Premier Inn: Business Environment, SWOT, and PESTLE Analysis Report

This report provides a comprehensive analysis of the Premier Inn hotel chain, examining its organizational structure, business environment, and strategic positioning within the hospitality industry. The introduction outlines the company's history, from its establishment by Whitbread to its current status as a leading hotel chain. The report delves into the organizational structure, highlighting its vertically integrated model and its competitive advantages, including customer experience and capital returns. It further investigates the business environment through SWOT and PESTLE analyses. The SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats, considering brand recognition, service quality, economic conditions, and the impact of the pandemic. The PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors influencing Premier Inn's operations, such as government policies, economic trends, social changes, technological advancements, legal regulations, and environmental concerns. The conclusion summarizes the key findings, emphasizing the company's growth, strategic adaptations, and market position. The report draws on academic sources to support its analysis.

BUSINESS

TABLE OF CONTENTS
INTRODUCTION.....................................................................................................................................3
An Enquiry of the Organizational Construction of the Premier Inn hotel................................................3
The Investigation of the Business Environment Scenario of the Premier Inn..........................................5
SWOT analysis....................................................................................................................................5
PESTLE Analysis of the Premier Inn..................................................................................................6
CONCLUSION..........................................................................................................................................7
REFERENCES..........................................................................................................................................9

INTRODUCTION
The structure of an organsiation depends upon the functioning of the business. The
considerations regarding the influences affecting the enterprise such as the outliers of the
business environment and other important factors (Abardeh, 2022). The scrutiny of the external
factors helps in the analyzing the situations related to the operations of the modern business
functions. This report will examine the organizational structure of the most prominent chain of
hotels situated in the United Kingdom i.e., the Premier Inn hotels. This particular company was
established by Whitbread in order to compete against the Travelodge in the year 1987. Later, it
was merged with the Premier Lodge in the year 2004 and renamed as Premier Inn in the year
2007. The company further has planned to operate approximately 85000 bedrooms in the state
capital. The major locations, where the company has established a reputed name in the market
are, Ireland, UAE, Qatar and Germany. The study will highlight the analysis of the business
environments through the utilization of the market analysis tools such as the SWOT and
PESTLE models. This will help in understanding the actual position of the Premier Inn in the
market place.
An Enquiry of the Organizational Construction of the Premier Inn hotel.
The model used by the company has provided them with a competitive advantage over
the rivalry present in the dynamic market. this has enabled the company to stand on the number
one position in the hotel chain industry. The structure that has been considered is a vertically
integrated model which tends to set apart the functioning of the hotel in an exclusive way. The
combinations of the ownership of the property, the operations taking place in the hotel, the name
of the brand and the distribution channel being utilized has secured a vital position which has
helped in the development of the chain at a faster pace. This has ensured in the achievement of
the superiority in the customer experience along with generating strong returns on the capital in
the past 15 years.

Figure 1 Integrated model
The impact of the pandemic has severely shocked the hospitality sector and thus with the
introduction of a strategic plan of action by the Premier Inn has helped in sustaining the
shareholder value for a longer period of time (Atasoy, Türkay and Şengül, 2022). The plan has
focused over achieving the determined standards through number of considerations such as:
 Focusing over the tactics to grow and bring out new innovative leverages in the market to
promote the gains.
 The concentration over the strengths of the structural opportunities for the overall growth
in the hotel industry.

 Enhancement in the profit recovery ratios to ensure the long-term survival in the market,
The responsibilities assigned to the managers in a definite manner has helped in the management
of the quality that has been provided to the customers. The principles designed for the
functioning has secured the vision and the values the Premier Inn exhibits in the market.
The Investigation of the Business Environment Scenario of the Premier Inn.
The scrutiny of the commercial situation is indeed necessary for the insights in order to
examine the influential factors and constituents that affects the functioning of an establishment,
the trends or the issues faced by the company, through the analysis, helps the mangers to
measure the hindrances in an operative method to form a proposal of deed accordingly (Cross
and Carbery, 2022).
SWOT analysis.
The businesses and the operations of the Premier Inn has a severe influence over the
functioning of the company. There is an imperative to need to highlight the key considerate
points such as the Strengths, Weaknesses, Threats and the Opportunities present in the business
environment.
STRENGTH
 The recognition of the brand in the
prime locations of the world has
helped in the survival of the company
even under the crucial time period of
the Covid-19.
 The level of the services provided by
the chain has helped in securing a
potential network in the market.
WEAKNESS
 The budget constraint must be
acknowledged to enable the less
privileged sections of the society to
enjoy the premium facilities provided
by the Premier Inn.
 The maintenance of the workforce is
another aspect has to consider while
ensuring the quality of the products as
well as the service s by the Premier
Inn
OPPORTUNITIES
 The fresh prospects in terms of the
situation of the pandemic has provided
the organsiation to grab the best out of
THREATS
 The prevailing economic conditions
has severely affected the profit margin
of the Premier Inn.

