Topics: SWOT analysis, PEST analysis, Strategic management Pages: 5 (1043 words) Published: December 6, 2014
SWOT analysis of hotel industry in this regard can provide a thorough insight to whether or not the industry is contributing towards the achievement of its goals. For now, let’s consider the hotel industry in India, which is one of the fastest growing in the world. Strengths

The first step to a SWOT analysis of hotel industry in India will be identifying its strengths. There are more than 1000 classified hotels with a room availability of around 97,000 rooms which can easily cope with the demand of tourists. Furthermore, there are also a number of international names in the market which meet the needs of international tourists on their visit to India. In addition, there are many tourist attractions and the cost of labor is low in comparison with the rest of the world, thus, providing better margins for hotel owners and higher growth potential in the industry. Weaknesses

Next in line is assessing the weaknesses. One major restraint to the hotel industry of India is the cost of land, which is as high as 50% of the total project cost, against a low 15% abroad. The country also has a higher tax structure as compared to other countries which inflates the hotel expense a great deal. Furthermore, the services offered by some hotels are limited and not comparable to world standards. Opportunities

The third strategic element to a SWOT analysis of hotel industry in India is the opportunities. The country boasts a number of attractions and has unmatchable diverse topography making it an ideal destination for tourists. As a result, the number of inbound tourists is expected to increase at a quick rate, further pushing the demand for hotels. Additionally, the demand for both national and inbound tourists can easily be managed as the peak season. For international tourists, arrival is between September and March, while most national tourists prefer to wait until school holidays, which are during the summer months. Threats

Where there are opportunities, you will also find threats. Several hotels in India are being replaced by guesthouses, thus, adversely affecting the hotel industry. Political unrest in the country also plays its part in reducing tourist traffic and consequently affects business of the hospitality industry. The country’s economic condition has a direct impact on the earnings of hotels. As a result, the staff might not be trained well enough to meet international standards. So, using this SWOT example for a hotel industry, you can conduct your own if you are planning to enter the hospitality industry or looking to further expand your hotel business.

What is PEST Analysis?
PEST is an acronym for Political, Economic, Social and Technological. This analysis is used to assess these four external factors in relation to your business situation. Basically, a PEST analysis helps you determine how these factors will affect the performance and activities of your business in the long-term. It is often used in collaboration with other analytical business tools like the SWOT analysis and Porter’s Five Forces to give a clear understanding of a situation and related internal and external factors. Understanding the PEST Factors

Before you jump ahead and start using this analysis, you should understand what each of these factors in this analysis signifies. Political – Here government regulations and legal factors are assessed in terms of their ability to affect the business environment and trade markets. The main issues addressed in this section include political stability, tax guidelines, trade regulations, safety regulations, and employment laws. Political What are the key political drivers of relevance?

Worldwide, European and Government directives, funding council policies, national and local organisations’ requirements, institutional policy Economic – Through this factor, businesses examine the economic issues that are bound to have an impact on the company. This would include factors like inflation,...
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