Organizational and Environmental Analysis of Premier Inn Hotel

This report analyzes the organizational structure and business environment of Premier Inn hotel in the UK. It includes SWOT and PESTEL analysis to evaluate the internal and external factors affecting the hotel industry.

CASE OF STUDY

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
1. Organizational structure of Premier Inn hotel.............................................................................3
2. Business environment analysis of the hotel.................................................................................4
3. SWOT analysis of Premier Inn....................................................................................................4
4. PESTEL analysis of Premier Inn hotel........................................................................................5
CONCLUSION....................................................................................................................................7
REFERENCES.....................................................................................................................................8

INTRODUCTION
Premier Inn belongs to the United Kingdom's one of the humongous hospitality sectoral
chains hat operates under Whitbread Plc. Started as Travel Inn in the year 1987, in the current
global scenario it is known as one of the largest hotel chains registered under Britain's limited
service firms with more than 800 hotel outlets and 72,000 or more rooms. Along with this there are
a number of accomoation sevices, lodging options, restaurants and recreational arenas, etc. The
following report is precisely based on the case study of the Premier Inn hotel in which the
hospitality usiness will be taken as a case upon which this research study will be conducted. The
report below will first discuss the organizational structure of the Premier Inn hotel where it will be
shown what kind of organizational and corporate structure and culture the firm follows and benefits
from. It will next define and explain the concept of business environment and its relevant analysis
through the internal and external environmental analysis through SWOT and PESTEL analytical
frameworks. It will cover and analyze sections such as the internal srengths and weaknesses that
affect the hotel like inflation, etc. and the external factors will also be analyzed such as the socio-
economic aspects and legal dimensions, etc (Konovalova and et.al., 2018).
MAIN BODY
1. Organizational structure of Premier Inn hotel
The organizational structure can be defined as the workflow structural model or pattern
within the parameters of which a company or firm works, runs on and functions in. In the particuar
case of the Premier Inn hospitality organization the firm uses an exceptional and one-of-a-kind

framework known as the “Vertically Integrated” structure that consolidates property, hotel business'
functionality, image, and stock dissemination has enabled it to grow obviously and effectually. The
organization's operations seem to be influenced by the organizational framework. It also has
centralized powered and categorized authority dependable on how it is arranged. Some business
systems motivate teamwork, where as others depend on personal initiative. It must be ensured that
the organizational structure should be proper for the kind of company one operates in and also it
should meet the requitements of the market. Premier Inn's organizational structure guarantees
gender equity, as the hotel business employs a large number of employees at its site functions, with
a lower number operating in its support center (Joseph and Gaba, 2020).
The operational personnel is critical for the company, assuring that the multitude of
customers have a fascinating experience regularly. It has 96% of owned 34,000 UK staff working in
the customer-centric teams spanned over many locations that are cited at their hotels or/and
restaurants across the country. Almost 90% of Premier's overall workforce is timely paid, that
covers the functional needs. Females hold 65% of its hourly salary positions. The staff is intensely
committed to the operational duties, with a bulk of its roles being routinely paid and which is
dominated by females. The Premier Inn organization works in equal pay format for equal tasks and
is contented that it possesses in place many necessary protocols to ensure that the salary practices
remain gender-neutral. The firm continues to keep gender pay records throughout its organization,
and it realizes that its gender-pay barrier is generated by the presentation of females in its
workforce.
2. Business environment analysis of the hotel
The business environmental factors of the hotel sector seems fairly impacted by many
management decisions. All the aspects influence the Premier Inn's strategic organizational practices
and it is the major reason for its planning and executional framework in such a context. The
hospitality business' analysis vitally provides an entire understanding of various external aspects.
For example, it could be said that Premier Inn business hotel has adjustable fiscal factors and also it
has mainly contributed in many environmental sustainabilities (Ali and et.al., 2020).
3. SWOT analysis of Premier Inn
SWOT is a short form that stands for Strengths, Weaknesses, Opportunities, Threats which is
used for the evaluative analysis of the organization's strategic position.
STRENGTHS

