Strategy Used By Premier Inn

Strategy utilise By necropsy hunting lodge atomic number 61 club is the UKs biggest and fastest growing hotel confederation, owned by Whitbread. And the company contri nonwithstandinges 70 of the total profits of Whitbread (Annual Report, 2009). As the hotel effort, the development of premier(a) inn is highly dependent on the macro-environment, especi exclusivelyy the tourism exertion. Indeed, hotel industry and tourism industry exhaust been so close that the following mortify in tourism later on the economical crisis has strong jolt on hotel operations. However, the British hotel industry has been suffered significant loss although it has manifested rec e verywherey during the previous years. coating year, the continuing crisis in global finance and trade has triggered the worlds worst economic plunge. UK unprecedented economic contraction was described by Sir Terry, Tescos chief executive, as low point. However, from the second half of year 2009, the UK economy appea rs to be in a slowly recovery. Companies have begun to hire and consumers seem to be increasing. This account foc uses on the strategies use by postmortem club in this situation. thusly we leave alone review these strategies, and recommend some resolutions to close the gap. The following persona leave alone overly use gent analysis to audit the macro-environment that post-mortem examination Inn is facing.2. Review on the Strategy Used by prime(a) InnIn this part, we will review the strategies that employ by necropsy Inn. And we will only focus on the market schema and run strategy.2.1 Marketing StrategyMarketing strategy is very cardinal and tear down could be the biggest factor in the success or failure of the company. atomic number 61 Inn likewise attached great importance to the marketing strategy. In this year, the company makes an additional 8 million pound in marketing investment (Annual Report, 2009).First, necropsy Inn has start out a commercialized act ion plan to enhance its status as the preferred hotel dent for travelers and to get in more leisure customers. They put in place tetrad key levers in their marketing plan focused advertising change magnitude sales activity post-mortem Offers and widening reservation distribution (Annual Report, 2009).Furthermore, the bracing website went live in November 2008 and has growingd visits by 80, and now the site helps to attract over three million visits per month (Annual Report, 2009).Third, phase modulation Inn has also set out development of a new 267 sleeping accommodation budget hotel at Stratford, which adjacent to the Olympic Stadium (Annual Report, 2009). It can be seen that Premier Inn has already prepared for the 2012 Olympic Games.2.2 Operating StrategyThis cover considers that direct strategies in Premier Inn are as followsFirst, Premier Inn has specific short and medium term growth platforms, which run employees a specific direction. For instance, the company des tinys to increase room numbers in November 2010 by over 2500 rooms and target a 32 increase to 55000 rooms in the UK by the end of 2014 (Annual Report, 2009).In addition, the Premier Inn has diminutiond the overheads instead of adopting streamlining management, promoting the back-office processes and delivering a serial of procurement initiatives. The company want to control cost tightly, through both procurement and operation efficiencies. And this helped hold its operation margin.Last but not the least, the Whitbread launched Good Together political platform in January 2010, to drive sustainable performance and further deepen its collective responsibility. This program has set goals for CO2 reduction, sustainable sourcing and waste management (Annual Report, 2009). Premier Inn also announced that they would build green hotel. The 60 bedroom Premier Inn, starting the business in autumn 2010, will use the best level sustainable construction materials to reduce 30 carbon emissi on and 40 water savings.3. Evaluation on the Strategy Used by Premier InnA PEST analysis is an line that classifies environmental influences such as governmental, economic, social and technological forces (Camisn, 2000). The analysis inspects the impact of each factors on the business (, 2009). The results can be used to inhibit the opportunities or to make contingency plans for threats when preparing business and strategic plans (Byars, 1991 Cooper, 2000). In this part, we will use PEST analysis to evaluation the strategy choose by Premier Inn. Owing to the limited understanding of the engineering science, we will focus on the political, economic and social factors. At the end of this part, we will give testimonial on the strategy used by Premier Inn.3.1 Political Factors regimen policy is a major influence factor its policy will influence the company directly and indirectly, but they also offer chances and challenges. after(prenominal) the global economic downturn in 2008, the political relation has issued a series of policies to boost economic growth. However, the policy aimed at hotel industry or tourism industry is very rare. just when the United Kingdom general pick of 2010 was held, the three parties all put forward many programs to promote the tourism industry. Meanwhile, the British Tourism Association and Hospitality Association has lobby the government to issues some policies that are positive