Premier Inn Case Study: SWOT and PESTLE Analysis of Hotel Chain

This case study provides an in-depth analysis of Premier Inn, a leading hotel chain in the UK. It begins by outlining the hotel's organizational structure, detailing the roles of key departments such as General Management, Front Office, Housekeeping, Food Production, F&B, Engineering, and Security. The core of the study involves a comprehensive business environment analysis, utilizing both SWOT and PESTLE frameworks to assess Premier Inn's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, legal, and environmental factors impacting its operations. The SWOT analysis highlights Premier Inn's market dominance, brand value, and convenient locations, while also addressing weaknesses like limited international presence and past incidents. Opportunities such as wedding seasons, digital marketing, and technological advancements are discussed, along with threats from competitors and external factors like economic downturns and pandemics. The PESTLE analysis delves into political stability, economic trends, social changes in travel preferences, technological advancements in advertising and booking, legal regulations, and environmental concerns. The conclusion summarizes the impact of technology and other factors on the hotel's success, emphasizing strategic planning and competitive advantages. The study references several academic sources to support its findings.

UNDERSTANDING BUSINESS
ORGANISATION- CASE STUDY

INTRODUCTION
The procedure of understanding venture organizations encompasses different form of
activities and practices. This process helps management to identify those factors that support
business success and growth, while also those that impact negatively. There are several form of
approaches and methods accessible in the world of business that enable management to continue
this process successful and these are PESTLE and SWOT analysis. The current assignment will
be based on Premier Inn, which falls under the category of leading hotels in the UK. The aim of
chosen hotel is to enhance its customer satisfaction level in effective manner, that plays
significant role in the context of organizational growth in the competitive business environment.
Across national boundary, firm approach to provide the best satisfactory services to each
customer according to their needs, that aid to gain build wide loyal consumer base. It has served
its services, over 80 hotel branches in the world. The study will explain organizational structure
of chosen hotel and internal as well as external factors that impact on venture as an outcome of
emerging situations. Lastly, the report will specify the environmental analysis by using SWOT
and PESTLE analysis tools, in Premier Inn context.
TASK
Organizational structure of Premier Inn Hotel.
Each and every hotel, no matter how big and small is, it requires an organizational
structure that works on daily basis on operations. The primary work is to do is allotting work and
tasks to every sector. Premier inn works on hierarchical structures there employees have pre-
defined job and responsibilities everyone is well-known of their work.
General Manager
Mostly a general manager is on the top of hierarchy, their work is to supervise several
other departments in the hotel. Every single wing is run by assistant general managers they are
the second one in taking charge of looking after the employees daily tasks, activities in the
absence of general manager they are general managers right hand in other words (Iranmanesh
and et.al., 2021).
Front office
After the general and assisting manager the vital role is of the front office it is in-charge
of giving services to visitor in the hotel from taking bookings to till they departing from the hotel
premises.

Housekeeping
Housekeeping servers in every area of the hotel. Their work is to ensure that there is no
dirtiness in the premises of the hotel (Köseoglu, Yazici and Okumus, 2018). And in rooms and make
sure that clean it before the arrival of the guest.
Food production.
After the housekeeping there is food production department that deals in breakfast, lunch,
dinner, tea/coffee, cocktails and cleaning of crockeries and the quality and amount of the food as
well.
F&B
The F&B department ensures the delivery of the food that they receive from food
production and make sure to supply food on time.
Engineering
There is engineering department in the Premier inn who manages all the repairing and
fixing that hotel has and makes it better for the guests.
Security
Last but not the least there is security department of Premier Inn. That is most essential in
the hotel it responsible for checking in for any danger that staff and guests could have while
staying in hotel.
Business environment analysis of Premier Inn Hotel.
The business environment for Premier Inn is bit challenging due to constant change and
trends on social media and technologies people are becoming very demanding and it is quite
impossible to match the demands of tourists. Other than this environment factors are also
involved guests nowadays prefers the hotel that are eco-friendly and doesn't pollute nature.
SWOT analysis-
Strengths:-
Premier Inn has captured over 76.3% across the nation. It has more than 800 hotels all
over the United Kingdom and it has 80,0000 rooms. It entertains countless guests per month.
Establishment even have many hotels in Germany. In last few years the brand value of Premier
Inn. has increased because of its outstanding services like Wi-Fi 24/7 lavish suites, cosy decor
and residing near fascinating location (Foroudi, 2019). Various hotels is near airports so it
convenient for guests.

