Impact of Pandemic on Profitability of Hospitality Industry: A Study on Premier Inn

This study evaluates the impact of pandemic on the profitability of hospitality industry with a focus on Premier Inn. It identifies the factors affecting profitability, analyzes methods used by hotels to deal with COVID-19, and recommends solutions for the challenges faced by the hotel. The research is based on qualitative data collected through surveys and secondary sources.

Research Project

Table of Contents
INTRODUCTION...........................................................................................................................3
Background:.................................................................................................................................3
Literature review..........................................................................................................................3
Research methodology.................................................................................................................4
REFERENCES................................................................................................................................1

INTRODUCTION
Title: To evaluate the impact of pandemic on the profitability of hospitality industry. A
study on Premier Inn.
Aim: To identify the various factors that have affected the profitability of hospitality sector
during pandemic.
Objective :
 To understand the concept of pandemic and its effect on business growth.
 To identify various factor which have affected profitability of Premier Inn during
pandemic.
 To analysis methods used by hotel in order to deal with impact of COVID- 19.
 To recommend the best solution for the challenges faced by hotel.
Background:
Pandemic has been one of the most common challenges which has been faced by the business in
every sector but its major impact was on hospitality industry. Due to this most of the hotels were
shut down for several months due to that huge loss has been faced by hospitality and tourism
sector. Also policy made by the government like Lockdown has damage the growth of hotels as
people were not allowed to travel and many tourist place was closed. However, due to no sales
for several months and change in the customer taste and preferences has affected the profitability
of company. The present report has been based on Premier Inn hotel is brutish chain which
provide comfortable hospitality service to their customer.
Rational: The main reason for selecting this topic is that it helps in knowing about the
challenges faced by business. The one of the biggest and current issue will be highlighted in the
research. The another reason is that it will help in knowing the various factors which has
affected the overall profitability of company. The researcher has adopted for this topic so that it
can enhance its knowledge regarding the challenges face by firm.
Literature review
Theme 1: To understand the concept of pandemic and its effect on business growth.
According to Vavra, (2021) COVID -19 was the main reason for the pandemic and in general it
means disease outbreak that spreads across countries. The virus has affected many people and
has severely affected the lifestyle of people and changes the way of business. Along with this,

Hanson and et.al., (2020) has argued that pandemic is not similar to epidemic as heath condition
do not occur in such situation. Meyer, Prescott and Sheng, (2022) has define that there has been
negative impact on the business as due to pandemic they were shut down for various months as
well as there was no sales has been conducted. Although it was hard for the company to manage
people as there were drastic change in their taste and choice.
Theme 2. To identify various factor which have affected profitability of Premier Inn during
pandemic.
Hanson and et.al., (2020) has define that there was various factor which has affected the
profitability of the business in hospitality sector such as company has to make use of advance
technology so that it can maintain the hygiene sector. Although making use of hygiene material
has increased the other expenses of the company. In addition to this, during the time of pandemic
the organization has to hire new employees as most of the workers has left the country due to
spread of virus. Thus, company has to invest more in conducting the training of the new
employees and to make them familiar with the new government policies. Fabeil and et.al., (2020)
has describe that in order to attract large customer company has to introduce advance services
like robotic staff or providing discount even on peak season.
Theme 3. To analysis methods used by hotel in order to deal with impact of COVID- 19.
Sharma and et.al., (2020) has describe that in order to deal with the impact of COVID- 19 the
company can make use of advance service like robotic staff as well as smart room keys and
sanitizing machine in order to attract customer. The hospitality industry turns into customer
centric approach and fulfilled their needs in order to increase their sales. Madeira, Palrão and
Mendes, (2020) has define that many organization has transform their marketing to digital in
order to cover large area of market. In addition to this, the organization has also adopted this
method of marketing so that it can identify the current trends going in the market.
Research methodology
Research type: There are two types of research qualitative and quantitative. In the current study
scholar has adopted for qualitative research as the topic is more related to theory. This
approach will help in finding the theoretical approach related to impact of COVID - 19 on
hospitality industry.

Research Approach: It has been segmented in tow part such as inductive and deductive. In the
study, the researcher will be adopting for inductive approach as it will help in analysing the
qualitative data effectively that will contribute in accomplishing the aim (Vavra, 2021).
Research philosophy: It is consisting of two part such as interpretivism as well as positivism.
In the current study the investigator will make use of interpretivism to evaluate the data as well
as contribute in collecting the information entangled with the objective of research.
Data collection: There are two ways through which data will be collected such as primary and
secondary. In the present research both the method will be used for gathering information. For
primary the scholar will conduct survey of managers of hotel through questionnaire method.
whereas for secondary data will be gathered through books, articles and journal related to impact
of COVID- 19 on the profitability of firm.
Sampling: For the current study simple random sampling method will be selected under
probabilistic approach. In this, 30 manager of Premier Inn hotel have been choosing so that their
opinion can be determine related to pandemic and its negative impact on profitability of firm.
Data Analysis: Furthermore, researcher has been adopted for thematic approach in order to
interpret key finding. In this, different themes, chart and graph has been designed to present the
key findings in a presentable manner (Meyer, Prescott and Sheng, 2022).
Research Limitation: In the present research the key limitations are time, money and
unavailability of resources. Thus, in order to reduce limitation researcher has been using
thematic analysis for finding the key elements. Along with this, it has not been using quantitative
approach as it has limited resources
Ethical consideration:
Moreover, the ethical values will be followed during the survey and there will be no question
related to any moral. All the candidate will be give equal care and there will be compliance of
data protection act.

REFERENCES
Books and journals
Meyer, B. H., Prescott, B. and Sheng, X.S., 2022. The impact of the COVID-19 pandemic on
business expectations. International Journal of Forecasting. 38(2). pp.529-544.
Vavra, J., 2021. Tracking the pandemic in real time: Administrative micro data in business
cycles enters the spotlight. Journal of Economic Perspectives. 35(3). pp.47-66.
Sharma, P. and et.al., 2020. Managing uncertainty during a global pandemic: An international
business perspective. Journal of business research. 116. pp.188-192.
Madeira, A., Palrão, T. and Mendes, A.S., 2020. The impact of pandemic crisis on the restaurant
business. Sustainability. 13(1). p.40.
Hanson, S. G. and et.al., 2020. Business credit programs in the pandemic era. Brookings Papers
on Economic Activity. 2020(3). pp.3-60.
Fabeil, N.F. and et.al., 2020. The impact of Covid-19 pandemic crisis on micro-enterprises:
Entrepreneurs’ perspective on business continuity and recovery strategy. Journal of
Economics and Business. 3(2).
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