Analyzing The Environment Paper

Analyzing the Environment

Introduction

In the U.S. alone, the Hotel and Resorts industry currently consists of 40,000 companies that own 53,000 properties.The combined annual revenue of those properties in the U.S. was $175 billion. The industry as a whole grew by about 2.2% internationally and in 2014 the global hotel industry generated over $500 billion in revenue (Hoover). The growth of the industry is a result of growing international economies, and the increasing need of housing for tourists. Approximately 40% of hotel customers are businessmen, and 60% are tourists or travelers. Larger corporations have the advantage of brand recognition to attract a large number of tourists and businesses. Even with the advantage, the Hotel industry

Speaking for the industry in the United States, unions being active has and will continue to be a social factor (Hoovers). The overarching force in the broad environment is the coming of age of Generation Y, also known as the Millennials. According to a story in NPR's New Boom series, data shows that today's young adults have characteristics that set them apart from previous generations. This is significant because millennials now outnumber the "baby-boomer" generation by 11 million people, thanks in part to a wave of immigration. Not only do millennials make up the largest current U.S. generation, they are the most diverse (Raphelson). These facts indicate that millennials make up a very large potential customer base for businesses. Speaking of diversity, every year Diversity Inc. publishes a list of the "Top 50 Companies for Diversity" and with their research they found that the more diverse the company, the more profitable: "Expressed as a stock market index" (Deleon). Diverse employees/customers include veterans, people with disabilities, women, Asians, Hispanics, African-Americans, and members of the LGBT community (Fairchild). With the spread of globalization and public outcry, diversity, like members of the LGBT community, is becoming more and more a business necessity. Another social phenomenon is the widespread use of mobile devices and their increasing use to make purchases. Also, business marketers are turning their attention to social media to engage with and advertise to current and potential customers. The last major social factor affecting the industry is customers' increasing concern about the environment, or "going green". To make green changes has an impact on operating expenses