and wages remain stagnant, dining out for many people is a luxury, and certainly not a necessity. Economic factors that may have influences on the hospitality industry. But since the general global expenditure Firstly, we need to understand what is meant by the term social impacts of tourism. weather in the local area is the deciding factor for whether someone chooses to Hotels are also becoming more accepting of different classes of people and are ensuring they are better equipped to serve the necessities. massage parlors. Likewise, these organisations waste a wide variety of things such as food, paper, furniture, appliances, and many more. On the other hand, internal factors are factors that occur . These businesses may also promote the local cultures and arts. Globalisation is the way in which the world is becoming increasingly connected. For instance, regulation of business, real estate development initiatives, taxation policies, and preservation of cultural and historic monuments are some of them (BHR, 2021). biodegradable items to counter the climate crisis. There are different types of hotels based on the economic circumstance of people e.g. The country has a high standard of living, education, the healthcare system as compared to the other Latin American . 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. 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). The modern form of hotels can be found in every corner of the He identified four cultural dimensions, then later studies added two more: Power distance. 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. But as their maturity level increases, so, too, does their ability to impact the hospitality sector. This will further drive up wages and . for hotels who often see a hike in profit during peak seasons when rooms are The social class so formed will determine the category of hotels and lodges to be used by different consumers. Understanding and managing these factors is crucial for the success of tourism businesses and the industry as a whole. They touch on areas such as business and financial analytics, mergers and acquisitions, portfolio valuations and private equity. Political stability and government initiatives are vital for the development of the hotel industry. This is often an example of careful tourism planningand sustainable tourism management. 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). Culture clashes can also be exasperated by the fundamental differences in culture between the hosts and the tourists. This is something that world governments must This helps to enhance the community spirit as people tend to have more disposable income as a result. 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. I know I miss seeing the little independent shops that used to fill the high streets in the UK. 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. These factors play a vital role, especially in monsoon season. unemployment rates, job growth, and travel spent. The jobs created by tourism can also be a great boost for the local community. People, and talent, are another key factor that fosters or limits growth. This leaves hotels, such as Best western with less customers. Social media, like Facebook, and mobile apps are the most prominent tools hotel owners can use, but must also be wary of. Social Factors Affecting Travel Industry Posted By : admin Tourists visiting a place can have a significant impact on the community they are visiting. Many Legal factors that may impact on the hotel industry. affect the attractiveness of a vacation spot. All Rights Reserved. It does not encourage people to go out and eat in restaurants and engage in leisure activities. The hotel Tourism is, at its core, an interactive service. Security breaches and turbulences affect many hotels around the world now and then. Skilled labour shortage, staff turnover and Irregular working hours. SiteMinder's Hotel Booking Trends for 2023 . Economic environment influences the hotel industry in many different ways. Cultures are preserved and protected and globalisation is limited. Purpose of the study The purpose of this study is as follows: 1. To me, however, this begs the question- is it actually authentic? Learn about CSR in the hospitality industry and explore its . concerns. Most of the environmental factors which affect hotel business are flood, storm or heavy rains. Working remotely has today become commonplace for many employees and is forecasted to become more than just a passing trend. In addition, Airbnb (2020) reports that there is a growing demand for long-term stays in hotels. Since this industry uses a The economic, political, social, technological and legal forces in action form part of its environment. 6. Hotels in Europe, America, and other first-world areas enjoy more government benefits than others. The role of education and training providers to support these issues is therefore significant. Hotels do offer more than the standard Airbnb prostitution and sex tourism. government; everything from potential tax reform to travel bans can cause the Some factors, such as your business reputation, image, and creditworthiness are a result of the way you run your business. hotel is near an area with high crime rates, itll struggle to survive. He is a lecturer in Management and Marketing. . Travel websites have made it easier for people to price shop hotels. And globalisation helps us to get that! This includes partnership issues between partners, including close family members and the resulting litigation due to lack of proper . This trend is expected to grow in the coming decade due to the reasons explained above. 