Pestel: Hotel Industry
PESTEL/ PESTLE/ PEST Analysis of hospitality industry
Traditionally PESTEL analysis was known as the PEST analysis and only in the modern times did the use of the word PESTLE came into being. Social part of the PEST is split into environmental factors too as those have a significant role in the strategic management these days. Along with that economic factors are split into legal factors for the same previously mentioned reason.
Political Environment
“These refer to government policy such as the degree of intervention in the economy.”
The Times of India by Rachna Singh, Jaipur, in a bid to attract international tourists is gearing up with a host of new properties across differentsegments. [Hospitality Biz India: Dec. 2009]Hotel industry as well as tourism industry has a basic backbone of the government support without which it won’t be able to sustain the competitive world. Government charges huge amount of tax from the star and luxury category of hotels and thus has a huge impact with thepolitical changes that occur. Any small step taken by the government bychanging some law it would seriously affect hotel industry. The hotelindustry is getting huge incentives and the state governments aresupporting the development of the hotels and their growth. This infactanswers the question how are Indian Hotels are planning to expand in theeconomic crunch time. The Terror attack on the city’s [ Mumbai ] renowned hotels Taj and theOberoi’s had brought a concern on the faces of the hoteliers with asubstantial drop in foreign travellers to India taking the terror threat intoaccount.
Economic
“These include interest rates, taxation changes, economic growth,inflation and exchange rates. As you will see throughout the "Foundationsof Economics" book economic change can have a major impact on a firm 'sbehaviour.” [Online:2010]Mumbai being the financial capital of India has many foreign touristsarriving with the whole and sole purpose of meetings, conferences etc.thus Hotels
Traditionally PESTEL analysis was known as the PEST analysis and only in the modern times did the use of the word PESTLE came into being. Social part of the PEST is split into environmental factors too as those have a significant role in the strategic management these days. Along with that economic factors are split into legal factors for the same previously mentioned reason.
Political Environment
“These refer to government policy such as the degree of intervention in the economy.”
The Times of India by Rachna Singh, Jaipur, in a bid to attract international tourists is gearing up with a host of new properties across differentsegments. [Hospitality Biz India: Dec. 2009]Hotel industry as well as tourism industry has a basic backbone of the government support without which it won’t be able to sustain the competitive world. Government charges huge amount of tax from the star and luxury category of hotels and thus has a huge impact with thepolitical changes that occur. Any small step taken by the government bychanging some law it would seriously affect hotel industry. The hotelindustry is getting huge incentives and the state governments aresupporting the development of the hotels and their growth. This infactanswers the question how are Indian Hotels are planning to expand in theeconomic crunch time. The Terror attack on the city’s [ Mumbai ] renowned hotels Taj and theOberoi’s had brought a concern on the faces of the hoteliers with asubstantial drop in foreign travellers to India taking the terror threat intoaccount.
Economic
“These include interest rates, taxation changes, economic growth,inflation and exchange rates. As you will see throughout the "Foundationsof Economics" book economic change can have a major impact on a firm 'sbehaviour.” [Online:2010]Mumbai being the financial capital of India has many foreign touristsarriving with the whole and sole purpose of meetings, conferences etc.thus Hotels