Premier Inn Hotel Case Study: Business Environment, SWOT, and PESTLE

This case study provides a comprehensive analysis of the Premier Inn Hotel, focusing on its organizational structure, business environment, and strategic positioning. The study employs SWOT and PESTLE analyses to evaluate the hotel's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, legal, and environmental factors influencing its operations. The case study explores the impact of COVID-19 on the hotel's performance and identifies key challenges and opportunities. It also examines the hotel's brand reputation, competitive landscape, and strategies for customer satisfaction. The analysis includes an overview of Premier Inn's financial performance, market position, and adaptation to changing consumer behaviors. The conclusion summarizes key findings and offers insights into the hotel's future prospects within the hospitality industry.

Premier Inn Hotel Case Study

Contents
Introduction:....................................................................................................................................2
Organisational Structure of Premier Inn Hotel................................................................................2
Business Environment Analysis of Premier Inn Hotel:...................................................................4
SWOT Analysis...........................................................................................................................4
Strengths:.................................................................................................................................4
Weaknesses:.............................................................................................................................4
Opportunities:..........................................................................................................................4
Threats:....................................................................................................................................5
PESTLE Analysis:.......................................................................................................................5
Political Factors:......................................................................................................................5
Economic Factors:...................................................................................................................5
Social Factors:.........................................................................................................................5
Technological Factors:.............................................................................................................6
Legal Factors:..........................................................................................................................6
Environmental Factors:............................................................................................................6
Conclusion:......................................................................................................................................6
References:......................................................................................................................................7

Introduction:
An organization is a commercial enterprise that causes pollution in economic, technological, or
commercial methods to generate profits for its investors and shareholders. Businesses do not
operate in a vacuum; rather, they operate in a dynamic market that has a substantial impact on
their activities and abilities to achieve their goals. The tourism business provides us with
relaxation, convenient housing, and many other daily amenities. A touristic destination is an area
where people gather to socialize. There are Premier Inn Hotels across the region. Luxurious
vacations provide superior amenities. Premier Inn is the UK's biggest hotel brand, with over 800
properties across the UK and overseas. After a couple of nights, Premier Inn becomes a feasible
option. Each organization has somewhat different ways of explaining its clientele. The author of
this essay will emphasize the organization's strengths and weaknesses and primary business
considerations. Almost As a general rule, most businesses employ some framework for
describing their consumer base. SWOT analysis can also be used to determine the inn's strengths,
weaknesses, opportunities, and threats when analyzing its COVID-19 problem. Moreover, a
business problem can be described via using PESTLE Analysis. The investigation may also
yield solutions for mitigating the outbreak's harmful effects.
Organisational Structure of Premier Inn Hotel
A business framework is an essential structure for the operating strategies that guide an
organization or corporation. Organizational culture, long-term goals, and operational efficiency
all factor into the framework selection process. To operate at its best efficiency, it must establish
a systematic and organized framework of activities, processes, etc. While assessing a hotel's
performance, you have the option of exchanging information with other guests. It is necessary to
refine the hotel's essential functions on a routine basis and enhance revenue in each room, dining
hall, and club (Carzo & Yanouzas, 2017). Furthermore, due to many people in the gathering,
they would not have been able to interact effectively with one another in this situation. At the
Premier Inn Hotel, there's a lot of stuff going on at once. Staff members are allocated a variety of
roles. Employees are regularly watched to ensure that they can carry out their responsibilities
successfully and appropriately. Because of the global organizational hierarchy of Premier Inn

Hotel, it is easier for companies to retain a tight grasp on their commercial operations. The
associate director is in responsibility
Figure: Organizational Structure of Premier Inn.
even if it appears that the head of marketing is, in fact, the inn's senior executive while the brand
manager isn't in the office. Sales and marketing managers in the hotel sector are responsible for
increasing the establishment's revenue by devising programs to boost occupancy and ensure the
most efficient use of the establishment's accommodations, meeting spaces, and recreational
amenities (Lee, 2017). The Food and Beverage Manager oversees ensuring that all the food and
beverages served are of the best possible quality. In addition, food and beverage managers are
responsible for developing distinctive menus, responding to client complaints, developing
business rules, and ensuring that food and safety regulations are followed. Simply said, they
perform better because they are aware of their obligations and authority at the Premier Inn Hotel
and are encircled by individuals who work for the organization. As a result, it appears that the
inn's operations have become more profitable and significantly less unpleasant because of this.

Business Environment Analysis of Premier Inn Hotel:
Business environments include a wide range of factors, such as the competition, the shareholder
group, the consumer, the government, the political and economic elements, and technological
advances. Hospitality is affected by additional factors (Subba Rao, 2018). Every facet of a firm's
culture and climate is affected by people, money, international affairs, and ideologies.
SWOT Analysis
This framework is used to evaluate the strengths, weaknesses, opportunities, and dangers that
exist in your hotel's operations. Inspections indicate the distinguishing characteristics of the case
authors who contributed to the study (Yu & Huimin, 2017). When combined with the
information offered in this research, these methods can be used to increase hotel capacity during
an outbreak.
Strengths:
This hotel seems to be the most cost-effective. By a wide margin, Premier Inn is currently the
cheapest option. Unfortunately, Covid19 has had such a negative influence on the hospitality
industry. This hotel's operations have descended into chaos, yet it still needs to be corrected. In
2015, Premier Inn had 60,990 rooms available. There are expected to be 24,000 spare rooms by
2020. There would be a total of 85,000 different guest apartments built. Premier Inn has a strong
brand reputation. Best UK Economy Hotel Brand for seven years running. And the organization
has garnered honors from more prestigious bodies in the UK.
Weaknesses:
Management must take extra precautions due to the virus Covid19. Workers at Premier Inn
utilized pads and tampons to repair and sanitize all the other restrooms. They were utilized to
manage and sanitize all toilets at Premier Inn. Urgent action is required on corporate sanitation.
To keep their offers consistent, they must address the major faults.
Opportunities:
Unlike the Bohemian market, where Premier Inn has long had a foothold in Ireland, Starbucks
Corporation is anticipated to be significant in Ireland. Some features have contributed to
advancements in their guestroom design. Some items have upgraded their spatial arrangement

