In this essay I will discuss and critically analyze each element of the PESTLE analysis within the hospitality industry, with examples to reflect each point. This essay will also discuss how marketers should adapt to changes in the macro environment. PESTLE analysis is a marketing principle used to understand the relationship between a company and the external environment. Murray-Webster (2010:88) states that PESTLE analysis will help to understand aspects of the context using political, economic, sociological, technological, legal and environmental suggestions. The political element in PESTLE represents how the government can influence the economy by establishing rules and regulations that they must abide by. An example of this is the increase in the national minimum wage and now, due to a new law in place, companies have to provide pensions to eligible employees and every company has to comply with this and abide by the law. Another factor is political unrest in some countries. This can impact the hospitality industry which in turn can affect the economy and business environment. The threats of terrorism are still very much alive; an example of this was the terrorist attacks in London on 7 July 2005 where suicide attacks left more than 700 injured according to The Guardian (2005), raising concerns for the people and the economy. It leaves a fear in people's minds and the way marketers can adapt to this is by promoting UK based hotels and holiday companies, with the growing threat of terrorism and political instability people will be more worried about their safety and will decide not to travel abroad. The economy affects marketers in many ways, and the performance of the economy... middle of paper... on. The chancellery office. Page 88.• Palmer, A (2000), Principles of Marketing, Oxford University Press, USA . Page 27• Perkins. C (2014) Great hospitality. [ONLINE] Available at: http://www.bighospitality.co.uk/Business/Starwood-s-keyless-mobile-check-in-not-the-end-for-human-interaction. [Accessed 25 Feb 14].• The Telegraph. (2005). 7 July Inquiry: Timeline of 7/7 terror attacks - Telegraph. [ONLINE] Available at: http://www.telegraph.co.uk/news/uknews/terrorism-in-the-uk/8055112/July-7-inquiry-timeline-of-the-77-terror- attacks. html. [Accessed March 1, 2014].• Young. F and Pagoso.C (2008) Principles of Marketing, Rex Bookstore Inc, 1st edition. Page 63• Yum (2014) Water conservation goal. Yum! Brand CSR Report. 2014. Water Conservation Goal [ONLINE] Available at: http://www.yumcsr.com/environment/water-conservation.asp. [Accessed March 9 2014].