Hilton Hotel and Resort is a hospitality service-providing American multinational company. Conrad Nicholson Hilton founded the hotel and resort company in 1919. The company has established a network of approximately 584 chain Hilton Hotels in various countries across the globe. Today, we’ll discuss the PESTLE analysis of Hilton Hotel; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Hilton Hotel
Some of the main political factors in the Hilton Hotel PESTLE analysis are as follows;
I-Political Stability
The stable political environment plays a key role in the growth and development of the hospitality and hotel business of Hilton Hotel. Political riots, processions, roadblocks, energy blackouts, and violent activities would push away many potential tourists and visitors. However, people and tourists don’t like to visit war zone countries; Hilton Hotel is operating its hospitality business in various countries worldwide.
II-Government Subsidy
Government subsidies and favorable tax policies have a great impact on the net earnings and profitability of Hilton Hotel. The hospitality brand needs to keep in mind the taxation on the hospitality industry and government subsidies before expanding its business network in a particular country.
III-International Relations
Hilton Hotel is a US multinational company and the US government’s foreign policy and international relations would impact the hotel’s business operations. If a particular country has conflicting relations with the US government, they would change their regulations and trade policies for the US companies and businesses.
Economical Factors Affecting Hilton Hotel
Some of the main economic factors in the Hilton Hotel PESTLE analysis are as follows;
I-Economic Downturn
The global economy has been going through a recession ever since the pandemic crisis. The worldwide lockdown, shutdown of business, and social distancing regulations had a severe impact on the hospitality and hotel industry. Hilton Hotel and other hospitality businesses are still recovering from the 2020 crisis.
II-Exchange Rate
The currency exchange rate of different countries is different and it keeps fluctuating throughout the year. A significant amount of revenue of Hilton Hotel comes from international and foreign countries. The small change in currency exchange rate would increase the cost and expenses; revenue and profitability of the hospitality brand.
III-Economic Policies
The government economic policies of different countries keep changing depending on the type of government that comes into power. For instance, the tourism-promoting government would relax taxation, lower interest rates, and inflation rates, and a favorable environment for foreign tourists to come and visit the country. The economic policies have a great impact on the hospitality business of Hilton Hotel.
Social Factors Impacting Hilton Hotel
Some of the main social factors in the Hilton Hotel PESTEL analysis are as follows;
I-Travelling Trends
The tourism and traveling trend has been increasing significantly for the past few years due to social media postings and vlogs. People want to travel the world to learn about new cultures, natural landscapes, new geographies, and countries across the globe. the traveling trend would increase the growth rate for the hospitality business of Hilton Hotel.
II-Sustainable Tourism
Speaking of trends, the consumer market has also become socially and environmentally sustainable. They prefer to visit the world and travel sustainably, instead of contributing waste through their leisure experience. It could be in the form of natural accommodation, lower wastage, and limited emission of carbon. Hilton Hotel should try to make its business sustainable to keep up with the growing environmental sustainability trends.
III-Remote Work
The trend of remote has also been increasing significantly for the past few years. Digital technology and high-speed internet connectivity made it possible for people to travel the world stay in different locations and keep working. Hilton Hotels should attract remote workers to its natural and scenic hotel locations in different countries.
Technological Factors Affecting Hilton Hotel
Some of the main technological factors in the Hilton Hotel PESTEL analysis are as follows;
I-Contactless Services
Hilton Hotel is investing a significant amount of capital resources in the contactless hospitality service experience for customers. It comprises hotel and room booking online, they would receive the lock and code of their room; they would directly go to their room; order food online and it would be delivered to their doorstep; they could checkout and pay online. The contactless service experience has made the hospitality experience seamless and highly comfortable.
II-Personalized Experience
Hilton Hotel is employing AI, ML, and data analytical technology to improve the user experience of tourists and visitors. The tech advanced tools and equipment help the company to learn about the needs and preferences of customers based on their previous visitors. However, it allows the hotel to offer personalized customer service based on the data key insight.
III-Online Booking Services
Hilton Hotel has developed a very user-friendly web platform and mobile application. It allows customers to book their reservation for the room, dinner, and meal online without physically contacting the hotel. The online booking service has further facilitated the hospitality industry experience.
Legal Factors Impacting Hilton Hotel
Some of the main legal factors in the Hilton Hotel PESTEL analysis are as follows;
I-Hospitality Regulations
Hilton Hotel should comply with the hospitality industry regulations and requirements of different countries. The food safety, cleanliness, food sourcing, and procurement, and testing procedures and requirements of different countries are different. The regulatory non-compliance would attract expensive lawsuits and heavy fines and penalties.
II-Data Protection and Staffing
Along with regulatory compliance, Hilton Hotels should protect the private and sensitive data of all of its visitors and tourists staying at the hotels. The hospitality brand should treat its employees fairly by offering them market-competitive salaries, benefits, and incentives.
Environmental Factors Affecting Hilton Hotel
Some of the main environmental factors in the Hilton Hotel PESTEL analysis are as follows;
I-Sustainability Initiative
Hilton Hotel has made a strong commitment to social and environmental sustainability. The hospitality brand has taken various steps like local sourcing and procurement of food, limited wastage, renewable energy, fair treatment of workers and employees, and sustainable living and lifestyle.
Conclusion: Hilton Hotel PESTLE Analysis |PESTEL Analysis of Hilton Hotel |External Environmental Analysis of Hilton Hotel | Strategic Analysis of Hilton Hotel
After an in-depth study of the pestle analysis of Hilton Hotel; we have realized that Hilton Hotel is the world’s leading retail chain hotel and resort brand. If you are learning about the Hilton Hotel PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
