Read also: Environmental impacts of tourism. Travel This helps them reduce their advertising costs and interact with the customers in real time. Technological factors that may have influences on the hospitality industry. Uncertainty avoidance. needs to be honest about the calories in the good and nutritional ingredients room. 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. He is a regular panel speaker at the International Hotel Investment Forum in Berlin. Wifi services, lifts, intercoms, etc. It is an industry which offers opportunities to youngsters to step into their career ladder. 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. To put it simply, social impacts of tourism are; The effects on host communities of direct and indirect relations with tourists, and of interaction with the tourism industry. 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). These businesses may also promote the local cultures and arts. Is it right to go topless on a beach if within the local culture it is unacceptable to show even your shoulders? strength of currency can bolster the industry. Online booking facilities either directly or through third-party apps has helped boost the booking rate of hotels. Known by its initials, F&B is the largest segment of the hospitality industry and is estimated to provide around half of all meals eaten in the U.S. today. Legal factors that may have influences on the hospitality industry. For instance, almost all the hotels now use social media to reach out to their current and potential customers. Many of them have already come up with additional services such as gym, restaurant, and massage parlour that many youngsters like. This tendency will further grow in the future leading to even more demand for hotels. 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. The UK is a politically stable country which favours the growth of the hotel industry. The hotel takes advantages by utilising expertise and competencies of human resources to ensure maximum productivity. 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. 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. However, most of the world is now free for travelers and thus the hotel industry is facing a massive boom. We analyze these factors to understand how the hotel industry performs in the current political and social setting, and the factors that pose a concern to it. The economic cycle, especially in relation to supply and demand and value of money, is obviously a major factor in growth. Social factors are the things that affect the habits and spending of customers. There are many social benefits of tourism, demonstrating positive social impacts. Our responsibility as educators is to give students the base to emerge strongly from these challenges. This will further drive up wages and . Likewise, these organisations waste a wide variety of things such as food, paper, furniture, appliances, and many more. Foreign Views expressed are personal and do not reflect the official position or policy of Financial Express Online.). 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. hotel industrys biggest competition. A simple explanation, The 3 types of travel andtourismorganisations, 150 types oftourism! 6. competition with corporations like Airbnb, which offer a variety of rooms for In most cases, the innkeeper law will state how much compensation the innkeeper will pay guests if their property is stolen or damaged. The State of Hospitality 2022. includes some valuable analysis of contextual economic and financial data around spend, growth, resilience, investment and emerging jobs. Labor laws include age and sexual discrimination, immigration enforcement, ADA compliance, and increased cost of labor. (The author is a well-known travel writer. All rights reserved LCHW. This helps to enhance the community spirit as people tend to have more disposable income as a result. If you are interested in learning more about topics such as this subscribe to my newsletter! to its influence. to patrons in varying locations. Events and festivals of which local residents have been the primary participants and spectators are often rejuvenated and developed in response to tourist interest. 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 . However, data management and security are real tech challenges for this industry. 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. Industry Analysis is effectively covered under the Economic heading. to find a different hotel would be the only option, but now you can check will grab attention and the hotel chain will gain new customers. The hotel for hotels who often see a hike in profit during peak seasons when rooms are Culture clashes can also be exasperated by the fundamental differences in culture between the hosts and the tourists. Travel and Tourism can also affect the rights of human beings in an area. The hotel and hospitality sector is facing a larger boom than ever. Preserving Local Culture There are different regulatory requirements to open and run hotels, restaurants, and amusement parks. within must follow truth-in-menu laws, which means the food establishment must hotel industry to welcome more foreign guests and expand their economy. Just a little something to think about. The Western world believe that a tourist destination is no longer authentic when their cultural values and traditions change. To me, however, this begs the question- is it actually authentic? Aside from the economic impacts created by enhanced employment prospects, people with jobs are happier and more social than those without a disposable income. These factors play a vital role, especially in monsoon season. Explains how social factors affect and influence buyer behaviour, such as buying products to fit in with a certain social group. Similarly, technology is used to collect the guest feedback and some hotels have already automated guest interactions throughout their stay. These factors are outside the influence of the company (Lindbald, 2014). Uncategorized. But as their maturity level increases, so, too, does their ability to impact the hospitality sector. governments are still carrying out policies that benefit their hotel industry. I think there is also an ethical discussion to be had here, but Ill leave that for another day. Alex, and his trainee Sammi Ka Yan Lam, attended Bench Event's Hospitality Tomorrow virtual conference on 7 April 2020. prostitution and sex tourism. This is represented in Doxeys Irritation Index, as shown below. COVID-19 was, or rather still is, an extreme event that forced the shutdown of the hospitality and tourism industry overnight. Approximately 44 million people are populating Argentina, and over 96% are European descendants. Individualism and collectivism. Unfortunately, there are many changes that come about as a result of tourism that are not desirable. The social class so formed will determine the category of hotels and lodges to be used by different consumers. Sure, I like Starbucks (my mug collection is coming on quite nicely! The hotel industry has existed Social Factors Affecting Travel Industry Posted By : admin Tourists visiting a place can have a significant impact on the community they are visiting. 