Introduction
Marriott was founded in 1927 which began as a beer stand, has become distinguished as a top employer and for its excellent business operations, which are based on five core values: people first, excellence pursued, change embraced, integrity acted upon, and service to our world. Decent food and services at reasonable prices became a guiding principle for restaurants, as well as for Marriott International as it expanded. "Residence Inn by Marriott London Bridge" is found in the United Kingdom's capital of London, where visitors can unwind with a beverage and drinks at a pub or nightclub. These studies discussed hospitality growth and development factors, as well as the situation that existed during the COVID-19 pandemic. During the COVID-19 pandemic, hotel industries developed new and helpful or secure trends, such as online check-in or check-out policies, online booking methods, voice activated elevators, app-based policies, and online payment methods. Robotic hotel room services and self-service food are available, with a focus on room cleaners and good customer service and satisfaction (Marriott.com, 2022).
Factors that affect the development of hospitality industry organization in a specific cultural and geographical setting
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PESTEL analysis of the UK
Political factors
The stability of government is concerned with maintaining stability in rules and regulations concerning low corruption rate and favorable government policies for trade businesses and corporate security that perform an effective role in increasing business opportunity in the UK. The administrative system of the UK is a democratic parliamentary system that signifies the prime minister as head of government. Brexit developed by European Union emphasizes increasing trading facilities in the UK considering economic and employment prosperity that leads to enhancing business opportunities for different sectors such as hospitality and tourism. A democratic parliamentary system in the UK is associated with negative impacts on business empowerment because the prime minister is responsible for taking final decisions regarding taxation and trading facilities (Marketingtutor.net, 2020). High taxation rates and other trading-related laws impact the profitability of business which leads to remarks about poor business growth.
Economic factors
A diverse economy is associated with equal opportunities for flourishing growth of the business that remarks positive impacts on establishments and developments of business in the hospitality industry due to high market demand and customer values. The UK has pursued an over rate of inflation of nearly 8.8% annually which leads to increasing purchasing power with an ineffective value of money (Ons.gov.uk, 2022Moreover, the employment rate of the UK is above 75.5% which is increasing demand in the lab our market (Statista.com, 2022). According to a statistical review, the growth rate of GDP in the UK is above 7.5% annually, which leads to fewer business opportunities for hospitality and other business sectors (Statista.com, 2022). Apart from that, it can be analyzed that economical factors of the UK such as employment rate, inflation and GDP growth reusable fewer business opportunities for the hospitality industry considering the negative aspects of the economic condition of the UK.
Social factors
The increasing rate of the population contributes to increasing product demand in the hotel and hospitality industries which is a beneficial factor for the development of the hospitality business. The literacy rate of the UK is approximately 99% and the employment rate is too high that specifies a luxurious and high-quality lifestyle for the UK population. (Una.org.uk, 2022) increasing social stature due to the increasing income and literacy rate of the UK population signifies a high demand for luxurious hospitality services that are responsible for t increasing demand for high-quality luxury services in the hospitality industry.
Technological factors
Uk is one of the leading countries for technological advancements. Governments of the UK have invested nearly £30 billion annually in technology advancements that contribute to upgrading technology e bracing a technologically advanced society (Businessinsider.com, 2022). Employers are friendly to handling the working process of the hotel and hospitality industry utilizing different advanced technology that leads to increased customer satisfaction through reaching customers' expectations which is a beneficial factor of business empowerment. Moreover, technological advancements contribute to increasing the performance of the hospitality industry by providing online booking opportunities, smart infrastructure and 24/7 customer service.
Environmental factors
The increasing pollution rate in the UK is a major issue for tourism companies because the increasing rate of environmental pollution and environmental issues decrease the retention and involvement of tourists due to a lack of preference for the UK as a tourist destination by traveler’s. The hospitality industry depends on the tourism industry and its customer retention and customer involvement rate. In other aspects, British summer is attractive to tourists for its beauty and comfort (Marketingtutor.net, 2020). Therefore, the environmental factors of the UK signify the greatest opportunity for the hospitality industry considering its natural beauty, the huge number of tourist destinations and the high rate of tourist entrants.
Legal factors
The tax rate of the UK is 19% which measures the scope of achieving high profit by different businesses (Howandwhat.net, 2019). Employment Act 1996 is concerned about increasing minimum wages and employee benefits and also signifies less opportunity to make profits. Companies have to increase minimum wages and employee benefits otherwise they might face legal threats from the UK government.
