Premier Inn Hotel: Business Environment, SWOT, and PESTEL Analysis

This report provides an analysis of Premier Inn's organisational structure and business environment, focusing on its operations within the UK hospitality sector. It discusses the company's structure, highlighting the roles and responsibilities within the organisation. The report includes a SWOT analysis, examining Premier Inn's strengths, weaknesses, opportunities, and threats, as well as a PESTEL analysis, which explores the political, economic, social, technological, environmental, and legal factors impacting the hotel chain. The analysis aims to provide a comprehensive understanding of Premier Inn's strategic position and the external factors influencing its business operations, with a focus on maintaining a balance between cost-effectiveness and quality service while addressing environmental and social responsibilities.

UNDERSTANDING
BUSINESS
ORGANISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................4
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The business environment is the collection of the internal as well as the external aspects
of employee's, customer need, demand and the supplies of new ideas in technology etc. The
aspects of the business environment which are mentioned would affect the business environment.
The environment of the business are categorised in two manner; first is the micro business
environment and the macro businesses environment, both of them provide the different
opportunities to the company(Dhir, 2019).. It is essentials for the company to identify the
different factors of the business environment. Its not only helps the company to compete but, it
also enhance the profitability of the company. In the business environment there are various
types of businesses, for this report the hospitality of the hotel in UK name as Premier Inn got
chosen. The premier hotel was established by “Whitbread”. It is one of the popular hotel chains,
there are 800 hotels all over the world. In this report, the analysis of the organisational structure
of the Premier Inn hotel, will get discuss , the SWOT analysis will be discuss and the PESTEL
analysis regarding the Premier Inn hotel will also describe in this report.
TASK
Organisational structure of the Premier Inn hotel-
The Premier Inn hotel is the biggest and the fastest growing hotel company in the United
Kingdom as well as in the Ireland. There are 800 budget hotels in which they offer the best
quality accommodation in the affordable prices. It is the largest division of the Whitbread, which
is a multinational hotel, coffee shop and the restaurant company. The Premier Inn hotel provides

the best facilities and services in which they provide large beds, en-suite bathrooms and a full
screen television with free 30 minutes WI-FI in every room. In all the hotels of the they give the
on-site bar, restaurant and the safe parking facilities(George, 2021). The Premier Inn, offers the
Good Night Guarantee to their guests, which means if the client were not get satisfied with the
provided facilities then, they will return the money. The hotel has a big and a tall structure in
which the manager of every site is in charge of the hotels operations. In the hotel they have a
broad network, when the customer faced any problem then, the customer can contact with the
worker at the appropriate level of the structure for the help. The high post manager of the hotel
makes themselves available all the time, which shows the sincerity and the hospitality of the
hotel. Apart from the services and the structure, the members of the hotel also offered the shares
at a discounted rate to join the Whitbread.
Premier Inn is also try to reduce the impact on environment by using the less use of gas,
water and the electricity and always try recycling where it is possible(Hardman, 2022).
Business Environment analysis of Premier Inn Hotel
The budget spectrum of the Premier Inn hotel must be highly responsible to condemn the
ladder of success. The surroundings will be cleared up by the business environment where the
operation of business environment are functions in the decode way, that they reflection of the
business operation is highly recommended and dependent runs within the functions of business.
The leadership quality is the need of the hour in the organisation in respect to the scope of
entrepreneur or the firm(Santos, 2022 ).
SWOT analysis of Premier Inn
Strengths
 It is cheap and affordable, as they offer the deals to the customers.
 The celebrity endorsement, means they use popular celebrity to advertised.

 They have the largest hotel brand in UK.
 They also won the winning hotel chain reward.
 Affects due to the locations, the location of the premier inn is considered to be highly
enough, to attract the customers.
 The latest development of section of kids, has upheld the brand image of the hotel
Premier Inn.
Weakness
 They have the big number of competitors.
 It seen as the lower end due to the low pricing, which imply that they provide low
quality.
 The hotel is in pride itself and have a value of their room is 29 euros, customer couldn't
book that offer(Mahmud, 2019).
 The hotel has a troublesome scope when it comes to providing the refunds to the
customers, the hotel weakness can be improvidently their refund policies.
 As to the sign of the geographical area limitation, this hotel is limited to the presence of
the international exposure, that is what this hotel is lacking, that affects the brand image
as well.
 The ongoing problem with the sanitation, as per some agency reports of 2018, this hotel
has faced massive hygiene problem, even the union of trade has addressed this problem,
and now in the time of pandemic, the practice of sanitation is very crucial for the hotel.
PESTEL Analysis of the Premier Inn Hotel

