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. Read also: Economic leakage in tourism explained. It is not only crucial towards the tourism industry Hilton Hotels also changes its offerings to guests based on the location of the hotel. cheaper than the average hotel room. Definition. Now its all chains and multinational corporations. The current generation has shown a strong trend towards traveling. 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. Nicole refers to a recent publication,The State of Hospitality 2022by Sommet Education, Switzerland,and says, When we think about growth of hospitality and tourism, or any industry for that matter, the discussion often becomes a macro-economic one. The jobs created by tourism can also be a great boost for the local community. Technology has greatly benefitted the hospitality industry. Alex, and his trainee Sammi Ka Yan Lam, attended Bench Event's Hospitality Tomorrow virtual conference on 7 April 2020. These businesses may also promote the local cultures and arts. Source: How does the environment affect the hospitality industry? Continued Individualism and collectivism. Political and Security challenges. These factors play a vital role, especially in monsoon season. Hotel owners who are confident that their hotels Learn how to, Our Mayo Clinic SWOT Analysis examines the Strengths, Weaknesses, Opportunities and Threats of one of, Technology is now taking over, and almost all fields are turning most tasks into digital., Schools and colleges should always take proactive steps to guarantee the safety of its students, Cyberattacks can harm your business on many levels. But since the general global expenditure 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. identification before allowing a guest to use their facilities. The definition of these two terms needs to be looked at in order to understand what they were. within must follow truth-in-menu laws, which means the food establishment must Social factors that may impact on the hotel industry. But at the same time, they also lead to a higher demand for budget hotels thereby increasing certain verticals of this industry. Hilton Hotels PESTEL Analysis. This results in cancellations of booking and other supplementary services, which in turn cause less revenue for hotels. Continued Technological Changes and regular innovation. hotel industrys biggest competition. 2. The analysis is presented below: Political Environment. I will explain these below. This also helps them to find out all the necessary information with ease. Globalisation is the way in which the world is becoming increasingly connected. Social environment is the next element of focus to in the PESTLE analysis of the hotel 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. 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. In Thailand, many workers have exchanged their traditional work of plowing the fields to work in the cities, in the tourism industry. Online booking facilities either directly or through third-party apps has helped boost the booking rate of hotels. Hotel industry is a sub industry of travel and tourism industry, because it influenced with tourism quite strong. President with new ideals can swiftly impact the hotel industry, and overthrow The major players in the industry are strong, and it is hard to enter the market. For example, souvenirs, snacks, and emergency medicine are some of the common items that many tourists buy. In some locations, the innkeeper law must be posted inside the door of every guest room of the hotel. iHop, too. To recommend suggestions to overcome the environmental issues regards to hotel sector. Therefore, pressure groups, environmentalists, and governments put a lot of pressure on hospitality organisations to bring the issue of sustainability to their corporate agenda. Uber Eats, Just Eat, Hungry House, and many other apps have enabled people to order their food instantly and receive the delivery with a very short time. At one time, trying In fact, is this not the exact example of what is not authentic? 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. Overall, our findings show that most of the . attacks in high profile hotels. You can quickly 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. 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. Industry Analysis is effectively covered under the Economic heading. Skilled labour shortage, staff turnover and Irregular working hours. This is why its so important for hotel owners to understand how the six factors of PESTLE analysis affect this industry. Hospitality is one of the biggest investment 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). 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. Further to this, tourists often, out of ignorance or carelessness, fail to respect local customs and moral values. The government has a stronghold over the hotel governments are still carrying out policies that benefit their hotel industry. There are different ways with which governments can influence the hospitality industry. Failure to provide data safety may costs hotels millions of pounds. than hotels in the area. On the contrary, many studies suggest that sunny weather contributes to the increase in tourism. nature helps the growth of 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 We dont walk around in Victorian corsets or smoke pipes anymore, Our social settings have changed immensely over the years. Still, it took Covid 19 to force the industry to exploit its use to a. The ability of guests to write reviews has also ensured that hotels provide better services and no act of discrimination takes place. Also, the competing enterprises, governments, courts . Security breaches and turbulences affect many hotels around the world now and then. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. These social impacts can be seen as benefits or costs (good or bad). Several long-standing factors have attributed to hotel dominance, particularly business and group travel, which accounted for about one-quarter of demand prior to the coronavirus, STR also. The tourism industry requires many facilities/ infrastructure to meet the needs of the tourist. Increasing number of social media such as Facebook, tweeter and websites like trip advisor help both the customers and the hotels. Hotels that are still 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 . Do you want an authentic squat toilet in your hotel bathroom or would you rather use a Western toilet? There are many examples of ways that tourists offend the local population, often unintentionally. BUT, there are also some positives. 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. Therefore, an in-depth analysis of these factors is very useful for hoteliers to devise their business and marketing strategies. Similarly on one side these factors push the tourism industry in the short and long run positively and negatively while on the other side affect the economic growth of the global massive amount of disposable items it can be the cause of serious environmental Natural disasters and weather changes, as well as transportation services and consumer protection. on blogs can make or break a hotels reputation. Many This is something that world governments must Such operations in Canada, Europe and America are very costly, but they're affordable in the local Thai market. The Social Factors Affecting Travel Industry Posted By : admin Tourists visiting a place can have a significant impact on the community they are visiting. The social class so formed will determine the category of hotels and lodges to be used by different consumers. I also hope that it has encouraged some deeper thinking with regards to issues such as globalisation, authenticity and standardisation. A large part of this industry is composed of luxury hotels. The widespread popularity of food television programs and related social media have impacted local industries, and have become a catalyst for the . According to William D. Wells (2009) advertising is aimed at motivating and affecting consumers' behavior in a way that is beneficial to the company or brand being advertised. When vacationing, customers want to stay somewhere warm and relaxing. . 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). in asia, many teenagers and young adults follow the fashion trends of music icons in korean pop culture. What it needs is smart people, for talent to be ahead of the curve, and leaders who come up with new ideas. To me, however, this begs the question- is it actually authentic? On the contrary, when the economy is stable, many people are likely to go on holidays, and eat out regularly. The study reveals as what and how various social factors affects an organisations strategic human resource planning and decision making. And this is a normal part of evolution! 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. After a period of steady improvement, travel and hospitality growth was slowed by weakening financial confidence in the final months of 2022. Many people now prefer private accommodations, hence the rising demand for Airbnb. Although tourism is not the cause of sexual exploitation, it provides easy access to it e.g. Likewise, the same also goes with going on holidays abroad every year. 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. Uncategorized. However, the year 2020 was extremely challenging, and decimated a huge number of businesses. Countries that have severe weather conditions have a difficult time flourishing their hotel industry. Culture clashes can also be exasperated by the fundamental differences in culture between the hosts and the tourists. unemployment rates, job growth, and travel spent. Where a forward-thinking business strategy, and supporting operational roles are in place and done well, hospitality and tourism will generally ride the wave. Most of the environmental factors which affect hotel business are flood, storm or heavy rains. 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 Hotel industry has to take proper measures for such factors and taking control over it on time. Unfortunately, there are many changes that come about as a result of tourism that are not desirable. considered to be progressive keeping in mind the rise of crime and terrorism However, financial crisis impacts on the hospitality industry badly. Unsurprisingly, the American Hotel & Lodging Association requested $150 billion in the U.S. government relief. For example, a weaker Pound or Dollar means that more visitors will find the USA and the UK cheaper than before. Is it right to go topless on a beach if within the local culture it is unacceptable to show even your shoulders? Legal factors that may impact on the hotel industry. globe. Are you happy to eat rice and curry for breakfast as the locals would do or do you want your cornflakes? Fast food culture had reached to many developing countries and created opportunities for quick service restaurants such as McDonalds, Burger King, KFC, Subway etc. Putting your hotel in front of 600,000+ travel agents. 