Impact of Covid-19 on UK Hospitality Industry: A Study on Premier Inn

This study aims to identify the issues faced by UK hospitality industry during the period of Covid 19 and its impact on their business performance. The report covers aims and objectives, research methodology, and literature review.

Research Methodology

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
RESEARCH METHODOLOGY....................................................................................................6
QUESTIONNAIRE.........................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCE................................................................................................................................12

Research topic: “To identify the issues faced by UK hospitality industry during the period of
Covid 19 and its impact on their business performance”.
INTRODUCTION
The environment is changing day by day where it became important for organization to
make the use of new technology and innovation as it supports to manage all functions and
activities. It has been seen that Covid-19 has occurred in whole world where it became difficult
to organizations to operate their business and affected the profitability. The management of each
organization should be followed right regulations and functions which can help to run the
business effectively (Tu, Li, and Wang, 2021). Due to Covid-19 all business all activities has
been affected negatively. To understand about impact of Covid-19, Premier Inn Hotel has been
selected that is British limited service hotel chain and UK’s largest hotel brand, with more than
72000 rooms, and 800 hotels. Due to covid-19 all business activities and functions has been
affected negatively as sales has been reduced negatively. The report covers aims and objectives,
research methodology, and literature review.
MAIN BODY
Research Aims and Objectives
Research aim: To identify the issues faced by UK hospitality industry during the period of
Covid 19 and its impact on their business performance: A study on Premier Inn
Research objectives:
 To identify the challenges faced by UK hospitality industry during the period of Covid 19
 To determine the impact of Covid 19 on business performance of Premier Inn.
 To examine the ways used by Premier Inn for overcoming the impact of Covid 19 on
their business performance.
 To evaluate the benefits that gained by Premier Inn by overcoming the impact of Covid
19 over their business performance.
Research Questions:
 What are the major challenges that UK hospitality industry has faced during the period of
Covid 19?
 How Covid 19 has impacted on business performance of Premier Inn?
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 What are the effective ways used by Premier Inn for reducing the impact of Covid 19 on
their business performance?
 What are the advantages that gained by Premier Inn by reducing the impact of Covid 19
over their business performance?
Research Rationale
The main reason of conducting research is to develop their understanding and knowledge
about impact of Covid-19 on organizational performance that affected business productivity and
profitability. This will help researcher to improve their personal and professional knowledge. In
context to chosen research, researcher will improve its marketing, communication, and
interpersonal skills that will help to develop understanding and activities effectively. The
researcher would improve their insights and maintain higher performance (Davahli, Karwowski,
Sonmez, and Apostolopoulos, 2020).
Research scope
The scope of current research is wider as it used to develop their understanding about
particular topic. This is important for researcher to analysis the functions and activities which are
running in business environment and supports to develop organizational performance. This
research will help researcher to develop their understanding about what challenges faced by
hospitality industry during pandemic period and how it could be overcome. For researcher
needed thing is to receive relevant topic and conduct the research properly as it supports to
accomplish positive outcomes.
Literature Review
To identify the challenges faced by UK hospitality industry during the period of Covid 19.
According to Kim, Kim, and Lee, (2021), The hospitality industry is a services industry
which is operating their business by providing different types of accommodation services that
supports to develop organizational productivity and profitability. This is important for each
organization to identify what is happening around and what kind of products & services
customer wants so that products should be provided accordingly. It has been seen that many
challenges faced by Premier Inn London while providing services such as:
Hospitality has been hit hard – Due to Covid-19 hospitality sector has been hit hard and
impact is uneven where bars and clubs have fared worst. The Premier Inn Hotel also hit hard
where people are not receiving any kind of food and drinking service due to Corona virus.
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Increased Spending due to Covid-19 - Spending by businesses in the hospitality sector
has seen smaller increases compared with consumer spending in May 2021; payments to
suppliers from food and drink businesses have remained around half of pre-pandemic levels. In
relation to Premier Inn London, Spending has been increased as compared to consumer that
created challenged to operate their business (Aguiar-Quintana, Nguyen, Araujo-Cabrera, and
Sanabria-Díaz, 2021).
