Strategic planning, business strategy Premier Inn. Strategic capabilities

Table of Contents

1    Introduction and Background……………………………………………………………….. 1

2    Task 1: Process of Strategic Planning……………………………………………………. 1

2.1    Role of Vision and Competencies in Strategic Planning………………………….. 1

2.2    Factors To Be Considered While Formulating Strategies………………………… 2

2.3    Effectiveness of Techniques Used for Strategic Planning……………………….. 4

3    Task 2: Formulating New Strategy…………………………………………………………. 5

3.1    Organisational Audit…………………………………………………………………………… 5

3.2    Environmental Audit…………………………………………………………………………… 6

3.3    Significance of Stakeholder Analysis……………………………………………………. 7

3.4    Possible Strategy Suggestions……………………………………………………………… 8

4    Strategy Evaluation and Selection………………………………………………………….. 8

4.1    Appropriateness of Present Strategies…………………………………………………. 8

4.2    Justification for Strategy Choice…………………………………………………………… 9

5    Strategy Implementation……………………………………………………………………… 11

5.1    Roles and Responsibilities…………………………………………………………………. 11

5.2    Resource Requirements……………………………………………………………………. 11

5.3    Contributions of SMART Targets………………………………………………………… 12

6    References……………………………………………………………………………………………. 13

7    Appendices…………………………………………………………………………………………… 17

7.1    Appendix – 1: PEST Analysis……………………………………………………………… 17

 

Index of Figures

Figure 1 – Ansoff Growth Matrix for Premier Inn……………………………………………. 3

Figure 2 – BCG Growth Share Matrix of Premier Inn…………………………………….. 4

Figure 3 – Strengths and Weaknesses of Premier Inn………………………………… 5

Figure 4 – Stakeholder Analysis of Premier Inn……………………………………………. 7

Figure 5 – SAFe Analysis for Premier Inn…………………………………………………… 10

 

 

 

 

 

1       Introduction and Background

This paper examines various factors related to strategic planning, such as the process of strategic planning, approaches and theoretical models linked with strategic planning, and the implementation of strategic plans by taking Premier Inn as the case study organisation. This paper shed light into how strategic planning models and theories can be used in real life situations to create the best suitable outcomes for an organisations, depending on its goals, vision, strategic capabilities and such. The report details how Premier Inn has aligned its strategic planning process and used its plans to become a leading hospitality service provider in the UK market.

Premier Inn is the leading budget hotel chain in the UK, which is also the flagship brand of Whitbread. Whitbread is one of the oldest and well-respected companies in the UK. Whitbread also operate other brands such as Costa coffee, Beefeater Grill, Table Table, Brewers Fayre, and Taybarns, while the latest addition is Hub under the Premier Inn label. Although Whitbread has more than 250 years of history, it became the present Whitbread in 2001 and started focusing on accommodation and food and beverage businesses. Premier Inn on the other hand, has more than 80% occupancy rate, 590 hotels and more than 50,000 rooms. Premier Inn’s survival in the most competitive budget class segment indicates the quality promised by the brand (Rodrigo, 2012). This report focuses on the strategic approaches taken by Premier Inn.

2       Task 1: Process of Strategic Planning

2.1     Role of Vision and Competencies in Strategic Planning

Whitbread operates on a vision of growing legendary brands by building strong customer orientation and involvement (Whitbread, 2015, a). A similar value consciousness is visible in Premier Inn’s case as well. Premier Inn operates on a vision of making its hospitality brand the best they can by focusing on customers and giving them just what they want (Rodrigo, 2012). In this case, it is evident that this strategic vision is the guiding principle in determining the values and standards followed by the company. According to Hill and Jones (2008), the values and standards of a business is often determined by how employees, managers, and the organisation itself should behave in order to maintain the articulated vision of the brand.

In this case, in order to ensure its vision of delivering superior accommodation, the company follows 100% money back standards to ensure its quality. Similarly, the company offers comfortable surroundings, and friendly-highly quality services, which are called as the Good Night Guarantee (Whitbread, 2015, b). The company has few distinct and powerful competencies. For example, the company has hotels in every critical location across the country and its premises are clean and aesthetic. Apart from that, highly trained staffs, quality service provision, low cost appeal, and the good night sleep guarantee and such can be considered core competencies as well (Turton, 2014).