under the scope of the PESTEL Analysis, the components of the macro-environment,
which could just the bring about the affect on the organizationals, and the strategies of the
organizations , it will include , the interchange of taxes, the prerequisition of laws and
regulations, the decreasing and upward movement of the hurdles which further relates to the
environment and the government authority line of reasoning of the country. The meaning of the
objective of the PESTEl , describes as the Political, Economic, Social, Technological,
Environment and the Legal analysis of the followed mentioned organizations, here it is the
Premier Inn Hotel(Foltýnek, 2019 ).
Political- The combination of the positive and efficient with the UK government has
brought the Concept of hospitality industry which is the key of success of economic development
in UK. In UK, the hospitality is the fifth largest industry, the employment which is directly given
to the workers and even result in the contribution of the tax revenue. The rate of employment has
grown in different sectors of industries like transport , financial industry, communication sector
and constructional division. The budget of this hotel is considered as one of the greatest
hospitality financial sector of the United Kingdom. The growth will affect the components of
supply and market platform value, the operators which are leading the dominance in the market
place will look into the revenue the factors are generating.
Social- the spectrum of the social scope and objective in regard for interchanging life's
and lifestyles of an individuals and affecting the heights of standards of the social and cultural
interchanges all over the globe. The cost of living is touching the heights whereas the people or
the consumer will prefer low budgets goods and services, there is a pattern follows when it
comes in the scope of social changes, the interchangeability of social measures will affect the
sector of hospitality on a massive global level. The patterns which are followed will cloud the
power of decision making of the customers and their behaviour(Naryono, 2020).
Technological- one of the factors which proportionally effect the functions of business.
The operating functions in the sector of hospitality does not need any high level of geeky
technology, they made their focal point of technology in the scope of budget in the division of
hotel which will involves rate of electrical appliances and the service which is concerned with It

for the consumers. Technology is highly use for the marketing and to promote the products. The
Premier Inn hotel is also mainlining the well developed web sites in this regard. In which the
online stay reservation services are available. They also, upgrade their websites, to provide the
offer and the promotional campaign.
Environmental- the environmental an the social responsibilities are considered as the
customer preferences and expectations. Now a days the customer Wil support those
organisations which are caring towards the environment, which helps in reducing the pollution
and avoid the wastage of natural resources. In the context of Premier Inn, they developed the
strong strategies of CSR I.e. “Good Together”, first they reviewed their CSR and then created
this strategy of CSR. The aim to introduce this strategy is to reducing the use of carbon emission.
This approach of the Premier Inn Is guided by the environment policy and also the energy policy.
Legal- In UK the minimum wages rate got increased, due to which the operating cost got also
increase of budget hotels. This would increase the cost of production which destroy the policy to
offer the prices to the customers. The premier Inn, to avoid the legal issues they had developed
the sourcing policy, so that the premier Inn expected the minimum standards from the suppiers.
Contactors and the business partners(Nash, 2021).
CONCLUSION
It has been described from the above report that, the arrangement plan ensured the
performance of the business capabilities, in the mannerism of the business capacity, the success
will be attained by the organisation when they follow with vital authoritative groundwork. The
transparency between the employers and the employees, the employer sand the directors will be
managed by they clear communication of the right sand duties done in a better way. This report
also discuss about the SWOT investigation of the firm and after that the PESTEL analysis has
been concluded to help in scattering the external factors to calculate the hospitality industry.

REFERENCES
Books and Journals
Dhir, S., 2019. Cases in Strategic Management: A Flexibility Perspective. Springer.
George, R., 2021. Tourism and Hospitality Marketing Planning. In Marketing Tourism and
Hospitality (pp. 149-182). Palgrave Macmillan, Cham.
Hardman, J. and Santos, G.R., 2022. Empirical evidence for the continuing need to'think small
first'in UK company law. European Business Organization Law Review.
Mahmud, S., Bretag, T. and Foltýnek, T., 2019. Students’ perceptions of plagiarism policy in
higher education: A comparison of the United Kingdom, Czechia, Poland and Romania.
Journal of Academic Ethics, 17(3), pp.271-289.
Naryono, E., 2020. SWOT ANALYSIS AS A BASIC STRATEGY TO IMPROVE
COMPETITIVENESS IN ANUGRAH SUKABUMI HOTEL (No. mtk6e). Center for
Open Science.
Nash, S.L., 2021. The Rise of Populism and the Enactment of Brexit: An Exploratory Analysis
of Their Impact on the International Business of Music in the United Kingdom
(Doctoral dissertation, Northcentral University).