Business Development Case Study: Premier Inn's Strategic Analysis

This case study examines the Premier Inn hotel chain, a leading entity within the Whitbread PLC group, and the largest hotel chain in the UK. The study begins with an introduction to Premier Inn's operational scope, highlighting its extensive network of hotels and its commitment to providing quality services. It then delves into the organizational structure of Premier Inn, followed by a comprehensive SWOT analysis, identifying the company's strengths, weaknesses, opportunities, and threats. This analysis covers aspects such as brand awareness, customer satisfaction, market competition, and potential risks. Further analysis involves a PESTLE analysis, evaluating the political, economic, social, technological, legal, and environmental factors impacting Premier Inn's business operations. The case study explores the influence of governmental regulations, economic cycles, social trends, technological advancements, and environmental considerations on the hotel chain's strategic decisions. The document concludes with a summary of the key findings and insights from the analyses, emphasizing the importance of strategic management in the hospitality industry.

Case Study – Premier
Inn Hotel Chain

Contents
Introduction ............................................................................................................................ 3
Organizational structure of Premier Inn..................................................................................3
SWOT Analysis if Premier Inn................................................................................................3
Strengths............................................................................................................................ 3
Weaknesses ...................................................................................................................... 4
Opportunities...................................................................................................................... 4
Threats................................................................................................................................ 4
PESTLE Analysis of Premier Inn............................................................................................5
Political factors....................................................................................................................5
Economical factors ............................................................................................................. 5
Social Factors ....................................................................................................................5
Technological Factors ........................................................................................................6
Legal factors....................................................................................................................... 6
Environmental factors.........................................................................................................6
Conclusion ............................................................................................................................. 6
References ............................................................................................................................ 7

Introduction
The company, Premier Inn belongs to the Whitbread PLC, a British hospitality expert
company. It is united kingdom’s largest hotel and hospitality chain which has been operating
almost 800 hotels in United Kingdom and beyond. The premier Inn is a great company in UK
providing a great exposure in hotel industry. The company provides quality food and very
comfortable and home like rooms to their consumers. Premier Inn is need to have a thorough
SWOT study (Premier Inn SWOT) to survive in the hotel industry. Its objective is to look at
Premier Inn's strengths and flaws. It also tries to investigate some of the prospects for further
growth that the hotel should consider, as well as the threats to which it should pay attention in
order to devise appropriate measures. By 2012, the company hopes to be the largest budget
hotel chain in London. More hotels are being planned in other countries, so for such purpose
the company need to do a PESTLE analysis(Saudi, 2021). PESTEL Analysis (Political,
Economic, Social, Technological, Environmental, and Legal) is a tool that business managers
use to analyse these essential variables. It is extremely beneficial in the development of
strategic decision-making abilities.
Organizational structure of Premier Inn
The Premier Inn Premier Inn is the largest and fastest-growing hotel firm in the United
Kingdom and Ireland, with approximately 650 hotels providing high-quality facilities at low
rates. Whitbread is a globally spread hotel, coffee shop, and restaurant company with the
largest shares in its respective industry. Premier Inn is the largest hotel chain in the United
Kingdom, with almost 40,000 rooms and 578 locations. At first, the prime Inn's name was
'Travel Inn,' and the company was founded in 1987. Premier is owned by Whitbread, whose
main aim is to provide best quality eat, sleep, and drink throughout its entire operation. The
Premier Inn as competition with Lord Forte's Travelogue brand. The company contributes to
the 70% of Whit bread's total earnings. The majority of Premier Inn hotels are located in city
centres or along major highways. They are uncommon in free way rest stops. Premier Inn
offers restaurants and a bar because Whitbread was once a brewery.
Premier Inn is a hotel chain is located in almost 500 locations across the United Kingdom and
Ireland. This means that Premier Inn hotels can be found all around the United Kingdom.
They may be found in almost all of the UK's cities and towns. Premier Inn is also usable to a
many of the major tourist attractions. They can also be seen at some of the airports and