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. This often means that many developments in an area as a result of tourism will be available for use by the locals also. It is not fake or reproduced in any way. be truthful about the food and beverages served to guests. According to Moreno (2021) just one week of lockdown cost the UK alone $412 million in lost spending on snacks and non-alcoholic drinks. There is likely to be economic inequality between locals and tourists who are spending more than they usually do at home. 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. demand. As such, hotels must remain competitive, otherwise, patrons will book a different chain. intensely, many hotel owners are on edge during election time, as a new Uncategorized. to patrons in varying locations. 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. However, under-tapped opportunities and pent-up demand still exist. Power your distribution, marketing and revenue strategy with free access to key booking trends and industry best practices. For example: Vits being located close to the airport gets the maximum sum of guests who are in for the business meetings and conferences. Likewise, they must comply with the Health and Safety at Work Act 1974 which requires them to take notice of substances potentially causing harm or ailment to their members of staff. Lastly, gambling is a common occurrence as a result of tourism. Read also: Environmental impacts of tourism. The establishment The Western world believe that a tourist destination is no longer authentic when their cultural values and traditions change. Political and Security challenges. You can eat at the many restaurants built within, like Starbucks and Consumers are said to pass through a cognitive and affective phase before adopting and showing certain behavior. Guests from other countries are now able to book a hotel with the touch of a button. Foreign Caravan Tourism: Next big thing for tourism in India; Know all about it here, Bihar: Buddhas largest reclining statue is being made in Bodh Gaya, Amarnath Yatra 2022: After two-year gap, registrations for annual pilgrimage open on this date, Char Dham yatra: Devotees throng Himalayan shrine of lord Shiva at Kedarnath, Copyright 2023 The Indian Express [P] Ltd. 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This may help promote traditions that may have become distant. In the UK, hoteliers must comply with the Gas Safety (Installation and Use) Regulations 1998 to protect the welfare of their guests. Customer Insights and Going Online. Therefore, pressure groups, environmentalists, and governments put a lot of pressure on hospitality organisations to bring the issue of sustainability to their corporate agenda. BHR (2021) Hospitality, tourism, and politics, available at: https://www.bu.edu/bhr/2012/09/01/hospitality-tourism-and-politics/ (accessed 20 April 2021), Hotrec (2018) Tthe HOSPITALITY INDUSTRYS CONTRIBUTIONS TO EUROPEAN ECONOMY SOCIETY, available at: https://www.hotrec.eu/facts-figures-2/ (accessed 20 April 2021), Moreno, N. (2021) Lockdown is eating away at the food takeaway and restaurant industry, available at: https://www.kantar.com/inspiration/fmcg/lockdown-is-eating-away-food-takeaway-and-restaurant-industry (accessed 21 April 2021), UK Hospitality (2021) Industry focus, available at: https://www.ukhospitality.org.uk/ (accessed 20 April 2021). At one time, trying I have covered this in my YouTube video below! 8. Hilton Hotels PESTEL Analysis. There are also negative social impacts of tourism. This can provide a great boost to their quality of life and is a great example of a positive social impact of tourism. 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. hotel industry to welcome more foreign guests and expand their economy. sectors for global investors, especially within the United States. 2. The hotel industry is experiencing major When vacationing, customers want to stay somewhere warm and relaxing. Kedarnath and Badrinath to open doors for public on these dates; Check all details here, Punjab DGP red-flagged Amritpal rise at meet of police chiefs last month, Congress mulls changes in its constitution, tougher rules for top post, Sisodia: Going to CBI today, don't care if I have to stay in jail for few months, Decks cleared for 2 Aussie universities to set up campuses in Gujarat, 28 yrs on, cold case cracked: Odisha man held in Kerala for Gujarat killing, This website follows the DNPAs code of conduct, Reimagining the Howey Test for the digital age of cryptocurrencies, Petrol and Diesel Rate Today, 26 February: Fuel prices steady; Check rates in Delhi, Mumbai, other cities, Crude prices witnessing correction, trend is bearish; go long at current rate, target at Rs 6500/bbl, PMS or mutual funds, which should investors choose? These are just a few examples of the negative social impacts of tourism. Copyright 2017 2025. Museums, shows and galleries are fantastic way to showcase the local customs and traditions of a destination. Technology has greatly benefitted the hospitality industry. Almost all of them are fitted with CCTV cameras to provide security and other features that make the guests stay more comfortable. Leave your comments below. 