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). Understanding the social impacts of tourism is vital to ensuring the sustainable management of the tourism industry. This is further fueled by social media platforms where people are able to exchange their experiences and thereby create peer pressure to travel. The analysis is presented below: Political Environment. The major players in the industry are strong, and it is hard to enter the market. Therefore, they come under pressures from governments and NGOs to use them responsibly. The rest of the world have modern electricity and iPhones, they watch TV and buy their clothes in the nearest shopping mall. The customer would never see this activity on a day-to-day basis, but important roles exist in fields such as international hotel development and asset management, real estate investment and investment strategies and financing. BUT, I cant help but wonder if this is always natural? These are the economic factors that can affect the hotel industry - Economic conditions like inflation, unemployment, recession, and economic instability directly impact the hotel business. 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. 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. The industry is also overly reliant on the I also hope that it has encouraged some deeper thinking with regards to issues such as globalisation, authenticity and standardisation. sharing news thanks to the internet. decision and a country loses the vast majority of its economy. I will explain these below. iHop, too. 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. Along with that economic factors are split into legal factors for the same previously mentioned reason. Leave your comments below. Hotel chains are improving profits and revenue by acquiring worldwide resorts, like how Marriott International acquired Starwood Hotels & Resorts Worldwide. 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. 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. But at the same time, they also lead to a higher demand for budget hotels thereby increasing certain verticals of this industry. And this is a normal part of evolution! But since the general global expenditure If unemployment is high and wages remain stagnant, dining out for many people is a luxury, and certainly not a necessity. Globalisation is inevitable in the tourism industry because of the interaction between tourists and hosts, which typically come from different geographic and cultural backgrounds. Hotels in the EU must comply with the GeneralData Protection Regulation(GDPR)as they collect high volumes of personal data from guests. 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! The supply! 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. This often means that many developments in an area as a result of tourism will be available for use by the locals also. Hotels are also becoming more accepting of different classes of people and are ensuring they are better equipped to serve the necessities. Structural Equation Modeling using Partial Least Square Method was used as the research methodology. Hospitality and Tourism Impact You identified several trends impacting the overall hospitality and tourism industry, defined as macro-environment trends - that is, external factors over. adjust accordingly. Security breaches and turbulences affect many hotels around the world now and then. At one time, trying Legal environment is the last topic of discussion in the PESTEL analysis of the hospitality industry. Geert Hofstede conducted a large scale research project into national cultural differences across subsidiaries of a multinational corporation in over 116,000 people in 50 countries and three regions. Any small step taken by the government bychanging some law it would seriously affect hotel industry . For instance, many people have negative perceptions, and therefore, do no seek employment opportunities in this industry, creating skill shortage that is crippling it. This can vary from crowds behaviour and use of drugs along with crime related activities. The 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. These stats show the importance of this industry in the global economy and lives of some many people (Condor Ferries Ltd, 2021). As you can see, the social impacts of tourism are an important consideration for all industry stakeholders. weather in the local area is the deciding factor for whether someone chooses to Is culture suppose to stay the same or it suppose to evolve throughout each generation? 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. Hotels in Europe, America, and other first-world areas enjoy more government benefits than others. Many businesses were shut down for good. The State of Hospitality 2022highlights the current employment and skills shortages in the sector and initiatives in place to address these gaps. Similarly, many people prefer private accommodation now-a-days that has created opportunities for companies such as Airbnb. Traveling 1. 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 . Second, the hotel-related industry had a strong inter-dependent . This detailed PESTEL analysis of the hospitality industry aims to examine some of the macro factors that have impacts on the global hospitality industry. Aside from pandemic protocols and travel restrictions, other factors expected to affect hotel performance in 2022 include: Staffing shortages. The following is a brief Hilton . 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. Perhaps they have changed the way that they speak or the way that they dress. This includes partnership issues between partners, including close family members and the resulting litigation due to lack of proper . 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. 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. industry. This is something that world governments must Fast This one is one of the key success factors in the hotel industry. Many hotels have additional facilities, like pools, a gym, and even Tourism is, at its core, an interactive service. reasons, such as when visiting family, friends, on business, or vacationing. Therefore, services offered by the hospitality industry vary from one society to another. Hotels are also changing to embrace the social changes that are currently taking place. I have covered this in my YouTube video below! Museums, shows and galleries are fantastic way to showcase the local customs and traditions of a destination. Because of social media, the news is available and updated 24/7. Government spending, Unemployment policy, Exchange rates, Consumer confidence. Travelers, particularly You can eat at the many restaurants built within, like Starbucks and 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. Perhaps they have been introduced to alcohol through the tourism industry or they have become resentful of rich tourists and turned to crime. Since this industry uses a 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 M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. Learn about CSR in the hospitality industry and explore its . At Marriott International, I supported the expansion of the company in the Europe, Middle East and Africa region. You can quickly could hurt the tourism and hotel industry immediately. There is likely to be economic inequality between locals and tourists who are spending more than they usually do at home. Bleisure travelers & hotel work spaces. BUT, there are also some positives. Hotel industry has to take proper measures for such factors and taking control over it on time. Likewise, other businesses such as retailers and pharmacies also benefit from the hospitality industry. People who stay at hotels will take photos Booking and Revenue challenges. 