Pestle analysis for Crowne Plaza Hotels in UK Essay

Pestle analysis for Crowne Plaza Hotels in UK - Essay Example Currency fluctuations are common but with the Euro being the common currency all over Europe, it provides some stability. The economic condition is stable. The hospitality sector can create 236,000 jobs in the next five years (Nand, 2011). The sector is a major contributor to the UK economy as it generates 8 percent of the total employment (BHA, 2010). The nation has the highest GDP growth rates in Europe (Crown, 2011). The UK economy shows a turn for the better after the recession but there is still short to medium term risks of a robust economy (PWC, 2010). UK is the gateway to Europe and has the world’s single largest market – the European Union – at its doorstep (Crown, 2011). The average weekly household expenditure on restaurant and hotels was approximately  £40 in 2007 (Dugmore, 2010). However, consumers are price conscious and it would be difficult to increase average achieved room rate (eHotelier, 2008). Moreover, the domestic business market has shrunk both in terms of leisure holidays and corporate travel. Not much of occupancy growth expected in 2011 (PWC, 2010). Consumer spending is expected to grow but could be impacted by higher taxes. The sector uses multimedia technologies to enhance productivity and improve business opportunities. It is now an indispensable tool for all business functions from production to marketing (Sigala, Airey, Jones & Lockwood, 2001). As competition intensifies employees are required to demonstrate their ability to use and create knowledge from the information gathered. Thus, hotels have to be equipped with the latest information system and must have a strategy and process in place to use the information gathered. Online reservation system enhances advance bookings from across the globe. The government has raised the Value Added Tax (VAT) rate in the United Kingdom to 20% which is the highest in the hotels in the European Union (Nand, 2011). This could