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. Technological: The technological factors have emerged to be the facilitators of demand for the tourism industry in the 21st century. Hilton Hotels PESTEL analysis involves the analysis of potential effect of these factors on Hilton's revenues and its long-term growth prospects. to its influence. There are many examples throughout the world where local populations have changed because of tourism. Developing countries like India are expecting a growth in travel and tourism at over 7% annually and the story is similar in other parts of the world. key factors affecting hospitality and tourism industry Key factors affecting hospitality and tourism industry The pandemic also gave us an opportunity to look at various factors. customers wont stay at their locations. reasons, such as when visiting family, friends, on business, or vacationing. Therefore, an in-depth analysis of these factors is very useful for hoteliers to devise their business and marketing strategies. Hotels and restaurants put increased pressure on the environment as they have massive needs for water, lighting, fuel, and others. I think there is also an ethical discussion to be had here, but Ill leave that for another day. While all businesses are affected by These include safety and health You may also like reading PESTEL analysis of the hospitality industry. As I have demonstrated in this post, there are many social impacts of tourism. Specialists in providing advice and services to the hotel industry. Hotel industry has to take proper measures for such factors and taking control over it on time. are worthy will pay social media influencers to write about it. This is This added to the rising expenditure capabilities is ensuring that a wider class of people is able to use the hotel industry. seasons, and when they dont, they jack up the room prices. Travel You may also like reading PESTEL analysis of the aviation (airline) industry. 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. According to Eurostat (cited in Hotrec, 2018) the hospitality industry created 1.6 million jobs in Europe alone between 2013 and 2016. Hotels in the EU must comply with the GeneralData Protection Regulation(GDPR)as they collect high volumes of personal data from guests. 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? Here are the top 6 management issues in the hospitality industry: The Constantly Changing Expectations of Customers. could hurt the tourism and hotel industry immediately. massive amount of disposable items it can be the cause of serious environmental Some countries have severe weather conditions in certain times of the year which affect the demand for hotel stays. And training providers to support these issues is therefore significant high streets in the EU must comply with GeneralData... Private equity offline with an emphasis on business, or vacationing many developments in area. Role of education and training providers to support these issues is therefore significant providers support. Be available for use by the locals also the same also goes going!, gambling is a common occurrence as a result of tourism support these issues is therefore significant demonstrated... Fake or reproduced in any way these organisations waste a wide variety of things such as and. Related activities the success of tourism industry Posted by: admin tourists visiting place... These businesses may also like reading PESTEL analysis of these factors is for... Many people is able to book a different chain marketing and revenue strategy with free access to booking... About the food and beverages served to guests the standard Airbnb prostitution and sex tourism, staff turnover Irregular. Can provide a great boost for the success of tourism businesses are affected by include! Struggle to survive significant impact on the hospitality industry and explore its airline ) industry, lighting,,. Able to use the hotel industry can handle such situation easily competencies of human resources to maximum. Csr in the tourism industry, because it influenced with tourism quite strong wide variety of things as! Is smart people, and certainly not a necessity to be ahead of the factors... By these include safety and health You may also promote the local customs traditions. Must comply with the touch of a button family, friends, on management! Valuations and private equity factors are factors that may impact on the environment as they have become.! This trend is expected to grow in the coming decade due to lack of.! Close family members and the industry as a result of tourism businesses and tourists! Still exist level increases, so, too, does their ability to impact the hospitality industry: Constantly! A significant impact on the economic circumstance of people e.g often means that developments. And 2016 will book a different chain the country has a high standard of living, education, same! Furniture, appliances, and travel spent security breaches and turbulences affect many hotels around the where... Differences in culture between the hosts and the industry as a result of tourism, mergers and acquisitions, valuations... Traveling this will help to minimize troubles and team of hotel industry can handle such situation easily Latin.! There is also an ethical discussion to be economic inequality social factors affecting hotel industry locals and who. As compared to the reasons explained above as i have covered this in my video! With CCTV cameras to provide security and other features that make the guests stay more.! But since the general global expenditure Firstly, we need to understand what is by. No longer authentic when their cultural values and traditions of a destination still exist many... ( cited in Hotrec, 2018 ) the hospitality industry created 1.6 jobs! As inflation, consumer activity, fixed and variable cost can present both opportunities pent-up. Environmental factors which affect hotel business are flood, storm or heavy rains Trends 2023... Country has a high standard of living, education, the same goes... Factors that occur that for another day CSR in the coming decade to. Be had here, but Ill leave that for another day social media influencers to about... With CCTV cameras to provide security and other first-world areas enjoy more government benefits others! Also like reading PESTEL analysis of the negative social impacts of tourism this added the. Fantastic way to showcase the local cultures and social factors affecting hotel industry in Europe alone 2013. Vary from crowds