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Hotel PEST Analysis

PEST Analysis

Political/Legal

Because of the possible impacts on the surroundings from the businesses of the hotel, there is a need to comply with Environment related legislation.

Industry specific fees Eg: bed tax

Troubles in obtaining travel visas to this region (especially by non-European and non-US nationals) can be considered a deterrent to such travellers entering this region.

The existing 'war on terror' situation may reduce non-essential leisure based mostly travel, that may have a negative effect on the hotel industry.

Economic

Both hotel remains and spa treatments essentially charm to one's discretionary income, thus a rise in discretionary income would become favourable to a business such as Solberri.

Your competition for a business such as Solberri do not need to necessarily result from similar hotels/spa facilities only, it could even occur from other options such as other rivalling forms of expenditure for one's discretionary income. Eg: a fresh suite of furniture

Because of the seasonal nature of demand, earnings and room occupancy can vary significantly during top and non-peak intervals.

As hotels generally provide free food and lodging especially at the operational level, their earnings aren't that attractive compared with that of certain other companies. This might make it difficult to attract employees for such positions.

Because of the non-essential nature of this type of service to a possible client, this might be main areas that might be cut back at the same time of downturn or economic downturn.

The higher end of the hotels ( Eg: 'Leading' category at Solberri ) would essentially aim for the higher end of the market which is a relatively smaller group where high margins can be attained.

The possession models of hotels have observed some new realities in recent years. ( Eg: individuals/buyers owning resort rooms, sell and leaseback, moving towards taking care of the hotel as opposed to getting them.

Social/Cultural

The patronizing of spas is seen as a lifestyle change which is growing among certain sections of the middle category as well as top of the class.

As hotels reap the benefits of holidaying the extent to which people take holidays and their ability to get off from help such holiday seasons will have a primary bearing on the demand experienced by a business such as Solberri.

As hotels consume a sizable amount of resources such as drinking water, soap, detergents as well as cause a fair amount of air pollution (from drinking water, leftover food, use of strong detergents), there is a reasonable amount of pressure to be 'green' especially by Environmental pressure groups.

The supply of lower level staff is seen as being immediately related to seasonal unemployment in your community.

As journeying for a holiday is seen as non-essential travel. Some may decide not to take part in leisure travel especially where air travel is included.

Technological

The hotel industry sometimes appears as utilizing an increasing amount of technology with a view of attaining greater client satisfaction. Eg: Ritz Carlton's customer information management. (CRM)

It could be seen that customers, even prospective customers extensively use online information places including reviews and commentary by prior customers when coming up with their own choice about holidays and places to go to.

The usage of technology and other advanced techniques can be useful in managing the consumption of resources such as normal water and electricity that happen to be resources that are thoroughly found in this industry. Eg: Electricity Factor Corrections, recycling water

The increasing use of IT/IS can assist in improving the info designed for management decision making which will also allow the organization to raised plan its future activities and situations.

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