to tourist industry and hotel industry. Besides, in 2009, blossoming Minister Gordon Brown offered the proposed program Low Carbon Industrial Strategy, which plans to go out more than 1.4 billion pound for the low carbon sector and those already adopted, and outlay 10.4 billion pound for low carbon investment over the next three years (Plesch, Austin Grant, 2005) .Based on these political factors, this paper considers that the strategies Premier Inn adopted are valid, especially the operating strategy. First, the operating strategy in Premier Inn is aggressive which unspoilt meet the political situation. Second, the Premier Inn has launched Good Together program which aims at CO2 reduction. These practices not fit the proposal the government advocated, but fit the societys environmental solicits.3.2 Economic FactorsEconomic factors influence how easy or hard it is to be successful and lucrative (Thompson, 2002). The UK government has held a earnest of external sporting events in 2009, such as the Ashes and the ICC World twenty dollar bill 20. These events may promote visitor numbers and then boost the hotel industry. In addition, the 2012 Olympic Games and Paralympic Games will hold in London. This will provide the Britain hotel industry with a huge chance.Obviously, Premier Inn has already seized the opportunity because it has already developed some hotel which is adjacent to the Olympic Stadium. And the new website will coquette a significant role in convenient the consumers. Actually, the marketing strategy that Premi er Inn adopted has already worked. From the annual report of the Whitbread, Premier Inn outperformed its competitors during October 2009. Regional income was down about 6.4 last year, compared to a decrease of 8.5 in the regional hotel sector and a decline of 9.6 in the whole regional hotel industry (Annual Report, 2009).3.3 Social FactorsSocial factors also play an important part in the development of enterprises. Living conditions, income distribution and lifestyle all have tremendous influence on the operating methods of enterprises. With the improvement of vivification conditions, people are willing to spend more money in enjoying life and choose to relax after working, because their work are so busy and they have rare spare time. Therefore, the service provided by upper-level hotels just meet the demands. But after economic crisis, the domesticated demand has been weak, and an increasing number of British people choose to travel alongside instead of domestic travel. These social factors are clearly not proceeds for the hotel industry.The marketing strategy Premier Inn adopted, as we described above, does not aim at this social situation. In the authors opinion, these strategies have more worry about the external market other than the domestic social conditions. But on the other hand, the increase in the number of non-profit environmental organizations indicates that publics aesthesia to environmental issues has significantly increased. The society has become more anxious and precise about the environmental practices of firms. Good Together program of Premier Inn not only shows the efforts made in environmental protection, but also enhances the corporate image and upgrades its enterprise competitiveness.3.4Technique FactorsTechnology is widely recognized as an important competitive advantage (Chu Choi, 2000). As the hotel industry, technique factor seems have little relationship with the hotel development. But sometimes new and proper technology could provide unexpected harvest.From the strategy we mentioned above, Premier Inn have adopted the new website that now attracts over three million visits per month. Moreover, the company has used streamlining management to reduce the internal cost.In general, we think the strategy used by Premier Inn is very appropriate under the occurrent situation. But the problem is that it is too much reliance on the international tourist industry. Once the outbreak of the economic crisis, this mode of operation is very dangerous and company may get into trouble. Actually, the domestic business and collection market is a buoyant sector for hotel (1996) meanwhile the economic drowsy recovery will help to stimulate the hotel market. So Premier Inn should make some strategies to attract these potential consumers. To serve these high standards clients, Premier Inn should offer amenities services to meet the highest requirements. High tonicity and multi-functional rooms equipped with latest com munication facilities, such as online 3D conference, will be very attractive. In details, based on what the man of affairs needs may different from the common consumers, the quick and facility services are obligatory to them. Such as the office supplies, fast printers and warm laundry facilities are all very important to these consumers.4. ConclusionIn this paper, we focus on the strategies used by Premier Inn after the serious economic crisis. The article mainly analyzes the marketing and operating strategies with PEST analysis in the current situation. In general, we consider that Premier Inn has adopted appropriate strategies to boost its development. But the problems in the strategies were pointed out that the company has not paid enough attention on the domestic market. In the authors opinion, Premier Inn should pay more attention on its domestic market.