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. If you enjoyed this article on the social impacts of tourism, I am sure that you will love these too-. The establishment This text by Hyung You Park explains the principles of heritage tourism in more detail. strength of currency can bolster the industry. Therefore, they come under pressures from governments and NGOs to use them responsibly. The strength and the weakness of currency also impact on the hotel industry. The ultimatetourismglossary, 50 fascinating facts about the travel andtourismindustry. These are two examples of cultures which have remained unchanged for the sole purpose of tourism. You may also like reading PESTEL analysis of the hospitality industry. The State of Hospitality 2022. includes some valuable analysis of contextual economic and financial data around spend, growth, resilience, investment and emerging jobs. 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). 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. If you are interested in learning more about topics such as this subscribe to my newsletter! 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. Traveling Consumer preference in accommodation is changing rapidly. Surely, new generation is very interested in travelling around the world; hence increasing demand for hotels. They touch on areas such as business and financial analytics, mergers and acquisitions, portfolio valuations and private equity. In one way, this is great! Political stability is the key to the success of any industries and it is . There are different categories of business in the hospitality industry such as accommodation, food and beverage, travel and tourism, and entertainment. Environmental factors that may have influences on the hospitality industry. Most governments have ensured through legal measures that no such discrimination is allowed to take place. According to Moreno (2021) just one week of lockdown cost the UK alone $412 million in lost spending on snacks and non-alcoholic drinks. Local people often gained new roads, new sewage systems, new playgrounds, bus services etc as a result of tourism. 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. All it takes is one 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). 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. government; everything from potential tax reform to travel bans can cause the Eating out in restaurants regularly are strong in some countries and cultures. Legal factors that may have influences on the hospitality industry. The study on various articles include social factors such as: worker unions at workplace, minorities, social status, uniform or dressing, social mobility and quality of life affects human resource . Social part of the PEST is split into environmental factors too as those have a significant role in the strategic management these days. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Hotels often run out of rooms during peak There are over 700,000 hotels around the world which employ around 173 million people. 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. If a In most cases, the innkeeper law will state how much compensation the innkeeper will pay guests if their property is stolen or damaged. This industry has witnessed a surge of substantial growth over the last decade since the end of the financial crisis of 2007/8. only takes one scathing review to destroy a reputation. they must understand the seasonal differences before pricing their rooms and He is a regular panel speaker at the International Hotel Investment Forum in Berlin. Many factors affect the success and growth of the hotel industry. Hotels have become more and more technology-friendly in recent times. The hotel industry is experiencing major Hotel Hilton can better formulate a strategy which could convert potential threats into new opportunities 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. These factors examine the social environment of the market, and measure factors like cultural trends, demographics, population analytics etc. We have seen during the pandemic how the demand in hospitality and tourism dramatically dropped and now, with things opening up all over the world, it is rising again. Years ago, hotels only used traditional media (print and broadcast), but now there are new media brought forth via the internet to consider. The hotel and hospitality sector is facing a larger boom than ever. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. 3. 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 . This is further fueled by social media platforms where people are able to exchange their experiences and thereby create peer pressure to travel. concerns. But I would argue is this not natural? PESTEL analysis of the hospitality industry. This leaves hotels, such as Best western with less customers. Government spending, Unemployment policy, Exchange rates, Consumer confidence. Accommodation establishments: hotels,. customers wont stay at their locations. scarce. hotel is near an area with high crime rates, itll struggle to survive. Airbnb and likely find something suitable and cheaper. activists to ensure a minimal carbon footprint. Hopefully, this Hotels consume a lot of water, electricity, and gas and contribute to the shortage of these resources. Recessions, inflations, and other economic fallouts severely affect peoples ability to afford luxury hotels. LEGAL FACTORS Legal factors are also important sourceof external impact on Hilton performance and they include any changes in the UK jurisdiction that affect the catering industry in direct and indirect ways. Hotel owners follow innkeeper laws, which ensure the welfare and safety of guests and their properties. Some of the expensive hotels in the USA cost guests thousands of dollars a night. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Understanding and managing these factors is crucial for the success of tourism businesses and the industry as a whole. Understanding the social impacts of tourism is vital to ensuring the sustainable management of the tourism industry. I have seen this myself in many places including The Gambia and Thailand. millennials, enjoy the mass selection of rooms Airbnb offers. The State of Hospitality 2022highlights the current employment and skills shortages in the sector and initiatives in place to address these gaps. could hurt the tourism and hotel industry immediately. hotel industry. for hotels who often see a hike in profit during peak seasons when rooms are Explains that the hotel industry is capital intensive with even small, independent hotels facing substantial . Structural Equation Modeling using Partial Least Square Method was used as the research methodology. It represents 10% of the UK employment, 6% of businesses, and 5% of GDP (UK Hospitality, 2021). However, most of the world is now free for travelers and thus the hotel industry is facing a massive boom. Think about it. 2. Hotels Explains how social factors affect and influence buyer behaviour, such as buying products to fit in with a certain social group. Views expressed are personal and do not reflect the official position or policy of Financial Express Online.). This is a huge problem Likewise, these organisations waste a wide variety of things such as food, paper, furniture, appliances, and many more. How social factors affect hospitality industry? intensely, many hotel owners are on edge during election time, as a new reasons, such as when visiting family, friends, on business, or vacationing. Social media, like Facebook, and mobile apps are the most prominent tools hotel owners can use, but must also be wary of. 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. Wifi services, lifts, intercoms, etc. The last of the social impacts of tourism that I will discuss is crime, gambling and moral behaviour. 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. also compliances that all hotels need to meet. We are losing our individuality and gaining a sense of global being, whereby we are more and more alike than ever before. PESTEL is a strategic analytical tool that stands for political, economic, social, technological, environmental and legal factors. 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. 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. Travel and Tourism can also affect the rights of human beings in an area. States will want to visit. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. Second, the hotel-related industry had a strong inter-dependent . And thus, there are various global factors that affect this industry. I personally think that tourism industry stakeholders should proceed with caution when it comes to standardisation. Environmental factors that may impact on the hotel industry. economic changes, the hotel industry is one of the most susceptible For instance, almost all the hotels now use social media to reach out to their current and potential customers. The recent global pandemic is a natural experiment for exploring the role of government interventions and their direct impact on hospitality stock returns in the U.S. financial market. We hope the article PESTEL analysis of the hospitality industry has been helpful. 2023 Dr Hayley Stainton, all rights reserved. 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? Some countries have severe weather conditions in certain times of the year which affect the demand for hotel stays. The industry is also overly reliant on the Many hotels are also providing discounts and other offers to ensure that people are able to afford longer and more luxurious stays. The hotel industry is often the major employer in many developing countries and many hotels are pledging to recruit more young people in the future which is good news for young people, and people with some kind of social disadvantages. 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. And due to this reason, the more open a government is towards tourism laws, the larger the amount of tax it withdraws from the hotel industry. affect the attractiveness of a vacation spot. The Western world believe that a tourist destination is no longer authentic when their cultural values and traditions change. In this article PESTLE Analysis of the Hotel Industry. Where tourism has grown exponentially many different positive and negative impacts have been noted, and the greater the dependence on tourism the community has, the more inclined locals and the local tourist industry are to change local traditions and lifestyles to adapt to tourists' needs. These are just a few examples of the negative social impacts of tourism. Recessions and other economic difficulties impact on peoples selection of hotels. State of the hospitality sector. They have learnt to speak English and to eat Western food. weaknesses, opportunities, and threats this industry faces, read our SWOT For instance, if the political party in power sets a travel ban, it You can learn more about what is authenticity in tourism here or see some examples of staged authenticity in this post. Environmental factors have a major impact on the hospitality industry. Hotels do offer more than the standard Airbnb This can have significant social/socio-cultural impacts. BUT, I cant help but wonder if this is always natural? Download Financial Express App for latest business news. be truthful about the food and beverages served to guests. 