Strategic Hospitality Management: Principles, Theories, and Innovative Strategies at Premier Inn

Strategic Hospitality
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Principles and practices of Strategic management in hospitality industry..................................3
Theories of strategic management in hospitality organizations..................................................5
Innovative Strategies to be applied by hospitality businesses....................................................6
Strategic management process at Premier inn............................................................................7
Challenges of implementing a corporate strategy in hospitality industry..................................8
Sustainability concept in Premier inn ........................................................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic management refers to the process of planning goals , procedures and objectives
so as to provide competitive advantage to the organization. It includes making optimal use of the
available resources for accomplishment of the desired objectives of the organizations
(Stoyanova., 2019). Hospitality organizations includes many fields such as Travel and tourism,
restaurants, parks, lodging, accommodation , hotels etc. Strategic management in hospitality
organizations means formulating and executing the goals and building the franchise, enhancing
customer value for customer satisfaction and achieving operational excellence to get the
competitive advantage in the industry. It involves analysis of the tourism environment for
developing the tourism business (Kandampully., 2018). The following report will cover the
principles and practices of strategic management in hospitality industry. The chosen organization
is a UK based hospitality business Premier inn that is a British service hotel chain and largest
hotel brand in UK having multiple locations like city centres, suburbs and airports. It is
headquartered in Dunstable, England serving in more than 800 hotels with almost 71000 rooms.
The report will cover the innovative strategies applied by Premier inn in strategic management
of the business. It will also cover the strategic management process and challenges in
implementing the strategies in the business. Further the report will also explain the sustainability
concept in the hospitality businesses.
TASK
Principles and practices of Strategic management in hospitality industry
The strategic management in the hospitality industry involves the efforts of top
management in establishing and implementing the planned activities within the total
environment of the organization. The hospitality businesses does not include only hotels,
restaurants, food and accommodation but also includes transportation, events and entertainment.
The hospitality businesses must follow the best practices and principles of strategic management
to get the competitive advantage in the industry. In context with Premier inn, its main strategic
aim is to provide quality affordable hotels while ensuring a positive impact on the surroundings.
The principles and practices of strategic management are explained below in this context :
 Leveraging strengths : The businesses must focus on leveraging competitive advantage
in their respective industry. They must analyse the business activities to identify what is

contributing most to the sales and profits to formulate strategies for further growth of the
businesses. They should balance it with the innovation to expand the business by
identifying new opportunities that leverage strengths and capabilities (Fuertes.,2020). In
context with Premier inn, it has expanded the business at many locations by successfully
leveraging the marketing strengths.
 Communicate : The businesses must make their employees feel that they are the part of
the process and success. They must keep their employees satisfied by taking their queries
and feedbacks regarding the operational management in the organization. In context with
premier inn, it has a large employee base consisting of almost 30000 employees at its
large number of hotels that the company has to communicate with to explain the strategic
decisions regarding operational performance and customer service.
 Flexibility : Strategic management is a dynamic and continuous process. Businesses need
to remain flexible so as to meet with the uncertainties. Hotel businesses also have to face
uncertainties in terms of change in marketing trends and dynamics. In context with
Premier inn, it had to face the impact of Brexit as it reduced the demand for its hotel
rooms by minimising the bookings specially among the business travellers outside
London.
 Increasing customer value : It is the core practice of strategic management to increase
the customers value by ensuring customer satisfaction and customer loyalty. In context
with premier inn, it attracts the customers by using Google Hotel ads to reach out the new
customers and to ensure customer satisfaction, also provide convenient booking services
through its website i.e. premierinn.com and thus ensures better implementation of
strategic planning regarding customer value.
 Building Brand Franchise : The effective strategic management helps the companies in
operational efficiency and in getting competitive advantage in the market by increasing
its brand value due to large market share as a result of successful strategic management.
In context with Premier inn, it follows effective and strong marketing and operational
strategies that has helped the company in becoming the UK's largest hotel brand.
 Achieving operational excellence : It is the execution of business strategies in a
consistent and reliable manner as compared to the competitors. It involves conduct of
activities with low operational risk, low operating costs and increased revenues