seaside places. They're also close to important highways (Dalirazar, 2020). These hotels all
haveuncertainty.
 Guest-Centric Technology
 New Guidelines
PESTLE Analysis of Premier Inn
Political factors
 The hotel sector is mostly regulated by the government. For example, if the ruling
political party imposes a travel ban, the tourism and hotel industries will suffer a lot
immediately. A country can lose the great majority of its economy because of this one
decision.
 Many governments still implement rules that work in favour of the hotel industry.
Terrorist assaults in high-profile hotels, however, have recently being recognized as a
threat to the sector (Buye, 2021).
Economical factors
 The amount of revenue which is obtained from tourists and foreign businessmen is
affected by the exchange rates, as a weaker pound may attract more visitors to the
UK.
 The impact of the economic cycle on the business is very concerned topic. For
example, the recession of 2009 affected many industries, including the hotel industry,
as a result of this, people attempting to minimise expenditures and unnecessary
expenses.
 Interest rates have a lot of different effects on the business organization. The low
interest rates encourage cheaper market while this will encourage saving, which will
work as a boost to consumer spending to support companies like Premier Inn.
 The most economical and crucial factor of economy is unemployment, the higher the
unemployment rate, the worse it will be for businesses as there would be very fewer
individuals would left with spare income to spend on hotels.
Social Factors
 Recommendations: The general public has their own perceptions and opinions about
their experiences with the company Premier Inn, which is an important part because it

can lead to either favourable or negative outcomes, just like anyone recommending or
complaining to others.
 Partnership: The company usually collaborate with other firms to form a business-to-
business partnership that makes sure their consumers have a pleasant experience.
 Employees: Members of the company, Premier Inn is giving great service to hotel
guests.
 Premier Inn is very promising to their community, has given 10,000 new jobs in the
UK, 10,000 school placements (hotels and restaurants), and 60,00 apprenticeships,
with a aim of raising $5 million for charity (Teoli, 2019).
Technological Factors
 Due to the the positive and great impact of technology in today's culture, Premier Inn
has started to provide its consumers the choice of searching on-line rather than calling
or visiting the organization. They have eased the website users by making its website
more user-friendly, the company even has produced apps for smartphones and are
also trying an Android version.
 Even they provide Wi-Fi, whose free connection is limited for 30 minutes per day.
Customers have to pay for additional time based on the length of stay, for example, 1
week = £10 , which would fulfil the specific consumer base requirements. For
instance, work-related.
 Overall, they have had to keep up with today's latest technologies in order to meet
customer demands. If the company will not be upgraded and innovative, they will be
on the verge of failing.
Legal factors
 Changes in the legal environment can have an important influence on Premier Inn as
they can change the operational activities of the firm. For and instance, the tax rules in
the country such as increase in the value added tax from 17.5 to 20% stating that the
average middle-class household will spend £600 per year, or £2.13 more for every
pound spent. In the result of this, people of the country have fewer spare cash and
must look out for cheaper housing (Berry, 2018). This has negative consequences since
it may reduce foreign visitors and UK-based guests which will lead to the raise in
taxes and makes the UK the EU's third highest rate of value added tax in hotels.

 The Data Protection Act of 1998 is another example.
 1974 Occupational Health and Safety Act
 Order on Credit Cards, 1990
 1988 Regulations on Furniture and Furnishings (for Fire and Safety)
Environmental factors
 To become an environmentally friendly firm, Premier Inn has created a initiative
namely called “Good Together initiative”. In order to create positive publicity around
and the consumers, the company must be known as a socially responsible firm. To
reduce water flow, the company has to reduce the paper usage, install energy-saving
light bulbs, and install water-efficient showers in the organization and the
organizational activities.
 The respective company's sourcing strategy needs suppliers to stick to internationally
recognised labour rights norms, along with fair compensation, which will benefit the
community (Stverkova, 2018).
 Good Together (Team and Community, Customer Well-Being, and Environmental
Management) take care of the long-term social and environmental matters in the
organization at present and future.
Conclusion
The company Premier Inn hotels are administrated by the globes strategic partnership
firms and Whitbread PLC, which is United Kingdom's biggest hospitality organization. The
strategic management helps the organization to gain popularity in the hospitality industry.
The Premier Inn hotels are managed by the strategic management by too global companies
and Whitbread PLC, the largest hotel and hospitality management in the United Kingdom.
This also contributes in the companies brand image success over the globe. The company
provides hotels at budget with restricted features, which enables the consumers to pay less.
Even when the hotel prices and rates are less, they provide good quality services and surpass
the industry standards. The respective company is the one with restrictively limited services
but with affordable price for its guests. The company need to treat their weaknesses in order
to out stand the hotel's image and grow well in the market. a restaurant or bar on the
premises. Breakfast, lunch, and dinner are all freshly made, as well as drinks. Premier Inn and
Whitbread are known for their drinks.

