In this essay I will be discussing and critically analysing each element of the PESTLE analysis within the hospitality industry, with examples to reflect each point. Also this essay will discuss how marketers should adapt to changes in the macro-environment. The PESTLE analysis is a marketing principle used to understand the relation between a company and the external environment. Murray-Webster (2010:88) states PESTLE analysis will help to capture understanding about aspects of the context by using the prompt political, economic, sociological, technological, legal and environment.
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.
The economy affects the marketers in many ways and the economy’s performance directly impacts companies. These can include taxation changes, economic growth, exchange rates and inflation. An example of this was when the Olympics were held in London 2012; this affected the economy in many ways and benefitted the hospitality industry significantly by increasing the occupancy rate according to Harmer (2012). With the economic situation changing daily, it is important to be aware of the global economy and follow the changes as it affects peoples spending power. With the cost of living increasing people are looking for good deals. The marketer can instil a value for money when promoting their services. For example UK holiday companies such as Butlins and Haven has become very popular as they caters for families in the UK, they provide a holiday from home for an affordable price.
The social factor analyses the social-cultural trends and how it affects the market. Trends such as consumer lifestyle, cultural trends, and demographic variables are all apart of the market. By understanding , utilising and manipulating the trends, you can show that you are socially aware of their culture.
By conducting a number of research methods you can analyse the data and input that into your business. For...