Increases Job vacancies – Due to Covid-19 employee turnover in hospitality sector has
been increased that created the job vacancies. In relation to Premier inn London, to fill vacant job
vacancies became a challenge for management as there is need to have talented and experienced
staff which could be affect organizational productivity.
To determine the impact of Covid 19 on business performance of Premier Inn.
As per view point of Biwota (2020), Covid-19 is the serious diseases that has been
impacted negatively as selling activities of organization reduced in changing environment. This
is important for each organization to analysis the environment and come to know what kind of
changes should be introduced for managing changes and operating business. The environment is
changing day by day which impacted business performance of Premier Inn such as:
Disrupted the world economy – It is obvious that corona virus pandemic has serious
disrupted he world economy that continuously to ravage the existence of business. The small and
medium businesses are worst hit. In research it has been described that covid-19 has effected on
the performance of SMEs as their all activities has been reduced that affected the economy also.
Loss of competent staff – Due to Covid-19 productivity and profitability of companies
has been reduced that impacted negatively on business productivity. The hospitality industry
affected negatively due to corona virus. In context to Premier Inn, management has reduced the
salary of working staff where it faces the challenge of lack of competent staff in pandemic period
(Anguera-Torrell, Aznar-Alarcón, and Vives-Perez, 2021).
Low revenue – The aim of each business organization is to improve their revenues by
managing all functions and activities effectively. This is important for business industry to offer
the kind of products and services that can help to regulate their activities effectively. In relation
to Premier Inn, revenues of business has been decreased that created the challenges for
organization to regulated their business.
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Lack of patronage – It has been seen that covid-19 is a serious diseases that has created
challenges for hospitality industry and other businesses to operate their business as number of
guests has been reduced that also decreased the profitability. In relation to Premier Inn Hotel,
lack of patronage is the main issues faced the by organization while operation that affected the
productivity and profitability negatively.
Repayment of loans and rent – After analysing the environment and study it has been
explained that companies operates their business at rented place where it need to pay loans. In
relation to Premier Inn Hotel, challenges of repayment of loans and rent faced by management
that affected the productivity and profitability negatively.
From the above it has been analysed that environment is changing day by day where
Covid-19 has occurred in whole world that has impacted on business performance of Premier Inn
London that created the challenges to regulate and operate their business. In relation to chosen
hotel, management faced the issue of lack of skilled and talented staff due to covid-19 that
affected the business profitability negatively.
To examine the ways used by Premier Inn for overcoming the impact of Covid 19 on their
business performance.
As per view pint of Jones, and Comfort (2020), With the changed government regulations
and restrictions in different part of UK, constantly reviewing hotel and restaurant policies that
make sure all functions and activities are operating effectively. This is important for each
organization to analysis the environment and comes to know what is happening around then
formulate the planning accordingly. As Covid- 19 occurred in whole world where different ways
can be used to overcome the impact that are as explained below:
Warm welcome of guests – The customers or guests who looks good hotel wants that
they welcomed by the organization which can help to make feel them so special. This can be
explained as effective way which can be used by Premier Inn in order to overcome the impact of
Covid-19 on their business performance. The management of chosen organization need to follow
such policies of warm welcoming that would help to make feel special and develop the
organizational performance.
Clean the hotel rooms from top to bottom – When someone is getting hotel and
accommodation services then it checks the availability as well as cleaning that can help to select
best option. In relation to Premier Inn Hotel, management used this way to improve the
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organizational performance in Covid period by offering proper cleaned and safe rooms that will
help to develop the organizational performance.
Building and maintaining relationship with teams - In UK, there are many teams and
suppliers who work collectively and provide better quality of food products and services
effectively. This is important for each organization to analysis the environment and creates good
relationship with their suppliers and as well as customers that supports to run a business. In
relation to Premier Inn, management plays important role as it build good relationship with their
suppliers and customers that can help to run a business effectively and increase the productivity.
Fixing the public sanitization station – While offering hospitality services it need to
consider by hotel management that there is need to have public sanitization that used by guests
and employees to make feel good to their guests. This can help to manage all functions and
activities effectively. In relation to Premier Inn, hand sanitization station has been fixed by
employer that can help to provide good health and safety to their guests.
