Pestle analysis of uk hotel sector focussing on radisson blu in london
Pestle analysis is the structure that is used to analyze an organization’s external macro environment. Following are the words or aspects which pestle:
Radisson Blu, a supreme brand of service hotel in UK, an ideal place to discover what UK has to offer to its customers from the busy cities to the peaceful rural surrounding (Hocutt and Bowers, 2005). Now if we do a pestle analysis of the hotel we will find the following:
1. Political: It is seen that with the practical and constructive partnership of the UK Government, it has brought the hospitality industry into the primary success of the economic development. In UK, hospitality industry is in the fifth largest industry which employs directly more than 2.5 million people which contributes to the gross tax revenues. Radisson Blu, being a concrete part of this sector contributes to the revenues of UK.
2. Economical: The stays and the spa treatments with all other lucrative facilities, Radisson Blu has fundamentally appealed to one’s unrestricted income which in return has a growth in the unrestricted income of the country (Chen and Yeh, 2012).
3. Socio-cultural: The superiority of spa is now seen as the change in lifestyle which is steadily growing amongst the both middle and as well as upper class. Radisson benefits from the holidaying to the extent take holidays and their facility to get off from work for the holidays has a direct impact on the demand which is experienced by the hotel.
4. Technological: Radisson is seen utilizing an escalating amount of technology with the point of accomplishing more customer satisfaction. Now in this technologically advanced society it is seen that customers are using online informations very extensively including the comments and reviews about the hotel (Kayaman and Arasli, 2007).
5. Legal: Radisson Hotel mission is to see that their customers are happy with their stay which in return makes way to the hotels profit. The minimum wage rate in UK is increased to 15.5%, which the hotels keep in mind to maintain their standard and avois legal issues, so the hotel has to be subjected to various legal activities (Siddique, 2014). A systematic analysis of the probable legal issues that attach to the operations of the hotel will require the articles that cover everything from the law contract, tort claims and negligence to the state securities and the federal.
6. Environment: A hotel uses a high amount of resources such as detergents, soap, water which cause a fairly amount of pollution. Radisson Blu is signed “green” for being friendly with the environment.
Market demand of hotel sector
London is one of the most visited spot for the people round the world. The visitors from international to UK have solidly increased over the years. The arrivals from international gas grown over 15% and a steady increase of 5.5% was predicted in 2006. The hotel sector in UK has proved to be proved flexible regardless of many drawbacks for last five years. But it’s also seen that the domestic customers are very weary about the hotel sector as many of them do not provide much accommodation (Asirifi, 2014). The trend says that the growth of the hotel sector is anticipated to increase in the near future (Kayaman and Arasli, 2007). With hotels like Radisson Blu doing very well in the market, customer’s interest is also increasing. The hotel sector in UK has also come up with the innovative model of “Yotels”, “Pod hotels” and “aparthotels” and thus the demand is increasing with these ideas.
Customers need in hotel sector
The taste and the preferences of the customers change with time. Many years ago customers were focused only with the stay but now they are also focused with the other facilities that a hotel provides with their stay (Kwortnik and Vosburgh, 2007). Hotel which are premium are expected to give quality service to their customers but in a recent survey in UK it has been seen that hotels which are less superior are able to provide high quality service compared to the superior ones. Thus this changes the notion of a customer. Radisson hotel compared to the others has been said to provide top notch service with excellent customer satisfaction. In a recently done survey of SWOT analysis it has been that Radisson has extremely motivated team of professionals who focuses on the customer care service along with corporate social responsibility. It has a highly developed and sophisticated customer reservations system. All these factors play as motivators to the customers so as to bring them back to the same hotel. Radisson follows the Critical Success Factors Model which is specially developed and designed for the operations of the budget hotels in UK on the customer research basis (Manaktola and Jauhari, 2007).
Buying behaviour of customers
The buying behavior or buying decision of the customer is not judged through their needs but their decisions and behavior is influenced by the identity, status and lifestyle. It is the key factor to understand the buying behavior of the customers in the hotel sector. It is mainly complicated to understand the hotel industry (Manaktola and Jauhari, 2007). A customer is satisfied with the quality and service provided by the hotel such as ambience, food, room, spa, accommodation, etc. As we all know that customer satisfaction leads to the loyalty of the customers. If the quality is maintained than the behavior towards that particular remains unchanged. But it is not always this what works in case of the hotel sector. A customer visiting a hotel frequently will be lethargic enough to visit that hotel again so it may go back to its competitors. The customers want something new and afresh from the hotel every time. Thus Radisson understands this particular behavior of the customers and retains by giving them continuous satisfaction. The behavior of the customers is complicated as the hotel industry provides both tangible and intangible products so it makes difficult to monitor and control the same. We see that business people are the ones who often visit hotels for their trips often want a hotel which has primary transport hubs and provide enough linkages of transport. The customer always prefers this type of hotels. Radisson hotels are spread in good locations where the customers would not face transport problems which determine its growth (Mkono, 2010).
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Hocutt, M. and Bowers, M. (2005). The Impact of Service Guarantees on Consumer Responses in the Hotel Industry. Journal of Hospitality & Leisure Marketing, 13(1), pp.5-23.
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Kwortnik, R. and Vosburgh, J. (2007). Driving Demand for the Quarterdeck: A Case Study. Cornell Hotel and Restaurant Administration Quarterly, 48(3), pp.323-341.
Manaktola, K. and Jauhari, V. (2007). Exploring consumer attitude and behaviour towards green practices in the lodging industry in India. Int J Contemp Hospitality Mngt, 19(5), pp.364-377.
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Siddique, C. (2014). Impediments to market orientation. Education, Business & Society, 7(1), pp.33-56.