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Discuss the size of the industry, linkages with tourism and its impact and contribution to the economy
The hospitality industry has achieved a high-level market size in the UK due to the presence of different attractive tourist destinations in the UK that contribute to increasing involvement and customer preferences in the UK. Increasing tourist retention and growth of the tourism industry contribute to accelerating growth of the hospitality industry effectively because growth and customer retention of the hospitality industry depends on increasing tourist entrants in the UK. According to statistical research for 2022, the hospitality and hotel industry has achieved a remarkable position in the UK through projecting £17.2 million annual growth rate of nearly 6.78%. The average return of revenue in the hospitality and hotel industry is nearly 60 thousand annually which signifies an increasing revenue return yearly of 85% (Statista.com (2022). In 2019, the economic output of the total hospitality sector was approximately £59.3 billion which was around 3% of the total economy considering the measure of economic output in the UK (Commons Library.parliament.UK, 2020). Hospitality businesses have represented 3-5% of the economic growth of the UK market annually which leads to increasing GDP growth. The hospitality industry contributes around 7.1% of total employment in the UK, which is a higher proportion. In 2020, the COVID-19 pandemic situation economic downfall and governmental restrictions are responsible for decreasing profitability and economic output of the hospitality industry which remain 42% less than in 2019 and the economic out[out of the hospitality industry in 2021 was 21% less than in 2019 (Commons Library.parliament.UK, 2020).
The four major sectors included in the "hospitality industry" are recreation and entertainment, beverages and food, lodging and tourism. Furthermore yielding jobs and earnings, another "positive impact" of hospitality is modifications in "infrastructure". It includes roadway and rail progress, foodstuffs improvement, airfield evolution and modifications in utilities, such as "water supply and telecommunications". This stands when the money expended accomplishes not staying in the nation but finishing up elsewhere; thus determining the financial advantages of clients to the host goal (Ntounis, 2022).
The whole contribution of the hospitality industries to the "gross domestic product" (GDP) in the "United Kingdom" grew by around "40% in 2021 over the previous year", behind falling smartly in "2020 due to the coronavirus pandemic". Total funds increased, whether via proper or casual standards; hold the possibility to donate to the "local economy". If sustainability is based, finances will exist required for regions that will profit from the "local community" most. Hospitality-donated jobs, thus, maintained a major influence on the economy via “wages and taxes".
Current and future trends in the Hospitality industry
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“Artificial Intelligence and Robotics Technology”:
“Artificial intelligence and robotics” are vastly incorporated into industries and businesses. Currently, the hospitality industry is also affiliating robotics and artificial intelligence in their service. “The Henn-na Hotel”, which opened in Japan in 2015, is the world's first fully robotics staff-operated hotel. “Wynn Las Vegas” of “The United States” announced a tie with “Amazon “to equip all its rooms with an “Amazon echo”, a system activated with voice.
Hotel chain: Automation of service and technology of robotics penetrate segment of lodging and affect different hotel operation areas. Due to service automation now guests can check into their rooms without any interaction with hotel staff or the front desk. Human-like robots are implemented as service staff that can communicate with guests and describe to them the services and amenities the hotel provides.
Beverage and food industry: Robotics and AI are also applied in the beverage and food service industry, generally in the preparation of food and service to restaurants. Now the robot can take orders, prepare the food and deliver the food to the customers saving time for both customers and restaurants. The technology of robotics is truly helping to save labor costs and maintain the quality of food.
Events and meetings: AI and robotics technology are being used to demonstrate the meetings and manage the events better. In this industry, “Interactive Robots” are widely used, which has voice and face recognition systems, a head, an arm and a screen that can show messages and hold brochures.
Circular Economy:
A circular economy is a step closer to a "resource-sufficient economy” (Juliao et al, 2018). It is a concept to meet goals of sustainability by practicing “no-waste-culture”. “ According to the Pacific Gas and Electric's Food Service Technology Center (FSTC), hotels use almost 5 times more energy per square foot compared to any other commercial buildings”(Juliao et al, 2018). Currently, due to the adoption of the green policy by the hospitality industry, this industry involves different initiatives related to environmental protection like energy reduction, less consumption of water, diminished waste output etc. By pursuing a Circular economy, the hospitality industry tends to harmonize the conservation of the environment as well as the growth of the economy. “This approach argues that the development of green products and services are influenced by the interrelationship between four main actors, namely, university, industry, government and consumers”.
Figure 1: Trends in hospitality industries (Sources: Blog.staah, 2022)
The hospitality industry in the UK is affected by many factors such as tourism and brings several changes in tourists for transforming their behavior. This is the main purpose of future trends based on hospitality; hotel institution or is also an element of the tourism strategy and operate in a circumstance which suffers consequences is also highly competitive. This strategy allows expecting changes or hazards, giving attention to individuals' requirements and expectations. The exact goal is to analyze the consumer's manners about hotel establishments and determine trends which are charming the sector from their demandable perspective.
