Strategic Planning for Hospitality Industry

This study focuses on the strategic planning process in the hospitality industry, specifically analyzing the famous 5-star luxury Premier Inn London City Bank hotel. It discusses the influences for executing market strategies, formulating strategies with competitive advantages, and steps to enhance business efficiency. The study also explores factors for implementing chosen strategies and future growth strategies for the hotel. Expert insights and analysis on strategic planning in the hospitality industry are provided.

Strategic Planning for
Hospitality Industry

INTRODUCTION
Strategic preparation is a mechanism in which new and unique business plans are conceived
and this process is essentially on-going (Phillips and Moutinho, 2014). The analysis is focusing
on famous 5 star luxuries Premier Inn London City Bank hotel, which deals with the hospitality
business. Influences for executing the required market strategy, formulating strategies that have
competitive advantages, and steps to enhance business efficiency are indeed the subjects
discussed in the study.
Analyse the most suitable factors to implement chosen strategy.
Franchising is really the tactic chosen in this project as well as Australia is really the nation
in which Premier Inn London City Bank hotel franchise is adopted.
Franchising: The foundation of revenue sharing is the idea of branding, which is pursued by
industry as a promotional strategy for business growth. It is a franchisee-franchisor joint project.
The actual company owner is a franchisor. By offering any price for their identity and popularity,
they sell the right of using the registered trademark and philosophy to others. Under an
established trademark which business plan, the customer acquires the right to sell the franchisor's
products and services. It helps the company who is involved in the launch of new product mostly
on marketplace and wants competent business concept service. Annual development costs and
initial phase charges for the franchisees are paid to the franchisee. The primary benefit of buying
a franchisee should be to build a market by having a proven brand image that eliminates the risk
of disappointment and the famous brand always creates a positive reputation in the eyes of
consumers such that a vast amount of potential customers are drawn. Lastly, the distribution
franchisor takes continuing payments for both the activity.
Brand name is a tag, style, emblem and logo that separate products and services first from
merchandise of other rivals. Size registered trademark is created through using various colours,
shapes, and it allows users to identify the emblem of the individual brand.
Royalty: It becomes a type of transaction which lawfully binds the corporation, entity and
brand through the continuous using of the properties or brand identity (Aldehayyat, 2011).
Various considerations that really need to be addressed for franchise implementation are listed in
depth in the points of reference below.

Getting a formal consumer base: The existing clients is probability can be increased as it
makes frequent buyers. The Premier Inn London City Bank hotels draw a significant amount of
clients to the company and aim to keep lengthy clients as it offers a strong foundation and
continue earning sales.
Have a strong position: Through franchise owner has to implement and stick to a certain business
model set by their franchisees. With a given market place, the consumer and company will strive
for the very same targeted audience. Premier Inn London City Bank hotel is a very well role in as
it creates a positive brand reputation throughout the hospitality business, but they use to have
certain exclusive infrastructure and amenities by growing business operation in Australia. This
has a wide exhibition area and also the best salon and beauty care with foreign coaches and
qualified practitioners and exercise equipment. It creates a strong market place because of its
exceptional facilities, as it draws a huge number of visitors and regional viewers (Elbanna,
2016).
Operators have to be industry expertise: franchisees take full advantage of the
experienced franchisor's advice and management to expand the business strategy in the potential.
As Premier Inn London City Bank hotel is opening its company in Australia, skilled and
qualified staff must be named as operators with successful background also in hotel industry.
There is a decline in pollution because of their experience. As professional market owners, the
operating advantage of the company is maintained by minimizing needless expenses (Cvelbar
and Dwyer, 2013).
Ability to manage inventory levels: It is easy to satisfy consumer demand by managing
inventory levels but it lowers manufacturing costs and guarantees proper stock turnover. As
Premier Inn London City Bank hotel controls their inventory since they offer a low market share,
they agree that waste needs to be reduced to become effective.
Brand name establishment: Most franchises create a brand identity although with the support
of a franchises licence, individuals acquire unique goods and services. As this is helpful for
franchisors, familiar brand names build buyer recognition so that they recognise what they
actually want to buy. Since it is already known, Premier Inn London City Bank hotel does not
need to develop a brand picture. It started up their operations with the launch of hotels in
Australia, but they retain their brand reputation in the memories of local people thanks to their
outstanding facilities, goods and public. Although of the excellent infrastructure, it distracts

