SWOT analysis of hospitality industry. The word hospitality outlines the relationship and link between hosts and guests. How the host receives and treats the guests, visitors, and strangers with open arms, warm hearts, and goodwill gestures. However, the hospitality industry plays a key role in the growth of a country’s economy.
Some of the key businesses that falls under the category of hospitality industry are as follows;
- Bars and clubs
- Hotels and restaurants
- Travel agency
- Theme parks
- Event planning and event management
- Food, drink, and lodging services
According to an estimate, the market worth and revenue of the hotel and motel hospitality industry in the US reached approximately 177.6 billion dollars by the end of 2022. The UK has got roundabout 207,000 hospitality venues, out of which 25% of them belong to fast-food outlets.
Some of the world’s leading brands in the hospitality industry are as follows;
- Holidays Inn
- Hilton Hotels and Resorts
Today, we’ll discuss the swot analysis of hospitality industry. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the hospitality Industry. Here’s the swot analysis of hospitality industry as follows;
Strengths of Hospitality Industry
Some of the main strengths in the swot analysis of hospitality industry are as follows;
The focus of the hospitality and tourism industry is to promote socio-cultural diversity. It invites people from across the world to visit your country and provides them with a comfortable environment to live and stay there. However, it creates an environment of harmony and brings people together to learn things from each other regardless of their cultural differences.
Bridges Supply-Demand Gap
A country has got a supply of travel and transport, hotel and restaurant, and entertainment. Now, it needs a demand of tourists and visitors to bridge the gap between supply and demand. However, the hospitality culture and industry create a favorable environment for supply and demand.
The good thing about the hospitality industry is that it has got support from the government. The government and political institutions facilitate the tourism and hospitality sector because they create job opportunities, and attract revenue into the country.
The tourism and hospitality market has got a strong potential for growth and profitability. Various businesses and companies like hotels, restaurants, entertainment, clubs, travel and transport, and other industries are collaborating collectively towards its growth and progress.
Weaknesses of Hospitality Industry
Some of the main weaknesses in the swot analysis of hospitality industry are as follows;
The main impediments to the growth and progress of the hospitality sector are poor and lack of infrastructure. Tourists won’t visit beautiful places if a country doesn’t have proper roads, hotels, restaurants, shops, and markets. All of these separate fields and sector build up the country’s infrastructure and attracts tourists and visitors.
When it comes to rightly implementing the infrastructure and various other factors in the hospitality sector; then it is very difficult to get everything right at one time. It is because it depends on a lot of independent variables, and streamlining all of them is highly difficult.
Influenced by Political Environment
An unstable political environment, riots, roadblocks, protests, and strikes may jeopardize the growth and progress of the hospitality sector. People don’t like to visit a country that has got unstable and violent environment, because it raises a question about their safety and security.
Opportunities Available to Hospitality Industry
Some of the main available opportunities in the swot analysis of hospitality industry are as follows;
Various industries in the hospitality sector have got great growth potential with high revenue and profitability. Most importantly, it creates various job opportunities and brings everyone on board; various people and parties would benefit from it. That’s why it is significant for businesses and organizations to participate in it and exploit the potential opportunities.
The hospitality sector has got great room for innovation and creativity in terms of providing unique experiences to customers, visitors, and tourists. Different indigenous businesses and craftsmen have got expertise in their own experience relevant to the environment, and they have got the capability to provide unique customer experiences.
Threats to Hospitality Industry
Some of the main potential threats in the swot analysis of hospitality industry are as follows;
Fluctuating Market Conditions
The hospitality sector has got fluctuating demands; it would go up in the summer and holidays season and down in the off-season. It is not a type of business that would run smoothly throughout the year. It has got a lot of ups and downs; various environmental factors impact them.
The hospitality sector has become highly competitive recently because everyone wants to take advantage of the growing opportunities. It is good for tourists and visitors because they receive a lot of variety, but it is not good for businesses.
The high unemployment rate, inflation, high-interest rate and savings, and low purchasing power of people would limit the outdoor activities of people. In such cases, they would spend time in their hometowns, rather than going abroad and visiting the world.
Nothing is more important and significant than the security and safety of people. If a country has a bad reputation in terms of safety and security, then people and tourists won’t visit the country or its places due to security threats.
Conclusion: SWOT Analysis of Hospitality Industry
After an in-depth study of the swot analysis of hospitality industry; we have realized that the hospitality industry has got a lot of growth potential. If you are learning about the hospitality sector, then you should keep in mind the abovementioned internal and external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.