Contemporary Issues in Travel and Tourism (Coursework Sample)

Contemporary issues in travel and tourism
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(31.10.2014)
Introduction
Pest analysis evaluates political, economic, social and technological factors that affect a business entity. Belgraves hotel is highly influenced by various factors in the external environment that are caused by external forces. The discussion involves critical evaluation of political factors that affect the daily running of the business. It evaluates economic, social and technological factors affecting the business in its area of operation. The analysis will evaluate major factors the firm should concentrate on and, its importance to organizational growth and development. The paper will develop a strategy that the firm should adopt to achieve the changes.
PEST ANALYSIS
Political factors
The government plays a key role in growth of business enterprises in the country. This involves laws that the government makes to govern businesses in the economy. These policies highly affect the manner that a business entity functions in an economy. Belgraves hotel has experienced these strict rules by the government of Britain on foreigners due to factors such as spread of diseases and terrorism CITATION Bri05 \p 13 \l 2057 (Garrod, 2005, p. 13). Therefore, Belgraves hotel should carry out strict screening of its clients according to government policies. This increases operational costs while reducing its revenue.
Terrorism in the world has led to decline in customers who tour various countries for leisure activities. Britain’s accommodation sector has been highly affected especially Belgrave hotel that is situated near a tourist attraction centre. This is politically influenced by foreign countries that advice its citizens to avoid foreign trips due to increased terrorism and ideological differences between the ruling governments
Economic factors
Dynamic economic growth and development highly determines the daily running of business entities in an economy. Economic trends highly depict the growth and development of businesses in the economy. Belgrave has much thrived in London due to constant economic growth and development in Britain. This has led to expansion of its market size. However, this has for late been declining due to decline in economic growth of the world CITATION Sus12 \p 24 \l 2057 (Horner, 2012, p. 24). This has led to increase in prices of goods and services and increased hardship in living standards of people reducing the number of customers.
Belgrave hotel has been highly affected by frequent changes in government taxation policies and the rate of inflation. This has led to an increase in tax imposed reducing its revenue. Belgrave management has opted to increase its charges leading to decline in market size. This has led to its inability to offer services such as free Wi-Fi to its customers CITATION Jan01 \p 16 \l 2057 (Rodgers, 2001, p. 16). This has reduced its market size and revenue leading to inability to offer better services that meet customer taste and preference.
Social factors
Consumer trends in travel and tourism industry highly determines the rate of growth and development of a business. The growth of Belgrave hotel has been highly influenced by consumer trends that are rapid in the industry such as need for spacious rooms and proper soundproof rooms CITATION Bri05 \p 18 \l 2057 (Garrod, 2005, p. 18). This has led to decline of customers although the management has established a 24 hour customer desk to cater for its clients.
Belgrave hotel should maintain a good relationship with the media in order to attract more clients. This will ensure that it is able to advertise itself through various media and social media sites such as Facebook and Twitter to expand its market size.
Technological factors
Rapid dynamic technological advancements ha...