Hilton, owned by the Blackstone Group, is known for its hotels and resorts. It also specializes in vacations, business, and leisure travel. It gets headquartered in Virginia, the United States, and spread across 118 countries. Here we will see about Hilton Pestel analysis. HILTON believes in the six values as follows:
- Hospitality
- Integrity
- Leadership
- Teamwork
- Ownership
- Now
HILTON PESTEL analysis helps the company and the customers understand various external factors such as political, economic, social, technological, environmental, and legal. This article elaborates on how they affect the HILTON brand. Thus, the company can plan further accordingly.
HILTON PESTEL Analysis
HILTON PESTEL analysis consists of the external factors that might affect the business negatively if not handled effectively.
Let us understand them in detail.
Political Factors
Political factors indirectly play a vital role in the hotel industry. The management can face the changing political factors if they analyze them.
The following are the political factors affecting HILTON:
Political Instability
New political leaders and groups come up with different rules and tax rates. So, HILTON must get ready to invest in the changes to withstand the changing laws and tax rates. Since the business gets distributed across different countries, it must consider different political situations according to the location.
Terrorism
Terrorism can hit HILTON if its branches get located in terrorism-prone areas. Staff members and visitors can get attacked by the terrorists and their activities. Thus, new candidates might not wish to join the workplace, and visitors might stop visiting the place. Similarly, investors might like to stay away from the business that had come in contact with the terrorist activities.
Pandemic
A pandemic causes a tourism ban and might also shut the hotels and resorts for an unpredictable period. Even if the ban gets removed, the management team must invest in implementing more health and safety measures. Visitor count might get reduced, and the worker count might get reduced. It directly affects the revenues of a hotel management system.
Economic Factors
Some part of the economic condition of HILTON gets affected by the economic conditions of the country. Since its branches get spread across multiple nations, its revenue depends on the economic conditions of the nations.
The following are the economic factors affecting HILTON:
Inflation
Inflation occurs when a fake scarcity of resources occurs, and the sellers increase the selling price of existing resources. A hotel management system requires various resources and comes across different vendors. So, HILTON might increase the costs of the services, while the customers might not like that.
Foreign Exchange Rate
Nations having lower currency value face inflation. They must pay more for the imported products and earn less through the exported items. So, what is cheaper in one country might get costlier in another. Opening branches in specific countries might not be a favorable decision for the industry.
Taxes
Different countries might introduce various taxes and increase or decrease them. The hotel industry must pay more for raw materials and increase the selling prices for its products and services. So, not every consumer can afford that.
Competition
On the one hand, the competition encourages businesses to improve the quality of products and services. On the other hand, it makes them implement costly methods for sales and marketing. Similarly, HILTON has many competitors. So, a business must know that it cannot invest much in competing with the competitors without estimating the business requirements.
Social Factors
Social factors affecting HILTON get related to the social beliefs and lifestyle of the consumers. The way people live affects business strategies and income.
The following are the social factors affecting HILTON:
Customer age
The customer age group matters the most for the hotel industry. It helps the company understand its requirements. The company must solve customer problems and claim the same to attract customers. It also helps it in creating a loyal customer base. The cuisine, locations, transport system, and payment methods must make the customers of different age groups feel comfortable.
Creating An Impact
The hotel industry must follow social and cultural norms to impact the world. Many hotels try to hide their imperfection. But, an ideal hotel must solve the issues to eliminate them. Any negative impact created by the hotel will repel the customers.
Social Media
Social media is one of the best ways to communicate with customers personally. The comments left by the customers help the company understand their requirements, appreciation, and complaints. Similarly, the company must take the required steps and politely inform the customers about it. Social media can make or break the reputation of a company. Thus, the companies must regularly update the viewers and answer their questions.
Technological Factors
Technological factors affect HILTON regularly due to the fast advancements related to technology. The company must go hand in hand with technology because it has to deal with the millennials and the new generation.
The following are the technological factors affecting HILTON:
Employee Replacement
Artificial Intelligence has led to the unemployment of many non-technical staff members and the employment of a few technically skilled workers. The purchase and maintenance cost required for the technical equipment is more. Similarly, the company must deal with the issues in the network, servers, bugs, updates, and malware.
Payment Methods
Electronic transaction of money has been on the rise since the Covid-19 pandemic. Also, different customers prefer different payment methods. Some customers might ask for the latest payment methods, while others might get comfortable with the older ones.
Ecommerce
HILTON has been improving its website, and it must continue to do so. An attractive and interactive User Interface keeps the users engaged. Similarly, it must provide enough information regarding the services, discounts, locations, and contact numbers through its website. Images, audio, video, statistics, and podcasts play a vital role here.
Environmental Factors
HILTON must not ignore the environmental factors according to the location because people are getting more responsible towards the environment. To survive in the market, it must respect and fulfill all the duties towards the environment. The environmental responsibilities differ according to the industry.
The following are the environmental factors that affect HILTON:
War
The environmental effects caused by war often get overlooked before its occurrence. A war might get associated with nuclear and atomic weapons and missiles that will hit the world hard. So, the HILTON hotels in war-prone countries must consider this challenge.
Pollution
Air, water, soil, and sound pollution occurs almost everywhere. So, HILTON must try to create either minimal or no pollution according to the laws regarding the location. The company must invest more in long-lasting pollution prevention methods.
Climate Change
HILTON hotels must offer enough ventilation, adequate water sources, and coolness in hot areas. A solid infrastructure gets required in rainy or flood-prone areas. Similarly, it must stay away from volcanoes, landslides, avalanches, tornadoes, and more. It must also offer the customers adequate resources to deal with sudden climatic changes.
Legal Factors
HILTON is a publicly held multinational company, and it must follow all the regulations set by the government to survive in the local market. However, it cannot get termed as governmental intervention. It is only a set of rules imposed by the government for balanced competition. It must also stay away from crime-prone areas.
The following are the legal factors affecting HILTON:
Military Invasion
Military invasion differs from war. Unwanted outside militants might attack a location and start ruling it. This military invasion might cause changes in the value of a currency, law, imports and exports, employment, fundamental rights, and more.
Rules And Regulations
HILTON must consider different rules and regulations related to health, safety, business, food, vendor relations, trade practices, judiciary system, consumer protection, equality, data security, ownership, land, and more according to the country.
Property Related Laws
HILTON must ensure that its buildings and other lands contain all the required documentation. The buildings might get demolished, and the brand name might get spoiled if it does not fit into the rules. The company must get answerable for all the legal questions.
Conclusion
HILTON must improve its business performance through the PESTEL analysis. It faces a lot of competition from other companies in the same industry. This competition makes the company decrease the prices on services, offer discounts, and improve the service quality. It consists of enough intervention by the government. Thus, it must know that government and customers play a vital role in survival.
Frequently Asked Questions
- What Are The Competitors Of HILTON?
Answer:
Some competitors of HILTON are Hyatt, Marriott, Whitbread, IHG, Holiday Inn, and more.
- What Are The Worldwide Subsidiaries Of HILTON?
Answer:
Morning Light, DoubleTree, Home2 Suites, Denizen Hotels, Embassy Suites are some of the worldwide suites of HILTON.
- What Is The Competitive Advantage For HILTON?
Answer:
HILTON offers uncompromised quality, lower costs, advanced technology and strategies, and impact. HILTON offers a Frequent Guest Program that allows the customers access any hotel associated with HILTON. It believes in providing a better guest experience, reservations, and customer care.
- What Are Some HILTON Customer Reviews?
Answer:
Some customers find the HILTON hotels comfortable and clean, while some might have a worse experience in communicating with the call center employees. However, most customers find the staff members friendly.
