Political factors are one of the most powerful drivers of income in the hotel industry. Political changes affect the tourism arrivals all over the world, and the political instability is one of the major causes of hotel bankruptcy (Mennen 2007). Due to the fact that Sheraton is a popular hotel brand worldwide, it is unlikely that the whole chain would be affected if political forces will change the situation in several countries. Even warfare would still not result in major changes in hotel demand for Sheraton properties.
However, economic factors are much stronger as they affect the purchasing power of people who are the clientele of Sheraton. The hotel brand is one of the luxury brands, therefore, people who spend money in Sheraton usually have a lot of spare savings. That is why, economic factors are so important, and Sheraton needs to take into account the changes in the economic situation in each of its locations. Globalization trends should also be considered. Moreover, the labor market which is also part of economic factor impact on Sheraton is a source of hotel employees and that is why it needs to be examined on a frequent basis.
Social factors in PESTEL analysis include lifestyle, cultural, demographic factors and marketing influence (Drummond & Ensor 2005). Sheraton marketing strategy has to address the target market in terms of luxurious lifestyle and its development. Also, it is important to consider the changing ethnicity and cultural background of many clients of Sheraton. Mass media also plays an important role in Sheraton strategy via imagery and advertisement.
Technological analysis helps explore the environment and encourage management take important decisions. Sheraton is very largely based on technology, and that is why it is important to retain the ability to stay up-to-date. Due to the fact that luxurious properties recognize the customer needs for advanced technology, technological development in many countries of the world which varies from location to location is to be taken into account.
Legal factors include the smoking allowances in various countries which either helps or distracts customers from the hotel properties worldwide. Legal factors for Sheraton also include the laws considering the right of minors and the criminal law which also governs the procedure of entering a guest room.
Finally, environmental factors are very different in various locations worldwide. But they all are directed towards less wastage and more eco-friendly maintenance technologies which have to be maintained by the well-known hotel brands such as Sheraton.
Therefore, the critical success factors for Sheraton are the following: the ability to control the luxurious market through powerful images and lifestyle preferences, the advanced technology applied in hotels, the culturally diverse teams from various locations bringing the spirit of globalized world into global brand values of Sheraton, and finally the eco-friendly cleaning and maintenance procedures supporting the world trends in hospitality industry.
