Premier Inn Hotel Business Organisation, Structure & Environment

This report provides an analysis of the business organization and environment of Premier Inn Hotel, a British limited hotel service chain. It examines the organizational structure, highlighting the unique vertical flat integrated model that Premier Inn follows, combining property ownership, hotel operations, brand management, and inventory distribution. The report also includes a business environment analysis using SWOT and PESTLE frameworks to evaluate the internal and external factors affecting the company. Strengths such as high occupancy rates and a strong UK presence are identified, along with weaknesses like limited global expansion. Opportunities for growth, such as entering new locations and investing in digital marketing, are discussed, as well as threats from competitors and changing social trends. The analysis concludes that Premier Inn's strategic operation structure contributes to its success, but continuous monitoring of environmental factors and adaptation to market changes are crucial for long-term sustainability. Desklib provides access to similar solved assignments and resources for students.

Understanding
Business Organisation
of Premier Inn Hotel

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organisational Structure of Premier Inn Hotel................................................................................3
Business Environment Analysis of Premier Inn Hotel....................................................................4
Swot Analysis .............................................................................................................................4
Pestle Analysis ............................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................1

INTRODUCTION
A business is a concept of any organisation or enterprise entity engaged in any
commercial, industrial or professional activities. Businesses can be profit entity or non profit
entity based organisation. For the present study, Premier Inn Hotel is taken into consideration. It
is a British limited hotel service chain which was established in 1987 by Whitbread as Travel Inn
and its headquarter located in Dunstable, England, UK. The hotel operates around 800 hotels
across the UK and globally which includes city centres, suburbs areas and nearby the airport and
station. Premier Inn is the UK's biggest hotel brand that offers quality and accommodation at
affordable price. In this report, there is a discussion about the organisation structure along with
the specific structure that Premier Inn follow for implementing their operations. In addition to
this, there is also a discussion about the business environment of chosen hotel with the help of
Swot analysis and Pestle analysis that will further help in improving financial health and
attainment of competitive advantage. In the last, analysis of internal and external factor affecting
the company will be elaborated in the report.
MAIN BODY
Organisational Structure of Premier Inn Hotel
Organisation structure is a structure that provides a system for organisation to define
there hierarchy, which identify each job there specific functions and where to report within the
organisation. This structure helps to established of how an organisation operates and assist the
company to obtain there goals and allow future growth. There are several types of organisational
structure where each define to meet the needs of organisation to operate differently. Such as
functional structure, product-based divisional structure, market-based divisional structure,
geographical divisional structure, process-based structure, matrix structure, circular structure, flat
structure, network structure and many more(Beynon-Davies, 2021). Depending on the size of the
business and goals, the organisational structure of them vary, company needs a organisation
structure in there operation for a successful functions. Proper organisation structure ensures
organisation systematic operation and provide a stage for employees to operate there work
properly. In reference to Premier Inn Hotel follow unique vertical flat integrated model,
combines the ownership of property, hotel operations, brand and inventory distribution. Like
Hotel industry value chain- Property development > Property ownership > Brand > Hotel
operation > Inventory distribution (Our business model and strategy, 2022). And Premier Inn

Hotel unique vertical integrated model- Control & fund development > Balanced freeload/
leasehold > Own brand > End to end operation > Direct booking. With the impact of Covid-19
on hospitality industry, the strategic priorities and consistent proven plans shows success in long
term benefits. Following a unique vertical flat model in operation structure ensure the smooth
operation and help the hotel to work in a system that way there will be no blunder.
Business Environment Analysis of Premier Inn Hotel
Business environment is a combination of external and internal aspects of a organisation.
Business environment is changing constantly and uncertain, includes all those factors that affect
a company's operation and function (George, 2021). It includes customers, competitors,
stakeholders, suppliers, industry trends, regulations, activities of government, economic and
social factors and technology development.
Swot Analysis
Swot analysis provides a framework to evaluate a competitive position and strategic plan
accordingly to develop for future goals. Swot analysis access internal and external factors with
potential future and current situation.
Strength:
Premier Inn Hotel has high occupancy rate which is around 76% , as the company is in
great position in the hospitality industry. The strong presence in UK is a greatest strength of the
brand, as there are over 800 hotel in UK and in Germany as well. Location of the hotels are also
the strengths of the brand as they are near airports and a attraction to tourists(Niblock, 2018). In
addition to this Premier Inn hotel has established a strong brand image over the years and also
won several awards for best budget hotel brand and many more. Hence the organisation has a
very strong strength in hospitality industry.
Weakness:
The global presence of the company is not as elaborated as other internationally hotel
chains presence which is a greatest weakness of the brand, Premier Inn operates in limited
countries(Hamilton and Webster, 2018). There are some issues with the refund policy and
hygiene faced by customers. In addition there is intense competition between competitors which
gave the brand a weakness in there position in this industry.
Opportunities:

