Assignment 2 - Report Premier Inn 1

Thames Valley University

Faculty of Professional Studies
London School of Hospitality and Tourism
Sales and Marketing for THL (TH50040E)

The Company Report & Promotion Plan of Premier Inn in UK

Assignment 2 - Report Premier Inn 2

Contents Page

1 Executive Summary 04

1.1 Introduction 04

2 Overview of the Company 04

1 Current Market Situations 06

3.1 PESTLE Analysis 06

3.2 Competitor Analysis 08

4 Key Opportunities 10

4.1 An Analysis of the Company’s Marketing Mix Strategies 10

4.2 SWOT

5 Promotion Plan

6 Action Program

7 Conclusions

Bibliography
Appendices
Appendix 01 – origins - background
Appendix 02 - size
Appendix 03 - growth
Appendix 04 - revenue
Appendix 05 - Business travelers first choice
Appendix 06 – Globalization & Premier Inn
Appendix 07 – Economic factors
Appendix 08 – World Cup impact
Appendix 09 – Leisure Habits
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Appendix 10 - Technology for guest survey feedback

Appendix 11 - Environmental friendly Premier Inn
Appendix 12 - Budget hotels competitors
Appendix 13 - The idea of product mix
Appendix 14 - Good night Guarantee proposition
Appendix 15 - Terms and conditions
Appendix 16 - Excellent performance on Revpar
Appendix 17 - Flexible pricing according to demand
Appendix 18 - Higher returns due to low construction an operation costs
Appendix 19 - Premier Inn ‘Recession Action Plan’
Appendix 20 - Increased weekend occupancy in comparison to competitors
Appendix 21 - The prospects for growth of UK Budget Market
Appendix 22 - International expansion
Appendix 23 - Premier Inn rooms expansion
Appendix 24 - Promotion Terms and Conditions
Appendix 25 - Promotion price
Appendix 26 - Promotion advertising
Appendix 27 - Promotion artwork
Appendix 28 - Promotion time plan & Budget
Appendix 29 - Forecast Revenue
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1 Executive Summary

Premier Inn’s strategy is to “create value for their shareholders by focusing investment and growth in
expanding sectors of the hospitality industry and delivering outstanding performance across its
businesses.” (Whitbread, 2010)

1.1 Introduction

This report will analyze an overview of the hotel Premier Inn with the purpose of planning a promotion
for revenue enhancement. In order to effectively develop a effective promotion, some key factors of
Premier Inn will be discussed: company overview; SWOT analysis; PESTLE analysis; Marketing Mix;
and Competitor analysis and finally the promotion plan will be developed.

2 Overview of the Company

With nearly 600 hotels, Premier Inn is the UK’s largest hotel chain. The Premier Inn brand is only just a
little over a year old, yet it has already become the favourite budget hotel brand for business travellers.
Premier inn is part of Whitbread, UK's largest hotel and restaurant group operating market-leading
businesses in the budget hotel and restaurant sectors. (Appendix 01)

Premier Inn is UK’s fastest growing hotel brand with 578 budget hotels and 40,559 rooms across UK
and Ireland. It opened 4553 rooms in 2008/09 and plans on opening 2000 new rooms in 2009/10.
Premier Inn launched it brands overseas in Dubai and India in 2008 and 2009 respectively. Premier Inn
also has a joint venture with Emar-MGF to roll out 80 budget hotels in India by 2017. On a domestic
front, Premier Inn is set to be the largest provider of budget hotels in London by the time of the 2012
Olympics. Premier inn plans for Capital expenditure to be £170 million to deliver new rooms in the UK
and overseas. (Appendix 02 & 03)

2008/2009 was a strong year for the group despite the challenging economic backdrop. The sales rose
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14.0% to £601.5 million with the like for like sales up 6.0%. They have taken actions to increase
efficiencies and reduce costs in the current economic climate. Their balance sheet remains robust and is
underpinned by a strong freehold asset base and their target to run the current operation in cash flow
neutrality. Revenue per available performance grew by 2.8% on a like for like basis (Appendix 04)

Premier Inn targets both business and leisure travellers. The hotel has good offers and facilities like
meeting rooms and touch base centres and special offers for families like free kids back which has led to
bringing in customers from both side of the target segments; Around 755 of UK’s Population lives
within 5 miles of Premier Inn.

