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What are external factors in travel and tourism?

These are the political, economic, socio-cultural and technological environments. Political analysis identifies the effects of government policy and laws. Economic analysis seeks to understand what economic factors will affect tourism entities and how these economic factors are changing.



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Natural disasters and weather changes, as well as transportation services and consumer protection laws, all have an impact on how hotels, motels and resorts do business. These variables can also affect the financial success of hospitality brands.

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To get a better idea of how they affect a firm's marketing activities, let's look at each of the five areas of the external environment.
  • The Political and Regulatory Environment. ...
  • The Economic Environment. ...
  • The Competitive Environment. ...
  • The Technological Environment. ...
  • The Social and Cultural Environment. ...
  • Consumer Behavior.


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14 important environmental impacts of tourism + explanations + examples
  • Depletion of natural resources. Water resources. Land degradation. ...
  • Pollution. Air pollution and noise. ...
  • Physical impacts of tourism development. Construction activities and infrastructure development. ...
  • Physical impacts from tourist activities. Trampling.


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External factors can refer to the productivity level of hotel and restaurant branches in the region, location of businesses, competitors' price, tourist demand, etc.

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