AB388H1 - Premier Inn: Analysis of Contemporary Hospitality

This report examines the challenges and trends within the contemporary hospitality industry, using Premier Inn as a case study. It identifies operational issues such as employee turnover, rising operating costs, and the impact of natural disasters, as well as managerial and financial issues. The report also addresses legislative issues affecting Premier Inn, including alcohol licensing, food safety, and anti-discrimination laws. Furthermore, it explores current trends in the hospitality industry, such as mobile-enabled management, electronic check-ins, and an increased focus on content marketing and social media integration. Potential developments, including the growth of boutique hotels and advanced technologies, are also discussed. The report concludes by highlighting the impact of these trends and developments on customer demand, e-hospitality, customer loyalty, and resource utilization, emphasizing the need for innovation and quality in the face of economic pressures.

Contemporary Hospitality Industry: Case
of Premier Inn

Operational issues affecting Premier Inn
Employee turnover • High labour cost connected with
employee turnover;
• More money spend on the activities of
advertising, hiring and training of new
employees.
Operating costs • Cost involved in upgrading with
changing technology;
• Premier Inn required to change its
equipment's to make their system
compatible with new technology
(Jones, 2002).
Natural disaster • The hotel if faced with any natural
disaster including earthquakes and
hurricane then take several years to
rebuild (Sigala and Baum, 2003).

Managerial issues affecting Premier Inn
Financial issues Staff delegation Capital
employment

Legislative issues affecting Premier Inn
 Alcohol licensing;
 Food and drink safety;
 Anti discrimination;
 Inform about allergies;
 Customer protection and trade practices;
 Legal work permit of all the workers;
 Health and safety;
 Environment;
 Gaming;
 Workplace relations;
 Employees compensation (Graci and Dodds, 2008; Butler, 2008).

Current image of the hospitality industry
 More emphasis on lobbying of the hotel;
 Mobile-enabled management at the front desk;
 Electronic check-ins;
 Renewed focus on property websites;
 Quality food
 Great emphasis on content marketing;
 Social network integration;
 Embarking visual media;
 Increasing international visitors (Gaggioli, 2015; Sanghi, 2014).

Potential trends and developments in
hospitality
Trends
• No smoking in pubs, restaurants
and other hospitality sectors;
• Gluten free products;
• Special day offer;
• Attractive discounts;
• Healthy foods;
• Free Wi-Fi;
• Active on social media sites;
• Comments cards;
• Upgraded facilities and amenities
(Buhalis and Costa, 2006).

Contd.
Developments
More boutique
hotels
Development of
mega hotels
Increasing
salaries and
facilities to
employees
Hotels and bistros
with advanced
technologies

Impact of trends and developments
 Successful fulfilment of international and domestic customers demand;
 E-hospitality;
 Increasing customer loyalty;
 Brand power;
 Diversified clientele base;
 Increasing foreign investors;
 Innovative services;
 Additional value;
 Easy adaptation of technology;
 Better utilisation of resources (Graci and Dodds, 2008; Barrows and Powers, 2008).

Conclusion
The hospitality industry is facing many challenges due to changing
industry trends and facing external environment pressure to deliver
innovative services and quality products. The customers belts are also
narrowing with the on going fragility of UK and European economies
and due to the government austerity measures impact.

References
 Jones, P., 2002. Introduction to hospitality operations: an indispensable guide to the industry. Cengage Learning EMEA.
 Sigala, M. and Baum, T., 2003. Trends and issues in tourism and hospitality higher education: Visioning the future. Tourism
and hospitality research, 4(4), pp.367-376.
 Graci, S. and Dodds, R., 2008. Why go green? The business case for environmental commitment in the Canadian hotel
industry. Anatolia, 19(2), pp.251-270.
 Butler, J., 2008. The compelling “hard case” for “green” hotel development. Cornell Hospitality Quarterly, 49(3), pp.234-
244.
 Gaggioli, A., 2015. Hospitality Industry Trends to Watch in 2016. [Online]. Available through:
<https://www.cloudbeds.com/articles/hospitality-industry-trends-to-watch-in-2016/>. [Accessed on 25 March 2017].
 Sanghi, M., 2014. 6 Hospitality Industry New and Current Trends You Should Know. Hotelogix. [Blog]. 6th February.
Available through: <http://www.hotelogix.com/blog/2014/02/06/6-hotel-industry-trends-you-should-know-about/>.
[Accessed on 25 March 2017].
 Buhalis, D. and Costa, C., 2006. Tourism management dynamics: trends, management and tools. Routledge.
 Graci, S. and Dodds, R., 2008. Why go green? The business case for environmental commitment in the Canadian hotel
industry. Anatolia, 19(2), pp.251-270.
 Barrows, C.W. and Powers, T., 2008. Introduction to Management in the Hospitality Industry, Study Guide. John Wiley &
Sons.