Hospitality Business Development: A Premier Inn Case Study

Desklib provides past papers and solved assignments for students. This report analyzes Premier Inn's hospitality strategies.

Hospitality Provision in the Travel and Tourism Sector
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Table of Contents
Introduction......................................................................................................................................3
LO1: Understand the role of the hospitality industry within the travel and tourism sector............3
P1.1 Discuss the scope and scale of the hospitality industry within the travel and tourism
sector and its interrelationship and examine the role of hospitality function using your
experience in your chosen organisation.570................................................................................3
LO2: Understand the impact of integration within the hospitality industry....................................7
P2.1 Explain integration in hospitality sector organizations and analyse with example drawn
from your organisation or other relevant organisation how horizontal and vertical integration
in the industry affects the hospitality business............................................................................7
P2.2 Discuss the impacts of integration and how the organisation decides to respond to the
consequences of integration.........................................................................................................9
LO3: Be able to plan the development of hospitality business.....................................................11
P3.1 Develop a rationale for a selected project clearly justifying decisions linked to target
market........................................................................................................................................11
P3.2 Develop a plan for a hospitality business including the operational requirements of the
business organisational structure in relation to human resource allocation426........................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................15
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Introduction
One of the finest and the elegant hotel chain is the Premier Inn in the UK which have been
serving the country for more than 30 years. The hotel has around 72,000 rooms which are
distributed in the chain of 785 hotels all over the globe. They have chains in not only the large
cities but also have spread their wings into the airports and the suburbs which are competitions to
the local hotels and provides a far better and superior facility to their customers. The company
have been serving in the various sectors which fall under the hospitality industry. The company
marked its 500th hotel in the year of 2005. They started to influence their travelers into various
lucrative leisure offers to attract new customers. In further study, we will learn about the role of
the hospitality industry and the impact of it in the travel and tourism sector (Premier Inn Hotels
Limited, 2019). The fundamental relation of the integration within the hospitality industry will
be studied in detail and how it actually affects the hospitality industry. Finally understanding the
plan of how the business can be operated and how the business works in according to the human
resource allocation.
LO1: Understand the role of the hospitality industry within the travel and tourism sector
P1.1 Discuss the scope and scale of the hospitality industry within the travel and tourism
sector and its interrelationship and examine the role of hospitality function using your
experience in your chosen organisation.570
Travel is considered as one of the recreational activities, which is done by a person for his or her
recreation. Moreover, it can be asserted that the travel and tourism sector has been implemented
certain attractive initiatives to attract customers toward their provided services. It is highly
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needed for this sector that they should provide premium quality services to their customers to
gain their loyalty. On the other hand, due to the globalization, the hospitality industry has
contributed a large amount of money for the development of society as well as the country. It is
also measured as the developing industry as compared to other industry. On the basis of the
global report, it can be stated that the travel and tourism industry has contributed more than 33%
GDP to the world economy (Moutinho and Vargas-Sanchez, 2018). Apart from this, the majority
of the travellers select one or more travel destination on the basis of their choice and interest,
after the selection process, travellers will have to decide the airlines and then hotels and
restaurants. It is quite common that the travel and tourism industry has merged with some
hospitality companies to provide better services towards their customers to meet their
expectation level. The hospitality industry is one of the integral parts of the travel and tourism
industry. Travel industry also consists of several hotels, motels, resorts, villas, amusement park,
theme parks, guesthouse etc.
Features of Hospitality Industry
 Provide an opportunity for unemployed people to build their career with this sector.
 It is a customer oriented business, which has an aim to provide premium quality services
to meet their satisfaction level.
 The hospitality industry has an aim to provide entertainment to their customers, which
helps customers to release their stress easily (Becker, 2016).
Scope and Scale of Hospitality Industry
Employment Opportunity: As it is already discussion that, the aim of the hospitality industry is
to satisfy customers by providing premium quality services. For this reason, skilled employees
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are required for this industry to build a healthy relationship with customers and provide comfort
to the customers. Premier Inn also provides an opportunity for unemployed people to start their
career with them. Good communication skill is required for every employee, who is working in
the Premier Inn because it helps employees to determine their customer’s need and desire. With
the help of the global report, it can be said that the employment rate in the travel industry has
increased approx. 1.5% from 2008 to 2009 (Moutinho and Vargas-Sanchez, 2018).
Growth of Economy: Hospitality industry also encourages other business sectors, entrepreneurs
to establish their business, which helps to create diversity within the country. This sector also
contributes to a huge amount of money to the country’s economy. On the other hand, job seekers
also have to come from one place to another to meet tier individual’s goals.
Information Communication Technology: With the help advanced information and
communication technology, customers can able to access the information regarding their travel.
Moreover, the travel and tourism industry has created an online website, which consists of the
various package and their price details, which will help customers to make their decisions easily
(Boniface, Cooper and Cooper, 2016).
