Business Strategy

Topics: Hotel, Premier Inn, Whitbread Pages: 31 (4613 words) Published: October 13, 2014

Business Strategy
HND Business
Submission date: 11th May 2013

By: Angela McGowanStudent Reference: H1301100

Case Study
The company I have chosen to use for my assignment is Premier Inn. Premier Inn are a part of a multinational company called Whitbread PLC. Premier Inn started out as “Travel Inn” and the name was changed in 2007 after Whitbread purchased “Premier Lodge”. Premier Inn is now one of the largest and cheapest (budget) hotel’s in the UK. They also have hotels in India and the Arabian Gulf. They have over 600 hotels throughout the UK and Ireland. The hotel specialises in being cheap and of a high quality. The other companies that are part of Whitbread PLC are Costa, Beefeater Grill, Brewers Fayre, Table Table and Taybarns. Whitbread PLC are the largest hotel and restaurant group (Whitbread, 2011)

Task 1.1

We want to make our hospitality brands the best they can be by focusing on our customers and giving them just what they want”


We will grow legendary brands by building a strong customer heartbeat and innovating to stay ahead. Our winning teams make every day experiences special for customers so they come back time and again, driving profitable growth. Good Together helps us be a force for good in our communities.

Premier Inn will maintain its advertising expenditure both on TV and online. London is an important focus of our expansion and from our committed pipeline we expect to increase our presence from 7,225 rooms to over 10,500 rooms. We will broaden our presence with our pipeline of five hotels and then pursue a ‘capital light’ strategy. Goals

We trialled a new dual pricing structure with ‘Premier Saver’ rates (which are non-refundable and payable on booking) and ‘Premier Flexible’ rates (which are fully refundable and payable either on check-in or at booking). The dual pricing structure will be rolled out across the remaining estate in 2012/13. We will invest in our estate and are spending around £70 million refurbishing some 13,000 rooms over the two financial years to February 2013. We plan to open 4,200 new rooms during 2012/13. Together with the remainder of our committed pipeline of 6,300 rooms, this will take us to nearly 58,000 rooms putting us on track to achieve our milestone of 65,000 rooms by 2015/16. During 2011/12, we invested £4.4 million in Premier Inn International and expect to invest a further £10-15 million in 2012/13.

Whitbread’s core values (competences)
1. Genuine – really caring about customers
2. Confident – striving to be the best at what we do
3. Committed – working hard for each other

Task 1.2
The Strategic planning problems for Premier Inn are:

Internal analysis
Premier Inn have over 40,000 members of staff of whom they have to keep up the high levels of customer service and high quality service. As there are so many staff this could be impossible to ensure all are providing the high level of service they are known for. They use a team engagement survey which helps capture how staff feel and try and use this to defuse problems or develop action plans on ways of improvement. Some areas of concern were around skills development and now they have introduced various training courses to meet the staff needs. Premier Inn (Whitbread) also invest in leadership training to ensure the managers pro social model for their teams. Another area of concern was how they ensure staff at their international sites maintain their brand and continue to keep a high team engagement and drive high performance. Again training around this was put in place and experienced managers were sent abroad to ensure it was being carried out. Health & Safety

This area is around the cleanliness of the rooms in the hotels and other social gathering areas, as well as food hygiene. This also covers the safety of their customers whilst on their property....
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