Premier Inn: PESTLE, SWOT, Trends and Industry Analysis Report

This report offers a comprehensive analysis of the Premier Inn hotel chain within the contemporary hospitality industry. It begins with an introduction to the hospitality sector, defining its key components and highlighting its rapid growth. The report then employs a PESTLE analysis to examine the political, economic, social, technological, environmental, and legal factors influencing Premier Inn. A SWOT analysis is conducted to evaluate the company's strengths, weaknesses, opportunities, and threats. The report also explores current trends in the hospitality industry, such as virtual tours, advanced technology, and the increasing number of international visitors, and how Premier Inn is adapting to these trends. The conclusion summarizes the findings and emphasizes the industry's contribution to economic growth and the importance of skilled personnel. References to relevant academic articles are included to support the analysis.

Contemporary
Hospitality Industry

Table of Content
 Introduction
 PESTLE Analysis
 SWOT Analysis
 Hospitality Trends
 Conclusion
 References

INTRODUCTION
Hospitality industry term can be defined as service industry which includes
transportation, cruise line, event planning, theme park, lodging and
additional field within the tourism industry. It is the fastest growing sector
across the globe and includes pubs, hotels, contract catering, restaurants and
other hospitality sectors. This report is based on Premier Inn which is a
British hotel chain in UK. Company was founded by Whitbread in the year
1987

PESTLE Analysis
PESTEL analysis (Political, economical, social, technological, environmental
and legal) is carried out in two the organization ( Premier Inn and
Marriott) so that market scenario can be carried out easily and effective
strategies can be farmed. The PESTEL analysis of Premier Inn are
explained as follows:

PESTLE analysis
Political factor: Political factor includes tax policies,trade restrictions,
foreign trade policy, consumer protection laws etc. framed by the
governing bodies. Premier Inn gets affected by the political factor due to
which productivity decreases as well as profitability(Putra and Liu, 2017.)
Political factor: Political factor plays a vital role in the growth and
development of the business across the globe. Bureaucracy, tax policy,
etc. are some of the political factors which affect the Marriott decision
making process in every aspects. In order to attain set objectives firm need
to examine political factor respectively.

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Economical factor: The economic factor also affected the industry as in the year
2008 the economic crises arises in the UK due to which rates of the hotels came
down in the market. Premier Inn was benefited by the disaster and firm was
able to satisfy the customers’ needs in the market due to which profits
increased.
Economical factor: In order to explore business at global level company need to
follow economical factor in effective manner. Some of the economical factor
are, tax rates, interest rates, wages etc. which affect Marriott decision making
process at a large scale. By evaluating this forces smooth running of business
can take place.

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Social factor: In the cut throat competitive world social factor are greatly
affecting the business profitability ratio in the market. On seasonal
holidays like, Easter, bank holidays and Christmas customers like to spend
huge money on this particular time duration. So firm make tactics to attract
customers towards their services.
Social factor: To raise the goodwill in the eyes of the customers social factor
is must to adopt. Religion, beliefs, cultural taboos, traditions etc. are forces
which affect the business growth and expansion activity. By carrying out
this activities sales ratio can be raised and profits can be maximized.

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Technological factor: More uses of internet browsing and computers has
increased the visibility and ease of use of Premier Inn in the market. Due
to which more customer base increased and profitability ratio increased.
Technological factor: Marriott is adopting modern tactics to attract customers
towards their services. The facilities of providing online booking aid the
firm to raise sales ratio at a rapid scale. It directly leads to increase in
productivity and profitability ratio.

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Environmental factor: The natural resources should be used in effective
manner with less or no wastage so that environment does not deplete.
Company should use the process of recycling in the market so that brand
recognition can be increased in the eyes of the customers.
Environmental factor: To run the business for longer time duration in the
competitive world environmental factor must be carried out effectively and
efficiently. Raising temperature, pollution etc. are environmental forces
which affect the business growth and development.

