1.1Background information
Premier Inn is the one of the UK’s hotel brands.(Whitbread, 2014) As indicated on the Whitbread website Premier inn has been consistently rated the UK’s best value hotel chain by Yougov with over 670 hotels and more than 55000 rooms across the UK and Ireland. It is one of the most recommended budget hotels in the UK offering quality comfortable rooms and friendly service to customers. Premier inn caters to everyone so whether you are staying for business or leisure you will always be welcome. Premier inn has expanded to countries like India and Dubai.
1.2 Factors that affect the operation
Although premier inn is the leader in the UK hotel market it faces competition from other budget hotels. Its main competitor
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The success of any business is a result of the interaction between the two major factors. The ability to use its internal resources which are the inputs. In terms of Premier Inn; the hotel rooms have to be clean and in ready for the guest to check in to them. The team members have to friendly and welcoming to the guests and making sure they are well looked after.
2.2 The 4 V’s volume, variety, variation, and visibility
Although operations processes are very similar in the way they transform inputs, they differ in four ways which are the four V’s. Volume is the number of products offered. The hotels are made from accurate volumetric prefabrications. The rooms are designed for single occupancy as well as families. There is a medium to high repetition of tasks which allows for specialisation in hospitality. Everything has to be done systematically for example in terms of the check in process or cleaning of rooms.
Variety are the different range services offered. Premier Inn offers a variety of rooms. The rooms are arranged in various configurations to suit the needs of a particular site. The rooms are designed to be attractive, functional and comfortable. They are designed in such a way that they are easy to get around for maintenance purposes and to make easy for the guest. All of the rooms are have the same furnishings this includes a double bed, a sofa which can be transformed into a sofa bed if need be, a
One of the hotel policies for Premier Inn is that the guests must check out of their room before 11am and checking in is at 2pm. That gives housekeeping time to clean and prepare the rooms for the following guests. However it is also hotel policy to never turn a guest away no matter what time they leave or arrive. So the procedure is that if the guest arrives too early we first check in to see if there are any clean and ready that they can be checked into. If there are then the guest can be asked to complete the relevant forms and settle the payment then go to the prepared room. If the room is not ready then the guest will be invited to complete their paper work and then wait in the food court next door and then the receptionist will call them when a room is ready. It is important to follow the procedures because that is how a business upholds its standards. Failure to follow the procedures might lead to different levels of service that will cause confusion to the guests and staff alike. Dissatisfied guests are a result of differences between the ‘styles’ of service provided by various members of the same team in a company.
This report will be providing a detailed analysis of the existing Budget Hotel market, and how to improve the competiveness of the Travelodge UK, the second largest Budget Hotel chain in the United Kingdom, Second Premier Inn. This report will contain the following, a profile of the organisation’s current target market, which will include demographic, psychographic, geographic and behavioural variables. That will then be followed by a well-referenced and well-researched PEST analysis that will highlight the most important and relevant factors that could have an impact on the business. Once the pest analysis has been completed, the report will be concluded by recommended changes to the marketing
InterContinental Hotel Group is a hotel company with over 350,000 employees working in 100 countries. It has over 5,000 hotels globally. One of IHG’s brand is the Holiday Inn, the Holiday Inn’s international headquarters are in Americas, Europe and Australasia. In London, UK, there are 72 hotels with the Holiday Inn or Holiday express brand. The InterContinental Hotel Groups structures their business into sections depending on what the hotel’s aims are. For example, the Holiday Inn Resort is abroad with outdoor swimming pools, it’s a very holiday place when you can spend 1-2 weeks there where the Holiday Inn is a place to stay over for one night or even the weekend. These two hotels have the same brand but different aims.