All these factors are in alignment with Premier Inn’s present strategy. According to Evans (2015), Premier Inn currently focuses on expanding its overall room presence to 75,000 rooms by 2018 and growing its target market share about 45% through market penetration, which is only possible through offering solid products and customer experience, especially in hospitality environment. Hence, it can be argued that its vision and competencies have a larger role to play in determining and maintaining its strategic focus and actions.

2.2     Factors To Be Considered While Formulating Strategies

According to Clark and Gordon (2014), companies are trying their best to achieve market share and improve their revenue by offering cheap rates and better service, while, such conditions have always resulted in price wars and competition for market share among companies in the sector (Blitz, 2013). Although there has been a spike on overall travelling, most present travellers are self-sufficient travellers making good use of budget class properties (McGuire, 2015). Hence, combining these trends, there is a likely chance that more customers would prefer to spend their nights at cheaper hotels where price and availability would be an influencing factor. If these conditions are not met, then the company may not be able to achieve its financial objectives.

Figure 1 – Ansoff Growth Matrix for Premier Inn

Ansoff Growth Matrix (Brennan et al., 2007)

In this case, it is very clear that the strategy followed by the company is market penetration (Figure 1). Brennan et al. (2007) argue that implementing improved distributing of products (more rooms in the past few years in London alone), improving overall product and service capabilities (offering high quality products), and also using promotional strategies to improve market share can be termed a market penetration strategy. In order for Premier Inn to succeed in this market, they need to focus more on the market pricing since more customers would be choosing according to their budget. On the other hand, as found earlier, provision or rooms are more critical, which means, Premier Inn will have to keep an eye on overall rooms distribution across different regions. Focusing on these factors would help the company in understanding market conditions, which are essential for formulating strategies.

2.3     Effectiveness of Techniques Used for Strategic Planning

In order to understand the effectiveness of techniques used by Premier Inn, its market position has been examined from the perspective of its parent company, Whitbread using the BCG matrix model (figure 2). According to this model, Premier Inn and Cost are strong brands with stars status. However, the coffee shop industry in the country is slowly maturing (Perryman, 2015). Market position of Premier Inn is very strong, and it is in a growing market, while other brands are suffering from soaring sales (Huddleston, 2015) and Whitbread is spending much money on developing and expanding the brand (Blitz, 2013). From this aspect, it can be argued that the market penetration strategy followed by Premier Inn is in the right direction.

Figure 2 – BCG Growth Share Matrix of Premier Inn

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Johnson et al. (2005) point out that a star SBU in the portfolio may incur heavy costs in terms of activities related to gaining market share, but it may result in positive benefits over its competitors. According to Blitz (2013) Premier Inn has been spending millions in acquiring new locations and expanding their location base and rooms across the country, which is also visible from their overall market share in the market. Based on the PIMS model (Saxena, 2009), it can be argued that the objectives set by the company are aimed at achieving more market share and ROI at the same time, since its approach has not only resulted in improving its overall market presence and acceptability, but also its overall like-for-like sales in recent years (Whitbread, 2015, c) while also maintaining record occupancy rates (Davies, 2014). Hence, it can be argued that the techniques used by the company in managing its strategic planning and activities have been effective.

3       Task 2: Formulating New Strategy

3.1     Organisational Audit

In order to understand the competitive positioning of the organisation, a strengths and weakness analysis (Figure 3) has been performed with the help of the 5M framework, which examined men, money, materials, machinery, and markets (Richardson and Kelly, 2015). From this view, the men part in Premier Inn is very strong, which helps them in delivering quality and timely services and to uphold the good night sleep guarantee put forward by the company (Ruddick, 2012). When it comes to money, Blitz (2013) found that Premier Inn is supported and backed up by large scale creditors, which can be considered as a straight as well. In terms of machinery, the company makes use of latest technology, such as state of the art loyalty programs, and Internet-enabled check-ins and so on (Atos, 2011).

Figure 3 – Strengths and Weaknesses of Premier Inn

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These factors can be considered as strengths. According to Premier Inn (2014), the company only operates in a selected few markets, which minimises its position in global budget hotel industry and affect their ability to mitigate region-related risks in operating business in a volatile political and economic environment. On the other hand, competition in the UK market is very strong that it often leads to price wars among competitors, affecting overall business of incumbent companies. Overall, these two factors can be considered as weakness for the company. Despite such weaknesses, Premier Inn could move forward to foreign markets, or enter into other market segments, but it follows a market penetration strategy, as indicated by the Ansoff matrix analysis (Figure 1). However, its financial abilities are so strong that it could enhance its position in material, machinery, and men, and thereby improving its market position in the UK and across the world.