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Legal factor: In the current market scenario the government has raised the
wages of the employees. So Premier Inn need to pay wages or salary to the
staff members according to this standards. Also, health and safety laws
need to be followed by the company so that working can be done smoothly
(Radojevic and Stanic, 2015).
Legal factor: This plays a significant role in the competitive world. In order
to retain skilled employees for longer time period legal factor must be
carried out in the firm. Securities act, employment act, consumer
protection act, etc. some of the examples of legal factors.

SWOT analysis of both organisation
Premier In and Marriott uses SWOT analysis to estimate threats and
weakness so the step to remove that can be taken and also increasing
value of strengths.
SWOT of Premier In:
STRENGTHS
The hotel is a UK's largest brand having 50000 rooms and more and
approximately 700 hotels which makes them well established brand.
They offer various offers to their customer and best deal in online booking
which makes hotel attractive .

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WEAKNEESES
Premier In:
They are not globally well known as they only possess international
hotel chain.
The competition is very high for this brand which result in low margins
as price need to be adjusted according to competitor.

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OPPORTUNITIES
Premier In:
This hotel brand is making tie up with other reputed hotel brand which
makes them more stronger in competitive environment.
The hotel is more investing in digital marketing which result in higher
publicity because this is a digital era and almost population is
connected digitally.

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THREATS
Premier In:
The hotel provides rooms to guest without viewing the activities which
makes it more risky for the hotel as if anything goes wrong it will directly
impact the hotel.
The hotel has threat from the backpackers hotel as they provide facilities at
very cheaper rate which may attract guest more and the hotel will lose
their guest.

Current trends in hospitality industry
Current trends: In an organization current trends are carried out in so that
huge number of customers can be build for the service. The various current
trends are explained as follows:
Virtual tour: By this huge number of attracted for the services and are
making up their mind travel across the globe. By this trend organization
are farming effective tactics so that customers does not switch to other
brand. Also set objectives can be achieved accordingly.

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Advance Technology: In today's world customers want everything in their
phone. Before confirming the booking customers want all the relevant
information in their official websites. From room rates to food and
beverages offered to them in the market place. Organization adopts
current trends in their working premises so that visitors can be attracted
for the service and product.
Trends evaluator:
By following currents trends prevailing in the market administration is able to
build potential customers for their services for longer time period.

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International visitor: In the 21st century many customers urge to visit
other countries so number of international visitor is increasing
accordingly. However, Premier Inn discovered their services in different
languages to customers so that diversified people can enjoy their services
. Example: Premier Inn recruit those employees which are able to
communicate in more than one language so that quarries of the
customers can be resolved (Liang and Lin, 2017).

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Technology: To be successful in the market firm need to use modern
technology in order to meet the demand. Moreover, in existing scenario
large number of customers are self-sufficient and friendly with
technology. Premier Inn implement high technology in their working
premises so that more customers can be attracted. Example: Premier
Inn is providing high speed Wi-Fi services inside all whole
infrastructure of organisation so that working activities can be carried out
easily and smoothly (Wang, 2016).

CONCLUSION
From the above it can be concluded that different types of businesses in
hospitality industry is helpful in binding customers for longer time
duration towards their services. Organization is contributing in growth and
development of the nation at all levels like, local, nation and international
due to which living standards of the people are raising accordingly in the
market. Business associates look into various skills before hiring
participants in the industry so that effective results can be achieved.

References
Claveria, O., Monte, E. and Torra, S., 2015. A new forecasting approach for the
hospitality industry. International Journal of Contemporary Hospitality
Management. 27(7). pp.1520-1538.
Huang, J., Li, W., Qiu, C., Yim, F. H. K. and Wan, J., 2016. The impact of CEO
servant leadership on firm performance in the hospitality industry. International
Journal of Contemporary Hospitality Management. 28(5). pp.945-968.
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry:
Some personal reflections on corporate challenges and research agendas.
International Journal of Contemporary Hospitality Management. 28(1). pp.36-
67.

Thank-You