general interest from their name, which also helps to boost hotel sales (Köseoglu and et.al.,
2013).
Workforce: In order to offer sound guidance and consistent customer support, franchise
owners must ensure their staffs have profound expertise. Significant amounts of workers are
needed to grow business activities in Australia, so it is essential for the Premier Inn London City
Bank hotel to hire skilled and creative employees. Proper preparation and attitude improvement
services must also be coordinated by the hospitality industry so that waste and shortcomings are
minimised. And it promotes a positive loyalty and image in customers' brains by ensuring good
standards and services.
Analysing and evaluating of different performance metrics are need to be perform
Performance metrics: This includes representative statistics along with business action
figures, total efficiency and capacity. It should be used to assess the actions and success of tasks.
Representation of Data Format: It analyses the data in such a series, enabling a framework to be
established by encouraging the accomplishment of overall market targets. With the aid of this,
Premier Inn London City Bank hotel will also evaluate how workers operate. With the support of
this instrument, product usefulness also may be tested. Performance indicators for workers are a
means of tracking how well workers work. Implementing them throughout the correct way is
tricky. Since it supports the workers and the entity for example job quantities metrics, work
output metrics, workplace productivity metrics, operational success metrics, and metrics was
divided into four key categories.
Important success factors: It targets aspects that influence expense, efficiency, profit
margins, customer loyalty, and improved sales. For variables relevant to vital performance,
specific strategic objectives are a necessity. Output will be calculated by Premier Inn London
City Bank hotel with the aid of a primary performance metric. Organizational targets are to be
accomplished. Without these variables, businesses will not examine their actions on the strategic
plan. The recognition of variables should begin on the premise of SWOT (strength, vulnerability,
opportunities, threat). It is to be achieved from key stakeholders such as managerial positions,
top leadership, retailer, workers, clients, partners building a vital progress team.
Main performance indicator: It evaluates the company's progress since it is a group of
rivals, goals and priorities in the market. Includes profits minus some costs, net benefit, and the

present ration representing profitability and cash supply, it may be economical. The significant
main variables are explained in this section:
Benefit: Gross as well as net profits are often not overlooked to evaluate and better clarify
how effective the enterprise is whether large returns are produced by the corporation.
Goal of LOB revenue v/s: This distinction is made between real and expected revenue. It is
possible to recognise inconsistencies with the aid of graphs.
Price: It is important to calculate cost efficiency and figure out a way to lower and control
costs.
Regional revenue: The region that achieves the sales target is evaluated so that we can get
more reviews on the state that is underachieving.
LOB expenditures v/s Forecast: It is important to make a distinction between the current
and the expected budget. The most productive budget is planned in the potential by discovering
the divergence (Abraham, 2012).
Balance score card: This is a measuring performance plan mechanism because it's used by
administrators to evaluate the conduct of operations by workers under their supervision and to
review the progress of these actions. The balancing score card is used to define, optimise and
monitor business processes and their subsequent effects. In the Prime Inn London City Bank
hotel, to express what company wants to do, it must be to be judged that the distribution
including day function is achieved that everybody needs to do through the application of smart
technique.
Business strategies for the future growth
It was regarded according to the above analysis that marketing practices are really crucial in
order to maintain competitive advantages. If plans are correctly developed and policies are
applied effectively, it becomes easier for leadership to perform corporate activities and allows
improve the company's profitability (Huang and O'Brien, 2015).
The strategic tactics chosen by Premier Inn London City Bank to retain its market place are as
follows:
Pricing strategy- Pricing is perhaps the most critical aspect and consumers search for and
contrasts the value of the commodity or facilities only with quality to ensure that the cost is
worth something or not. If the company manage high quality goods and services that would be a
perfect chance for the corporation to draw potential clients and inspire them to purchase the

value proposition. In the sense of Premium Inn London City Bank, this technique is used by
supplying its customers with facilities at very high rates along with all sorts of luxuries relative
to other rivals, which lets companies gain competitive advantages.
Differentiation of goods: This is a method from which the company aims to meet customer needs
that are separate and special in essence and seeks to capture the wide market sector and then also
aims to enhance the intensity of production and financial competitiveness. This approach is about
the future and is applied by Premier Inn London City Bank hotel in required to address and
accommodate the wishes and expectations of its customers.
Improvement of customer services- This is among the most effective business methods used by
business companies to strengthen their customer interactions and establish good relationships
with customers. Good consumer relationships lead to a greater knowledge of consumers
including their tastes and desires, making it easier for the company to make improvements to its
merchandise range also to bring more products to its consumer range if there is any need
(Rodríguez-Antón and et.al., 2012). They are focused on enhancing their customer support in the
sense of Premier Inn London City Bank hotel and offering 24*7 hours of assistance to their
guests to allow them to buy persuasive and total facilities.
Digitalisation and new technologies: Throughout this changing situation, there's much
more need for microprocessor jobs in the changing operating world and physical operations and
tasks are reduced. They use digital approaches and strategies in their market activities in the
sense of the Prime Inn London City Bank hotel that has helped them. Mostly with aid of digital
transformation, they become enabled to provide their clients with complete assistance and need
less resources owing to use of computers that help save the company's costs and expenditures.
The hotel belongs to the hospitality sector and focuses on developing its chatbots, check-out
method, smart rooms, distribution of robots, etc., which allows the business to strengthen its
customer interactions, retain its competition brand role and retain talented employees.
CONCLUSION
It has already been inferred according to the above analysis that tactics are very important
for the performance of business which makes business activities simple to execute and produces
the desire outcomes on time through the use of successful corporate strategy. In the course of
policy development, there are too many different variables (external and internal) that will need

to be weighed by organisations. Both these variables are considered as they tend to improve the
organization's level of efficiency and income.

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