and design. In 2018, a leasing deal was awarded for the total repair of marble flooring, along
with the elimination of flammable materials.
Threats:
Days Inn Worldwide, Inc., Travelodge Hotels Ltd., and ACCOR are three of Premier Inn's main
rivals in the United States market. There is a lot of overlap between their style of management
and their objectives (Yu & Huimin, 2017). Premier Inn faces a major challenge from Marriott's
smaller but less well properties. Even in the middle of this epidemic, the hotel is having a blast.
PESTLE Analysis:
Many elements influence the hotel company's sustainability. The hotel and travel industry is
hampered by legislative changes, serious competitive rivals, and unpredictable weather.
Continue reading this PESTLE hotel sector study to learn more (Marmol et al., 2017). Using this
method, economic issues affecting Premier Inn Hotel in various markets are identified.
Government, financial, cultural, technological, regulatory, and ecological factors are assessed.
Political Factors:
A wide spectrum of political factors includes tax policies, environmental laws, trade restrictions,
and taxes. All Premier Inn's properties are located throughout Europe. The hotel industry's
revenue may be affected by recent changes to legislative requirements. Following recent
regulatory developments, hotel income patterns may be altered. The Premier Inn Hotel is
primarily to blame for declining profits (Marmol et al., 2017).
Economic Factors:
The Great British Economic Recession of 2008-2009 destroyed the country, providing
significant challenges for businesses; yet Premier Inn was the first to benefit from the collapse.
As indicated by the Premier Inn LTD accounting period, the company's profit in the United
Kingdom for 2009 was the highest in the previous five years, totaling £174,753 billion feet, the
greatest in the previous five years. The financial situation of the company may also have an
impact on the choices of hotel customers because of its purchasing practices.
Social Factors:
Included in the social issues are cultural traditions and expectations as well as health and safety
concerns. The Premier Inn Hotel puts in a deal of time and resources to fulfil the demands of a

wide spectrum of guests, and it shows. Premier Inn Hotel must operate best to fulfil different
types of customers. However, environmental measures have been a subject of concern and
controversy.
Technological Factors:
Technology elements include manufacturing techniques, data and knowledge assets, production
logistics, advertising, and online technology. These have a significant impact on how an
organization runs, sells its products, communicates with, and collects information about
consumers, vendors, and rivals. Computers, web browsing, and television advertisements are
being used by Premier Inn to promote its brand (Strangmueller, 2020). People's geographical
positions, technological connections, and interpersonal ties can now be discovered via social
media. A lot of money must be spent on new equipment if it intends to offer something different.
Legal Factors:
Changes in laws affecting employment, availability of raw materials, tariffs, assets, import and
export, and revenue are all examples of legal variables that can affect the economy. In a specific
country, Premier Inn's regulatory environment is determined by legislation, whereas companies
are controlled by their own set of norms. Each country where Premier Inn Hotel now operates
has its own set of rules and regulations. Premier Inn Hotel is required to take actual possession of
the property and maintain it in immaculate condition to do this.
Environmental Factors:
Choosing a hotel depends on the conditions in the area where a consumer will be staying. Hotel
owners can't manage this, but they should be aware of the cyclical variances before valuing their
rooms and adjusting their rates accordingly (Strangmueller, 2020). Management must take
environmental factors into account when dealing with financial transactions for Premier Inn. In
the wake of natural calamities, the hotel has had to alter its schedule. The company has lost a lot
of money.
Conclusion:
To effectively assess a corporation, a specialist needs to have a full awareness of the company's
features and data. When studying an industry, the purpose, advantages and disadvantages,
problems, and behavioral characteristics of the industry must all be taken into consideration. The

emphasis is on the power of words in relation to key issues. According to a study on the 'SWOT
matrix of Premier Inn,' Premier Inn should strive to promote the minimal cost hotel industry in
the United Kingdom. A very well business global expansion strategy that places a strong
emphasis on client expertise has resulted in the company's expansion. This organization offers a
wide range of slightly higher indulgences for those who prefer to travel in style. The "Pestle and
Mortar Analysis of Premier Inn" reveals that the business will continue to be dominant in the
United Kingdom's posh hotel industry. Consumers from all over the world have been known to
visit the hotel because of its reputation for providing high-quality products and services. In
contrast, Premier Inn Hotel has provided all required information about the uniqueness of its
services through a variety of media, which has attracted many customers to the brand. Using the
SWOT and external analysis tools, examine the retail activities of the Premier Inn Hotel and
decide whether certain elements have a good or negative impact on their business model. The
findings of the investigation could aid in the development of strategies for reducing the negative
consequences of this virus.
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