3.2     Environmental Audit

In order to understand the environmental conditions at Premier Inn, a PEST analysis was conducted (Appendix – 1). According to the analysis there is political tension among different players, as risks related terrorism and unfavourable political policies are increasing (McGuire, 2015), while there is a relief that corporate tax rates have been relaxed further in the UK, which may be beneficial for Premier Inn. On the other hand, UK economy is gradually improving, resulting in a rise disposable income among consumers (Milliken, 2015), and declining inflation rates (Kollewe, 2015). These factors indicate that consumers may choose to spend remaining income on travelling and leisure, since there is a huge growth in leisure activities within the region, as indicated in the social environment factors (Rauch, 2014). This indicates potential opportunities in the operating environment of Premier Inn, since such a high growth is highly visible among the middle class, who largely prefers budget class hotels.

Other social conditions such as the sharing economy and trend among consumers, such as sharing part of their apartment or house (Rauch, 2014) for travellers may negatively affect hospitality business, especially budget class hotels. On the other hand, increasing gap in income distribution (Roser, 2015) is likely to increase such conditions in the long run. Finally, internet and smartphone penetration (Streling, 2014) is largely contributing to increasing traveling due to the recently acquired social status for leisure and travelling activities. However, this may also be a negative effect since development in the tech environment is resulting in the emergence of disruptive business models like AirBnb and such. Hence, overall, the external environment of Premier Inn indicates mixed responses, which means, the company will have to work hard in order to capitalise on its opportunities while mitigating potential risks resulted from the negative implications in the external environment.

3.3     Significance of Stakeholder Analysis

Every organisation has stakeholders, who are the individuals or groups depending on organisation to fulfil their goals and on whom the organisation also depends on fulfil its organisational objectives (Johnson et al., 2005). Hence, there is a mutual relationship and dependency (Johnson et al., 2005). In this case, a stakeholder analysis (Figure 4) was conducted to identify the key stakeholders with the help of power interest matrix (Norton and Hughes, 2009). It is evident that the key stakeholders of the company are customers, shareholders, and management, while high power groups involve employees, suppliers, governments and so on. For example, if the organisation does not satisfy its customers’ demand for quality accommodation at lower price, the customer may leave the organisation for its competitors; Premier Inn would loose its market share and revenue.

Figure 4 – Stakeholder Analysis of Premier Inn

Power Interest Matrix (Norton and Hughes, 2009)

On the other hand, the word of mouth effect of customers’ experience may affect future customer flow as well. Similarly, Government is a key stakeholder, and the organisation must satisfy its legal and regulatory requirements; otherwise, it may lead to cancellation of operating permits and licenses. Similar conditions can be applied to shareholders. If the organisation does not generate income for shareholder, they may withdraw their support for the organisation. A stockholder analysis helps in understanding the key stakeholders in an organisation and further assessments for understanding their needs (Norton and Hughes, 2009). Therefore, it is important for organisations to consider stakeholder analysis while formulating strategic plans.

3.4     Possible Strategy Suggestions

In this case, it is evident that the company presently follows a market penetration strategy. On the other hand, it is possible for Premier Inn to shift its strategic focus from market penetration to market development where the company may expand its geographic presence across the Europe to improve revenues and profits. On the other hand, it could also approach for new segment groups, such as it did for corporate customers by introducing business accounts in Premier Inn. The possibilities offered by new strategies are endless, especially from the viewpoint developed through the Ansoff growth matrix (Beamish and Ashford, 2007). In this case, it can be argued that market development is a strong option for Premier Inn to pursue since it would minimise market related risks and intense pressure from its competition. This could be included in the next five-year strategy of Premier Inn.

4       Strategy Evaluation and Selection

4.1     Appropriateness of Present Strategies

In this case, the company has been following multiple strategies. Although it is evident that it follows a market penetration strategy towards growth within the region, the company has been growing its market presence through acquisitions and rapid expansion within the UK (Blitz, 2013). While this could be justified in terms of achieving a larger market share in shorter period of time, this may have critical implications on the business, especially in terms of cost. However, these may be beneficial in long run (Bruner, 2004). On the other hand, there are no evidences and activities linked with vertical and horizontal integration for the Premier Inn brand, while related diversification is evident in the form of Hub by Premier Inn. However, Hub can be considered as a new business model that stands apart from Premier Inn.