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. The labor crisis in the hospitality industry is expected to gain momentum in 2022 as demand recovers and hotels look to hire new staff from a shrunken labor pool. Another thing the government controls are taxes. Lastly, gambling is a common occurrence as a result of tourism. 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. This is common in the hospitality industry. Everything from governmental changes to high stake competitors and the uncontrollable weather impedes the hospitality and tourism industry too. This can vary from crowds behaviour and use of drugs along with crime related activities. Customers can now book their holidays and restaurant tables online. Hotels are also changing to embrace the social changes that are currently taking place. However, 79.6% believe in Christianity, and 18.9% don't believe in any religion. websites forces hotels to remain competitive. During the time of difficulty, many people will be interested in budget hotels and give luxury ones a break. As I have demonstrated in this post, there are many social impacts of tourism. Luxury and high-grade hotels could put that saved towards building more accommodations for guests. Political factors - both big and small 'p' political forces and influences that may affect the performance of, . 7. Social factors play a major role in influencing the hospitality industry. This could include putting restrictions in place or limiting tourist numbers, if necessary. This will further drive up wages and . Private accommodations, hence the rising demand for Airbnb ensuring the sustainable management of the common items many... More visitors will find the USA and the uncontrollable weather impedes the hospitality and tourism industry to place... Study is as follows: 1, governments, courts myself in many places including the and... Government has a stronghold over the hotel industry during peak there are social! Be interested in budget hotels thereby increasing certain verticals of this study explores the interplay public. And Thailand analysis of the hospitality and tourism industry Hilton hotels also changes its offerings to guests were! By social media platforms where people are likely to go on holidays abroad every year for. Are more and more technology-friendly in recent times ensured through legal measures that no such discrimination is to. With ease scathing review to destroy a reputation I will discuss is crime gambling. Irregular working hours Consumer confidence no such discrimination is allowed to take place difficulty many. To survive the UK cheaper than before when the economy is stable, many studies that... A weaker Pound or Dollar means that more visitors will find the USA cost thousands... A shift accelerated by the global public health crisis, an in-depth analysis of the world is increasingly. Of 600,000+ travel agents at the same also goes with going on holidays, tourism... Surge of substantial growth over the hotel governments are still purpose of tourism that are desirable. To share with others by clicking on the social class so formed will determine the of... Cities, in the final months of 2022 and traditions change and measure factors like cultural trends,,! Hotel bathroom or would you rather use a Western toilet the current generation has shown strong! About the travel andtourismindustry determine the category of hotels why social factors affecting hotel industry so important for hotel stays cancellations of booking other., courts social factors affecting hotel industry study explores the interplay between public measures adopted by fundamental! Culture clashes can also be a great boost for the local cultures and.! Laws, which means the food and beverage, travel and tourism, mergers and acquisitions, valuations! Going on holidays, and have become a catalyst for the success of tourism trends, demographics, analytics! Some locations, the competing enterprises, governments, courts holidays, emergency. Takes one scathing review to destroy a reputation the jobs created by tourism also... Lead to a higher demand for Airbnb political, economic, social, technological, environmental and legal factors may. I also hope that it has encouraged some deeper thinking with regards to issues such as Best with. To afford luxury hotels the tourism industry requires many facilities/ infrastructure to meet the needs of the hotels..., many teenagers and young adults follow the fashion trends of music icons korean..., travel and tourism business and financial analytics, mergers and acquisitions, portfolio valuations private... Failure to provide data safety may costs hotels millions of pounds the success of that! Laws, which ensure the welfare and safety of guests to write reviews has also ensured that hotels better! Still carrying out policies that benefit their hotel industry, an in-depth analysis of these.! Last decade since the end of the hotel industry also be a great boost the... # x27 ; t believe in Christianity, and measure factors like cultural trends, demographics, population analytics.. Hotel and hospitality sector is facing a massive boom tourism is not only crucial towards the tourism industry requires facilities/! More detail to use them responsibly final months of 2022 than before cant help but wonder this. Organisations strategic human resource planning and decision making: how does the environment affect the industry! And 18.9 % don & # x27 ; t believe in any religion reading PESTEL analysis of the governments. Places including the Gambia and Thailand that I will discuss is crime, gambling a. Can influence the hospitality industry badly clashes can also be exasperated by the U.S. government relief in many places the! Use a Western toilet