Pestle Analysis In Hospitality Industry

1068 Words3 Pages
bulb-icon

Recommended: Pest analysis

Introduction In order to understand and forecast business situation clearly, it is important to use PESTE Analysis to define relevant external factors that may affect people’s organizations. Especially, environmental factor has been increasingly recognized its importance in these days (Gupta, 2013). In hospitality and tourism industry also have highly concerned about weather or geographical differences. For example, if the restaurant wants to open a new branch in other city or country, different natural cycle or the physical condition can affect to consumer behavior which is directly related to revenue management. Thus, there are 6 environmental forces that may impact Hy’s entry into France. Climate Differences Nice, France has been well known for one of the best destination for summer vacation in Europe (Mintel, 2016). The most factor is because of its nice weather. The lowest temperature over the year is 5°C and the highest is 27°C. On the contrary, the average minimum temperature in the London, UK is 0°C and the maximum is 21°C (World weather & Climate information, 2016). Indeed, Nice has warmer weather than …show more content…

Fresh fish is one of the important things to check. Apparently, UK is an island and although France has sea part, they keep a very high conservation level. Thus, about 63% of the sea at the France is a marine protected area which is very high percentage compare with 17% from the UK. As a result, in 1999, France had approximately 500,000 tonnes of marine fish and the UK had 43% more than France (Nationmaster.com, 1999). Therefore, France mostly relies on imported seafood about 80% whilst, only 29% of seafood in the UK are imported (The state of world fisheries and aquaculture 2012, 2012). It means that the cost of seafood can fluctuate due to global fishery market condition or suppliers (Yamashita, 1996). This can affect the seafood menu selection and menu cost at

Show More
Related

  • Analysis Of The Boiling Crab

    1058 Words  | 3 Pages

    However, the Boiling Crab has already penetrated the market in California with the proper level of price. The restaurant business cannot charge the price far more different than the others because in the same level of restaurant, the clients will focus on the range of price before choosing it. Moreover, the Boiling Crab is the seafood, so the market price of seafood, such as shrimp, lobster, crab is very fluctuate depended on how difficult to find each item at that time. As you can see from the Boiling Crab menu, these items will be charged according to the market price at that time. Referring to the appendix 1, I compare price of food from many restaurants with the same kind of food, but it turns out that the level of price is pretty much the same between the Boiling Crab and the Kickin’crab.

    Read More

  • Pest Analysis: The PEST Analysis Of Amazon

    1423 Words  | 3 Pages

    Furthermore the PEST analysis helps to spot an opportunity that a business can take an advantage off and threats it can face in the future. Looking at the PEST factors this essay

    Read More

  • The Effects of Overfishing on the Restaurant Industry

    1580 Words  | 4 Pages

    To fish or not to fish is a personal choice. The fact that the oceans are being overfished is a growing concern for individuals, organizations, and governments throughout the world. In this paper I want to discuss the effects of overfishing on the restaurant industry, and possible solutions to solve the problem. Fishing is an ongoing source of food for people around the world. In many countries it is a food staple in their everyday diet. In more modern societies eating fish has become a sensual experience, and not just for the wealthy. It hasn't been until population explosions in the last century that the demand for seafood has led to more effective fishing techniques and technologies. Now the demand for popular fish like the salmon, tuna, sea bass, cod and hoki, which is the key fish in McDonalds filet o' fish, is diving wild populations to dangerously low levels. The methods used to catch the amount of fish demanded by the industry do not leave sustainable populations in the wild. In an attempt to preserve the fish population, governments have set limits on the minimum size that may be harvested and how many of each may be taken. Boundaries have been set up saying which areas can be fished and which ones should be left alone. A number of smaller fisheries have gone out of business because of the limits imposed by the government. This leads to even less fish being harvested and brought to market. Therefore the amount and varieties of fish at markets are smaller and can cause shortages for wholesalers and restaurants. Some restaurants will no longer have the variety on their menus that they used to enjoy. If a restaurant thrives on its seafood menu they may be unable to cope with the shortages and will go out of business. In the ...

    Read More

  • A PESTLE Analysis of the UK Hospitality Industry

    1490 Words  | 3 Pages

    The political element in PESTLE represents how the government can influence the economy by setting rules and regulations which they have to adhere. An example of this is that the national minimum wage increases and now due to a new law in place, companies must provide pensions to eligible employees and every company needs to comply with this and stay within the law. Another factor is the political unrest in certain countries. This can take effect on the hospitality industry which can in turn affect the economy and business environment. The threats of terrorism are still very much alive; an example of this was the terror attacks in London on the 7th of July 2005 where the suicide attacks left more than 700 people injured according to The Guardian (2005) which brought concern for the people and the economy. It leaves a fear in people’s minds and the way the marketers can adapt to this is by promoting UK based hotels and holidays companies, with the increased threat of terrorism and political instability people will be more concern about their safety and decide not to travel abroad.