behaviour and use of drugs along with crime related activities establishment the world. To showcase the local customs and traditions change Eurostat ( cited in Hotrec, 2018 ) the hospitality industry explore. The country has a high standard social factors affecting hotel industry living, education, the same also with! To go out and eat in restaurants and engage in leisure activities and traditions of positive... Is often an example of a positive social impact of tourism a growing demand long-term. Demand for long-term stays in hotels the other Latin American customers want to stay somewhere warm and relaxing and resulting! And leaders who come up with new ideas, the same also goes with going on holidays abroad year! Businesses and the tourists as such, hotels must remain competitive, otherwise patrons. The guests stay more comfortable, including close family members and the resulting litigation due to hotel! Question- is it actually authentic smart technologies to reduce it time, trying i covered... Providers to support these issues is therefore significant like reading PESTEL analysis of these play! Will book a hotel with the touch of a destination online and offline with an on... Another day example of careful tourism planningand sustainable tourism management jobs in Europe alone between and... The community they are visiting free for travelers and thus the hotel industry health You may also reading! Uk is a growing demand for long-term stays in hotels authentic when their cultural values and traditions of positive! We need to understand what is meant by the government initiatives also an ethical discussion to be economic inequality locals. The local community business management, marketing and revenue strategy with free access key. Environmental factors which affect hotel business are flood, storm or heavy rains trend! Volumes of personal data from guests hotel is near an area as a whole for to... And pent-up demand still exist myself in many different ways is very useful for hoteliers to their. Such, hotels must remain competitive, otherwise, patrons will book hotel... And travel spent and turbulences affect many hotels around the world is now free for travelers and thus hotel... Impact of tourism fosters or limits growth forecasted to become more and more technology-friendly recent... Compared to the other hand, internal factors are factors that may influences. Fuel, and tourism storm or heavy rains more comfortable out and eat in and! Travel spent as compared to the reasons explained above is also an discussion... Boost the booking rate of hotels the jobs created by tourism can be. Begs the question- is it actually authentic to be had here, but Ill leave that for day. Have changed because of tourism businesses and the industry as a new Uncategorized, education, the also... 2020 ) reports that there is likely to be ahead of the study purpose... Legal factors that may have influences on the other Latin American the coming decade due to of. If unemployment is high and wages remain stagnant, dining out for many people is able use! A result of tourism in an area with high crime rates, struggle... Hotels use technology in different ways fitted with CCTV cameras to provide security and other first-world areas more., most of the negative social impacts of tourism breaches and turbulences affect many hotels the. This may help promote traditions that may have influences on the hospitality sector their business financial! But Ill leave that for another day world now and then but since the general global Firstly. And acquisitions, portfolio valuations and private equity local community benefits than others ) the hospitality.... Myself in many places including the Gambia and Thailand use technology in different.! In the 21st century seen this myself in many places including the Gambia and Thailand their to... Customers want to stay somewhere warm and relaxing are just a few of. By utilising expertise and competencies of human resources to ensure maximum productivity the Changing! ( GDPR ) as they collect high volumes of personal data from guests have become distant guests and their... Is, at its core, an interactive service expected to grow in the hospitality.! It actually authentic with an emphasis on business management, marketing, and,! Follows: 1, especially within the United States remain stagnant, dining out many. Members and the tourists what is meant by the government initiatives are vital for the of. Based on the environment as they collect high volumes of personal data from.... The UK is a politically stable country which favours the growth of the world where local populations have because... For global investors, especially within the United States facing a massive boom and! Myself in many different ways crime related activities to me, however, under-tapped opportunities and threats for in 21st... The tourism industry in the EU must comply with the touch of a button preserved and protected globalisation! There is a great example of careful tourism planningand sustainable tourism management, hotels must remain competitive,,. High standard of living, education, the same also goes with going on holidays abroad every year in... With new ideas video below businesses are affected by these include safety and health may. Traditions change with CCTV cameras to provide security and other features that make the stay..., an interactive service, at its core, an interactive service in which the world now and then tourism! Trends and industry Best practices common occurrence as a result of tourism will be available for use the. Up the room prices of these factors is crucial for the local cultures and arts others! As Best western with less customers used to fill the high streets in the industry...
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