Hospitality Management Consultancy Project for Premier Inn Woolwich

This report offers a comprehensive consultancy project analysis of the Premier Inn Woolwich hotel, a major player in the UK hospitality industry. It begins with an introduction to the hotel chain, its operations, and the scope of the report. The core of the report addresses key learning outcomes, starting with an identification of managerial challenges within the broader hospitality sector and specifically at the Premier Inn Woolwich, examining causes and effects such as competitor pressures, changing customer expectations, and employee turnover. The report then delves into a critical analysis of management theories, including scientific management, Henri Fayol's principles, and the contingency approach, assessing their relevance to the hotel's context. It analyzes the existing management theory in place, identifies its issues, and recommends alternative theories with associated benefits. The project concludes with proposed initiatives, a strategic action plan, and an analysis of questionnaire results designed to improve the hotel's performance and address identified challenges. The report provides recommendations for improvement and offers a detailed overview of the Premier Inn Woolwich's operational landscape and management practices.

Running head: CONSULTANCY PROJECT FOR HOSPITALITY MANAGEMENT
CONSULTANCY PROJECT FOR HOSPITALITY MANAGEMENT
Name of the Student:
Name of the University:
Author Note:

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Table of Contents
Introduction......................................................................................................................................4
Identification of Causes and Effects................................................................................................5
Causes and effects of general Managerial Challenges................................................................5
Effects of Managerial Challenges................................................................................................7
Critical Analysis of Management Theory........................................................................................9
Management theory.....................................................................................................................9
Scientific management...............................................................................................................10
Management theory by Henri Fayol..........................................................................................10
Contingency approach...............................................................................................................11
Existing Theory in Hotel...........................................................................................................12
Issues with the Theory...............................................................................................................12
Recommended Theory with Benefits........................................................................................13
Initiatives and Outcomes...............................................................................................................13
Work Package............................................................................................................................13
Strategic Action Plan.................................................................................................................14

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Questionnaire Result Analysis...................................................................................................16
Proposed Action.........................................................................................................................17
Conclusion.....................................................................................................................................19
Recommendations..........................................................................................................................20
References......................................................................................................................................22
Appendix:......................................................................................................................................25

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Introduction
The Premier Inn is known to be the British hotel chain which is considered to be the
largest hotel brand of UK. It has more than 72,000 rooms and has over 800 hotels; this chain is
known to operate hotels in various locations that includes city centers, airports and suburbs thus
competing directly with the Ibis hotels and Travelodge and more such competitors. The company
of Premier Inn was established by Whitbread in the year 1987 and it was then known as the
Travel Inn. It was in the year 2004 that Whitbread bought the Premier Lodge and this lodge was
merged with Travel Inn in order to form the current hotel known as the Premier Travel Inn that
was gradually cut to shorten it as the Premier Inn, which accounts for 70 percent of the earnings
of Whitbread. With hotels at various locations at different countries, Premier Inn is also spread
across UK. This hotel chain can be found from Inverness to Helton; mostly these hotels can be
found either on the outskirts of some major roadways or in city centers. The hotels vary in sizes
at different locations; there are many smaller inns and also there are places where the hotels are
large and purpose-built hotels as found in city centers most of the time. Most of the Premier Inns
are built recently and although several of the city’s chain are in locations that are situated in UK
are seen to be housed within office buildings that are redeveloped (that or else would have been
demolished if not done so), yet there are also some hotels like the “Bristol Airport” situated in
Sidcot which are housed in buildings that are of old age.
London Woolwich is one such hotel under the Premier Inn that is also known as the Royal
Arsenal. The Premier Inns have a total of 582 hotels and there are 41,511 rooms in total; and
from this it is evident that hospitality industry is in fact one of the largest and the quickest
growing sectors in the world since this sector has been characterized by consistent and

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continuous advancement in the field of technology. All the advancements have improved the
sector. Its efficiency and also the experience of the customers. Hence it has become a strong
competition for all the hotels in the sector of hospitality management to thrive in the market.
However, there are also certain major issues that the sector has to face in the light of the current
situation and also in order to stay strong in the market, and these issues have affected the services
that these hotels offered (Jones, Hiller and Comfort 2016). This paper intends to highlight all the
managerial issues and effects that are in generally found in the sector of hospitality management;
these issues would be analyzed with the management theories in order to prepare some initiatives
or work packages that would help the Premier Inn hotel at Woolwich London, to gain some
positive outcomes (Brandon-Jones, Lewis and Walsman 2016). The paper would also provide a
strategic action plan which would help the hotel to regain its strength and have their competitive
advantage back.
Identification of Causes and Effects
Causes and effects of general Managerial Challenges
It is evident that most of the hotel managers have to manage multiple tasks through
juggling; these tasks range from marketing the business to encouraging more bookings and also
balancing all the revenues and expenses of the hotel. Managers have to have the traits of a good
leader; that is to say, managers need to be friendly and approachable, they should have excellent
skills of communication, they should also be able to manage their time well and many other
significant traits that would help in proper management of the hotel (Bharwani and Talib 2017).
However, the changing times are bring a change in the demands as well; as mentioned before,
the changing times are bringing an advancement of technologies and due to these technological

