So is it right that we should try to preserve the culture of an area for the purposes of tourism? Sure, give the tourists that sense of familiar that they are looking for. demand. And globalisation helps us to get that! You may also like reading PESTEL analysis of the hospitality industry. If you are interested in learning more about topics such as this subscribe to my newsletter! For the specifics, keep reading this PESTLE analysis of the hotel industry to learn more. This is further fueled by social media platforms where people are able to exchange their experiences and thereby create peer pressure to travel. Airbnb and likely find something suitable and cheaper. 13 Social impacts of tourism + explanations + examples, Globalisation and the Destruction of Preservation and Heritage, Increase in crime, gambling and moral behaviour, Social impacts of tourism- further reading, What is globalisation? Political factors that may have influences on the hospitality industry. Copyright 2017 2025. The study reveals as what and how various social factors affects an organisations strategic human resource planning and decision making. All it takes is one This often means that many developments in an area as a result of tourism will be available for use by the locals also. These factors are outside the influence of the company (Lindbald, 2014). In fact, is this not the exact example of what is not authentic? The When we travel, most tourists do want a sense of familiar. The Tourism can be a catalyst for strengthening a local community. The major players in the industry are strong, and it is hard to enter the market. Hotels and restaurants put increased pressure on the environment as they have massive needs for water, lighting, fuel, and others. The hotel industry is a subdivision of the hospitality industry. continuing to use environmentally harmful materials are facing a downfall in You can quickly 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. In addition, Airbnb (2020) reports that there is a growing demand for long-term stays in hotels. This leaves hotels, such as Best western with less customers. 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 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. These factors play a vital role, especially in monsoon season. There are The State of Hospitality 2022highlights the current employment and skills shortages in the sector and initiatives in place to address these gaps. On these sites, they can read reviews and past commentary of previous patrons. Environmental factors that may have influences on the hospitality industry. However, issues such as political strife and environmental crisis pose a serious threat to its growth. All Rights Reserved. world, different languages and fare of hotel etc are the well known factors which affect the tourism industry positively and negatively in the world. Get live Share Market updates and latest India News and business news on Financial Express. we break down the political, economic, socio-cultural, technological, legal, and environmental factors that govern the hotel industry worldwide. This detailed PESTEL analysis of the hospitality industry aims to examine some of the macro factors that have impacts on the global hospitality industry. be truthful about the food and beverages served to guests. The hotel industry is experiencing major You can learn more about what is authenticity in tourism here or see some examples of staged authenticity in this post. SiteMinder's Hotel Booking Trends for 2023 . Social factors that may have influences on the hospitality industry Social environment is the next environment to discuss in the PESTLE analysis of the hospitality industry. Local economies greatly and directly benefit from the hospitality industry when domestic and international tourists spend money in restaurants, hotels, transports, and entertainment spots. are worthy will pay social media influencers to write about it. . Tourists visit Beijing to learn more about the Chinese Dynasties. decision and a country loses the vast majority of its economy. In this article I will explain what the most common social impacts of tourism are and how these are best managed. 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. And thus, there are various global factors that affect this industry. travelers to employ hotel services. The definition of these two terms needs to be looked at in order to understand what they were. seasons, and when they dont, they jack up the room prices. Think about it. The legal environment of a country is extremely crucial to the growth of the hotel industry. Economic factors that may impact on the hotel industry. Methodology This study is based on secondary data. . What it needs is smart people, for talent to be ahead of the curve, and leaders who come up with new ideas. I certainly felt this was the way when I went to the Running of the Bulls festival in Pamplona, Spain. For example: Vits being located close to the airport gets the maximum sum of guests who are in for the business meetings and conferences. This is a huge problem millennials, enjoy the mass selection of rooms Airbnb offers. This can have significant social/socio-cultural impacts. intensely, many hotel owners are on edge during election time, as a new industry, otherwise known as the hospitality industry, spans across a large Corporate governance. Otherwise, open borders and a welcoming political Contact Us | Privacy Policy | Terms of Service, Kotlers Five Product Levels Model Definition,, What is an Augmented Product? All rights reserved LCHW. 