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Competitor Analysis on Premier Inn, Travelodge & Holiday Inn

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by

Amina Hatim

on 20 December 2013

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Transcript of Competitor Analysis on Premier Inn, Travelodge & Holiday Inn

Introduction

Gain an understanding of the nature of the budget hotel market.

The competitive strategies used by the organsations.

Present findings of SWOT & PESTLE Analysis.
Business Strategy
Competitor Analysis on

Premier Inn, Travelodge &

Holiday Inn

Presented By: Amina Hatim
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
A Strong brand recognition.

75% of the UK population live within five miles of a Premier Inn, (Endpoint,2013).

Constant exploitation of investment opportunities within the UK.

Business Account Scheme which delivers efficient online services.
Consumers may associate Premier Inn to be a budget hotel that offers rooms at the price of £29.

Lack of additional business support facilities within the rooms or hotels.

Lack of brand affinity built with leisure travelers.
Holiday Inn have a strong loyalty program that extends to all brands, (IHG, 2013).

Holiday Inn are introducing a new concept for guests in-hotel experience known has the 'hub of activity', (Continuum , 2013).

Travelodge could be considered more of a budget hotel chain because their prices reflect this.
Develop and create a differentiated loyalty programme.

Encourage business travelers to stay as leisure travelers.

Lack of additional facilities that cater for business travelers.
Conclusions of PESTLE Analysis
Cost Leadership
Differentiation
Cost Focus
Differentiation Focus
(Porter, 1985)
Lower Cost
Differentiation
Narrow
Competitive Advantage
Conclusions
Reference List
Sustainability is increasingly seen as a prominent factor in hospitality decision making but is not fully embedded in business thinking.
The way of communication is changing to web based techniques , through increased used of social media.
Increased interest rates have led the hospitality industry to adapt quickly and effectively to the sensitivity of prices within the market.

The recent economic recovery in the UK has been fundamental in job creation.
Rapid technological developments are embedded in the consumer travel experience.
To stand out in a price-driven market Premier Inn are able to compete beyond price and location.

Understanding internal and external factors will determine how successful an organsation.

Fundamental to understand what a particular brand stands for.


Carbon Trust ( 2012) Driving sustainability in the hospitality sector [Online]. Retrieved from: http://www.carbontrust.com/media/5892/cts289-whitbread.pdf [Accessed 24th November 2013].

Continuum (2013) Holiday Inn. Monetizing a Lobby Experience [Online]. Retrieved from: http://continuuminnovation.com/work/holidayinn/ [Accessed 6th December 2013].

Deloitte (2010) Hospitality 2015. Game changers or spectators?[Online]. Retrieved from: http://www.deloitte.com/assets/Dcom-Tanzania/Local%20Assets/Documents/Deloitte%20Reports%20-%20Hospitality%202015.pdf[ Accessed 6th December 2013].

Deloitte (2013) A restoration in Hotel Loyalty Developing a blueprint for reinventing loyalty programs [Online]. Retrieved from: http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/Consumer%20Business/us_thl_customerloyaltyPOV_012313.pdf [Accessed 5th December 2013].

Financial Times (2013) ‘Whitbread increases market share’ [Online]. Retrieved from: http://www.ft.com/cms/s/0/27e18fdc-8f77-11e1-9ab1-00144feab49a.html [Accessed 6th December 2013].

Financial Times (2013) Premier Inn exploits rival’s weakness [Online]. Retrieved from: http://www.ft.com/cms/s/0/d8349b98-f841-11e2-92f0-00144feabdc0.html#axzz2lUMDMzLi [Accessed 23rd November 2013].
IHG Beverage.com (2013) The Hub at Holiday Inn [Online]. Retrieved from: http://ihgbeverage.com/the-hub-at-holiday-inn/ [Accessed 5th December 2013].

Jani,D., Han.,H (2013) ‘Personality , satisfaction, image, ambience, and loyalty: Testing their relationships in the hotel industry’ , International Journal of Hospitality Management, Vol.37, pp.11-20.

Office For National Statistics (2012) London 2012 Olympic & Paralympic Games attracted 680,000 overseas visitors [Online]. Retrieved from: http://www.ons.gov.uk/ons/rel/mro/news-release/london-2012-olympic---paralympic-games-attracted-680-000-overseas-visitors/ottnr2012games.html [Accessed 5th December 2013].

Premier Inn (2011) Promoting long-term loyalty and boosting revenue [Online]. Retrieved from: http://atos.net/content/dam/global/case-study/case-study-premier-inn.pdf [Accessed 24th November 2013].





Lower Cost
Differentiation
Competitive Advantage
Broad
Premier Inn (2013) British Travel Award 2012 win [Online]. Retrieved from: http://www.premierinn.com/en/news/news_category/british-travel-awards-2012.html [Accessed 22rd November 2013].

Premier Inn (2013) Speedy Check-ins Kiosks [Online]. Retrieved from: http://www.premierinn.com/en/why/speedy-check-in.html [Accessed 23rd November 2013].

The Guardian (2013) The UK’s best and worst hotel chains [Online]. Retrieved from: http://www.theguardian.com/travel/2013/oct/30/uk-chain-hotels-survey-best-and-worst [Accessed 23rd November 2013].

The Guardian (2013) Whitbread launches ‘hub by Premier Inn’ city centre hotel concept’ [Online]. Retrieved from: http://www.theguardian.com/business/2013/jul/02/whitbread-hub-premier-inn-city-centre-hotels [Accessed 6th December 2013].

The Telegraph ( 2013) Whitbread unveils aggressive Premier Inn Growth Plan [Online]. Retrieved from :http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/leisure/10026948/Whitbread-unveils-aggressive-Premier-Inn-growth-plan.html [Accessed 24th November 2013].

Travelodge (2013) Business Customers [Online]. Retrieved from: https://www.travelodge.co.uk/business/index.php [Accessed 5th December 2013].

Whitbread (2013) Financial Director’s review 2012-2013 [Online]. Retrieved from: http://www.whitbread.co.uk/investors/why-invest-in-whitbread/financial-directors-review-2011-2012.html [Accessed 6th December 2013].

Whitbread (2013) Our brands [Online]. Retrieved from: http://www.whitbread.co.uk/our-brands/premier-inn.html [Accessed 26th November 2013].
Whitbread (2013) Our Business Model [Online]. Retrieved from: http://www.whitbread.co.uk/about-us/our-strategy/business-models.html [Accessed 25th November 2013].

Whitbread (2013) Our Strategy [Online]. Retrieved from: http://www.whitbread.co.uk/about-us/our-strategy/index.html [Accessed 24th November 2013].

Reference List
Full transcript