Premier Inn Hotel: Macroeconomic, SWOT, and Trend Report

This report provides a comprehensive analysis of the Premier Inn hotel chain, focusing on its position within the contemporary hospitality industry. It begins with an introduction to the hospitality sector, followed by an examination of the macro environmental factors (political, economic, social, technological, environmental, and legal) impacting Premier Inn's development. The report then conducts a detailed SWOT analysis to evaluate the hotel's internal strengths and weaknesses, alongside external opportunities and threats, and how these factors influence decision-making processes. Furthermore, the report identifies and discusses current and potential trends in the hospitality industry, such as technological advancements, health and wellness focus, and the rise of luxury accommodations, and assesses Premier Inn's ability to adapt to these trends. The analysis concludes by summarizing the key findings, emphasizing the interplay of external factors, internal capabilities, and industry trends in shaping Premier Inn's strategic direction and future growth prospects.

THE CONTEMPORARY
HOSPITALITY INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 3.................................................................................................................................................1
P6. Macro environmental factor that affect the development of Premier Inn Hotel...................1
P7. SWOT analysis of Premier Inn Hotel and its impact on decision making process..............3
LO 4.................................................................................................................................................4
P8. Current and potential trends in the hospitality industry........................................................4
Conclusion.......................................................................................................................................5
REFERENCES................................................................................................................................1

INTRODUCTION
Hospitality industry is one of the most flourishing industries in the world. The hospitality
industry include various businesses like; hotels, restaurants, bars and clubs, contract catering, etc.
the study will be based on Premier Inn Hotel which is UK's largest and fastest growing hotel
chain that established in 1987 with more than 700 hotels and 50,000 rooms. This report will
evaluate external and internal environmental factor that affect growth of premier inn and its
decision making process as well as it will determine current and potential trend in the hospitality
industry and it will appraise the ability to implicate the trends in the hotel.
LO 3
P6. Macro environmental factor that affect the development of Premier Inn Hotel
Macro environmental factors exist in the economy as whole (Pestle Analysis, 2018). It
includes; political, economical, social, environmental, legal and technological factors that affect
organisation's day to day operations, decisions and development of the Premier Inn Hotel in the
hospitality industry.
(Source: PESTLE Analysis, 2018)
Political
Premier Inn Hotel is an international hotel chain and exist in various country, various
government policies of different countries or region and political changes can affect the
1
Illustration 1: PESTLE Analysis Model

development of hotel. For example; the terrorism act affect the density of visitors in UK that
affect the performance and growth of Premier Inn (Li, Wang and Yu, 2015). Moreover, internal
politics of UK is also impacting organisation's development.
Economic
The performance of economy of the particular country have direct effect on Premier Inn.
It includes economic growth, inflation, taxation changes, exchange rates, etc. Also, consumer's
spending power affect growth of the industry. If guests accommodate in hotel, they are able to
pay more and demand more services that means hotel will grow.
Social
Demand of organisation's services and products were effect by changes in social factor
(Lopes, 2016). It is essential for the hospitality industry to provide variety of options from food
to services to room according to consumer's preferences and taste. Nowadays people are more
materialistic and have high standard of living that can be a major reason of development and
growth of Premier Inn. Change in lifestyle, fashion, culture can affect consumer buying
behaviour and it makes impact on organisation growth.
Technological
For sustainable growth, innovation and development in technology is important to meet
all the need of customer as well as staff members. Consumers also prefer hotels which are
integrated with technology. The infrastructure of Premier Inn creates a positive impact on guests
which results in rapid growth of the industry. They are potential for innovation and implemented
advance techniques in hotel that have positive impact on organisational development (Oke and
et.al., 2016).
Environmental
This factor include; climate changes, waste management, environmental taxes, recycling
programs, etc. The strong emphasis on corporate social responsibility is core competency of
Premier Inn. They have major participation in waste management and environmental protection.
Organisation growth is dependent on environmental stability and proper management.
Legislative
Legal factor include; laws and regulations in UK, tax related activities, health and safety
laws, employment law, etc. Changes in UK rules and regulations have direct impact on the
business (Phadermrod, Crowder and Wills, 2019). As Premier Inn is hotel chain across the globe,
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thus restriction rules on visa affect international visitors. Moreover, organisation's performance
and its growth is directly affected by employment laws and consumer protection laws. It is
important for the industry to avoid legal issues and maintain high standard.
P7. SWOT analysis of Premier Inn Hotel and its impact on decision making process
Strength
 Premier Inn is most profitable hotel
chain in UK with £468 by the year of
2018.
 The established brand image is their
strength ((Bull and et.al., 2016)).
 It is UK's largest hotel brand with 700
hotels and more than 50000 rooms.
Weakness
 Linear marketing strategy is weakens of
the Premier Inn Hotel.
 In compare to other market giants,
global presence of Premier Inn is not
elaborated as they operate in very
limited number of countries (Policy,
2016).
Opportunities
 They are very successful in advertising
as well as they provide various seasonal
offers for the consumer, so they have
opportunity for more investing in
digital marketing and build brand value
through consumer experience
(Radojevic, Stanisic and Stanic, 2015).
Threats
 Increase in terror activities and other
environmental issues affect tourism,
that is the biggest threat of Premier Inn.
 Competitors like Travelodge Hotel,
ACCOR are threat for the industry.
SWOT analysis is an analytical tool that help organisation in their decision making
process and strategic planning. On the basis of analysis of strength, weakness, opportunities and
threats, manager of hotel should take effective decision to overcome the threat and weaknesses
and utilize strength efficiently in the industry.
Hotel Premier Inn is well recognised hotel brand and is very successful in advertising
strategy that can affect decision making process of the hotel and they should utilize their strength
in strategic planning regarding marketing or promotion (SWOT Analysis, 2018).
Their less global presence affect brand image and it is recommended to the hotel that
with growth and success they should expand the hotel chain in more countries to beat the
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competitors and increase global presence. Competitors can affect the decision making process
and growth of the organisation, their marketing strategy and proper understanding of consumer's
need and preference can beat the competition.
They can't control terrorism activities but they can ensure their customer's safety and
security to overcome the threat (Dcosta and McDonough, 2015). The technological advancement
is their strength and it can be used in safety of the guests and for the seamless services.
Marketing strategy can be increase consumer attraction and it can enhance their
engagement with the hotel, so they can provide more offers based on consumer and market
segmentation rather than just seasonal offers to their consumer. Various effective strategies of
the hotel can affect consumer's decision making process as well. For consumer satisfaction staff
should treat them well with a good smile and positive attitude and personality.
LO 4
P8. Current and potential trends in the hospitality industry
The trends and fashion is changing very rapidly and with the changing environment
consumer's preferences and demand also fluctuate. The hospitality industry is very wide and it
includes; hotels, bars, clubs and pubs, restaurants, etc. different type of hospitality industry have
different current trends. Following are the current and potential trend in hospitality industry:
Need for seamless technology
Current technological advancement reshape the hospitality industry and it is a very
important trend (Bull and et.al., 2016). In today's digital world people are getting tech savvy day
by day. Many hotels providing online booking services as well as online payment. The trend is
become so fast in technology, as there are various check-in cubicles in many hotels, even mobile
apps are also developed and use in mobile check-in.
Increase emphasis on health and well being
Current generations are become more health conscious and now more concentrate on
their food, their demand is also based on their eating behaviour. It is important for the hotels or
restaurants to serve according to their consumers preferences. Most hotels have gym and yoga
centres, vitamin- infused shower facilities for their guests. Many luxurious and premium hotels
also provide in-room exercise equipments.
Luxury is on the rise
4

