PEST ANALYSIS

PEST Analysis for a Hotel in Park Lane London

PEST Analysis for a Hotel in Park Lane London

Introduction

The hotel industry makes a vast contribution to the London economy, this contribution includes different economic impact, for example; it has a direct impact on the activity and employment in the London hotel industry. It also has an indirect impact on the London hotel industry activity and employment which support the supply chain, this is the reason that the London hotel firms has been purchasing goods and services from the London suppliers. The other induced impact includes the employment and activity related to the people who have been directly present. They spend their incomes on purchasing goods and services in the wider London economy. Companies producing goods and services, and are in the range of providing services and includes jobs in the retail outlets. The role of the hotel has a wide economic impact on the economy.

Hotel industry is one of the largest industries in the global economy today, it has shown some resilience compared to other sectors since the economic and financial crisis, after several years of consecutive growth up to mid-2008. The industry has faced greatest challenges since the last two years, in the global economy, and the impact of the crisis has been variable, with some regions performing far better than others (Athiyaman & Robertson, 2005). This crisis has created changes in the work sector of the economy. Social dialogue is a key to accommodating such changes while reconciling the interests of enterprises, their workers and their customers. All organizations can be affected to a lesser or greater extent by macro forces, i.e. political forces - legal, economic, technological and social, whenever companies occasionally try to influence legislation or through R & D pioneering new technology or changes to strengthen its strategic position or to discover new opportunities.

Macro forces generally are not under the direct control of companies, therefore, the purpose of the strategic direction is to enable the organization to act effectively to threats. This also includes environmental constraints and opportunities emanating from the same. To meet this objective, strategic leaders must identify and analyze how expression of these macro-forces in relation to the company. The tourist industry, which the housing is an essential component, is still in a growth phase in its life cycle and process training and worldwide distribution of their corporate structures (Broadbent, 2002). Consequently, analysis of the size and global distribution of flows hotel and its growth trends can help us discern the geographical location of housing activity and their ability to expansion.

In the hotel sector, customer loyalty is difficult to achieve, even when they are happy with the experience of his journey and that curiosity makes them look drawn to other alternatives. Tourists are constantly looking for modern experiences, modern places, alternative airlines and modern accommodations (Connell, 2006). For all these reasons, brand loyalty is difficult to obtain and, therefore, branding is very powerful Positioning, after the market has been segmented into ...