Contemporary Hospitality Industry: PESTLE and SWOT Analysis, Current and Potential Trends

This presentation discusses the impact of external factors on the development of Premier Inn hotel in the Contemporary Hospitality Industry. It analyzes the strengths, weaknesses, opportunities, and threats of the hotel. It also explores the current and potential trends of the hospitality industry, such as growing demand for gyms and fitness centers and contactless payments.

Contemporary Hospitality
Industry

Table of Content
• Introduction
• PESTLE Analysis
• SWOT Analysis
• Current and potential trends
• Conclusion
• References

Introduction
The modern hospitality industry is growing rapidly and
consecutively adapting the changes caused to the driving
forces of the external environment. The Premier Inn is
the huge hotel chain of the hospitality industry of UK and
the parent company of the Premier Inn is Whitbread plc.

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The presentation aims to discuss the external
environment factors that impact development of the
company. Further internal analysis is done to review its
contribution in decision making process. at the end the
current and potential trends of the hospitality industry are
discussed.

PESTLE Analysis
The factors associated with the macro environment of the
hospitality industry have major contribution in affecting the
development of the Premier Inn hotel. The sic factors of
Pestle framework are discussed below in context of Premier
Inn:

PESTLE Analysis

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Political factors: the restriction over the
travel and labour as the implication of
political instability between EU and UK
(Brexit) has badly affected the
development and growth of Premier Inn.
This has also affected the services and
profitability of the Hotel in UK.

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Economic factors: there is high amount of
drop down in the economy of UK during the
Covid-19. The Premier has not sales and profit
at that period rather the company faced
financial issue due which labour were cut. This
caused low investment of investors into the
Premier Inn thereby stopping the development
of hotel.
.

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Social factors: the eating habits and lifestyle of
people has been changing imperatively. due to
this the company has to invest more into its menu
and infrastructure to provide the customers with
what they need. This has increased company cost
of operating and also the expenses.

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Technological factors: the technology is impacting
the Hospitality industry to another level. As the with
the growing technology and IT services the Premier
Inn has transformed it information storing system
and reservation system completely digital.

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Legal factors: In UK for hospitality industry
and its organisation to develop the legal
compliance is essential. Therefore, Premier Inn
complies with all food safety acts, 14 allergens,
consumer rights, employability law and many
m more in order to operate ethical and legally
correct.

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Environmental factors: the environmental safety
is the priority for the Premier Inn. For which the
Hotel has been managing its operations to reduce
their impact on environment. The Premier Inn is
also taken initiative to reduce plastic usage in hotel
and also the company has taken agenda of reducing
food wastage.

SWOT Analysis
The Swot analysis will facilitate the
Premier Inn to expand the knowledge of
its internal strengths and weaknesses and
the external opportunities and threats of
the hospitality industry. The Swot analysis
of Premier Inn hotel to analyse the micro
environment factors is discussed ahead:

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Strengths
The hotel is the largest brand of UK with most unique
infrastructure and approximately 43000 rooms and 600
hotels in UK and other countries representing the strong
global presence.

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Weaknesses
The company low price strategy leads the company to inappropriate
services such as low quality products, lack of sanity and hygiene
and quality guest.

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Opportunities
The hotel has huge brand name which gives opportunity of making
mergers and acquisitions with the airline firms and other
industry in order to gain more profit and to have diversification.

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Threats
the economic recession due to the Covid-19 has caused the major
downfall in sales of the hospitality industry and its organisation.
The lower disposable income of people has caused the threat to
Premier Inn to reduce more prices in order to garb sales.

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It is analysed that by analysing the company’s strengths that
company uses this strength in various marketing strategic decision
making by promoting the company’s brand. Also to mitigate the
threat the Premier Inn has decided to offer the customers discounts
and combo offers n service as their sales strategy.

Current and potential trends of hospitality
industry
The hospitality industry it is determined that there are
several current and potential trends that can impact the
hospitality industry are:

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Growing craze and demand of gyms, yoga and fitness centre: in
modern days when customers or tourist travel or visit the place away
from home they still want to exercise in order to relax and stay fit.
This has increased the trend of establishment of gyms and fitness
centre in hotels like Premier Inn. This has lead to the higher
investment on infrastructure of the hotel.

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Contactless payments: with the Covid-19 in the hospitality industry
there is potential trend of contactless reservation and payment in order
to avoid travelling and physical interaction. This also saves the time of
people as this is contactless payment through mobiles and cards are fast.
This helps the Premier Inn in increasing the efficiency of their customer
service.

Conclusion
It is understood from the above information that the hospitality industry is highly
impacted from the external environment factors. The technology has brought the
major changes in the hospitality industry as this has made the industry more fast
and flexible. Thus, company must analyse their internal capabilities while
making decisions on order to have right decision making process. Gyms and
fitness centre is the most common and essential trend of the hospitality industry.

References
• Frederick, D.P. and Parappagoudar, S.K., 2021. A Descriptive Analysis on Sustainable Business Strategy
of Online Food Service Industry.
• Li, Y., 2020. A Study of the Management Innovation Mode of Coastal Resort Hotels. Journal of Coastal
Research. 107(SI). pp.206-209.
• Susilo, D., 2020. Macro-Regional Analysis of Tourism Entrepreneurship Environment in Bali: A
Descriptive Study. International Journal of Economics, Business, and Entrepreneurship (IJEBE). 3(1).
pp.1-13.
• Warmerdam, M.M.A., 2020. Digital transformation in the hotel industry: maximizing value creation by
leveraging new digital technologies (Doctoral dissertation).
• Yang, L., Henthorne, T.L. and George, B., 2020. Artificial intelligence and robotics technology in the
hospitality industry: Current applications and future trends. Digital transformation in business and
society, pp.211-228.

Thank You