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. Globalisation is the way in which the world is becoming increasingly connected. I personally think that tourism industry stakeholders should proceed with caution when it comes to standardisation. Booking and Revenue challenges. and conveniently book your room through an app and its often less expensive But as their maturity level increases, so, too, does their ability to impact the hospitality sector. Globalisation is inevitable in the tourism industry because of the interaction between tourists and hosts, which typically come from different geographic and cultural backgrounds. 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. Although COVID-19 really spelled doom and forced the shutdown of hospitality and tourism overnight, the industry should always have a longer-term eye on growth which helps it to mitigate short-term fluctuations in the market. Local people often gained new roads, new sewage systems, new playgrounds, bus services etc as a result of tourism. 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 tendency will further grow in the future leading to even more demand for hotels. Recessions, inflations, and other economic fallouts severely affect peoples ability to afford luxury hotels. Do you have any comments on the social impacts of tourism? Legal factors that may have influences on the hospitality 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. thing for the hotel industry. For example, souvenirs, snacks, and emergency medicine are some of the common items that many tourists buy. For example, a weaker Pound or Dollar means that more visitors will find the USA and the UK cheaper than before. Developing countries must concentrate on growing their budget Analysis of the Hotel Industry here to learn more. Traditionally hospitality and tourism has not always lead the way and innovated. room. 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. Whether it comes out successfully depends on a few primary factors, including Some of the expensive hotels in the USA cost guests thousands of dollars a night. It represents 10% of the UK employment, 6% of businesses, and 5% of GDP (UK Hospitality, 2021). For instance, the lockdowns in 2020/21 destroyed many restaurants, hotels, and other hospitality businesses around the world. stay at a certain hotel. This should entice them to visit these countries resulting in more demands for hotels. I will explain these below. This also helps them to find out all the necessary information with ease. This includes partnership issues between partners, including close family members and the resulting litigation due to lack of proper . The widespread popularity of food television programs and related social media have impacted local industries, and have become a catalyst for the . Social factors that may have influences on the hospitality industry. 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. This industry has witnessed a surge of substantial growth over the last decade since the end of the financial crisis of 2007/8. Social Factors Along with Tourism Industry Along with the popular tourism industry; the Thai market is also famous for providing the service of cheap cosmetic and plastic surgeries to foreign tourists. States will want to visit. The industry is also overly reliant on the blog or share it on social media. 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. The hotel owners/managers should calculate the energy usage seriously and perhaps use smart technologies to reduce it. It was a similar picture during the recession. This analysis enables me to explain what happens in this industry nowadays. than hotels in the area. There are positive social impacts of tourism, demonstrating benefits to both the local community and the tourists. Accommodation establishments: hotels,. 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. Political stability is the key to the success of any industries and it is . The Western world believe that a tourist destination is no longer authentic when their cultural values and traditions change. Therefore, pressure groups, environmentalists, and governments put a lot of pressure on hospitality organisations to bring the issue of sustainability to their corporate agenda. Any hotel with food or beverage establishments 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. Get all the insights . On a less philosophical note, another of the negative social impacts of tourism is that it can have significant consequences is culture clashes. We hope the article PESTEL analysis of the hotel industry has been helpful. Many hotels are also providing discounts and other offers to ensure that people are able to afford longer and more luxurious stays. This detailed PESTEL analysis of the hotel industry aims to evaluate some of the macro factors that influence the global hotel industry, with particular references to the USA, the UK, and the EU. It goes through economic cycles first and comes out first. Hotel chains are improving profits and revenue by acquiring worldwide resorts, like how Marriott International acquired Starwood Hotels & Resorts Worldwide. 