Premier Inn has continued to attract corporate customers and is now a leading choice for Business
travellers. (Appendix 05) Sales via the Premier Inn business Account grew by 24% to £171 million. It is
also becoming a leading choice for leisure travellers due to premier inn’s focused marketing strategies.
Premier Inn has come a long way since it was first acquired by Whitbread PLC and is now a leading
brand in UK budget hotel industry with guest satisfaction rates over 80 %.
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3 Current Market Situations

3.1 Pestle Analysis

PESTLE analysis is an investigation of political, economic, socio-cultural, technological, legal and
environmental factors that affect business. PESTLE factors are dynamic and consumers’ attitudes and
behaviour are affected by these changes. (Bowie and Buttle, 2006)

Political - The demand of the Premier Inn’s product would be affected by the changing of
Factors: local, regional or national government taxes such as value added tax, general
sales tax rates and tax on alcoholic beverages.

- The ‘war on terrorism’ may lessen unnecessary leisure-based travel, so

Premier inn has to be aware when recruiting or contacting the suppliers to keep
up with the demand. (Cetron, 2004)

- Globalization keeps on changing according with the world, and it must be

taking in concern .(Montana, 2008 – Appendix 06)

Economic - The company has reported revpar had improved after a year when previously
Factors: it had 7.9% dropped in sales as the recession hit last year. (BBC, 2009
-Appendix 07)

- The constantly weak pound is another factor. It pulls more travellers to visit
London, which can be treated as opportunity for the company

Socio-cultural - Household structures have changed to more single families and divorced
Factors: couples. Eating and drinking out habits have risen as well.
- An increase of elderly in the developed countries would be an opportunity as
they have spare time and money to spend for leisure activities. (McCaskey,
2008)
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- 2010 World Cup being held in June, will impact consumer behaviour and
their consumptions. (Oxygen Mintel, 2010 – appendix 08)

- Leisure industry habits are changing against hotels and restaurants, according
with Mintel (2010) – appendix 09

Legal Factors: - Employer must pay their workers a minimum amount as defined by law which
is national minimum wage. In each October, Premium Inn should check the
national minimum wage. This implies an increase of expenditure on
workforce.

Technological - The self-check in system in Premier Inn reduces the check in time from ten
Factors: minutes to a min, which implies the time and monetary cost would be less for
the company.

- Druce (2010) reported that Premier Inn uses its guest satisfaction survey to
tackle problems (appendix 10)

- Online booking has been one of the biggest factors affecting hotel business
nowadays. (Internet World Stats, 2007) More people are booking holiday on
the internet, as they would like to get cheaper deals than the offers from travel
agents this reduced costs for Premier Inn and customers can book rooms just
staying at home.

Environmental - The board of directors is committed to the implementation of environmental

Factors: policy and energy saving policy, by complying with the law and regulatory
requirements. (Whitbread, 2010)

Weather and climate are unstable in 2010, which have major effect on
hospitality industry. The trips of European travellers could be ruined by
further volcanism of Iceland. (Osborne, 2010)
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With the increase in awareness of environmental issues among consumers,

companies continuously have to show that they are also care. (Appendix 11)

3.2 Competitor Analysis

The Budget Hotel Market has nine key players which, in addition to Premier Inn include Travelodge,
Jury’s Inn, Holiday Inn Express, Easy Hotel, Comfort Inn, Days Inn, Ibis and Innkeeper’s Lodge. Data
from the BDRC Hotel Survey 2008 showed 107 million adult room nights for 2008, a year-on-year fall
of 1.8 per cent. Due to the drop in the number of domestic leisure guest, hotel staying penetration
receded slightly to fewer than 36 per cent of all adults which equates to just under 16.5 million people.
Total UK business volume remained unchanged from the previous year at 59 million room nights while
domestic leisure volume fell to 48 million room nights. The development of the budget sector, led by
Premier Inn, continues to grow. Furthermore, usage of budget hotels by business travellers exceeded that
of midmarket and upper tier sectors for the first time, according to the BDRC.