Stay in luxury hotels is becoming trend nowadays. It can be because of; changes in their
spending power, social status, change in staying behaviour, etc. From a research it was analysed
that consumers are spending money than ever before to stay in premium hotel (Li, Wang and Yu,
2015). From this factors most of the hotels divert in luxury and providing premium services.
M5
Premier Inn is five star luxury hotel brand in UK and it is financially and strategically
capable to develop new product and services according to consumer's need and preferences.
Although, they do not have leisure facilities in their hotel and are planning to provide some
leisure facilities to fulfil their consumer satisfaction. The food menu have a proper section of
healthy food for the health conscious consumers. They are looking forward for more
technological advancement in their marketing activities or strategies to meet consumer need.
Moreover, hotel already adopt most of the trends to stay on top from its competitors and it
mainly focused on to develop new products and services to meet consumer's need and
expectations.
Conclusion
From the above study it was concluded that Premier Inn hotel was affected in positively
as well as negatively by various factors such as; terrorist activities, political instability, economic
condition of the country as well as of consumers, technological infrastructure. These factors
affect development or growth of the hotel. The internal capabilities was also determined by
analysing strength, weakness, future opportunities and possible threat and it was determined that
it can affect organisational decision making process. It was also concluded that there are various
things, services, etc. are in trend in hospitality industry such as; technological advancement,
luxury conversion, health and well being, etc.
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REFERENCES
Books and Journals
Bull, J.W. and et.al., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT analysis
of the ecosystem services framework. Ecosystem Services. 17. pp.99-111.
Li, X., Wang, Y. and Yu, Y., 2015. Present and future hotel website marketing activities: Change
propensity analysis. International Journal of Hospitality Management. 47. pp.131-139.
Lopes, M., 2016. The hospitality industry (Doctoral dissertation).
Oke, A.O. and et.al., 2016. Consumer behavior towards decision making and loyalty to particular
brands. International Review of Management and Marketing. 6. pp.43-52.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management. 44. pp.194-203.
Policy, P., 2016. What is pestle analysis.
Radojevic, T., Stanisic, N. and Stanic, N., 2015. Ensuring positive feedback: Factors that
influence customer satisfaction in the contemporary hospitality industry. Tourism
Management. 51. pp.13-21.
Dcosta, A. and McDonough, M., 2015. Components of a PESTLE Analysis.
Online
PESTLE Analysis. 2018. [Online]. Available through:
<https://www.business-to-you.com/scanning-the-environment-pestel-analysis/>
SWOT Analysis. 2018. [Online]. Available Through:<https://www.toolshero.com/strategy/swot-
analysis/>