Strengths: - it is told in the background of the company that the Holiday Inn brand is a firmly established hotel and industry leader in hospitality. Holiday Inn vary its range of products ,expanding its operations rapidly in the high end, business and middle classes in their product
Premier Inn is the name of a British Budget Hotel chain running the largest hotel brand in the United Kingdom. Hotel chain is running 690 hotels with more than 50,000 rooms built in different countries. The hotel chain listed in London Stock Exchange in 1987 with brand name of “Whitebread” and started trading of its services under the chain of “Travel Inn” in order to compete with travellodges. Business operation of Premier Inn is not only limited to city centers but also covering suburbs and airports locations Hotel chain is following the expansion and acquisition policies since the time of its inception and acquired hotel chain named as Premier Lodge in 2004 (Whitebread, 2013). This acquisition increased the number of hotels and the profit as well. Premier Lodge was running with 141 hotels and contributed 70% of the total profit of “Whitebread”. Target market of the hotel chain is not only the leisure visitors and families but also the world business class seeking countless business and travel facilities. Award winning business services, comfortable sleep on king size beds and delicious breakfast are further adding value for the hotel chain while elevating the status of Premier Inn to be the first choice of families and business class to take their stay decisions at Premier Inn. The ambitious and high paced profitable progress of the Hotel chain is opening new ways of expansion and development. The hotel chain is therefore, planning to increase around 45% i.e. 75,000 rooms
is one of Canada’s top hoteliers in the mid-market, owning interests in 16 hotels in Canada and the United States. Furthermore NGI is in ownership of 2,200 rooms in 17 hotels across Canada and the United States. The Company is expert in all facets of the hotel business, from marketing to building to management. Focused on creating the best return and value for all stakeholders, Northampton’s market-sensitive strategy is to acquire or build hotels that provide great value and superior accommodation. Gratefully, NGI excels in this sector by offering services that exceed expectations while still posting industry-leading margins. Besides acquiring and developing undervalued and underutilized hotel assets, NGI also provides superior overnight accommodations at mid-market prices. This has been done through aggressive marketing, re-branding and ongoing hotel upgrades.
In 2008, Manmohan Shetty, Director of Business Development for Days Inn Worldwide Inc., described the hotel industry as a monopolistic competition because it has the following attributes: many sellers, differentiated products, multiple dimensions of competition, and easy entry of new firms in the long run.
Intercontinental Hotels Group – It is British company and the most profitable among the four industry leaders. It owns, manages, leases and franchises approximately 3,741 hotels in approximately 100 countries as of 2006. It ranks number one in gross margins (54%), operating margins (24.7%) and earnings per share ($2.10) even if it’s smallest in the strategic group. It appears to be the cost leader among the big four companies in the industry.
Growing at an annual rate of approximately 2-3%, the industry is divided into four tiers, consisting of budget/economy, mid-scale, first-class and luxury. Though there are countless hotels around the globe, the major players in the industry are the 10-12 parent companies that operate a chain of hotels, often with brands that are spread across the four tiers. In addition to international players, each tier also contains an abundance of smaller hotels that competes in its respective tier .
The above graph shows the competitive market between China Lodging Group (HTHT) versus Hotels and Motels market which includes lodging industry at large. From the analysis of the data above, the current situation in China lodging industry is still dominated by five-star hotels.
Having just analyzed the general environment surrounding the upscale and luxury hotel industry, the next step in determining whether such an industry is attractive or not is to conduct an in depth external analysis of the threats and opportunities facing the industry. Thanks to the help of Michael Porter and his Five Forces Model, this analysis is not nearly as difficult or as time consuming as it may seem. According to Porter, there are five forces which determine the competitive intensity and therefore attractiveness of a market. These forces include the threat of entry, the threat of rivalry, the threat of substitutes, the threat of buyers,
Secondary research shows us that Ibis has a fairly respectable reputation in the UK, serving as a low profile hotel chain. A study found that over 60% of customers thought their experience was either excellent or good, with around 6-8% finding their experience either poor or unsatisfactory (Mintel 2009). Moreover, further research shows that Ibis shares a similar correlation to the ‘average’ budget hotel, scoring slightly under-par with regards to friendliness. The hotel suffers from a lack of stand-out feature, as the ‘Mintel Budget Hotels - UK - August 2009’ report points out, “Ibis ... has no particular brand identity of its own” (Mintel 2009).
With multiple hotels cost can be quite high due to expenses such as food and upkeep of the hotels.
In this case, the operating environment for Elite Hotel run in Azerbaijan is like that it is a newly independent republic country which formerly part of the Soviet Union and situated between Iran and Turkey. It is a lowly economic developed country but recently Western oil companies are looking for inward investment in the
Service is the most important aspect when it comes to handling a hotel. A hotel’s main objective is to provide the best service and tend to all of the guests’ needs and requirements. If there is no service then there would be no business. When running a business, the costumer is always placed first. Poor services can results in a complaint from a guest. But that complaint can be used to better the business in the future.