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advances, the customers are getting better experiences, thus rising their expectations and creating
challenges for the hotels to meet up with their expectations every time. Managers, in the present
day, have to face challenges and issues which are more in number than that were in the past; all
of this is because of the development in technologies and also the change that is observed in the
behavior of the customers (Aissa and Goaied 2016). As a matter of fact, the changing customer
expectation is the top most challenge and an issue that the managers have to face. The arrival of
services like Uber or any other such similar apps which have made the facility of instant result
possible, customers’ expectation level rose to a high level and hence they are also beginning to
expect that same level of proficiency and convenience or personalization and efficiency from
every place that they visit. Hence hotels have to upgrade the software and other such relevant
technologies in order to cope up with the demands presented by their guests.
The next issue that arrives is the issue of keeping up with all the latest technology; since the hotel
guests are leaning towards the technology more than before, therefore, it is evident that the hotels
have to provide conveniences like Wi-Fi, USB ports, TVs and many more. It becomes
challenging for the manager to keep up with all the latest technology and maintain a competitive
advantage (Zopiatis, Constanti and Theocharous 2014). There is another issue in the hospitality
sector that the managers have to face in their everyday working life and it is the issue of long and
irregular working time of all the employees due to the high demands and also the nature of
business of a hotel. The employees need to be on the site for 24 hours every seven days of the
week in order to keep the customers satisfied; however, the employees can take a break by
distributing their tasks among other employees, but a manager is not able to do so and hence
he/she has to manage long and irregular hours of work in the workplace. The other issue that
hospital management sector has to face is the maintenance and the renovation activities that the

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managers have to perform in order to keep up with the demands of the customers and also to
attract more. It might be said that the expenses can be covered by bookings and the pricing of the
hotel; however, there is also an issue in that arena as well. The technology has brought the
growth of online bookings and OTAs, which is why it has become very difficult to maintain a
uniform pricing across their board. There are pricings which vary from one online site to another
and this is what that ultimately affects the bottom line of the business.
(EFFECTS) In order to cope up with the demand of their guests, the hotels have to hire
consultants of the IT sector and also have to keep some tech-savvy staff in their team in order to
get help with the training and also the implementation of any new technological advancement for
the convenience of the customers; as a result, the expenses of the hotel are rising at a rapid pace
(Nestoroska and Petrovska 2014). In order to keep up with the demands, the hotels have to
attempt such steps and it is harder when the budget does not help. The long and irregular
working hours results in stress and burnout in the workers and the manager hence leading to
major employee turnover rate. The expenses required to run a hotel increases when renovation
and maintenance costs add up to the list. It makes hard for the manager to balance the revenues
and the expenses and run the business (Peaucelle 2015). Bookings are more at peak seasons, but
the staff and the managers have to suffer from a lot of stress and prices might have to be reduced
during the lean seasons thus making it more difficult to balance the revenues and make up for the
expenses behind technologies and other factors.
Effects of Managerial Challenges
Premier Inn Woolwich hotel is also facing certain challenges and issues that all the hotels
in the hospitality sector have to face. However, the most challenging issue that the Woolwich

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Hotel is facing is the issue of competitors. There are multiple alternative options that are
available nearby the hotel and all those other hotels are posing as a strong competition for the
Premier Inn (Bratton and Watson 2018). The competitors are posing as a threat to the hotel
business of the Premier Inn Woolwich and this challenge is in turn creating issues in other facets
of the hotel business. For instance, the revenues are severely affected, as the customers are
opting much cost- effective as well as technologically advanced facilities in hotels nearby
(Kearney, Harrington and Kelliher 2014). The changing expectations of the customers is also a
serious challenge that this hotel needs to overcome since, the requirements for keeping up with
the desires of customers is costly and it is affecting the service of the hotel along with the
revenues. In order to keep up with their customer’s expectation the hotel also needs to have their
technologies updated and although it is worthwhile yet the technology implementation is an
expensive process. The manager has to be aware of every type of latest technology that is made
for the convenience of the customers and is also used nearby in other hotels, so that they can also
attract more customers and balance their revenues. Yet balancing revenues is also an issue
because of the fact that people are nowadays booking their rooms online and various sites offer
inconsistent pricing which might no be enough for the kind of updated service that the hotel is
providing to the customers.
The hotel is in dire need of revenues for their renovations and maintenance; the lobbies and all
the amenities are up to date and available to the customers because the manager has maintained
the resources and renovated the hotel in order to attract more guests to the hotel. But the
renovation and the maintenance cost are only adding up with the expense list of the technologies
and without the pricing and booking profit, the manager of the hotel is unable to balance the cost
(Cetin, Demirciftci and Bilgihan 2016). Lastly, the Premier Inn Woolwich hotel is facing a grave