Entering into new locations Premier Inn should cover more globally, as it gives
opportunity to grow and gives more benefits (Hassan, Roy and Chowdhury, 2020). Invest in
digital marketing which allows the more awareness
Threat:
Competitors as there are few main competitors of the Premier Inn, but the strong
competition are the small independent hotels and also some of the private rooms and
backpackers hotels offers much cheaper price to the customers which is the threat to the Premier
Inn.
Pestle Analysis
Pestle analysis is a strategic framework to evaluate the business environment for
organisation to evaluate the external factors that are affecting the company and make suitable
decision for the firm.
Political:
Premier inn operates globally so, the government factors can effect the the company
much, due to the pandemic issue there are countries which closed there tourism sector that
caused issues to company as the main business is depended on the tourism and it effect the
profits of the company. Travelling ban can cause effects on the organisation, government of
different countries has different set of rules which can effect the company profits and operation.
Economic:
Any major change in economic can massively affect in organisation, as Premier Inn is a
luxury hotel, with the recession, inflation and other economic factor severally affect people's
ability to afford such luxury hotel, which affect the company. Foreign exchange rate also affect
the organisation, there business is depends on travellers and with the change in foreign exchange
there is massive fallout in demand of travelling which leads to the affect the firm.
Social:
Constant change in social trend led to massive effect on the company, as the travellers are
preferring outdoor rooms, backpackers hostel and Airbnb, and much cheaper hotels. People are
following social trend and staying at different cheaper location close to nature, Premier Inn is a
luxury hotel and mostly located at close distance to airport and stations and suburbs, so this
affect the organisation. Airbnb are going viral and in trends nowadays which affect on hotel

industry, as Airbnb are offering more comfort home type feeling to the people and customers are
preferring that.
Technological:
Constant change in technology can affect organisation, there are CCTV camera security
and many other features for people, so make them feel comfortable staying. Online booking are
most in demands, as people are preferring more online booking which can affect the
organisation(Chiang, 2022) . Online booking facilities directly helped in boosting the booking
rate of the hotel, customers from other countries can have access directly for booking the hotel
benefits the brand.
Environmental:
Environment factors has massive effects on hotel. In context of Premier Inn there
business is mostly depend on travellers, countries that have sever weather conditions cause to
hotel customers due to lack demand of travellers.(Kamisywara, 2021) Government and
environmental activists put pressure on on hotel to ensure a minimal use of carbon footprint,
since the hotel consume massive amount of disposable items that cause serious concerns to
environment. Solution to this problem is to shift towards using more biodegradable items.
Legal:
Legal factors comply in UK to hotel industry, that is GDPR ( General Data Protection
Regulation) collect high volume of personal data from customers. USA has different data
protection laws against federal and state levels. In context of Premier Inn, company is taking
considerations of all laws in every countries that they operate in and following laws.
CONCLUSION
From the above discussion it concluded that Premier Inn hotel follow strategic operation
structure in organisation, as determines success and operating smoothly. From the business
environment analysis of the company with using of swot and pestle analysis, it is determines that
the firm has strong strength that give advantages in operating but there are some weakness to the
brand which they need to take necessary action against it. Several opportunities are there for
hotel to grab and consider them in operation with possibility of threats and risk for firm in future
upcoming which need to be taken care of by doing all in this in operating system the hotel will
ensure success in long term. At last from pestle analysis identify any future factors that can affect
the hotel, such as political changing of government rules and regulations, economic factors,

constant change of social trends in market, continue change in technology, environment factors
and legal laws and rules can severally affect the hotel in many ways. To protect from any factors
and Premier Inn is considering all factors in there operation.

REFERENCES
Books and journals
Beynon-Davies, P., 2021. Designing Organisation. In Business Analysis and Design (pp. 53-73).
Palgrave Macmillan, Cham.
Chiang, C.H.M., 2022. Molecular dynamics simulations on the principles governing
chromosome organisation.
George, R., 2021. Tourism and Hospitality Marketing Planning. In Marketing Tourism and
Hospitality (pp. 149-182). Palgrave Macmillan, Cham.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hassan, A., Roy, M. and Chowdhury, S., 2020. Ecotourism and Hospitality in Bangladesh: The
Application of PESTEL Analysis and Determining the Internal Factors. Tourism
Products and Services in Bangladeshconcept Analysis and Development Suggestions,
pp.181-215.
Kamisywara, H.A., 2021. Evaluasi dan Perkuatan Struktur Hotel Premier Inn di Surabaya
Akibat alih Fungsi Atap Menjadi Skygarden (Doctoral dissertation, Institut Teknologi
Sepuluh Nopember).
Niblock, T., 2018. The Shanghai Cooperation Organisation: Structure and Dynamics, and the
Role of Gulf States. Asian Journal of Middle Eastern and Islamic Studies, 12(4),
pp.401-420.
Online
Our business model and strategy, 2022 [Online] Available through; <
https://www.whitbread.co.uk/about-us/our-business-model/ >
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