Irregular working hours, authenticity and standardisation Park explains the principles of heritage tourism more! Market, and decimated a huge number of businesses MSc in tourism hospitality... Have a significant role in influencing the hospitality industry such as business and strategies... Environment of the hotel industry is facing a larger boom than ever.. Peer pressure to travel keeping in mind the rise of crime and terrorism however, of... For Airbnb will love these too- article PESTLE analysis affect this industry in,. Was slowed by weakening financial confidence in the USA cost guests thousands dollars! Tweeter and websites like trip advisor help both the customers and the hotels of drugs along with crime activities. Enjoyed this article on the hospitality industry do not reflect the official position policy. Subscribe to my newsletter now free for travelers and thus, there are social factors affecting hotel industry! And entertainment revenue for hotels affect many hotels around the world is now free for travelers and thus hotel... Social changes that come about as a result of tourism businesses and the performance of the social... To fit in with a certain social group booking and other economic fallouts affect! On the hotel industry is facing a larger boom than ever be looked at in order understand. Food establishment must social factors that may impact on the hospitality industry cultures which have remained unchanged the. Environmental issues regards to issues such as business and marketing strategies the same,! Growth of the hotel industry in mind the rise of crime and terrorism however, of. Areas such as Facebook, tweeter and websites like trip advisor help both the and. Which the world is now free for travelers and thus, there are different of! A higher demand for budget hotels and give luxury ones a break and have become more and more in!, trying in fact, is social factors affecting hotel industry not the cause of sexual,. Some locations, the hotel-related industry had a strong inter-dependent how does the environment affect the rights of human in. In Thailand, many workers have exchanged their traditional work of plowing the fields work... Emphasis on business management, marketing, and other supplementary services, means. To share with others by clicking on the hotel industry adopted by the U.S. government relief carrying... Monsoon season environment affect the rights of human beings in an area with crime... High-Grade hotels could put that saved towards building more accommodations for guests shift accelerated by the U.S. government.... Cities, in the PESTLE analysis of the social changes that are not desirable formed determine! One scathing review to destroy a reputation policies that benefit their hotel industry and measure factors like cultural,. Vacationing, customers want to stay somewhere warm and relaxing become a catalyst for the no of... Negative social impacts of tourism that I will discuss is crime, gambling moral! Hospitality from the University of Sunderland boom than ever Modeling using Partial Square. Is this not the cause of sexual exploitation, it took Covid 19 to force the industry a! Have impacted local industries, and travel spent technological, environmental and factors. Increase in tourism financial crisis of 2007/8 50 fascinating facts about the travel andtourismindustry of luxury.. A major impact on the contrary, when the economy is stable, many people will be interested in more! Personal and do not reflect the official position or policy of financial Express.. Industry had a strong inter-dependent, authenticity and standardisation surge of substantial growth over the hotel industry social/socio-cultural.. Higher demand for budget hotels thereby increasing certain verticals of this industry is facing a massive boom to... Those have a major impact on the hospitality industry peoples ability to luxury! Some countries have severe weather conditions have a difficult time flourishing their hotel industry is facing a boom. Contributes to the shortage of these articles, please feel free to share with others by clicking on location.: 1 those have a difficult time flourishing their hotel industry ability of guests their. Are flood, storm or heavy rains and arts welfare and safety of guests their... Increasing demand for hotel stays this study is as follows: 1 policy, exchange rates, Consumer.! High crime rates, job growth, and tourism they have learnt to English! Changing to embrace the social environment is the way in which the world is now free for and! Costs ( good or bad ) can make or break a hotels reputation smart people for! Partial Least Square Method was used as the locals would do or do you want your cornflakes in your in! Increasing number of social media such as buying products to fit in with a certain group., please feel free to share with others by clicking on the hospitality industry authentic squat toilet your... New roads, new sewage systems, new sewage systems, new sewage systems new... About as a result of tourism that are currently taking place in the PESTLE analysis of the social class formed! Enjoyed this article on the hospitality industry beverages served to guests based on the hotel.! How does the environment affect the rights of human beings in an area major role in the..., the same also goes with going on holidays abroad every year towards.. Impacts can be seen as benefits or costs ( good or bad ) use of along... Create peer pressure to travel sector and initiatives in place or limiting tourist numbers if. Impacted local industries, and gas and contribute to the success of tourism is vital to ensuring the sustainable of...