Brand Number of Room Market Share (%) No of Hotel Market Share (%)
Premier Inn 32762 38.20% 488 41.70%
Travel Lodge 19335 22.60% 304 26.00%
Holiday Inn 11078 12.90% 108 9.20%
Ibis 6536 7.60% 48 4.10%

The remaining 20% of budget hotel market is motley of other 12 brands. Premier Inn is taken as one of
the best budget hotel among their competitors; as they have “Good Night Guarantee” statement and 72%
of first time customers chose Premier Inn as a cheaper alternative with the best service and most of them
are possible to visit them again rather than their competitors. Due to the highest market share of Premier
Inn, it has the largest coverage for its client thought out UK and Ireland.
The competition between Premier Inn and Travelodge was so high that there was a national press
advertisement, for Travelodge hotels, which was headlined “Travelodge. Big cities. Small prices”. It
included a table that compared Travelodge prices with those of Premier Inn. Other competitors like
Holiday Inn Express last year had come up with a new credit crunch scheme that had worked very well;
it was “Get Married in $999” including a nice fine dine service for 3 course meal and wedding planning
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just for $999, but so far the jingle of “Good Night Sleep” is the most effective marketing theme any
budget hotel had ever come up with so Premier inn was still able to outperform the competitors.

Rating of Budget Hotels

As shown in the graph above Premier Inn is rated as high class and well managed budget hotel around
the world. Although its good analysis it should be aware that their competitors are coming up with new
marketing schemes like Holiday Inn’s 25% off for 2012 - Olympic year.
It is evident as well to consider Independent hotels as competitors, but in much smaller proportion
regarding brand name and other relevant characteristics that can be view through graphs and notes on
appendix 12 & 20.
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4 Key Opportunities

4.1 An analysis of the company’s Marketing Mix Strategies

Marketing managers can base their marketing strategy with the analysis of the "four Ps" - product, place,
promotion, and price- of a company (appendix 13). Bowie and Buttle (2006) argue that these strategies
must consider that hospitality products and services must consistently satisfy the needs and wants of its
customers. With attention to those points, Premier Inn analysis shows that each part of the product mix
was successfully created to meet the needs of its target market. To give credibility to this affirmation,
the four groups have been appraised below.

Product
A budget hotel chain that offer bedrooms with en-suite bathrooms, TV (with free-view) and access to
Wi-Fi internet. In addition to the room, the promise of a good quality room, comfortable surroundings
and friendly service is set with the customers. With the commitment of keeping this promise, the “Good
Night Guarantee” (appendix 14) offers the customer money-back. Taking this in concern, we can see
that Premier Inn meet the needs of its target market once they settle the bill, as no complaints have been
raised. Another part of the product of Premier Inn is a bar and restaurant facilities serving dinner, drinks
and Premier Inn’s renowned ‘All you can eat’ breakfast. One major client of Premier Inn are the
business travellers, so as part of its product a Business Account is offered – “a unique expense
management solution which allows companies to control spend more effectively”. The self check-in
kiosks available in some of the hotels can reduce check in time to less
than one minute, and business customers tend to use it quite often.
Premier Inn's self check in kiosks allow guests to get to their rooms more quickly.
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Place
In the hospitality industry, this decision group of the marketing mix is extremely important. Bowie &
Buttle (2006) explains that location can be identified as crucial for hospitality marketing decisions.
Premier Inn according to its website has already 500 hotels distributed over the UK & Ireland, and they
are close to popular tourist attractions, seaside towns, airports and located along major roads. In
addition, Premier Inn is growing internationally now and has hotels in Dubai and India.

Promotion
This group of product mix is responsible for the communication between sellers and buyers. Through
five particular tools: personal selling, advertising, sales promotion, direct marketing, and publicity of the
company the promotion plan can be identified (Kotler, 2005).
Premier inn effectively promotes it products in the society through diverse aspects such as Premier
Travel Inn Voucher Codes, promo offers, discount, and others. As a tool of online advertising, the
website everydaysale.co.uk works together with the company in its promotion. Examples of promotion
plans are: discounts for regular business travellers, and groups; when accompanied by an adult having a
full premier breakfast, two under 16s can have a full breakfast free; Premier Inn’s Day Out present
money-saving opportunities.

Price
To determine the price of its rooms, Premier Inn effectively applies concepts of pricing. Relating to the
target market the hotel chain uses discounts - for example, the premier offers of rooms from £29 on
stays between the 9 February 2010 and 5 September 2010. Strategically, the company deducts the prices
on off-peak to increase the market share and guarantee its presence among the competition, generating a
good cash flow position.
The price on Premier Inn is set per room, per night and is inclusive of VAT. On the website is possible
to identify under terms and conditions on item 3. (Appendix 15)
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4.2 SWOT Analysis