Caring and priority to their guests – This ways is used by hospitality industry for the
purpose of influencing number of gusts by caring them and managing the all activities
effectively. In relation to Premier Inn, Management can develop organizational performance by
caring their guests and team members that can help to make feel them good and increase the
profitability.
Providing digital services – Due to Covid-19 many businesses has adopted the cashless
transaction and services that could help to regulate their business and increase the productivity.
In relation to, Premier Inn Hotel, management should be provide digital services which can help
to influence the number of guests by making online payment and online order place increases the
organizational activities and productivity.
24/7 hours services – The companies are getting high ranking if it is able to make happy
them. In relation to Premier Inn, management could improve organizational performance by
providing 24/7 hours customer services which can help to operate their business and develop the
organizational profitability. The customers who got services shares their feedback and
experience with others that can help to increase more guests and develop business profits.
To evaluate the benefits that gained by Premier Inn by overcoming the impact of Covid 19 over
their business performance.
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As per opinion of Kim, and Liu, (2022), Hospitality industry is running their business by
providing different types of accommodation and food services which can help to increase the
organizational productivity. In relation to Premier Inn hotel, management follows all regulations
and ways that can help to gain high business performance such as:
Increase in number of guests – By offering good quality of hospitality services and
welcomes, hospitality industry can increase the number of guests. In relation to Premier Inn,
management can increase the number of guests by providing better design and quality of
hospitality services to their guests that supports to increase business.
Increase in revenues – An organization generates high revenues if it is able to increase
number of guests and make them happy. In relation to Premier Inn, revenues can be increase by
management by offering good products and services that supports to complete business task.
To improve world economy- This can be explained as main activity in which world
economy can be improve as it has major contribution in paying taxes that can help to manage the
business productivity. In relation to Premier Inn Hotel, by offering different hospitality services
management participates in improving world economy that can help to operate a business
regularly.
To develop organizational performance – By offering effective accommodation and food
services that can help to develop organizational performance. In relation to Premier Inn, offering
accommodation and fixing hand sanitization could be effective that supports to develop
organizational performance.
To attain competitive advantage – For each organization it is important to attain
competitive advantages by providing good food products and accommodation services that
increased productivity. In relation to Premier Inn, management could attain the competitive
advantages by managing all functions and hospitality services effectively.
RESEARCH METHODOLOGY
This is important for researcher to conduct analysis by selecting best method that supports to
develop understanding and managing all activities. The methodology in relation to current
research explained below:
Research philosophy: This could be explained as set of beliefs and principle phenomenon
used to conduct analysis. This involves positivism and interpretivism philosophy. In present
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research, interpretivism philosophy is being used by researcher that can help to collect data about
how pandemic have affected the business performance of hospitality industry.
Research approach – This means planning and procedure that have used by an
individual to develop information about a topic and get conclusion. This involves deductive and
inductive approach. In current research, deductive approach has been used by researcher that can
help to manage all research activities effectively.
Research strategy – This can be explained as planning and formulation of strategy which is
collected from reliable data and information. The various research strategies are interview,
experiment, literature review, case study, survey, and questionnaire and action research. In
relation to current research, questionnaire has been used by researcher that can help to receive
positive data about a topic.
Research choice – This seeks to way of collecting data and information that have been
gathered on singular topic as it requires many efforts to complete the research. This considers
mono, mixed, and multi method to conduct research. In relation to current research, multi
method has been used by researcher that supports to collect data about impacts of pandemic on
organizational performance (Smart, Ma, Qu, and Ding, 2021).
Data collection and techniques – This can be explained as important activity which is used
by individual to collect data from various sources and supports to complete the task. This
procedure states what technique is used by researcher to collect information. Qualitative and
quantitative technique are two aspects which used for different purpose. In relation to current
research, quantitative technique and primary method of data collection has been used by
researcher that can help to accomplish personal as well as professional goals.
Research ethics: This involves ethical principle which requires to be adopt by researcher
during conducted study. The ethical principle are informed consent, anonymity, confidentiality
and other that needs to follow while conducting survey.
