Essay
Unit 1 P2 and P3
- Institution
- PEARSON (PEARSON)
P2 & P3 together met all criteria's, in deep depth and will help if there's any confusion
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By: winnybwana • 4 year ago
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P2: Premier Inn: AccommodationPremier Inn is a British hotel chain and the UK's largest hotel brand, with more than 72,000
rooms and 780 hotels. Premier Inn's aim are is to become the number one for airport hotels
across the UK. They aim to deliver world-class service in a clean and comfortable
environment so that guests feel more at home and will return back. The budget brand,
which currently has 697 hotels providing almost 60,000 rooms in the UK, helped Whitbread
to grow underlying profits by 18% to £488.1 million in the financial year to February 26.
How do they make a profit?
Premier Inn makes profits by having all their hotels look the same in different cities and
countries as it makes people feel like home when they are there. They also like to keep all
their hotels the same colour as it keeps it recognisable for people. They make profits by
selling rooms to customers, they also make profits by adding breakfast. Prices for rooms can
start from £45 pound a night.
How do they maximise their sales revenue?
Premier Inn, the UKs largest and fastest growing hotel chain with over 574 budget hotels
and has recently reached a milestone of 40,000 rooms across the UK. Premier inn rooms are
offered at the same rate and is adjusted to reflect the demand based on the day of the
week. Also, the increase in a guest's length of stay has directly impacted the number of staff
required for check in and it has helped reduce housekeeping hours and linen costs through
the increase in guests staying longer therefore no longer requiring as many linen changes
and labour costs. They have also maximised their sale by increasing the number of rooms
available by 333 over the past 3 months while keeping the occupancy rates at 80pc.
Revenue per room is also up more than 6pc, which is an indicator that premier no longer
has competition with Travel lodge. Premier inn also maximise their sales through; efficiency,
technology, organisation and property.
How do they increase market share?
Premier Inn increases their market share by using high profile celebrities in its TV adverts. In
addition, premier inn has worked hard to instil a sense of confidence in consumers and this
has mainly been achieved by differentiating itself from the competition. Premier inn is highly
ranked on YouGovs brandindex and when competing with rivals like travel lodge they offer
great night sleep and goes above and beyond and promises convince to customers or value
to offer something that all consumers crave from a night in a hotel, with thee partnership
being Hypnos beds they go as far as money back guarantee if you don’t have a good sleep.
They also increase their market share by conveniently making things easier for customers by
offering them free Wi-Fi, unlimited breakfast and king size Hypnos beds. For their loyal
customers they may offer them discounts on their next stay as they stay there often. They
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