SWOT Analysis if Premier Inn
The Strength, Weaknesses, Opportunities and Threats (SWOT) analysis of Premier Inn is
explained below : -
Strengths
 Whitbread Corporate Group owns a strong business foundation since back to
centuries (i.e., from 1742)
 With 590 cheap hotels in the industry, it is the united kingdom's largest and fastest
expanding hotel chain.
 Owns many awards as hotel chain.
 The company have 75% of the population of the United Kingdom lives within five
miles of a Premier Inn.
 The company has brand awareness
 Customer happiness and comprehension are the priority.
 Wide supply and distribution network
 the company is also providing advanced reservation systems for customers
 has supply chain that is automated and technologically advanced
 Customer-focused service and social concerned and responsible
 Limited worldwide expansion of firm that is why more concentrated on the UK
market
 Low-cost marketing and promotional efforts
Weaknesses
 Gaining small margins due to intense brand competition
 International hotel chains have more complex global presences.
 Due to some gaps in the company's product line (Frue, 2020), the scarcity of options may
let a new competitor to get a stronger foothold in the market.
 The company's profitability ratio and Net Contribution Percentage are lower than the
industry average.

Opportunities
 The company is more concerned in making more collaborations.
 The company is investing in digital marketing.
 Increasing brand value with the help of consumer interaction.
 Premier Inn can use the new technology to implement a differentiated pricing strategy
in the new market. This will allow the company to keep its existing consumers
engaged by providing excellent service while also attracting new customers through
additional value-oriented propositions.
 Because of a government agreement, thanks to the adoption of new technology
standards and a government free trade agreement, the corporation has been able to
access a new emerging market.
Threats
 The shortage of skilled workers is a threat for profit and growth in such markets.
 The diverse regulations and constant fluctuations in product standards in those areas,
the corporation may face lawsuits in numerous markets.
 Experienced personnel are in short supply.
 Consumer Risk Perception.
 As preferring long term, new technologies produced by a competitor or market
disruptor can cause a severe danger to the hotel sector (Ramanadham, 2019).
 The Sharing Economy.
 Consumer Demands Are Constantly Changing.
 Travelling internationally is full of uncertainty.
 Guest-Centric Technology
 New Guidelines

PESTLE Analysis of Premier Inn
Political factors
 The hotel sector is mostly regulated by the government. For example, if the ruling
political party imposes a travel ban, the tourism and hotel industries will suffer a lot
immediately. A country can lose the great majority of its economy because of this one
decision.
 Many governments still implement rules that work in favour of the hotel industry.
Terrorist assaults in high-profile hotels, however, have recently being recognized as a
threat to the sector (Buye, 2021).
Economical factors
 The amount of revenue which is obtained from tourists and foreign businessmen is
affected by the exchange rates, as a weaker pound may attract more visitors to the
UK.
 The impact of the economic cycle on the business is very concerned topic. For
example, the recession of 2009 affected many industries, including the hotel industry,
as a result of this, people attempting to minimise expenditures and unnecessary
expenses.
 Interest rates have a lot of different effects on the business organization. The low
interest rates encourage cheaper market while this will encourage saving, which will
work as a boost to consumer spending to support companies like Premier Inn.
 The most economical and crucial factor of economy is unemployment, the higher the
unemployment rate, the worse it will be for businesses as there would be very fewer
individuals would left with spare income to spend on hotels.
Social Factors
 Recommendations: The general public has their own perceptions and opinions about
their experiences with the company Premier Inn, which is an important part because it
can lead to either favourable or negative outcomes, just like anyone recommending or
complaining to others.
 Partnership: The company usually collaborate with other firms to form a business-to-
business partnership that makes sure their consumers have a pleasant experience.