Therefore, concerning what has been discussed in this report, the following can be
Strengths Weaknesses
- Strongest Hotel brand in the UK -Product range-not for upper level customers
- Excellent performance on Revpar [Appendix 16] -Unstable economic environment affecting premier
-Ability to offer low prices : £29 rooms inn’s performance and future development plans.
-Regular Refurbishment every room every 3 years -Competition with European destinations driven by low
-Detailed brand standard and regular room audits cost flights as well as promise of better weather.
-Flexible pricing according to demand [Appendix 17] -Economic downturn led to fewer consumers taking
-First choice Budget Hotel for business Travellers[Appendix holidays.
05]
-Higher returns due to low construction an operation
costs[ Appendix 18]
-Premier Inn ‘Recession Action Plan’ [Appendix 19]
-Increased weekend occupancy in comparison to competitors
[Appendix 20]
-Good Night Guarantee
- Bar and restaurant facilities in the hotel
-Vouchers to various attractions
- New website driving 80% increase in visits
Opportunities Threats
-The prospects for growth of UK Budget Market are very high. -Direct competitors targeting the same consumer base
[Appendix 21] affects the market share
- More hotels to open in Dubai and India [Appendix 22] -Increase in minimum wage rates that increases staff
-Over 242 markets where premier inn has no presence can be costs
explored [Appendix 23 ]
-Further opportunities in London
-75 hotels in the pipeline
-Business account expansion
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5 Promotion Plan

Title: Friends & Family Inn London

Duration: Promotion Starts from 1st of October 2010 to 28th of February 2011 inclusive.

Objectives: Chief executive Alan Parker (Whitbread, 2010) stated that the goal for Premier Inn is
to improve its 70% occupancy and raise occupancy back to 80%.In order to build
growth from expanding market share and as growth returns to the market as a whole, a
promotional plan to our target audiences which boosts the sales of the rooms has been
planned. The promotion is aimed at driving people to choose Premier Inn with great
offers, in order to retain the customer loyalty and goodwill.

Our Target: Family and Friends would be our target – groups of 4 people or more.

Rationale: With the current economic situation, the world travellers are considering budget hotels
as essential for travel arrangements. With high competition in the market, from big
brands and independent hotels, Premier Inn retains strong brand recognition. It
“recently won the Business Travel World Award for the Best Business Hotel Brand
2009 and Best Expense Management Solution for its Business Account Card”
(Whitbread, 2010) To increase profit shares and achieve good revenue per room
available, an effective promotion must happen for winter time, since the current
promotion of $29 rooms will finish in 5th of September 2010.

Marketing Strategy

Product: The promotion will take place from 1st of October 2010 to 28th of February 2011
inclusive under terms and conditions (appendix 24)
The group will have one double room per 2 persons for the price of £299for 3 nights
including breakfast.
- Discount vouchers [25% off] of London dungeon, London eye, City Tours, Alton
Towers, Thorpe Park and Legoland.

Price: £299 per 3 nights inclusive Breakfast (appendix 25)

Promotion/Place - The promotion will feature in Premier inn’s website because it is the place where
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people come to look for offers and can get the information when they’re reserving a
room. Also the website of travel agencies will also feature this offer.
- The offer will be promoted in travel agencies so that the information can also be
available to people who are not tech savvy.
- Public Relations: Sponsorships, Speeches, Travel-related Events promoting in
hotels. They are particularly effective in building awareness and brand knowledge,
for reaching specific groups and community.
- PR personals will hold meetings with magazine editors and TV producers to
continue more media coverage and reach the mass consumers.[Appendix 26]
- e-letters to customers
- Appendix 27.

6 Action Programme – Budget & Time Plan

This promotion intends to target 2 groups (considering 4 people) per hotel during each week of the
promotion – total of 22 weeks. Logically, taking in concern that Premier Inn has 578 hotels, 44 groups
per hotel during the promotion time would reveal a total of 25,432 groups participating in the promotion.
At the price of £299, the total revenue per room available sold would be £7,604,168.00. For marketing
purposes, 1% of its revenue should be use, creating a marketing budget of £76041.68 which should be
used in the terms of appendix 28.
Finally, a profit is likely to be achieved based on calculations and justifications on appendix 29,

7 Conclusion
This report has evaluated Premier Inn current position in the UK and develops the ideas of a promotion -
Friends & Family Inn London - for revenue enhancement.

Bibliography
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BBC (2009) Downturn Hits Premier Inn Sales. BBC, June 16 2009 [Online]. Available at:
http://news.bbc.co.uk/1/hi/business/8102287.stm [Accessed 25 April 2010].

