Last Updated 10 Aug 2020

Article Summary The PESTEL analysis

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Article Summary

The PESTEL analysis provides overview of political, economical, legal, social, technological and environmental factors that affect functioning of UK country hotel. Political factors indicate that businesses are highly motivated to be opened in the Herefordshire area because the country, in such a way, encourages economic stability and financial growth in the surrounding locality. The hotel will be indirectly benefited as well. Moreover, economic regeneration plan is very likely to positively affect local businesses.

Further, social factors present that the key causes of falling business are high prices on fuel, significant climate changes, etc. It means that more people today prefer domestic holidays instead of taking holidays abroad. Thus, hotel industry should consider that people are looking for relax and their holidays shouldn’t be bothered by either legal or environmental issues. Ethics should be of top priority. Analysis indicates that more and more people prefer healthy organic food and green products.

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Analysis of economic factors indicates that UK business experiences tough phase meaning that less people spend money on leisure activities. Therefore, UK country hotels are suffering from economic downturn. According to official rates, hotel industry has fallen up to 6% in 2008. Nevertheless, the positive shift is that UE tourists became more interested in spending holidays in the UK due to low rates. Analysis of environmental factors shows that tourists aren’t willing to spend holidays in the carbon commission place. They are looking for greener places for weekends. Analysis of technological factors indicates that hotel industry refers to online private commissions and “QuickTime” software. Read also Business Article Summary

Summing up, domestic and inbound tourism are encouraged and stimulated in the UK. Tourists become more concerned about environmental factors and they prefer green tourism. The negative moment is that economic recession prevents people from taking holidays. You may be interested in PESTLEe Analysis Turkey

References

The PESTEL Analysis. Retrieved March 14, 2009, from www.pengethleymanor.co.uk

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