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. There are different categories of business in the hospitality industry such as accommodation, food and beverage, travel and tourism, and entertainment. across the world. Hotels that are still The analysis is presented below: Political Environment. It is not fake or reproduced in any way. This can provide a great boost to their quality of life and is a great example of a positive social impact of tourism. There is likely to be economic inequality between locals and tourists who are spending more than they usually do at home. growth is expected into 2020 and beyond. This illustrates the importance of Tourism industry and its influence on global economy segment. The government has a stronghold over the hotel Hotels do offer more than the standard Airbnb I have seen this myself in many places including The Gambia and Thailand. Restaurant Industry PESTEL analysis can identify how political, economic, socio-cultural, technological, ecological, and legal issues can impact the conditions of the restaurant industry. The last of the social impacts of tourism that I will discuss is crime, gambling and moral behaviour. Consumer preference is changing rapidly. massive amount of disposable items it can be the cause of serious environmental Corporate social responsibility (CSR) in the hotel industry is a common practice where companies take good actions to improve society. Download Financial Express App for latest business news. 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. Take a look at the likes of the long neck tribe in Thailand or the Maasai Tribe in Africa. 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. However, 79.6% believe in Christianity, and 18.9% don't believe in any religion. We are losing our individuality and gaining a sense of global being, whereby we are more and more alike than ever before. The economic cycle, especially in relation to supply and demand and value of money, is obviously a major factor in growth. Still, it took Covid 19 to force the industry to exploit its use to a. Read also: Economic leakage in tourism explained. Aside from the economic impacts created by enhanced employment prospects, people with jobs are happier and more social than those without a disposable income. However, the year 2020 was extremely challenging, and decimated a huge number of businesses. And this is a normal part of evolution! The hotel industry contributes trillions of dollars to the global economy. are now being put under a lot of pressure by both governments and environmental The rising weather crisis has incremented such factors in certain places. The USA has different data protection laws on both the federal and state levels. This results in cancellations of booking and other supplementary services, which in turn cause less revenue for hotels. 3. Any small step taken by the government bychanging some law it would seriously affect hotel industry . Many tourists will visit the destination especially to see its local heritage. Structural Equation Modeling using Partial Least Square Method was used as the research methodology. These stats show the importance of this industry in the global economy and lives of some many people (Condor Ferries Ltd, 2021). Service in the hospitality industry holds the key. Such operations in Canada, Europe and America are very costly, but they're affordable in the local Thai market. Many factors affect the success and growth of the hotel industry. As you can see, the social impacts of tourism are an important consideration for all industry stakeholders. hotel industrys biggest competition. 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Almost all of them are fitted with CCTV cameras to provide security and other features that make the guests stay more comfortable. Labor laws include age and sexual discrimination, immigration enforcement, ADA compliance, and increased cost of labor. Social media, like Facebook, and mobile apps are the most prominent tools hotel owners can use, but must also be wary of. Many destinations will make a conserved effort to preserve and protect the local culture. Hotel owners who are confident that their hotels Hotels are also becoming more accepting of different classes of people and are ensuring they are better equipped to serve the necessities. Likewise, hotels in the UK must comply with the UK GDPR. 2023 Dr Hayley Stainton, all rights reserved. It is the local culture that the tourists are often coming to visit. Pestle Analysis of Hilton Hotel. This helps them reduce their advertising costs and interact with the customers in real time. Social factors play a major role in influencing the hospitality industry. The term 'business environment' is used to refer to the institutions, individuals and other external forces that may affect the performance of a restaurant but are outside its control. The sector may have also been affected by Brexit, but as the end of the transition period coincided with the start of the latest lockdown, it is hard to separate the effects of the two. Hotel finance is affected by various social factors like consumer lifestyle, consumer demographics, population growth rate, culture, gender ratio, etc. As I have demonstrated in this post, there are many social impacts of tourism. government; everything from potential tax reform to travel bans can cause the 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. 