In this case, it can be argued that these strategies are appropriate since it helps in improving overall market share and presence of the company in the UK. Apart from that, the company is highly investing in market penetration activities. For example, enhanced distribution of products, offering quality through enhanced value proposition and such are appropriate for service organisations (Brennan et al., 2007). Since the vision of the company is to build a hospitality brand by focusing on customers and giving them what they demand, penetration strategy could be used for reaching out to such customers and creating brand awareness. Hence, this can also be considered appropriate in this case.

4.2     Justification for Strategy Choice

In order to understand which strategies are better, an analysis has been conducted using the SAFe framework (Figure 5). In this case, Premier Inn currently follows these strategies, and it can be justified in many ways. When it comes to the growth strategy through acquisition, Premier Inn is exposed to intense competition in the market, which is often determined by the availability of rooms and accessibility to rooms (Blitz, 2013). Hence, the main aim of the company is to improve its market presence while increasing its overall room offerings.

On the other hand, this also gives them easy access to new markets and regions and a clear edge on competitors in terms of market presence and share of rooms in the market. According to Pettus (2003), if the organisation has efficient financial capabilities, then acquisition can be the best strategy since it would help in acquiring assets and networks of people without sweating much. On the other hand, from Premier Inn’s perspective, it is much easier to acquire existing businesses and convert them to their style. Similarly, Premier Inn has huge financial support from its creditors. Therefore, achieving this objective through acquiring existing businesses is reasonable.

Figure 5 – SAFe Analysis for Premier Inn

Although limited growth models are evident and can be justified in terms of increasing revenue and brand recognition (Hassanien et al., 2010), this strategy has little importance in the face of current competition in the market.. According to Rodrigo (2012), Premier Inn is operating in a growing market with existing products. Hence, there is a need for reaching out to people to deal with the competition. However, there is a greater need for Premier Inn to expand its market presence and increase overall room share in the market so that it could attract maximum customers and grow further, and finally achieve its business vision of becoming the best hospitality brand in the world. Therefore, the growth by acquisition or market development strategy can be justified and accepted for Premier Inn to pursue.

5       Strategy Implementation

5.1     Roles and Responsibilities

It has been examined that there are various stakeholder groups in Premier Inn. All these groups have different roles to play during strategy implementation. The leadership and the top management has a significant role to play in this case. It is the role of leadership and top management to articulate and finalise proposals related to acquisitions for Premier Inn. On the other hand, they are also responsible to oversee the organisation maintains its values and principles while doing so (Jooste and Fourie, 2009). When it comes to the middle management employees, their role in implementing the chosen strategy is to effectively engage in planning, communicating, managing, controlling, and taking actions to implement the chosen strategy, which is successfully completing the acquisition.

In this case, this may mean that transforming the acquired organisation to Premier Inn’s standards and implementing its culture and so on (Ikävalko and Aaltonen, 2001). Premier Inn’s shareholders have the critical role of overseeing the requirements, feasibility, and potential financial impacts of the acquisitions in such a strategy (Kazmi, 2008). Finally, project teams are responsible for rolling out the acquisition through carefully planned phases in order to ensure smooth completion of the target goals. Unlike market penetration, an acquisition process largely involves management teams, project teams, top management personnel and so on.

5.2     Resource Requirements

When it comes to strategic management, allocation and management of resources have critical importance (Sekhar, 2009). If resource planning is not taken into account, for strategy implementation, the organisation may not have a clear understanding on what is required, when it is required, and how it can be managed effectively. On the other hand, an organisation should be able to align its resources according to the strategy in order to ensure maximum effectiveness (Kazmi, 2008) In this case, the resources required range from human resources, materials, and time to finance and technology.

For example, if there is no understanding on the finance required for the strategy, the acquisition processes might halt in the middle, causing huge loss for the organisation. Similarly, if human resources are not planned effectively, it may result in understaffing, causing delays in project fulfilment, or overstaffing, affecting overall financial efficiency of the strategy (Kazmi, 2008). These are the two possible issues associated with the chosen strategy by Premier Inn. Therefore, it is important for Premier Inn to identify, assess, and plan resource utilisation while implementing the strategies.