Premier Inn possesses high luxury environment permitting clients to relax or enjoy
professional service. The hotel emphasizes on wealthy customer category and includes more than
60,000 rooms in more than 500 hotels across the UK. It was given the 'Best UK economical hotel
brand' during Travel Awards year 2017. It illustrates the promotional events with its support of
popular personalities and also has many prosperity willed symbols which helps create an exquisite
position for its hotel in the global market (Benzaghta and et.al., 2021).
WEAKNESSES
The hotel outlets could significantly improve upon many weak factors such as the thin
profitable margins arising from the unmanageable hotel operational functions. It seems to be sound
for the Premier Inn's business strategy to keep aside the internal conflicts and issues by cutting off
its outlet segments to a few minimum so that the revenue flows evenly and profitably. One other of
its weak point consists of the fact that the hotel has very extremely capital intensive technical
approach with high incurring costs which makes it unlikely favourable for its non-elite guest
section.
OPPORTUNITIES
Hotel Premier Inn constitutes a very nice opportunity of positioning itself in its northern
Ireland regions of the UK by acquiring the brand new strategy of market entry. This pertains to a
good amount of chance for its business to start relevant hotel dealings on the contractual basis
regarding floor renewal along with wall tiling. Such operational tasks and experiences have
definitely started spreading in its Asian and Middle Eastern areas and counterparts. This has given
the organization with many business mergers deals including hotel acquisitions (Vlados, 2019).
THREATS
There exist a lot of probable threats surrounding this hotel chain like that of shortage of
talented labour including degrading economic trends. It certainly faces a few of legal risks in
specific form of the trade union leads and the health security regulators that puts the problems of
legislative proceedings due to prospective negligent handling. Technological and
miscommunication issues also keep surfacing which influences the customers' travel experience and
stay experiences. Another downside can be clearly seen in the poor training of its personnel and
lack of development.
4. PESTEL analysis of Premier Inn hotel
PESTEL acronym stands for Political, Economic, Sociological, Technological,
Environmental, and Legal dimensions that extrinsically impact an organization such as the Premier

Inn hotel as given below (Yusop, 2018).
Political Factors
The hospitality industry is immensely monitored by the government agencies and political
bodies as the revenue generation record from the travel and associated hotels directly affects many
political stakeholders. Hotel Premier Inn has records a good and successful rate in the UK but
current recession setbacks have generated a negative influence on multiple hoteliers. The
government invariably has to a large extent reduced its high rates of interests thus raising the
unemployment factor in this sector.
Economic Factors
The UK department of budget regarding the hospitality market like the Premier Inn hotel has
considerably experienced growth in the supply volume. People love and prefer travel and high-class
or elite/rich people greatly so that has marked very much profitable market return dominance.
Economic stagnation at times tends to slow down the prevalence of buying behaviour of the
customers in the travel spending within existing hotel sector.
Social Factors
The understanding of consumer needs and the purchasing power highly impacts the
hospitality industry. In such case the Premier Inn hotel's largest competition comprises Airbnb as
the firm offers a wide range of accomodation availability with significantly low costs. It highly
affects the hotel business in context because of its high client base. It requires committing to its
myriad of end users in the better and best way.
Technological Factors
The utilization of technologically procurement and creative methods and features affects
almost all business segments. The hotel organizations like the Premier Inn indefinitely uses its
technology powered potential to establish hassle free interaction with their consumers. It includes
the uniquely interactive website, social and online reservation facilities, its database system, and the
prevalent use of cellular platforms regarding the advertisement and media campaigns.
Environmental Factors
It is very important for such businesses to perform their operations in the most eco-friendly
way as its environmental sustainability aspects looms high over everyone (Çitilci and Akbalık,
2020). In such context this UK-based hotel has instilled many ecological programmes in the
organization like 'The Good Together' program for decreasing waste and installing energy-saving
lighting, etc.

Legal Factors
Several changes in its legal system largely impacts hotel busineses like the Premier Inn. The
UK's 'Low Pay Commission Report National Minimum Wage' act platform (2009) means that
various budget operations concerning hotels should be raised which contradicts with the customer
centered prices. In its response the hotel launched its Responsible Sourcing Policy.
CONCLUSION
From the above report it can be clearly observed that the modestly growing and developing
global hospitality industry and in the particular contet of the UK based Premier Inn hotel, its
industrial market is fairly large and high. The above report has critically observed the organizational
structure of the mentioned hotel business firm and identified it as a virtically integrated one that also
shows its employees and customers are cohesively oriented. The report has also discussed and
examined its business environmental analysis in conjunction with conducting a comprehensive
overview and detailed analysis of the hospitality organization's both internal and external analysis
through the application of models like Swot and Pestel.

REFERENCES
Books and Journals
Ali, A., and et.al., 2020. The Future of Hospitality Management Education.
Benzaghta, M.A., and et.al., 2021. SWOT analysis applications: An integrative literature
review. Journal of Global Business Insights. 6(1). pp.55-73.
Çitilci, T. and Akbalık, M., 2020. The importance of PESTEL analysis for environmental scanning
process. In Handbook of Research on Decision-Making Techniques in Financial
Marketing (pp. 336-357). IGI Global.
Joseph, J. and Gaba, V., 2020. Organizational structure, information processing, and decision-
making: A retrospective and road map for research. Academy of Management Annals.
14(1). pp.267-302.
Konovalova, E.E., and et.al., 2018. Forming approaches to strategic management and development
of tourism and hospitality industry in the regions. Journal of Environmental Management
& Tourism. 9(2 (26)). pp.241-247.
Vlados, C., 2019. On a correlative and evolutionary SWOT analysis. Journal of Strategy and
Management.
Yusop, Z.B.M., 2018. PESTEL analysis. COMRAP 2018. p.34.