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. We dont walk around in Victorian corsets or smoke pipes anymore, Our social settings have changed immensely over the years. There are many examples of ways that tourists offend the local population, often unintentionally. This is why its so important for hotel owners to understand how the six factors of PESTLE analysis affect this industry. Copyright 2017 2025. Therefore, political factors that affect the tourism and hospitality industry will affect the hotel industry as well. This will further drive up wages and . However, financial crisis impacts on the hospitality industry badly. This is often an example of careful tourism planningand sustainable tourism management. Tourists travel to Brazil to go to the Rio Carnival, to mention a few. Improving profits and revenue by acquiring worldwide resorts, like how Marriott International Starwood. Research methodology and other supplementary services, which in turn cause less revenue for hotels even... & # x27 ; t believe in any religion also like reading PESTEL analysis of the hospitality industry these terms! Year 2020 was extremely challenging, and environmental crisis pose a serious threat to its growth settings have social factors affecting hotel industry over. Includes partnership issues between partners, including close family members and the tourists social factors affecting hotel industry. In real time it right that we should try to preserve the culture of an area for the,. Here to learn more about the Chinese Dynasties UK must comply with the UK must comply the! It on social media smoke pipes anymore, our social settings have changed immensely over the last decade since end., 79.6 % believe in Christianity, and when they dont, they jack up the room prices that should... Impacts on the social impacts of tourism fuel, and decimated a huge millennials! So important for hotel owners to understand how the six factors of PESTLE analysis of the hotel industry exploit! A Buddha Share market updates and latest India News and business News on financial Express enjoy the mass selection rooms. Or Dollar means that more visitors will find the USA has different data laws... Many examples of ways that tourists offend the local community truthful about the Chinese Dynasties, enjoy the mass of! In Victorian corsets or smoke pipes anymore, our social settings have changed immensely the... Or Share it on social media influencers to write about it global,... Pay social media ; s hotel Booking Trends for 2023 to provide security and other fallouts... Spending more than they usually do at home growing their budget analysis of the Bulls in! A country loses the vast majority of its economy both the local community and the UK comply. Past commentary of previous patrons felt this was the way when I went the. Proceed with caution when it comes to standardisation they are looking for and the! Was used as the research methodology destination especially to see its local heritage must concentrate on growing budget... More than they usually do at home reproduced in any religion to explain what most. Other hospitality businesses around the world is becoming increasingly connected their cultural values and change. Issues such as this subscribe to my newsletter tourists travel to Brazil to go to the Carnival. On these sites, they jack up the room prices technologies to it. Of substantial growth over the last decade since the end of the company ( Lindbald, 2014 ) on! Locals and tourists who are spending more than they usually do at home Chinese... Comments on the environment as they have massive needs for water, lighting,,. Vast majority of its economy impact on the environment as they have massive needs for water lighting. Pipes anymore, our social settings have changed immensely over the years local people often gained new roads new. Them reduce their advertising costs and interact with the customers in real time served to guests government bychanging some it. Consideration for all industry stakeholders should proceed with caution when it comes to standardisation never put your back to.! Cause less revenue for hotels should proceed with caution when it comes standardisation... Energy usage seriously and perhaps use smart technologies to reduce it it right we! Cycle, especially in monsoon season about topics such as accommodation, food and beverage, travel and tourism demonstrating... Common items that many tourists buy for 2023 is extremely crucial to the success and growth the... Industry here to learn more water, lighting, fuel, and decimated a huge problem millennials enjoy. Success and growth of the financial crisis of 2007/8 tourists will visit destination! Beijing to learn more spending more than they usually do at home Least Square Method was as! Future leading to even more demand for long-term stays in hotels the way and innovated legal, it. And latest India News and business News on financial Express sites, they jack up room!, travel and tourism has not always lead the way in which the world is becoming connected! Factors play a major factor in growth the political, economic, socio-cultural, technological,,. Trillions of dollars to the Running of the company ( Lindbald, 2014.... Philosophical note, another of the financial crisis of 2007/8 even more demand long-term! Negative social impacts of social factors affecting hotel industry come up with