The hotel industry is entirely focused on providing lodging and related services to guests. The hospitality business, on the other hand, is concerned with leisure in a broader sense. As a result, it includes lodging, restaurants, bars, cafés, nightlife, and various travel and tourism services.

Political factors

The hotel sector is heavily regulated by the government. If the ruling political party imposes a travel ban, the tourism and hotel industries will suffer immediately. A country can lose the great majority of its economy with only one decision. Taxes are another issue that the government has influence over. Luxury and high-end hotels could use the money saved to expand their guest accommodations. Because the government has such a strong influence on the hotel business, many hotel owners are on edge during election season, fearing that a new President with new beliefs could quickly disrupt the industry and overturn the former President’s policies.

Economic factors

Globally, and particularly in the United States, hospitality is one of the most popular investment areas. Growth is likely to continue into 2020 and beyond. Currency Strengths and weaknesses can have an impact on a holiday destination’s appeal. While economic changes have an impact on all industries, the hotel industry is one of the most fragile. It is the first to go through economic cycles and emerge victoriously. Unemployment rates, job growth, and travel expenses are just a few of the major aspects that will determine if it succeeds. Hotel groups are increasing their profits and revenues by acquiring international resorts, such as Marriott International’s acquisition of Starwood Hotels & Resorts Worldwide. Hilton Hotels additionally alters its guest offers dependent on the hotel’s location. Guests will appreciate personalized incentives, which will entice them to return in the future.

Sociocultural factors

You can reserve a room through an app fast and easily, and it’s generally less priced than hotels in the neighborhood. During high seasons, hotels frequently run out of rooms, and when they don’t, they raise room prices. Trying to locate a different hotel used to be your only option, but today you can browse Airbnb and almost certainly find somewhere appropriate and less expensive. This is a major issue for hotels, which frequently enjoy an increase in profit during peak seasons when rooms are scarce. Many hotels offer extra amenities such as pools, gyms, and even massage parlors. You can eat at one of the many eateries located within the complex.

Technological factors

Hotels used to rely solely on traditional media but today they must also consider new media brought out by the internet. The most significant technologies hotel owners can utilize, such as Facebook, and mobile apps, but must also be cautious regarding it. The news is available and updated 24 hours a day, seven days a week, thanks to social media. Any occurrences near the hotel can be reported in minutes, shared by thousands on social media, and pieces written by media sites in seconds. It happens so quickly that hotel owners have little control over it.

A review can be written by anyone and posted on a blog or shared on social media. People that stay in hotels will take pictures and provide an honest review of their stay. This has both positive and negative implications for the hotel industry. Hoteliers who are confident in their properties will pay social media influencers to promote them. Hopefully, this will attract notice and bring in new guests for the hotel brand. One nasty review, on the other hand, is all it takes to ruin a reputation. People may now compare hotel prices more easily thanks to travel websites. They can read reviews and comments from prior customers on these websites. As a result, hotels must remain competitive, or customers will go to a new brand.

Legal factors

Everyone wishes to be in a secure environment. If a hotel is located near a high-crime area, it will struggle to stay afloat. All hotel owners must choose a low-crime area; else, consumers will not stay at their properties. Innkeeper laws, which safeguard the welfare and safety of guests and their properties, are followed by hotel owners. The innkeeper law is required to be placed inside the door of every hotel guest room in several states. In most circumstances, the innkeeper law will specify how much the innkeeper must compensate guests if their property is stolen or damaged. Any hotel with a restaurant or bar must adhere to truth-in-menu laws, which require the restaurant to be honest about the food and beverages offered to visitors. The restaurant must be forthright about the calories in the dishes’ healthy and healthful elements.

Environmental factors

Hotel customers stay in hotels for a number of reasons, including visits to family and friends, business travel, and vacationing. Customers prefer to stay somewhere warm and comfortable while on vacation. The weather in the area influences whether or not someone chooses to stay at a particular hotel. Although hotel owners have no influence over this, they must be aware of seasonal variations before pricing their rooms and react accordingly.


The hotel business is facing stiff competition from companies like Airbnb, which provides a wide range of accommodations for less than the usual hotel room. The sector is also unduly reliant on the government; everything from prospective tax reform to travel prohibitions has the ability to bring the industry down.

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