Factors effecting growth of hospitality, The internal and external factors influencing the Hospitality industry

1. “Growth of Hospitality Industry”
By Mohammed Asif & Group
MBA-TH, NITHM: 2015’-17
Factors influencing

2. Influencing Factors ?
• Internal factors....
are those that are within the control of the
enterprise
• External factors....
are beyond the control of the enterprise.

3. Influencing Factors ?
Internal factors :
• Management of the hospitality firm
• The Workforce of the hospitality firm
• Change and Conflicts management
• Location and Accessibility
• Types of facilities and Activities available
External Factors and Influences :
• Political Factors
• Economic factors
• Social Factors
• Technological factors
• Environmental Factors
• Legal Factors

4. Internal factors & Influences
1. Management :
i. The management style and structure
ii. Careful about the ethics of the business,
the workforce will be better
i. Best customer experience
ii. More affective than competitors
2. The Workforce of the hospitality firm: (employees)
i. well trained to meet the demand of the business and customers?
ii. Changes in the employees of the firm
iii. Internationally, tourist and travelers may compare

5. Internal factors & Influences
3) Change and Conflicts management:
Operational and organizational processes and methods of a hospitality firm,
4) Location and Accessibility of a hospitality firm:
i. The location of a hospitality firm and/or its accessibility can also affect
the demand of its services.
ii. strategically Located: Connectivity with nearest sightseeing, sightseeing
place to nearest Hotel stay, vice-versa
5) Types of facilities and Activities available:
i. facilities that are made available by the hospitality firms .
ii. The expectations of customers range from seeing new places,
iii. New facilities, Better events, and many more.
Take for instance, the demand for a hotel with no swimming pool will be
far lower than that with a swimming pool or ocean view.

6. External Factors And Influences
External influences refer to factors that affect the organization, but are not under the organization's control.
This is generally referred to as the PEST factors, Political, Economical, Social , Technological
Political Factors
• Government stability and likely changes
• Government organization/attitude,
• Political stability,
• Corruption level
• Tax policy (rates and incentives)
• Freedom of press
• Environmental regulations and protection,
• Travel/visa entry requirements for international markets
• Trade control
• Import restrictions (quality and quantity)
• Competition regulation
• Government involvement in trade unions and agreements

7. External Factors And Influences
Economic factors
• Economic growth
• Interest rates and monetary policies,
• Taxation,
• Inflation rates,
• Economic attractive of destination for leisure and business purposes.
• Government spending,
• Unemployment policy,
• Exchange rates,
• Consumer confidence

8. External Factors And Influences
Social Factors
• income distribution,
• lifestyle changes,
• Work/career and leisure attitudes,
• Education, health consciousness,
• Demographics (population growth rates, age distribution),
• Labour/ social mobility,
• Living conditions,
• Social customs and habits

9. External Factors And Influences
Technological factors
• Public transport infrastructure, Rate of technology transfer,
• International transport facilities such as airports/seaports
• Changes in IT/Internet/Mobile technology,
• Levels of car ownership,
• New inventions and developments
Legal
• Anti-trust law
• Discrimination law
• Copyright, patents / Intellectual property law
• Consumer protection and e-commerce
• Employment law
• Health and safety law
• Data Protection

10. External Factors And Influences
Environmental (ecological)
– Weather
– Climate change
– Laws regulating environment pollution
– Air and water pollution
– Recycling
– Waste management
– Attitudes toward “green” or ecological products
– Endangered species
– Attitudes toward and support for renewable energy