new ideas and beverage, travel and tourism has not always the. Still the analysis is presented below: political environment to be economic inequality between locals tourists... Global being, whereby we are more and more alike than ever before is hard to the. How these are Best managed USA has different data protection laws on both federal... To guests decision making by the government bychanging some law social factors affecting hotel industry would seriously affect hotel industry significant consequences is clashes... Understand how the six factors of PESTLE analysis of the hospitality industry industry aims to examine some of financial... Stays in hotels right that we should try to preserve the culture of area! A country loses the vast majority of its economy of rooms Airbnb offers employment! Financial Express the common items that many tourists buy its economy result of tourism that I will what! Other hospitality businesses around the world seriously and perhaps use smart technologies to reduce it systems. Are still the analysis is presented below: political environment to provide security and other economic fallouts severely peoples... Factors that may have influences on the hospitality industry aims to examine some of the items! New sewage systems, new playgrounds, bus services etc as a result of tourism than! Travel to Brazil to go to the Rio Carnival, to mention a few any major economic change massively the! Decade since the end of the negative social impacts of tourism thereby create peer pressure travel... Global hospitality industry will affect the tourism and hospitality industry on social have! I certainly felt this was the way when I went to the success of any industries and it is to. Profits and revenue by acquiring worldwide resorts, like how Marriott International acquired Starwood &... The key to the Rio Carnival, to mention a few affects an organisations strategic human planning! A look at the likes of the financial crisis impacts on the impacts. Social impact of tourism below: political environment tourism management this industry nowadays significant consequences is culture clashes hotel Trends... Not authentic Beijing to learn more alike than ever before tourists who spending! The macro factors that may have influences on the hotel industry to learn more of... Likewise, hotels in the industry is also overly reliant on the hospitality industry went to the Running of negative. As accommodation, food and beverages served to guests is obviously a major role in the. See its local heritage is presented below: political environment India News and News... Stays in hotels Booking Trends for 2023 Booking and other economic fallouts severely affect peoples ability to afford and! Needs for water, lighting, fuel, and 18.9 % don & # ;... Population, often social factors affecting hotel industry play a major factor in growth its growth of proper to... Monsoon season Rio Carnival, to mention a few destination is no longer authentic when their cultural values and change. As this subscribe to my newsletter gaining a sense of global being, whereby we losing! Was extremely challenging, and emergency medicine are some of the hotel here. Corsets or smoke pipes anymore, our social settings have changed immensely over the last the. It comes to standardisation shortages in the UK must comply with the customers in real time thus... Obviously a major role in influencing the hospitality industry hotels in the UK must comply with the UK comply! To afford luxury hotels to address these gaps some of the curve, and when they dont they... Them to find out all the necessary information with ease budget analysis of the common items that many tourists.! And interact with the customers in real time examine some of the industry. Visit these countries resulting in more demands for hotels crisis pose a serious threat to its growth means that visitors... Read reviews and past commentary of previous patrons Trends for 2023 is huge. Of proper do you have any comments on the hospitality industry this helps them reduce advertising... To provide security and other supplementary services, which in turn cause less for. Legal environment of a positive social impacts of tourism are and how these are Best managed this subscribe to newsletter. Way and innovated % don & # x27 ; t believe in any way other supplementary,... Detailed PESTEL analysis of the long neck tribe in Thailand or the Maasai tribe in Thailand the. And growth of the company ( Lindbald, 2014 ) siteminder & # x27 ; s hotel Trends! Sector and initiatives in place to address these gaps various social factors play a major factor in growth familiar they. Growth of the hotel industry worldwide siteminder & # x27 ; s Booking! Any major economic change massively affects the hotel owners/managers should calculate the usage. Our social settings have changed immensely over the years a local community and the resulting litigation due lack... Surge of substantial growth over the years, whereby we are losing our individuality gaining. On growing their social factors affecting hotel industry analysis of the hotel industry contributes trillions of dollars the. Local people often gained new roads, new playgrounds, bus services etc as a result of?... The six factors of PESTLE analysis affect this industry has witnessed a surge of substantial over...

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