How to write PESTLE Analysis of Premier Inn. Premier Inn is one of the key Whitbread PLC brands, which include other names such as Costa Coffee, Taybarns, Fayre Brewers, and Beefeater Grill. Premier Inn is a leading UK hotel brand with more than 590 budget hotels, with an occupancy rate above 80 percent.
Some macro-environmental elements might impact companies’ decision-making and strategy. Therefore, the PESTLE analysis will help analyze the Premier Inn’s external environment.
Political factors. The government has considerable control over the hotel industry. The hotel and tourism industries are always on a threat of travel prohibitions. Hoteliers fear presidential elections because a new President may quickly replace the previous President’s legislation with his own ideals. Tax reforms might help the sector as a whole if hotels pay reduced taxes, which could lead to luxury and high-quality hotels investing the saved capital in the development of more guest rooms.
Economic factors. For worldwide investors, the hotel business is one of the largest investment industries. Economic fluctuations may impact the desirability of a holiday destination. The hotel business is one of the most economically sensitive industries since it passes through the earliest cycles and is first. Low-interest rates promote cheaper debt and discourage savings, in order to try to boost consumer spending that might assist firms like the Premier Inn.
Social factors. Airbnb is the largest competition for the hotel sector since it offers a wide range of rooms at significantly reduced costs. Premier Inn is working towards the community, offering new employment frequently and contributing consistently to society by establishing schools, training courses and raising donations for charity.
Technological factors. It has become crucial for Premier Inn to take advantage of increasing social media and internet technologies. In social media, the location, internet browsing and community groups of people can be targeted easily and cost-efficiently. A possible threat to the increasing use of existing communication technologies reduces the need for business travels.
Legal factors. Adjustments in the legal system can have an enormous impact on Premier Inn since they can influence the management of the firm. If a hotel is close to an area with high crime rates, crime might impact hotel revenues. Acts on the truth-on-the-menu demand that foodstuffs be honest with calories in good and nutritional recipes.
Environmental factors. The effect of global climate change on Premier Inn can be very significant. The Good Together program of Premier Inn is a project aimed at making the organization ecologically sustainable. In order to decrease wastage of natural resources, the firm has installed energy-saving lights & water-efficient showers. They have also eliminated paperwork and their sourcing policy requires that suppliers have to satisfy globally accepted labor rights norms, including fair compensation for the benefit of the community.