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Unit 20 Hospitality operations in travel and tourism P3 M3 External and internal factors
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- PEARSON (PEARSON)
Location, pricing strategies, legislation and current trends
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do's not have m3, kind of disappointed!
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Hospitality factorsInternal Factor
An internal factor is something that is controllable by a business and these can
be either strengths or weaknesses for the businesses depending if the factor is
favourable or not. Examples of internal factors are location, pricing strategies,
promotional strategies, products offered, brands, image and appealing to their
target market.
External factor
An external factor is something that is uncontrollable by a business and they are
an outside influence that has either positive or negative impacts on the business.
Examples of external factors are laws and legislations, competition, economy,
availability of skilled workforce, competition, accessibility, current trends and
proximity to markets
Explaining 2 internal factors and their impacts
Location
The location, an internal factor, is where a company is located. Some companies
choose to locate themselves in town centres as these are busy and easily
accessible meaning they will receive more customers and more profit however if
a restaurant has a bad location such as a countryside this can mean they will get
less customers and therefore less profit. The location a company
chooses depends on their goals and will then have the negative or
positive impact. For example, a resort may be located on the
outskirts of a country however their goal may be to make
customers feel relaxed and give them a break from city life and
therefore this location would be a good choice. Furthermore,
having similar hospitality operators in the same area will
increase competition between the businesses. Prezzo is a
restaurant located mainly in town centres for example Corby
and Kettering town centre both have a Prezzo, the restaurant
is in an area alongside other restaurants and they are easily accessible.
Furthermore, many hotels are located nearby airports for example there is a
Hilton hotel connected to Gatwick airport, and opposite Stansted airport there is
a holiday inn. The hotels did this as airports are busy and passengers who have
majorly delayed flights or stopping over will need a place to stay and by having
these hotels nearby the airports it makes them easily accessible. In my opinion
these companies manage location very well due to Prezzo being located in town
centres they get a lot more customers which means more profit and Hilton which
is a hotel located in several countries and in several locations means they cater
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