Bowie, D. and Buttle, F. (2006). Hospitality Marketing: An Introduction. 1st ed. London: Elsevier

Cetron, M.J. Ph.D. (2004) Hospitality In The Age Of Terror [Online]. Available at:
http://www.hospitalitynet.org/file/152001642.pdf [Accessed: 18 May 2010]

Cooper, C. Fletcher, J., Wanhill, S., Gilbert, D. And Fyall, A. (2007) Tourism Principles & Practice. 7th
ed. Harlow: Pearson.

Druce, C. (2010) Hygiene: What To Do If Things Go Wrong. Big Hospitality, May 07 2010 [Online].
Available at: http://www.bighospitality.co.uk/default.aspx?page=articles&ID=204915 [Accessed 30
April 2010]

Internet World Stats (2009) Internet Usage In Europe. [Online]. Available at:
http://www.internetworldstats.com/stats4.htm [Accessed: 10 May 2010]

McCaskey, D (2008) The Economics of the Service Sector. In: Griffiths, A. and Wall, S. (eds.)
Economics For Business And Management. 2nd ed. Portland: Financial Times Prentice Hall

Marvin J. Cetron, Ph.D. (2004) Hospitality In The Age Of Terror. [Online]. Available at:
http://www.hospitalitynet.org/file/152001642.pdf [Accessed: 18 May 2010].

Montana (2008) Lesson 4: Factors Affecting Hospitality and Tourism. [Online]. Available at:
http://www.montana.edu/hhunts/MAFCS%20WEBSITE%20DEVELOPED%202008/MAFCS
%202007%20Student%20Lesson%20Plans/Unit%20Plan%20adobe
%20files/Lesson_4_Factors_Affecting_H_&_T_Lesson_Plan.pdf [Accessed: 10 May 2010].
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Osborne, H. (2010) Travel Insurance Policies Will Not Cover Ash Disruption. Guardian, May 08, 2010
[Online].Available at: http://www.guardian.co.uk/money/2010/may/08/travel-insurance-policies-ash-
disruption [Accessed: 15 May 2010]

Oxygen Mintel (2010) Economic And Social Impact Of The 2010 World Cup. OxygenMintel, April
2010 [Online]. Available at: http://oxygen.mintel.com/sinatra/oxygen/subject/view=r
eports_category&list=lat est_items/display/id=502699 [Accessed: 30 April 2010]

Oxygen Mintel (2010) Theme Parks - UK - February 2010. OxygenMintel, February 2010 [Online].
Available at: http://academic.mintel.com/sinatra/oxygen/display/id=479861 [Accessed: 30 April 2010]

Premier Inn (2010) [Online] Available at: http://www.superbrands.uk.com/Pages/DocumentManager

/Case-Study_Premier%20Inn.pdf [Accessed: 15 May 2010]

Stagg, J. (2010) Whitbread eyes expansion as it leaves recession behind. CatererSearch, May 06 2010
[Online]. Available at: http://www.caterersearch.com/Articles/2010/05/06/333336/whitbread-eyes-
expansion-as-it-leaves-recession-behind.htm [Accessed 25 April 2010].

Whitbread (2010) Environment [Online] Available at: http://www.whitbread.co.uk/corporate_

responsibility.cfm?id=environment [Accessed: 25 April 2010]

Whitbread (2010) [Online] Available at: http://www.whitbreadannualreport0809.co.uk/chief-executives-

review/our-strategy-and-international-progress.aspx [Accessed: 25 April 2010]
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Appendix

Appendix 01 – origins

The Chain originally started as 'Travel Inn' in 1987, which was owned by Whitbread during its entire
operation. In 2004, Whitbread acquired Premier Lodge and their hotels were renamed as Premier Travel
inn. Whitbread soon rebranded their hotel business from Premier Travel Inn to Premier Inn at a total cost
of £12.7 million.
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Appendix 02 – size
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Appendix 03 -growth

Premier Inn was the first Britain-wide hotel group to sign up with the national tourist board Visit Britain
and is now part of a new quality assessment scheme, specially created for budget accommodation. The
cornerstones of its competitive advantage are a combination of product quality and value for money.
Since they have rebranded to Premier Inn, due to focused marketing strategies they have increased
revpar and value for money have increased to 81% and guest recommend scores have also reached 87%.