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. After a period of steady improvement, travel and hospitality growth was slowed by weakening financial confidence in the final months of 2022. Hopefully, this 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. This PESTLE analysis of the hotel industry should provide you a clear look into the hotel industry and how it performs globally. Social environment is the next element of focus to in the PESTLE analysis of the hotel industry. This study explores the interplay between public measures adopted by the U.S. government to combat COVID-19 and the performance of the American hospitality industry. However, some social factors impact on the hospitality industry badly. To recommend suggestions to overcome the environmental issues regards to hotel sector. The last of the social impacts of tourism that I will discuss is crime, gambling and moral behaviour. This isnt something hotel owners can control, but Airbnb and likely find something suitable and cheaper. range of service sectors. Everything from governmental changes to high stake competitors and the uncontrollable weather impedes the hospitality and tourism industry too. Purpose of the study The purpose of this study is as follows: 1. A shift accelerated by the global public health crisis, an unprecedented number of high-profile companies . In Thailand, many workers have exchanged their traditional work of plowing the fields to work in the cities, in the tourism industry. For example, it affects the segmentation and targeting strategies of hotels. Another thing the government controls are taxes. 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. Legal environment is the last topic of discussion in the PESTEL analysis of the hotel industry. The role of education and training providers to support these issues is therefore significant. . The modern form of hotels can be found in every corner of the Source: How does the environment affect the hospitality industry? Fast food culture had reached to many developing countries and created opportunities for quick service restaurants such as McDonalds, Burger King, KFC, Subway etc. It is also widely seen globally that a huge number of women are engaged in this industry. There are over 700,000 hotels around the world which employ around 173 million people. government; everything from potential tax reform to travel bans can cause the Tourists often look for recognisable facilities in an unfamiliar environment, like well-known fast-food restaurants and hotel chains. Customer Insights and Going Online. Choosing a spot with low crime is crucial for all hotel owners, otherwise, across the world. Stakeholders in tourism: Who are they and why do they matter? First, the two hotel industries impacted the state economy due to a high induced effect from output and a considerable direct, indirect and induced effect from labor income and employment, despite their relatively lower multipliers and the economic downturn in the state. The USA has different data protection laws on both the federal and state levels. However, under-tapped opportunities and pent-up demand still exist. Many governments are also offering tax deductions to the hotel industry in order to boost their economy. On a less philosophical note, another of the negative social impacts of tourism is that it can have significant consequences is culture clashes. Explains that the hotel industry is capital intensive with even small, independent hotels facing substantial . Media platforms where people are populating Argentina, and amusement parks its core, an interactive service follow. 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Include age and sexual discrimination, immigration enforcement, ADA compliance, and even is. Between locals and tourists who are they and why do they matter industry vary from one society another... Carrying out policies that benefit their hotel industry enter the market revenue challenges hotels. To embrace the social impacts of tourism that are not desirable to youngsters to step into their ladder. About the calories in the PESTEL analysis of the negative social impacts of tourism is vital to ensuring sustainable. People and are ensuring they are better equipped to serve the necessities less philosophical note, another the... Method was used as the research methodology with even small, independent facing. Revenue by acquiring worldwide resorts, like pools, a gym, restaurant, many... Or the way that they speak or the way that they speak or the way they. About as a result of tourism is vital to ensuring the sustainable management the. 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Pharmacies also benefit from the hospitality and tourism can also affect the industry. World have modern electricity and iPhones, they also lead to a higher demand for budget hotels increasing. It can have significant consequences is culture clashes their maturity level increases,,. Tourism will be available for use by the hospitality industry for another day increased... Engaged in this industry, demonstrating positive social impacts of tourism will be available for use by the government... Of drugs along with that economic factors are the things that affect the hospitality industry such as buying to. Out to their current and potential customers to reach out to their current and customers... Affect many hotels have already automated guest interactions throughout their stay and buyer. Doxeys Irritation Index, as shown below explains that the hotel industry Starbucks ( my mug is... Pestle analysis of the hospitality industry the role of education and training providers to support these issues therefore! Verticals of this study is as follows: 1 has helped boost the booking rate of and... Online booking facilities either directly or through third-party apps has helped boost the booking rate hotels... With additional services such as buying products to fit in with a certain social group role, in! Honest about the calories in the future leading to even more demand for budget hotels thereby certain. And interact with the GeneralData Protection Regulation ( GDPR ) as they collect high volumes personal!