In this essay I will be discussing and critically analysing each element of the PESTLE analysis within the hospitality industry, with examples to reflect each point. Also this essay will discuss how marketers should adapt to changes in the macro-environment. The PESTLE analysis is a marketing principle used to understand the relation between a company and the external environment. Murray-Webster (2010:88) states PESTLE analysis will help to capture understanding about aspects of the context by using the prompt political, economic, sociological, technological, legal and environment.
The political element in PESTLE represents how the government can influence the economy by setting rules and regulations which they have to adhere. An
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An example of this was when the Olympics were held in London 2012; this affected the economy in many ways and benefitted the hospitality industry significantly by increasing the occupancy rate according to Harmer (2012). With the economic situation changing daily, it is important to be aware of the global economy and follow the changes as it affects peoples spending power. With the cost of living increasing people are looking for good deals. The marketer can instil a value for money when promoting their services. For example UK holiday companies such as Butlins and Haven has become very popular as they caters for families in the UK, they provide a holiday from home for an affordable price.
The social factor analyses the social-cultural trends and how it affects the market. Trends such as consumer lifestyle, cultural trends, and demographic variables are all apart of the market. By understanding , utilising and manipulating the trends, you can show that you are socially aware of their culture.
By conducting a number of research methods you can analyse the data and input that into your business. For example the new trend of bubble tea has become very popular and by using this information and changing your menu to incorporate it, it will bring in a new clientele and broaden your market segment.
Technology is a fast growing trend that has been adopted by all industries. Companies need to be aware of the changes and how it will affect them and their