Increasing Number of Tourist: As per the global report, it can be said that the number of
tourists has increased tremendously throughout the world. It is considered one of the vital reason
for the growth of the world’s economy. On the other hand, it can be seen that the number of
tourists has increased due the fall is the travelling expenses.
Medical Tourism: Medical tourism is one of the forms of travel and tourism sector, which
provides tourism services to the customers. It provides satisfaction as well as medical treatment
to the customers. Moreover, it can be asserted that as this travelling process has a connection
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with healthcare clinics, hospitals etc., so the expenses of this tourism is comparatively lower than
other tourism.
Awareness: With the help of tourism, the travel and tourism industry is able to promote the
health of the public. The prime aim of this travel is to maintain the health of travellers by
organizing several fitness programmes. This noble initiative helps customers to prevent their
health problems (Eugenio-Martin and Inchausti-Sintes, 2016).
Interrelationship between Hospitality and Tourism Sector
It is known to all that customers are considered as the vital aspects of both sectors like hospitality
and tourism. Hospitality organization is one of the parts of the tourism industry. Moreover, it can
be said the travel organizational is a good combination of hotels, motels, lodging, and transport.
Premier Inn is one of the well-known organization, which provides premium quality hospitality
services to its customers to meet their expectation level. In addition to this, the company offers
its services at a reasonable price rate to attract customers towards their excellent hospitality
services (Yüksel, 2017).
On the other hand, travel agencies provide several packages for their customers to draw their
attention. In addition to this, travel agencies also provide seasonal discounts or special offers to
the customers, which will directly create a positive impact on the customer’s mind. Besides,
communication skill is highly required for employees, who are working in Premier Inn, because
it helps them to communicate with their customers efficiently and also to determine their
customer’s needs and demands. Restaurant is the place where customers can eat according to
their choice. Moreover, every restaurant has its own menu, price, service, and ambiance. The
staff people of Premier Inn also provide recommendations for their customers, which one is
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better for them or which one is not. Therefore, it can be said that there is a connection between
hospitality and tourism industry (Schuckert, Liu and Law, 2015).
LO2: Understand the impact of integration within the hospitality industry
P2.1 Explain integration in hospitality sector organizations and analyse with example
drawn from your organisation or other relevant organisation how horizontal and vertical
integration in the industry affects the hospitality business.
Hospitality industry is considered as the fastest growing industry. This industry provides superior
class services to its customers to meet their satisfaction level. Moreover, the hospitality industry
also provide medium services to customers to protect their life from severe diseases. Through the
awareness programmes, the Hospitality industry is able to aware public about the travel and
tourism sector, which helps to create a huge demand with the operating market. Due to the
integration concept, Premier Inn provide their hospitality services to the customers to achieve
their expectation level (Gursoy and Sandstrom, 2016).
Integration can be defined as the merger of two and more units to provide better services to the
customers to gain their loyalty. Therefore, the integration of the hospitality and tourism sector
plays a crucial role to provide premium quality services to their customers to attain their
satisfaction level. There are primarily two types of the integration process, such as vertical
integration and horizontal integration. In the vertical integration, two or more production unit is
integrated together to reduce their production cost and also enhance their efficiency. Whereas, in
horizontal integration, two completely different entities integrate together to effectively run their
business operation to gain maximum profits. Due to the integration between hospitality and
travel and tourism industry, it helps these both industries to run their business operation
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flawlessly and also help to compete with their market competitors. Premier Inn also integrate
with a well-known travel and tourism industry to improve their overall productivity and
profitability. Moreover, this company outsource their booking services to some agencies and the
agencies have developed their own websites, where all the information about the booking in
enlisted. Furthermore, Premier Inn also provides various offers and schemes from its own and
outsourced websites to increase their customer base. Simultaneously, it can be said that the
integration system also helps an organization to provide superiors class services to satisfy their
customer’s needs. Hospitality industry merges with the travel and tourism industry to provide
premium quality services to their customers at reasonable price rate, which will significantly help
these sectors to gain customers satisfaction (Xiang, Magnini and Fesenmaier, 2015).
Advantages of Integration between Hospitality and Travel and Tourism Industries
 Due to the integration, the transportation cost of the hospitality industry has reduced
tremendously.
 With the help of integration, hospitality organization is able to overcome the hurdles in
their beginning stage.
 Managing cost of travellers is also reduced because of the integration. All the services,
which is generally required is available at one place. It also helps to gain customers
satisfaction.
 With the help of information technology, customers can book their preferable hotels and
motels for spending their holidays (Leung and et al., 2013).
Implication of Integration
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It is important for an organization that all the services of an organization should remain the same
quality to satisfy their customers. In the case Premier Inn, it provides service services in the
different geographic location and all the service is provided by the head office of Premier Inn.
For this reason, the branches of this organization are also able to provide the customer’s
satisfaction. On the other hand, due to the integration, conflicts between two merger
organizations may arise, which has adversely affected their business operation because the
organizations have different vision and mission. Moreover, due to the globalization, travellers
are travelling one country to another country to meet their increasing psychological demands,
which also helps to improve organizational profitability. Therefore, it can be said the proper
implementation of the integration between the hospitality industry and the travel and tourism
industry help these industries to maximize their profitability (Xiang, Magnini and Fesenmaier,
2015).
