Strategic Planning for Hospitality Industry

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