5.3     Contributions of SMART Targets

There have been few occasions in this case that highlighted effective use of SMART objectives. In this case, the present strategies operated by Premier Inn are based on the objective of achieving 75,000 rooms by 2018, which is:

  • Specific – Adding more rooms
  • Measurable – 75,000 rooms
  • Attainable – Currently has more than 50,000 rooms and rapidly expanding
  • Realistic – Real objective
  • Time bound – By 2018

Solomon et al., (2013) argue that setting SMART criteria help companies in understanding the progress and need for improvement to achieve great results. In this case, it is the application of SMART objectives that lead Premier Inn to rapidly expanding its presence across the country through aggressive acquisitions and expansion activities. Hence, the contributions of SMART objectives are very critical in Premier Inn’s case.

 

 

6       References

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Beamish, K., and Ashford, R., (2007), Marketing Planning 2007-2008, London: Routledge.

Blitz, R., (2013), Premier Inn exploits rival’s weakness, [online] Available at: http://www.ft.com/cms/s/0/d8349b98-f841-11e2-92f0-00144feabdc0.html#axzz3n3Vln7Kg, Accessed on: 25th September 2015.

Brennan, R., Baines, P., Garbeau, P., and Vos, L., (2007), Contemporary Strategic Marketing (2nd Edn.), New York: Palgrave Macmillan.

Bruce, A., and Milliken, D., (2015), UK economic growth revised up, household real incomes surge, [online] Available at: http://uk.reuters.com/article/2015/06/30/uk-britain-economy-idUKKCN0PA0S820150630, Accessed on: 27th September 2015.

Bruner, R.F., (2004), Applied Mergers and Acquisitions, New York: John Wiley & Sons.

Clark, T., and Gordon, S., (2014), Budget hotels: The lowdown on going low cost, [online] Available at: http://www.dailymail.co.uk/travel/article-617180/Budget-hotels-The-lowdown-going-low-cost.html, Accessed on: 25th September 2015.

Davies. P., (2014), Premier Inn reports sales increase and record occupancy, [online] Available at: http://www.travelweekly.co.uk/Articles/2014/10/21/50803/premier-inn-reports-sales-increase-and-record-occupancy.html, Accessed on: 26th September 2015.

Evans, N., (2015), Strategic Management for Tourism, Hospitality and Events, London: Routledge.

Hassanien, A., Dale, C., Clarke, A., and Herriott, M.W., (2010), Hospitality Business Development, London: Routledge.

Hill, C., and Jones, G., (2008), Essentials of Strategic Management (2nd Edn.), New York: Cengage Learning.

Holding, C., (2015), 5 hospitality trends for 2015, [online] Available at: http://www.ignitehospitality.com/blog/5-hospitality-trends-for-2015/, Accessed on: 27th September 2015.

Huddleston, N., (2015), First quarter restaurant sales flat for Beefeater owner Whitbread, [online] Available at: http://www.harpers.co.uk/news/first-quarter-restaurant-sales-flat-for-beefeater-owner-whitbread/520135.article, Accessed on: 26th September 2015.

Ikavalko, H., and Aaltonen, P., (2001), Middle managers’ role in strategy implementation – Middle managers view, [online] Available at: http://www.strada.tkk.fi/documents/Middle_managers_role_in_strategy_implementation.pdf, Accessed on: 28th September 2015.

Johnson, G., Scholes, K., and Whittington, R., (2005), Exploring Corporate Strategy: Text and Cases (7th Edn.), London: Prentice Hall Financial Times.

Jooste, C., and Fourie, B., (2009), ‘The role of strategic leadership in effective strategy implementation: Perceptions of South African strategic leaders’, Southern African Business Review, 13 (3), pp. 51-68.

Kazmi, A., (2008), Strategic Management and Business Policy (3rd Edn.), New Delhi: Tata McGraw-Hill.

Kollewe, J., (2015), UK inflation drops to 14-year low: What the economists say, [online] Available at: http://www.theguardian.com/business/2015/jan/13/uk-inflation-drops-to-14-year-low-what-the-economists-say, Accessed on: 27th September 2015.

McGuire, K., (2015), Top 10 global trends that will impact hospitality in 2015, [online] Available at: http://www.hospitalitynet.org/news/4068829.html, Accessed on: 25th September 2015.

Norton, A., and Hughes, J., (2009), CIMA Official Learning System Enterprise Management, London: Elsevier.

Perryman, E., (2015) Whitbread looks to new markets as sales soar, [online] Available at: http://www.theweek.co.uk/64500/whitbread-looks-to-new-markets-as-sales-soar, Accessed on: 26th September 2015.