 Employees: Members of the company, Premier Inn is giving great service to hotel
guests.
 Premier Inn is very promising to their community, has given 10,000 new jobs in the
UK, 10,000 school placements (hotels and restaurants), and 60,00 apprenticeships,
with a aim of raising $5 million for charity (Teoli, 2019).
Technological Factors
 Due to the the positive and great impact of technology in today's culture, Premier Inn
has started to provide its consumers the choice of searching on-line rather than calling
or visiting the organization. They have eased the website users by making its website
more user-friendly, the company even has produced apps for smartphones and are
also trying an Android version.
 Even they provide Wi-Fi, whose free connection is limited for 30 minutes per day.
Customers have to pay for additional time based on the length of stay, for example, 1
week = £10 , which would fulfil the specific consumer base requirements. For
instance, work-related.
 Overall, they have had to keep up with today's latest technologies in order to meet
customer demands. If the company will not be upgraded and innovative, they will be
on the verge of failing.
Legal factors
 Changes in the legal environment can have an important influence on Premier Inn as
they can change the operational activities of the firm. For and instance, the tax rules in
the country such as increase in the value added tax from 17.5 to 20% stating that the
average middle-class household will spend £600 per year, or £2.13 more for every
pound spent. In the result of this, people of the country have fewer spare cash and
must look out for cheaper housing (Berry, 2018). This has negative consequences since
it may reduce foreign visitors and UK-based guests which will lead to the raise in
taxes and makes the UK the EU's third highest rate of value added tax in hotels.
 The Data Protection Act of 1998 is another example.
 1974 Occupational Health and Safety Act
 Order on Credit Cards, 1990

 1988 Regulations on Furniture and Furnishings (for Fire and Safety)
Environmental factors
 To become an environmentally friendly firm, Premier Inn has created a initiative
namely called “Good Together initiative”. In order to create positive publicity around
and the consumers, the company must be known as a socially responsible firm. To
reduce water flow, the company has to reduce the paper usage, install energy-saving
light bulbs, and install water-efficient showers in the organization and the
organizational activities.
 The respective company's sourcing strategy needs suppliers to stick to internationally
recognised labour rights norms, along with fair compensation, which will benefit the
community (Stverkova, 2018).
 Good Together (Team and Community, Customer Well-Being, and Environmental
Management) take care of the long-term social and environmental matters in the
organization at present and future.
Conclusion
The company Premier Inn hotels are administrated by the globes strategic partnership
firms and Whitbread PLC, which is United Kingdom's biggest hospitality organization. The
strategic management helps the organization to gain popularity in the hospitality industry.
The Premier Inn hotels are managed by the strategic management by too global companies
and Whitbread PLC, the largest hotel and hospitality management in the United Kingdom.
This also contributes in the companies brand image success over the globe. The company
provides hotels at budget with restricted features, which enables the consumers to pay less.
Even when the hotel prices and rates are less, they provide good quality services and surpass
the industry standards. The respective company is the one with restrictively limited services
but with affordable price for its guests. The company need to treat their weaknesses in order
to out stand the hotel's image and grow well in the market.
References
(Books and journals)

Saudi, M.M., Ahmad, A., Liki, M.N.M.M. and Husainiamer, M.A., 2021, December. Risk Management Using
PESTLE: External Factors Trigger COVID-19 Transmission. In 2021 International Conference on
Intelligent Cybernetics Technology & Applications (ICICyTA) (pp. 34-39). IEEE.
Dalirazar, S. and Sabzi, Z., 2020. Strategic analysis of barriers and solutions to development of sustainable
buildings using PESTLE technique. International Journal of Construction Management, pp.1-30.
Frue, K., 2020. PEST analysis ultimate guide: Definition, template, examples. PESTLE Analysis.
Buye, R., 2021. Critical examination of the PESTLE analysis model. Action Research for Development:
Research Gate.
Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
Berry, T., 2018. What is a SWOT analysis. B Plans. Accessed October, 10.
Stverkova, H. and Pohludka, M., 2018. Business organisational structures of global companies: Use of the
territorial model to ensure long-term growth. Social Sciences, 7(6), p.98.
Ramanadham, V.V. ed., 2019. Public enterprise: studies in organisational structure. Routledge.