P2.2 Discuss the impacts of integration and how the organisation decides to respond to the
consequences of integration.
Integration has created a significant impact on the performance of an organization. Therefore, it
can be asserted that integration has created a great impact on the internal and external activities
of both the sectors such as Hospitality sector and travel and tourism sector. Due to the
integration, nowadays, customers are not worried about the bookings of airlines and hotels while
they are planning for any holiday trip. Travel agencies are responsible for managing all the
activities, starting from transport to recreational things. It is possible when the hospitality sector
and the travel and tourism sector come together and work together to accomplish their different
goals and objectives. Along with this, with the help advanced information and communication
technology, an organization can able to send all the tickets and other services related documents
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to their customers through emails, which will create a positive impact on the mind of the
customers. Due to the integration between the hospitality sector and travel and tourism sector,
hospitality organization is able to provide excellent service to their customers, which helps
customers to lead their life stress-free (Gursoy and Sandstrom, 2016). For this reason, they are
also even to pay an extra amount of money for premium quality services. Therefore, it can be
asserted that a satisfied customer is considered as the most important factor for the success of a
company.
Simultaneously, IT integration brings certain opportunities for the travel and tourism industry to
improve theory overall performance standard. With the help of appropriate technology,
customers can able to book their tickets effectively and also make their payments conveniently.
There are several websites, where customers give their feedbacks. According to the feedbacks,
Hospitality organization like Premier Inn has taken certain strategic steps to mitigate their
service-orientated issues. With the help of vertical and horizontal integration, a hospitality
organization is able to compete with their national and international market players. Moreover,
integration also helps an organization to reduce its cost, which will help to run their business
operation systematically. For example, if a travel agency has acquired any hotel, then the initial
investment of the travel agency is high but it also helps this travel agency to gain success in long-
term (Schuckert, Liu and Law, 2015). Likewise, Premier Inn also merged with a travel agency to
improve their overall organizational performance. Moreover, this company also has a
standardized process to maintain their business standard. Apart from this, it can be said that the
integration process may arise conflicts between employees and employers. Moreover, sometimes
employees do not follow the orders of new bosses, which has created an adverse impact on the
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performance of the organization. It can be said that Primer Inn has faced certain problems
because of integration while assuring premium quality services to customers.
LO3: Be able to plan the development of hospitality business
P3.1 Develop a rationale for a selected project clearly justifying decisions linked to target
market
The analysis of the organization is very important for developing the rationale of the project. The
organization is a part of the hospitality industry which have an interconnection with the various
travel and the tourism industries globally. The company have been using the various travel and
tourism agents who have been consistently serving them to ensure that the company is efficient
and very competitive against its competitors. The target audience will be considered to be looked
as it will be using strategies for the services which the company will provide to the customer.
The location have a very important impact over the organizational cost and how effectively they
will do their business as they will be more cost efficient and give better service as the customers
will be attracted to their destination (Kandampully, Zhang and Bilgihan, 2015). The organization
must target the various sector of income group as the service will be efficient and it will be more
robust.
The company needs to understand and also analyze the various regional factor which are mainly
the demography and the socio-culture of the area. The location is also an important factor as it
will directly affect how the company is serving its customer and how they are attracting new
frequent customers. Choosing an isolated location will not benefit the organization and also if
it’s too overcrowded they cannot compete. The introduction of the lucrative offers to the
customers which will include the increase in the discounts, occasional free lunch or breakfast for
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enhancing the marketing of the organization. As the company starts to introduce offers in the
fairs of transportation like airlines and the other factors which will be lucrative for new
customers. Finally the local customers who are to visit it more regularly needs to be approached
more appropriately which mainly includes the conferences and functions where they discuss
about the business (Kandampully, Zhang and Bilgihan, 2015).
P3.2 Develop a plan for a hospitality business including the operational requirements of the
business organisational structure in relation to human resource allocation426
A plan for a hospitality business organization is described below. It is a luxurious hotel, which
has an aim to provide superior class services towards their domestic and foreign customers.
Target Customers: The target customers of this hotel are those people, who are interested to
spend money on their luxurious vacation. This organization also plan several business trips for
the businessman to meet their desire.
Location: This hospitality organization mainly serves its services acres the globe. However, the
company is UK based. With the help of appropriate organizational structure, this luxurious hotel
is able to maintain their service qualities in different geographic location (Boniface, Cooper and
Cooper, 2016).
Products and Services: The main aim of this particular luxurious hotel is to provide first-class
services at reasonable price rate to their customers to meet their expectation level. As a luxurious
hotel, the main motto of this organization is to provide comfortable and royal stays to their
customers to gain their loyalty. Along with this, the company also try to satisfy their customers
through their services. This company provides certain travel offers towards its customers to draw
their attention. As it is ready mentioned that the company also design several business trips for
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