Critically analyse and evaluate the global macro environmental variables that are likely to have the most significant impact on your company.
Fairmont Hotels and Resorts (Fairmont) is operating and competing in the hospitality industry, which has been affected vastly by the impact of global financial crisis, terrorist attacks, globalisation of the hospitality and tourism industry, the uncertainty surrounding the sovereign dept of some countries in EU, development of emerging markets, the rapid dissemination of global lifestyles and other economic and political uncertainties in the past few years. Fairmont is also affected by technological innovation as well as other broad macro environmental trends.
This essay will examine the most recent trends of global macro environmental factors that are likely to have the most significant impact on the hospitality industry and more precisely on Fairmont Hotels and Resorts. First a brief overview of the Fairmont and its position in a current international hospitality market will be given. After this the nature and impact of global macro environmental variables will be explored. Company history
Fairmont Hotels and Resorts (Fairmont) is the largest of the brands in the Fairmont Raffles Hotels International group and by combing three distinct brands: the Raffles, Swissôtel and Fairmont portfolios and has become a truly global hotel company with 91 hotels worldwide. More than 65 hotels of Fairmont in Canada, United States, Europe, Asia, Middle East and Africa, and Mexio, Carribean and Bermuda, sit between the upper scale and luxury travel market. They also have one of the largest collections of storied properties in the world with well known addresses in the portfolio including The Savoy in London, the Fairmont Banff Springs, and New York’s The Plaza.
The average age of the guest is 47, down about 8 years in the last decade. Fairmont hotels target diverse market segments, for example Fairmont’s clientele has been split almost evenly between group (above 45%) and transient business (around 55%), and almost evenly between leisure and business travellers. However, their core customer is the luxury mid-aged traveller.
Fairmont hotels are one-of-a-kind properties where sophisticated travellers can discover culturally rich experiences that are authentic to the destination. Situated in some of the most exclusive and pristine areas in the world, Fairmont is committed to responsible tourism and is an industry leader in sustainable hotel management with its award-winning Green Partnership program. What are global macro environmental variables?
As Doole and Lowe (2008) state: “The environments in which international companies must operate is typically characterised by uncertainty and change – factors which, taken together, increase the element of risk for international marketing managers”.
As many authors argue the global macro environmental factors are something beyond the companies influence, and must be treated as non-controllable variables. The five major global macro environmental factors, as denoted by Lancaster et al. (2002), Kotler et al. (2005) and Reid and Bojanic (2010) among the other authors, marketing managers often examine and which affect all organisation are: demographic, economic, political/legal, socio-cultural and technological factors. However, Lancaster et al. (2002) suggest if businesses are able to identify and react to these factors quickly enough they would be able to be part of changes occurring and take market leading position instead of being forced into market followers position or worst case being unable to prosper and survive as an international business in the global competition. Yet the macro environmental variables as suggested by mainstream theorists (Lancaster et al. 2002, Kotler et al. 2005, Doole and Lowe 2008, Kotabe and Helsen 2008, Palmer 2008, Reid and Bojanic 2010) needs to be managed through marketing planning process;...
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