Weakness:-
Premier Inn. is having only few other outlets internationally in comparison to other hotels
chains. In year 2018 Premier Inn. Was accused of uncleanliness staff recruited by the hotel was
seen cleaning the wash rooms with the same towels that guests using. This incident led to bad
brand image. Low price ranges of rooms is directing towards bad quality of commodity and
highly depending on international tourists (Benzaghta and et.al., 2021). Other weaknesses is also
there such as bad food quality and poor room services.
Opportunity:-
Wedding season, various events and summer/winter breaks is an exceptional opportunity
for hotel. Investing in digital marketing also a good opportunity chance. Other than this giving
exceptional services to guests to create Premier- inn brand worth via customer experience. Using
of technology is a great opportunity for hotel. Placing hotel on online portal makes easy for
tourist to make booking easy and accessible any time of the day.
Threats:-
The prime rival of Premier Inn is Holiday Inn and Easy hotel that is similar class and has
same priced range as Premier inn. If in-case there is some kind of riots, boycotts in the state this
is not good for the industry because such things makes uninterested for tourists to visit the place.
Lock-down affected the hotel business the most and Premier inn was also suffered severely if in
future their will be any other lock-down then it will be very difficult to survive (Jayawarna and
Dissanayake, 2019).
PESTLE analysis
Political factor
Political stability in the UK is one of those favourable political factors that may put
positive impact on Premier Inn, in term of enabling organization to develop strategic plan such as
business expansion. It may provide, firm chance to increase profitability more than its
expectations. While some uncertainty arise, from the same factor may put opposite impact on
company in form of creating challenges to manage business operations successful, whether they
operated in national or international boundaries.
Economic factor-
Hospitality is among the biggest financing sector worldwide investors. Every business
got disturbed by economic change and hotel industry got most affected by it. The weak currency

of the Britain & USA also have impact on hotel industry. A cheaper us dollar or British pound
makes tourist think that the countries is less expensive than before and this makes them visit the
state. Ever since the pandemic people have become particular in spending money and finds low
cost affordable hotels. These factors are to keep in mind for Premier inn.
Social factor-
The youngsters of today shows great interest in solo travelling and group travelling. This
is trend started on social media's a while ago. Posting travel experience and personal experience
excites the generations and wants to travel too. This increased the spending capacity of people.
Premier inn also taking every type of people and making sure to provide them services they
want. Premier inn also giving huge discounts on stay and some other offers so tourists can able to
stay longer and afford easily the lavish stay.
Technology factor-
In old times Premier inn used to advertise only through posters, newspapers but now
there is number of other means where it can promote its hotel(Tao and et.al 2018). Travel websites
made easier for customers to compare different hotels and tourist can also compare the reviews
of people about different hotels. Premier inn spends money on social media to have the attention
of tourists. Ensures that they give best services to guests so that they can have positive review
about the hotel and recommend others.
Legal factor-
Rules and regulations of the nation have the huge impact on the hotel industry operations.
There are several laws that needs to be followed by the Premier inn for instance employee law,
customer law (Bellou, Stylos and Rahimi, 2018). Premier inn should take closer look to some laws
of the state that is operating. Different law has been made by the authorities of various country to
handle the pandemic social distance among people, sanitizing of the rooms to prevent from the
covid-19.
Environmental factor-
Hotel needs to make sure of carbon footprint usage as they are being under pressure by
government to decrease its use. Tourist are more concern about the nature now and are in favour
of those hotels that take care of its surrounding nature. Taking care of nature is now vital duty
and customers expects and prefers it. Hotel businesses sometimes becomes a debating issue due
to its polluting environment.

CONCLUSION
On the basis of above discussion, it has been identified that technology advancement and
other factors had impacted hotel and its business success in varied terms. It has driven the
attention of company toward developing key plans and strategies and supported to gain
competitive advantages, which is quite challenging for a company to do so in effective manner.
There are several factors from above study has been determined that has affected organization in
positive manner, that outcome in form of increasing profitability. Furthermore, by summing up
above discussion, it has been summarized that SWOT and PESTLE analysis application in the
context of chosen hotel has specified some external and internal factors, both that are favourable
and unfavourable. This form of analysis has contributed to generate awareness in the workplace
about positive and negative impacts of each factor, that affect success and growth elements of
company. Along with above information, it has been concluded that organization has gained
competitive advantages in form of developing effective plans that aid to overcome negative
impacts of certain factors. It has leads to increased profitability and productivity level, that
supported given tough competition to rivals. It has achieved target aims and objectives in
effective manner.

REFERENCES
Books and journals
Bellou, V., Stylos, N. and Rahimi, R., 2018. Predicting hotel attractiveness via personality
traits of applicants: the moderating role of self-esteem and work experience.
International Journal of Contemporary Hospitality Management.
Benzaghta, M. A and et.al., 2021. SWOT analysis applications: An integrative literature
review. Journal of Global Business Insights. 6(1). pp.55-73.
Foroudi, P., 2019. Influence of brand signature, brand awareness, brand attitude, brand
reputation on hotel industry’s brand performance.International journal of hospitality
management.76. pp.271-285.
Iranmanesh, M and et.al., 2021. The impacts of organizational structure on operational
performance through innovation capability: innovative culture as moderator.Review of
Managerial Science. 15(7). pp.1885-1911.
Jayawarna, S. and Dissanayake, R., 2019. Strategic planning and organization
performance: A review on conceptual and practice perspectives. Archives of Business
Research.7(6). pp.155-163.
Köseoglu, M.A., Yazici, S. and Okumus, F., 2018. Barriers to the implementation of
strategic decisions: evidence from hotels in a developing country.Journal of Hospitality
Marketing & Management.27(5). pp.514-543.
Tao, M. and et.al 2018. Users’ acceptance of innovative mobile hotel booking trends: UK
vs. PRC. Information Technology & Tourism.20(1). pp.9-36.

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