PESTLE Analysis

Situation being analysed:

Premier Inn
Economic
The growth of the Economy (recession-Boom) In 2007 when the recession hit sales dropped by 7.9% . however the state of the economy does not concern us as much as it would with other organisations, however the overall business structure/activities may need to be reconsidered to adapt to the economy state. E.g. if the economy was in a boom, premier Inn may consider increasing their hotel star rating and charge more. Inflation Consumer confidence Economic trends Exchange rates Fiscal/monetary policy Changes in the EUcurrency/laws/regulations/ growth/imports/exports Purchasing power- Premier Inn has a large purchasing power as the company buy in bulk. Supplier power

PESTLE analysis (political, economic, social, technological, legal and environment)

Political
Government regulations regarding hygiene, health & Safety, food regulations, food standards]- This is a major political factor effecting Premier Inn as we operate in the hospitality industry, Premier Inn have to comply with Health and Safety regulations and food regulations what costs a great deal of time and money. Premier Inn will also have to consistently keep up to date with new legislations. Environmental regulations and protection- our corporate responsibility Good Together programme sets out key environmental objectives that were going to undertake to become the most greenest hotel brand in the UK.

Social
Demographics (age, gender, race, family size,etc) is Premier Inn target market changing? Lifestyle changes- are people still using hotels or are they using alternative substitutes Population (increase/decrease ) Trends/fads are budget hotel chains like Premier becoming more popular due to the economy? Diversity/cultures depending on the hotels location, culture /diversity could be a concerning issue. e.g. a premier Inn location with a large Asian community, Premier Inn may need to adopt service/products to suit the needs of the community Immigration/emigration Health Occupations/career attitudes Earning capacity Current pressing concerns from people e.g. environment Eating habits - this is also a major factor that will affect our restaurant; our menu may need to change to adapt to current eating habit of the nation.

Fiscal/monetary policy (Government spending, taxation, interest rates and the availability of money) if the government was to lower taxes and spend more, this would benefit Premier Inn as people will have more disposable income to spend. EU laws/regulations affecting the industry Contract enforcement law/consumer protection Employment laws Employment laws are a big political factor effecting Premier Inn as we employ thousands of people, and a large percentage of employees are on minimum wage. Government attitude towards the hospitality industry-industry-specific regulations Competition regulations Globalisation

Technological
Technical infrastructure ( a good technical infrastructure would lead to bet production, procurement, logistics resulting in reducing wastage and lowing costs) New inventions and development Government technological research The constant change in information technology The constant development of the internet- 70% of our customers book online Mobile technology Premier Inn have currently created a mobile app Industry specific technology e.g. Self-check in Kiosk Communication Rates of obsolescence Waste removal/recycling advancesare there any ways out there that will help decrease the cost/time of recycling and waste removal that is also greener for the environment.

Legal
Health & Safety laws/regulations e.g. COSHH regulations act, Health and safety at work act. Competition regulations Employment laws Consumer protection laws International Trade regulations and restrictions EU laws and incentives Environmental regulations Food standards & hygiene regulations

Environment

Environmental laws e.g. laws on waste The state of the environment is a concerning issue at the moment, more and more people are becoming environmental friendly and customers are wanting to see organisations do they part Premier Inn are meeting all environmental legislations. Natural disasters /availability of natural resources etc.