it to ensure the smooth functioning of
the chain of the hotel (Huang and
Hands, 2022).
 The promotional facets of the
company can help in developing a
name in the other regions of the world
as well.
 The key areas related to the economic
policies must be taken into
consideration to avoid the
circumstances that can affect the
financial position of the company as a
whole.
PESTLE Analysis of the Premier Inn
There are significant facets that can influence the direction and procedures of an
association. Unexpected Variations in Tax, Nuisance of Laws, Growing or Plummeting Trade
Blockades, Social and Demographic Endlessly disparities in Radical Milieu and Administration
Strategies are a share of the vigorous occurrences. These evolutions could transport specific
optimistic up-sides along with rebuffs for respective businesses. PESTLE analysis is a maneuver
which is generally intricated by corporate directors for the examination of these rudimentary
variables (Kaliappen and Hassan, 2022). It is exceptionally useful for improvement of vital
direction. The Premier Inn's analysis of the PESTLE is elucidated further to distinguished the
dynamic factors that are involved in the macro-economic environment.
 POLITICAL - Optimistic and common-sense facilitated exertion with UK Government
has brought Hospitality Industry into key accomplishment area of monetary improvement
in UK. This is an incredibly consoling variable for Premier Inn for expansion of their
monetary arrangement dwelling organizations. With this creating interest of the area, they
are making gigantic augmentation of their associations. This can help the Premier Inn
with secures what is happening in the market to expand its business in various regions as
well.
 ECONOMICAL - The continuous improvement in supply and market volume has
extended stunningly as driving chairmen are taken part in a hurried scramble for market
strength. World over the movement business and amiability region is delivering an
always expanding number of advantages. In like manner, the continuous money related
slump could be a huge justification for stress for friendliness region (LIN and Sykuta,

2022). The money related slump has hurt people from shifting foundations and
convincing them to be more mindful in spending.
 SOCIAL – The everchanging inclinations of individuals has increased the expectation of
life and assumptions for regular solaces has brought various social and social changes all
around the planet. People really focus on unambiguous models which influences their
choice, for instance, the loyalty towards the brand, geographic incorporation of the
housing, reservation courses of action and the centralisation the organization follows
(Méndez‐León, and et. al., 2022). Boss Inn is based on client fulfilments and keeping on
reviving their business methodology with changing social characteristics and client
tendencies
 TECHNOLOGICAL - Development is one of the variables that could directly affect the
business errands. The exercises of hospitability do exclude raised level of development
and the point of convergence of advancement is monetary arrangement motel region is
clearly associated with availability of electrical machines and openness of IT
organizations for comfort of clients.
 LEGAL - The most reduced pay allowed by regulation rate has been extended 15.5% by
UK Government (Low Pay Commission Report National Minimum Wage, 2009) that
would costs an extension in working cost of expenditure plan lodgings. This would blow
up cost of creation which hampers the methodology to offer genuine expenses for clients.
 ENVIRONMENTAL - The thought of environment and social commitment are
considered as the centre period of client's tendencies and suppositions. The strong
highlight on Corporate Social Responsibility (CRS) is one of the huge focus abilities of
Premier Inn (Oruc and et. al., 2022).
CONCLUSION
An inference can thus be made that the growth of the Premier Inn is experiencing a sharp
rise in the hotel industry. The impact of the Covid-19 ahs somewhat affected the functioning of
the company but the strategies that are being adopted by the organsiation has affluence the
market positioning and thus helped in coping up with the prevalent conditions of the market. the
factors that need to be consider are significant been taken care of which has provided an aid in
the operations of the administration and the management of the company as a whole.

Furthermore, the examination of the macroeconomic constituents will help the venture to certain
the steps that ahs to been taken to avoid the crucial impact of them over the business of the
Premier Inn. thus, the company has secured a reputed position in the market which thereby helps
in making it to the charts of the country.

REFERENCES
Books and Journals
Abardeh, H.C., 2022. Finding a Path to Success for the Hilton Atlanta Downtown Hotel. SAGE
Publications: SAGE Business Cases Originals.
Atasoy, B., Türkay, O. and Şengül, S., 2022. Strategic responses of chain hotels to COVID-19
from a situational crisis communication theory perspective. Journal of Hospitality and
Tourism Insights.
Cross, C. and Carbery, R., 2022. Organisational Behaviour. Bloomsbury Publishing.
Huang, Y. and Hands, D., 2022. Organisational Complexity and Change by Design. In Design
Thinking for New Business Contexts (pp. 53-76). Palgrave Macmillan, Cham.
Kaliappen, N. and Hassan, A., 2022. Digital Trends in Asian Hotel Industry. In Technology
Application in Tourism in Asia (pp. 147-163). Springer, Singapore.
LIN, S.C. and Sykuta, M.E., 2022. Maximum or Minimum? Strategic Patterns of the Lodging
Industry. Strategic Patterns of the Lodging Industry (May 18, 2022).
Méndez‐León, and et. al., 2022. Towards a holistic framework for sustainable value analysis in
business models: A tool for sustainable development. Business Strategy and the
Environment, 31(1), pp.15-31.
Oruc, R., and et. al., 2022. Modeling of environmental effect factor and exergetic sustainability
index with cuckoo search algorithm for a business jet. Aircraft Engineering and
Aerospace Technology.