Limitations of the research: There are several limitations that would be faced by a
researcher while conducting research report. These are lack of cost, lack of time, lack of
communication and many others. These are main limitations that has negative and direct impact
on researcher.
Sampling – This could be explained as main process used in statistical analysis in which
predetermined number of observations are taken from a larger population. The methodology
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used to select same out of many task that supports to complete the activities by collecting
information. In other words, sample is the subset of individuals that have been selected for
collecting data. In relation to current research, random sampling method has been used by
researcher that supports to collect data from various sources. The number of selected people is 50
who manages all functions by providing details.
QUESTIONNAIRE
Q1) Are you aware from Pandemic (Covid-19)? Frequency
a) Yes 40
b) No 10
Q2) Do you have knowledge about impact of Covid-19 on business
performance?
Frequency
a) Yes 35
b) No 15
Q3) Did hospitality industry of UK faced challenges? Frequency
a) Yes 30
b) No 20
Q4) What challenges faced by Premier Inn due to pandemic period? Frequency
a) Hospitality has been hit hard 20
b) Increased Spending due to Covid-19 15
c) Increases Job vacancies 15
Q5) What are the impacts of Covid-19 on business performance of
Premier Inn?
Frequency
a) Disrupted the world economy 10
b) Loss of competent staff 10
c) Low revenue 10
d) Lack of patronage 10
e) Repayment of loans and rent 10
Q6) To determine different ways could be used by Premier Inn for
overcoming the impact of Covid-19 on their business performance?
Frequency
a) Warm welcome of guests 7
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b) Clean the hotel rooms from top to bottom 7
c) Building and maintaining relationship with teams 7
d) Fixing the public sanitization station 7
e) Caring and priority to their guests 7
f) Providing digital services 7
g) 24/7 hours services 8
Q7) What benefits are gained by Premier Inn by overcoming the impact
of Covid-19 on their business performance?
Frequency
a) Increase in number of guests 10
b) Increase in revenues 10
c) To improve world economy 10
d) To develop organizational performance 10
e) To attain competitive advantage 10
INTERPRETATION
Q1) Are you aware from Pandemic (Covid-19)? Frequency
a) Yes 40
b) No 10
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Interpretation – From the above it can be interpreted that 40 out of 50 are aware from pandemic
that happen in whole world, and remaining 10 are not that created the issues in running business.
Q2) Do you have knowledge about impact of Covid-19 on business
performance?
Frequency
a) Yes 35
b) No 15
Interpretation – From the above it can be interpreted that 35 out of 50 have knowledge about
how Covid-19 have impacted on business performance and 15 not that supports to introduce kind
of planning which can help to overcome issues.
Q3) Did hospitality industry of UK faced challenges? Frequency
a) Yes 30
b) No 20
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Interpretation – From the discussion it has been interpreted that according to 30 people who
have been selected from large population said that hospitality industry of UK faced the
challenges and remaining 20 denied to this statement.
Q4) What challenges faced by Premier Inn due to pandemic period? Frequency
a) Hospitality has been hit hard 20
b) Increased Spending due to Covid-19 15
c) Increases Job vacancies 15
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Interpretation – From the analysis it interpreted that as per 20 employees Premier Inn faced the
challenges of hit hard, as per 15, increased spending due to covid-19, and remaining 15 said, it
increased the job vacancies as employees left the organization while working (Mehta, Kumar,
and Ramkumar, 2021 Wieczorek-Kosmala, 2021.).
Q5) What are the impacts of Covid-19 on business performance of
Premier Inn?
Frequency
a) Disrupted the world economy 10
b) Loss of competent staff 10
c) Low revenue 10
d) Lack of patronage 10
e) Repayment of loans and rent 10
Interpretation – From the above analysis that 50 employees who are equally divided said
Covid-19 impacted on business performance of Premier Inn such as it disrupted the world
economy, loss of competent staff, lower revenues, repayment of loans and rent, lack of patronage
that created the challenges for organization to operate their business.
Q6) To determine different ways could be used by Premier Inn for
overcoming the impact of Covid-19 on their business performance?