Pettus, M.L., (2003), Growth from Chaos: Developing Your Firm’s Resources to Achieve Profitability Without Cost Cutting, New York: Greenwood Publishing Group.

Premier Inn, (2014), Success story of budget hotels: A balancing act, [online] Available at: http://global.premierinn.com/in/en/news/premier_inn_international/01.html, Accessed on: 26th September 2015.

Rauch, R., (2014), Top 10 hospitality industry trends in 2015, [online] Available at: http://www.4hoteliers.com/features/article/8736, Accessed on: 27th September 2015.

Richardson, N., James, J., and Kelley, N., (2015), Customer-Centric Marketing: Supporting Sustainability in the Digital Age, London: Kogan Page Publishers.

Rodrigo, R., (2012), Strategic Analysis of Premier Inn, [online] Available at: http://writepass.com/journal/2012/12/strategic-analysis-swot-pestel-porter-of-premier-inn-whitbread-plc/#34_Bargaining_Power_of_Suppliers_Suppliers, Accessed on: 25th September 2015.

Roser, M., (2015), Income inequality: Poverty falling faster than ever but the 1% are racing ahead, [online] Available at: http://www.theguardian.com/news/datablog/2015/mar/27/income-inequality-rising-falling-worlds-richest-poorest, Accessed on: 27th September 2015.

Ruddick, P., (2012), Recruiting and retaining staff: How to develop employees and cut turnover rates, [online] Available at: http://www.bighospitality.co.uk/Hot-Topics/Recruitment-training/Recruiting-and-retaining-staff-How-to-develop-employees-and-cut-turnover-rates, Accessed on: 26th September 2015.

Saxena, R., (2009), Marketing Management (4th Edn.), New Delhi: Tata McGraw-Hill Education.

Sekhar. G.V., (2009), Business Policy and Strategic Management, New Delhi: I.K International.

Solomon, M,. Hughes, A., Chitty, B., Marshall, G., and Stuart, E., (2013), Marketing: Real People, Real Choices, Melbourne: Pearson Education AU.

Sterling, G., (2014), Smartphones to reach 90 pct. in US, UK by 2016 – Forecast, [online] Available at: http://marketingland.com/smartphones-reach-90-percent-us-uk-2016-forecast-82477, Accessed on: 27th September 2015.

Turton, D., (2014), What can brands learn from Premier Inn’s marketing masterclass?, [online] Available at: https://www.linkedin.com/pulse/20141011134315-45850910-what-can-brands-learn-from-premier-inn-s-marketing-masterclass, Accessed on: 25th September 2015.

Whitbread, (2015, a), Making everyday experiences special, [online] Available at: https://www.whitbread.co.uk/about-us/introducing-whitbread.html, Accessed on: 25th September 2015.

Whitbread, (2015, b), Our Brands: Premier Inn, [online] Available at: http://www.whitbread.co.uk/our-brands/premier-inn.html, Accessed on: 25th September 2015.

Whitbread, (2015, c). Whitbread trading update – 25th February 2015, [online] Available at: https://www.whitbread.co.uk/media/news-press-releases/trading-update-whitbread-2015.html, Accessed on: 26th September 2015.

 

 

7       Appendices

7.1     Appendix – 1: PEST Analysis

 

Political Environment Economic Environment
Political tension is growing among governments
Higher corporate tax benefits in the UK
Tensions related to managing and controlling terrorism related actives in the leisure industry is increasing (McGuire, 2015; Rauch, 2014)
More disposable income among middle class families (Bruce and Milliken, 2015)
Declining inflation may increase spending in other areas (Kollewe, 2015)
Governments’ financial and policy support for travel and tourism and leisure industries (McGuire, 2015)
Social Environment Technological Environment
Income distribution gap is widening and poor people are left with less money (Roser, 2015)
Sharing economy is gaining momentum e.g. Airbnb, Uber, Lyft etc. affecting overall hospitality business (Rauch, 2014)
Travelling has become closely associated with lifestyle and social status (Rauch, 2014)
Internet and smartphone penetration is reaching its heights in the UK (Sterling, 2014)
New technologies are being developed in the hospitality sector such as communication and entertainment systems linked with personal devices (Holding, 2015)
Technology is boosting development of disruptive mechanisms such as Airbnb in the hospitality sector