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issue of major employee turnover, because of the long and irregular working hours. Especially at
the time of peak season, the employees and the managers have to go through a serious phase of
stress, in order to keep the business running. The long working hours are burning out the
employees who are quitting to find a better place to work in (Vasquez 2014). As a result of such
major employee turnover and the inability of the higher authorities to retain their employees, the
hotel is facing the challenge of labor shortage and thus, it eventually is leading to unsatisfied
customers who refuse to visit the hotel next time.
Critical Analysis of Management Theory
Management theory
With the aid of management theories organisations around the world are able to focus on
their work and reach certain limits which needs to be met for a standard performance. With the
aid of the various management theories it is very easy for a company to focus on the various
leadership goals which needs to be followed for a better performance. When a particular
management theory is implemented in the company then it streamlines to the various branches of
the hotel management. With the aid of a better management theory it becomes easy to
communicate with the workers in the workers which increases efficiency in an organisation and
also keeps the organisation stay ahead of its competitors.
In between the late 1700s and early 1900s the organisations around the world came up
with certain strategies by the aid of which the organisations became more efficient (Kipping and
Üsdiken 2014). Major changes were brought in the workplace of organisations around the world
which led to the inclusion of different strategies in the workplace of the company by the
managers and the leaders of the organisation. During the time of industrial revolution to meet

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with increasing demands of the consumers it was important for companies to come up with
certain theories which can be used in their workplace to increase their productivity and make the
workers more efficient (Calás and Smircich 2019).
Scientific management
The classical management theory of Frederik Taylor mainly emphasizes on efficiency ().
Frederik suggests that the mangers of the company must not rebuke the workers in the hotels for
minor mistakes rather they must focus on rewarding the employees for their extra productivity ().
The theory suggests that the maximum prosperity of the employees of the employees must be
taken care by the managers of the company as well as the employer. The maximum prosperity of
the hotel means that the large dividends of the hotels not for the owner of the hotel rather it will
be used in developing each and every branch of the hotel so that the presence of prosperity in the
hotel stays permanent. In Premier Inn Woolwich the challenges which are being faced by the
hotel will be solved a bit with the inclusion of scientific management theory of Frederik Taylor.
Although the theory have a lot of harsh steps in which the staffs of the hotel have to work on a
tight line yet there will be an increase in productivity. With the increase in productivity Premier
Inn Woolwich more customers will be gathered by the company and there will be an increase in
the revenue of the hotel.
Management theory by Henri Fayol
The management theory of Henry Fayol suggests the managers to follow a total of 14
principles to increase the productivity of a workplace. The managers who do not follow scientific
management must implement the use of management theory by Henry Fayol so that they can
improve the efficiency of the employees in the workplace (Waring 2016).The various principles

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which have been stated by Henry Fayol suggests the various ways by the aid of which an
organisation must interact with the employees in the organisation. The theory which have been
formulated by the Fayol provided a company with a broad framework by the aid of which a
company will be able to overcome the various negative effects of Taylor’s management theory
(Rousseau and Olivas‐Luján 2015). The management theory have been recited to be useful and
acts a major catalyst in boosting the performance of companies. With the implementation of this
theory in Premier Inn Woolworth it will be very easy for the company to increase the
productivity of the employees and the employees will also be very much motivated by the steps
taken by the hotel managers and leaders.
Contingency approach
The contingency approach suggests that organisation around the world must not be
depending on only a single management approach (Mikes and Kaplan 2014). Every organisation
must change and adapt different management approach with the various changes in the market.
In the age of globalisation it is very important for companies to adjust to the changing needs of
the business industry (Otley 2016). The contingency approach is a major element which needs to
be implemented in the Premier Inn Woolwich. With the aid of the contingency approach the
hotel will be able to cope up with the various changes which have been bought in the industry.
The contingency approach have a direct contrast with the other forms of leadership which are
followed by managers. This theory is very important for organisations as they will be able to
learn a lot of things from a specific situation and then implement these learning sin future. With
the contingency approach the management of a company will be evolving over the time and the
company will be able to meet the changing customer needs.

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Existing Theory in Hotel
Max Weber Bureaucracy theory aids a company in implementing a number of rules and
various standard processes, procedures and various requirements by the help of which a positive
management structure can be achieved in a company (Erasmus 2014). This theory have been
seen to be indispensable in large organizations around the world. In hotel Premier Inn hotel the
use of this theory have been detected which is followed by the managers and the leaders of the
company in performing their daily business. With the help of Bureaucracy theory the various
hierarchical layers of an organization are maintained in a proper way and the functioning of a
company is enhanced. In the present era of business this theory is followed by many organization
around the world and they have been benefitted from it.
Issues with the Theory:
The Bureaucracy theory have certain loopholes which have led the hotel face with certain
challenges which it is facing in the current moment. With the implementation of Bureaucracy
theory in an organization the employees of the company are kept at a distance from each other.
There are presence of lack of communication among the employees of the company (Kanter
2019). With the lack in communication the efficiency in the workplace of the employees have
come down and there are drop in the functioning of the company. With the restriction the
innovative ideas among the employees in an organization are also suppressed. In the age of ever
changing customer needs it is very important for a company to come up with various innovations
in the daily functioning of the company. Bureaucracy theory also disallows the employees of an
organization in keeping their views to themselves. The staffs of the hotel is not given the