Frequency
a) Warm welcome of guests 7
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b) Clean the hotel rooms from top to bottom 7
c) Building and maintaining relationship with teams 7
d) Fixing the public sanitization station 7
e) Caring and priority to their guests 7
f) Providing digital services 7
g) 24/7 hours services 8
Interpretation – From the above it can be interpreted that as per 7 employees, warm welcome of
guests, as per 7 clean the hotel rooms, 7 says Building and maintaining relationship with teams, 7
says Fixing the public sanitization station, 7 stated Caring and priority to their guests, another 7
explained Providing digital services and remaining 8 said that 24/7 hours services that supported
to operate their business in changing environment and accomplish business goals.
Q7) What benefits are gained by Premier Inn by overcoming the impact
of Covid-19 on their business performance?
Frequency
a) Increase in number of guests 10
b) Increase in revenues 10
c) To improve world economy 10
d) To develop organizational performance 10
e) To attain competitive advantage 10
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Interpretation – From the above it can be interpreted that 50 employees who are divided
equally said Premier Inn is taking benefits of increase in number of guests, increase in revenues,
improve world economy, develop organizational performance, and attain competitive advantages
by managing all functions and activities.
CONCLUSION
From the report it can be concluded that Covid-19 has impacted on organizational
performance negatively as it created challenges to operate their business and manage the
activities. Due to Covid-19 hospitality industry being affected negatively as businesses has been
closed because of government changed regulations. To improve business performance there is
need to have proper planning and policies which used by management to make feel happy their
guests and increase productivity. The researcher used the positivism philosophy that provides
information about particular topic. Quantitative technique and primary data analysis helped
researcher to collect information and attain the positive outcomes.
REFERENCE
Books and journal
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stress and performance in hospitality industry: The moderating role of social
support. International Journal of Hospitality Management, 95, p.102912.
Davahli, M.R., Karwowski, W., Sonmez, S. and Apostolopoulos, Y., 2020. The hospitality
industry in the face of the COVID-19 pandemic: Current topics and research
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p.7366.
Aguiar-Quintana, T., Nguyen, T.H.H., Araujo-Cabrera, Y. and Sanabria-Díaz, J.M., 2021. Do
job insecurity, anxiety and depression caused by the COVID-19 pandemic influence hotel
employees’ self-rated task performance? The moderating role of employee
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Anguera-Torrell, O., Aznar-Alarcón, J.P. and Vives-Perez, J., 2021. COVID-19: Hotel industry
response to the pandemic evolution and to the public sector economic measures. Tourism
Recreation Research, 46(2), pp.148-157.
Smart, K., Ma, E., Qu, H. and Ding, L., 2021. COVID-19 impacts, coping strategies, and
management reflection: A lodging industry case. International Journal of Hospitality
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Mehta, M.P., Kumar, G. and Ramkumar, M., 2021. Customer expectations in the hotel industry
during the COVID-19 pandemic: a global perspective using sentiment analysis. Tourism
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Wieczorek-Kosmala, M., 2021. COVID-19 impact on the hospitality industry: Exploratory study
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Kim, Y.R. and Liu, A., 2022. Social distancing, trust and post-COVID-19 recovery. Tourism
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Jones, P. and Comfort, D., 2020. The COVID-19 crisis and sustainability in the hospitality
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Biwota, S.M., 2020. The Impact of COVID-19 pandemic on hospitality (tourism & hotel sector)
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Kim, S., Kim, P.B. and Lee, G., 2021. Predicting hospitality employees’ safety performance
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(Tu, Li, and Wang, 2021) Davahli, M.R., Karwowski, W., Sonmez, S. and Apostolopoulos, Y.,
2020 Aguiar-Quintana, T., Nguyen, T.H.H., Araujo-Cabrera, Y. and Sanabria-Díaz, J.M., 2021.
Anguera-Torrell, O., Aznar-Alarcón, J.P. and Vives-Perez, J., 2021 Smart, K., Ma, E., Qu, H.
and Ding, L., 2021 Mehta, M.P., Kumar, G. and Ramkumar, M., 2021 Wieczorek-Kosmala, M.,
2021. Kim, Y.R. and Liu, A., 2022 Jones, P. and Comfort, D., 2020 Biwota, S.M., 2020 Kim, S.,
Kim, P.B. and Lee, G., 2021
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