Theoretical frameworks have to be understood that how their customers react to the features of their products, costs, and advertisement, have a grand benefit over their opponents. Customers' decision-making is noticed as a complex method in the tourism department given its immaterial aspects. In motivation, this strategy faces "pull and push" factors, where the pull factor encourages where the consumers to travel and how; and the push factor, is responsible for consumers waiting and staying in travel. Tourist desired to travel and search for details from different sources can be categorized into internal or inner and external or outer. The information usually starts internally and the customer's past search experiences may be the same destination or similar (Denisenko and Yernuts, 2022. Younger students are connected to various websites for searching information and the rising significance of "social media" in tourism is an appropriate part of the search for information. The tourist's understanding makes a judgment of the trip which can translate into consumer pleasure and loyalty. The hotel leaders must assume a more amazing integration of technology in their organizations to improve the rate of visitor understanding and experiences in consumer fulfilment. In expansion, it is suggested that hotel facilities and establishments not only selling rooms but also share an experience that must be more personalized and incorporated with the regional community.
Covid 19 changes the hotel industries
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After this Covid 19 UK, the "Residence Inn by Marriott London Bridge” and hospitality industries transform a few ways for customer services. For the model “changing and removing the touchpoint” are unique products kind of as coolers of touch less in halls or gyms or providing a touch-free checking and check-out system for clients and guests. Mobile tools will deliver the key to opulence and more profitable experiences for the customer without disclosing staff or guests to pathogens (Chan et al., 2021). Within resort room areas, touch-concentrated modifications will contain incorporating a motel or hotel uses application with considerable in-room operations acting as heating, ventilation or air conditioning management; driving the blinds, or utilizing mobile gadgets such as Television remotes.
Elevators and Hallways again will share advancements acting as “voice-activated elevator” management, robot hotel room management service delivery or other inventions that decrease touches through the user streamlining and their experience.
“Eating Spaces redesigning”, the Covid 19 set the beloved traditional “Residence Inn by Marriott London Bridge” buffet stake. delivered serving utensils, self-serve food and drinks stations blocked lines for meals or too multiple touch points stand for a bad mixture when persons are attempting to keep illness and social distance at bay (Jones and Comfort, 2020). Earlier in the Covid 19 situation, some videos of viral are emerged indicating how fast cruise and buffet ship hotels and restaurants' atmospheres could deliver germs. Superseding these sites for the sit-down hotels with seating spaced, menus of QR code-based, antimicrobial covers and different features planned to decrease viral requirements.
“App-Based policy”, The Covid 19 operated as an “accelerator” for occurring trends already (Filomena, 2021). The model of this example, like that, forced people outlying in the e-commerce pick up via online payments, out from money or in-store pick-up. For the hospitality industry, COVID-19 revved the bondless check-in tendency.
Hotel industry impact
In this covid-19 pandemic situation “Residence Inn by Marriott London Bridge” industries face various types of impacts, kind of operational, financial, and environmental. After analyzing the scenario the Covid-19 virus's transmitter is included, or the finances recover gradually, earnings per general “motel room fall by 53 per cent” in 2020, or produce significantly closer “pre-crisis levels in 2022” (Marriott.co.uk , 2021). Maintain a comprehensive money flow prognosis for the following 6 months. Be real and include Downside and Base plans to apprehend critical currency issues and any violations of covenants lending. Facing the issues of the hotel “Residence Inn by Marriott London Bridge” charges to suppliers and minimizing all operational discretionary and cash-on-hand prices. Postpone or Reconsider keeping other assets payment that is feasible to save cash.
Enterprise professionals have endeavored to indicate the impact on the UK hotel enterprise for 2020-2022, evaluating a yield decline of “11-29%.” Set in business a state-of-the-art revenue control strategy and pricing samples to react to market products quickly. Facing financial impact such as, operators stand to identify and affect the kind of suitable arrangements and hotel operators to examine their anticipations regarding the effect on performance. The “Residence Inn by Marriott London Bridge” industry asses the consequence of “Occupancy and RevPAR” and make a schedule to mitigate menace. The exponential upgrade in expenses impacts the UK hotel industry second-fold. Most from a customer viewpoint that the persons have less cash to finish drinking or eating out, then furthermore for company businesses hold rising expenses.
The Hotel booking.com report on sustainability located “83%” of international visitors worth sustainability as a few times vital (Karim et al., 2020). In 2020-2022 the UK hospitality industry must not merely be aware of their climate effect during the economic implication of increasing energy expenses and the climate crisis stands to be at the vanguard of the people's conversation and minds.
Conclusion
These assessments discussed the UK, “Residence Inn by Marriott London Bridge” hotel PESTEL analyzing hostel facilities and determining the industry linkage and factors that affect the development of the hospitality industries. It’s the popular UK-based hotel industries, which determine the change in the Covid-19 situation are changes in the hotel management system and customer services. Various types of factors are developing the hospitality industry's cultural and geographical setting. The political, economic and legal factors are affected negatively and the other factors are affected positively way in the hospitality industry. Discussed this pandemic situation changes the hospitality services such as the online check-in and check-out process, voice active elevator, digital food services, maintaining customer services and removing the touch point in the hotel industries. This pandemic mostly a bad impact on the hotel industry's economic situation, environmental and operational situations, the economic condition in this Covid 19 are too low and the financial condition also facing crises, its effect employment and international services.
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