HOSPITALITY

INDUSTRY:
P E S T ANALYSIS
 Contents
Environmental Forces that impacts
the Hospitality Industry

Political
Ecological
Socio-Cultural
Technological
 Political Factors

Political Factors include

policies and governmental
guidelines.

Although each corporation

has to face rules and
regulations, each industry faces
different rules and regulations.
 Political Factors:
Hospitality Industry
There are different regulations and
ordinances from the government that
hotels must abide.
 Political Factors:
Hospitality Industry
The government
stipulated-laws have
corresponding
sanctions if and when
these laws are
violated.
 Political Factors:
Hospitality Industry
Examples of Government-Regulated
Ordinances:

1. Labor
2. Taxes/Wage
3. Human Trafficking
4. Environmental
 Ecological Factors:
Hospitality Industry
environmental factors for this
industry might impose an impact on
the customer’s decision
 Ecological Factors:
Hospitality Industry
Ecological Factors include but not limited
to:

1. Seasons (e.g. rainy)

2. Disaster (e.g. earthquake)
3. Global Warming
 Socio-Cultural Factors:
Hospitality Industry

Social cultural factors are a big issue to

look into for hotel industry because it
deals with a lot of consumers who have
different demographic, ethnic, cultural
backgrounds.
 Socio-Cultural Factors:
Hospitality Industry
The impact of Socio-cultural Factors in
this industry depends on:
1. Tourist Spot Attraction
2. Crime Status/Rates
3. Celebrations/Activities
Technological Factors:
Hospitality Industry
In order for a hotel to
prevent obsolescence and
remain technologically
advanced, the hotel must
be up to date with all the
latest technological
changes that are taking
place that might have an
impact on the industry.
Technological Factors:
Hospitality Industry

The impact of Technology

in this industry include
many factors:
1. Computers/Internet
2. Information Systems
3. Updated Gadgets
4. Technology to address
energy costs
Books and journals:
REFERENCES
Henderson, J. C. (2007). Corporate social responsibility and tourism: Hotel companies in Phuket,
Thailand, after the Indian Ocean tsunami. International Journal of Hospitality Management.

Jones, P & Lockwood, A 2006, The Management of Hotel Operations, Thomson Learning, London.

Kasim, A. (2006). The need for business environmental and social responsibility in the tourism
industry. International Journal of Hospitality & Tourism Administration.

Mathisen, O. (2006). Profitability, environment, and social equity. Cruise Industry News

Van der Wagen, L & Goonetilleke, A 2012, Hospitality Management: Strategies and operations, 3rd
edn, Pearson Australia, Frenchs Forest, NSW.

Website:

NSW HSC online Hospitality

www.hsc.csu.edu.au/hospitality/hosp_240/comp_units/SITXENV001A/4042/issues.htm

Ecological Footprint Measuring our impact on the environment

www.epa.vic.gov.au/ecologicalfootprint/about/default.asp