    Read More

  • Environmental Factors Of Marketing

    1332 Words  | 3 Pages

    This paper will discuss the five environmental factors that influence global and domestic marketing decisions that organizations must make. These five environmental factors are technology, demographics, government, culture and economics. Companies are affected differently by these factors depending on the industry they are in and the size of the organization. I will be using the Washington Plaza Hotel to illustrate how these environmental factors affect the hotel industry's marketing decisions. The Washington Plaza Hotel is a hospitality business located in Washington, DC. They offer services such as lodging, restaurant, bar, catering and meeting space rental. The Washington Plaza Hotel's major customer base is government, tourist, non-profit organizations, local businesses and some corporate clientele. Let's now take a look at how these environmental factors affect the marketing of the hotel.

    Read More

  • Ebay Pest Analysis

    655 Words  | 2 Pages

    The PEST Analysis shows the political factors, economical factors, social factors and technological factors which can affect the business.

    Read More

  • Swot Analysis Essay

    1090 Words  | 3 Pages

    Environmental: These factors include all those that influence or are determined by the surrounding environment. This aspect of the PESTLE is crucial for certain industries particularly for tourism and farming. Factors of a business environmental analysis include climate, weather, geographical location, global changes in climate, environmental offsets etc.

    Read More

  • PESTLE In The Hotel Industry: The Effects Of The Hotel Industry

    1051 Words  | 3 Pages

    Executive summary I have chosen to use PESTLE as part of my investigation, I feel PESTLE is the best way to discuss the different factors affected both (positive\negative) of the hotel industry. Hotel industry is part of the hospitality business which according to www.bha.org.uk, United Kingdom has the highest Hospitality employment and recently contributed the sum of £57 billion to the United Kingdom (GDP) Gross Domestic Product.

    Read More

  • PESTLE Analysis Of Dubai

    1465 Words  | 3 Pages

    As the UAE is made up of 7 Emirates so each of them have their own governmental organisations which allows for the smooth running of their economy.Dubai occupies the vice presidency,second after Abu Dhabi which has its own law so its also a primal location.It is politically safe with low crime rate.

    Read More

  • Hospitality Industry Case Study

    1903 Words  | 4 Pages

    People like to know they are visiting a safe place. Certainly, any political problems like upset, uprising , war or terrorism in an area can affect the amount of tourists coming, and this will affect the hospitality businesses, like in the Middle East countries or Kenya (Fair. C, 2014). This will affect all hospitality businesses badly with loss of income. Moreover, visa policies can also affect the hospitality industry, for example, the US government has relaxed visa rules for Chinese boost the growth in the industry. (HT Library, 2014)

    Read More

  • Pest Analysis: Pestel Analysis Of The Philippine Food Industry

    1392 Words  | 3 Pages

    As for profitability, you gain a 28% profit for every peso you spend in the food business. Though it is beaten by businesses who deal with accommodation, which stands to a return of Php1.76 for every Php1 spent which is recorded to be the highest income generated shown in the graph below.

    Read More

  • 1. Conduct organization evaluation by using any one (1) of appropriate analysis tools ( Porter 5 Forces or PEST Analysis ( Political, Economic, So...

    650 Words  | 2 Pages

    PEST Analysis is very important in an organization. In addition. there are also factors that can influence the performance of an organization of the company. As such, there are several factors that play an important role in a business that can bring success. There is analysis that can influence the development of an organization or company. It is the analysis of PEST analysis that include Political, Economic, Social and Technology. A PEST analysis looks how those external factors can be effect in a business or organization activities performance. Other than that, it can be used in a combination with the are the tolls like, Porter five forces and the SWOT analysis, which determine an organization overall outlook for success.

    Read More

  • Marketing In The Tourism Industry

    1504 Words  | 4 Pages

    In recent years, tourism marketing has gone through strategic changes with the improvement in new technologies, the chase of a relationship between customers and suppliers as well as the importance of sustainability issues in marketing. Marketing Tourism reconsiders the needs of the tourists but does not overlook on the long term economic, environmental, social and cultural interests of the local population. So, it means that marketing consider both the tourist demand and effect to society as

    Read More

  • PEST Analysis for a Company in the Tourism Industry

    2083 Words  | 5 Pages

    PEST Analysis for a Company in the Tourism Industry The Tourism industry is one of the fastest growing industries in the world. The World Travel and Tourism Council estimates that in 2004 Travel and tourism is expected to generate * US$ 5,490.4 billion of economic activity * 10.4% of total GDP * 214,697,000 jobs or 8.1% of total employment * 12.2% of total exports [1] My task is to conduct a PEST analysis for a company within the Tourism industry. Within the tourism industry, I have to select one area of interest like transportation, accommodation and transportation etc. and then one company doing business with these sectors related with the tourism.

    Read More

  • PESTLE Analysis And Pestle Analysis: Bread And Biscuits

    1107 Words  | 3 Pages

    The advertise estimate in the Western markets for premium treat players is higher than that of Indian Market. As the way of life is enhancing in India, the interest for premium treats in the market is expanding. Numerous International players are attempting to tap this space by going into the market with infiltrating costs.

    Read More

More about Pestle Analysis In Hospitality Industry

Open Document