Appendix 04 – Revenue
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Appendix 05 – Business travelers first choice

Appendix 06 – Globalization & Premier Inn

The main effect of globalization is on economy. Economically countries depend on one another. A
country’s recession would make other countries suffer which results in less money being spent on luxury
activities in both countries. Additionally due to globalization different cultures and activities across the
globe have mixed in different countries so Premier inn has to alter their products or aim their promotions
according to these changes. (Montana, 2008)

Appendix 07 – Economic factors

Whitbread decided to resume the growth ambitions which forces to scale back through the recession,
having reported strong annual results. Pre-tax profit before exceptional items was up 77% to £160m
Assignment 2 - Report Premier Inn 22

compared with £90m in 2008/9. A big reason is both corporate and consumer customers want to reduce
expenditure, thus budget hotels have been gaining market share. (Stagg, 2010)

Appendix 08 – World Cup Impact

People would like to stay out for watching games that make an influence on demand of eating and
drink out. Two thirds of consumers with an interest in the World Cup indicated that they will see a rise
in their expenditure before or during the tournament. (Oxygen Mintel, 2010)

Appendix 09 – Leisure habits

The theme parks market has grown by 2.4% to £315 million in 2009 and admissions have grown by
more than 3% to almost £14 million. This leisure industry has benefited from economic recession
because of a weak pound. Therefore, the potential theme park market would affect the hospitality
industry which makes people consume more of the other leisure business than hotels and restaurants
which is a threat for Premier Inn. Oxygen Mintel, 2010)

Appendix 10 – Technology for guest survey feedback

If no resolution is approaching within four days, the complaint would be delivered to the management chain to
resolve. The system allows the staff to check their performance score on a site basis, providing feedback on what
should be improved.

Appendix 11 – Environmental friendly Premier Inn

Keeping this in mind, Premier inn has opened the first environmental friendly hotel in Staffordshire in
2008 and has plans of opening a new one in West Sussex this year.
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Appendix 12 - Budget hotels competitors

FACTOR Premier Inn Holiday Inn Ibis Hotel Travel Lodge

Products 1 Dlb Bedroom 1 Dlb Bedroom 1 Dlb Bedroom 1 Dlb Bedroom
Price £59/night £90/night £102/night £59/night
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Highlights 2008/2009 (source BDRC British Hotels Guest Survey 2009)

• Premier Inn is the most enhanced brand in UK 2009
• Renovated over 7,000 rooms
• Revenue per available room ranged from 40.31 GBP in March 2008 to 41.15 GBP in February 2009.
• The proportion of frequent guests who prefer Premier Inn is more than three times higher than those
who prefer Travelodge.
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Appendix 13 – The idea of product mix

In order to understand this subject, the idea of “purchase”, relating to a product or a service, must be
considered as influenced by a promotion. The offers of the product together with the price and
accessibility to the purchase are strategies planned by tourism marketers with the purpose of persuading
potential consumers. Marketing mix gives to the company the specific tools that can be manipulated to
reach objectives and attract predefined target markets. (Cooper et al., 1998:391)
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Appendix 14 – Good night Guarantee proposition

Appendix 15 – terms and conditions

Room prices are per room, per night and are inclusive of VAT. Meals are not included in the room price.
You may pay for breakfast at the same time as paying for your room. All other meals must be paid for
separately. Premier Inn reserves the right to review its room prices from time to time. If you make a
reservation more than one month in advance, the quoted room price may change before the date of your
stay at Premier Inn. Some hotels may charge a supplement during key events and periods of high
demand. For details of our most current room prices please check our website www.premierinn.com or
contact your chosen Premier Inn directly.
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Appendix 16 Excellent performance on Revpar

Appendix 17 Flexible pricing according to demand [

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Appendix 18 Higher returns due to low construction an operation costs

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Appendix 19 Premier Inn ‘Recession Action Plan’

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Appendix 20 Increased weekend occupancy in comparison to competitors

Appendix 21 The prospects for growth of UK Budget Market

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Appendix 22 – International expansion

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Appendix 23 –Premier Inn rooms expansion

Appendix 24 - Promotion Terms and Conditions

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The offer will be valid except in relation to bookings which fall exclusively within the periods 23.12.09 until
26.12.09 inclusive or 30.12.09 until 02.01.10 inclusive. Offer applies to minimum of 3 nights. Offer will be
available at selected Premier Inns only; it will be advised to consider alternative dates if the selected date is not
available. In addition, no cancellations, amendments or refunds will be possible. The booking will have to be
made 15 days in advance or more.

Appendix 25 – Promotion price

After a carried out research on prices for double room available on the period of the promotion, the price of £299
seems affordable and appropriate for the budget hotel. Calculating, the price would come out as £24.92 per person
per day, including a meal and discount ticket for different attractions.

Appendix 26 – Promotion advertising

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Appendix 27 – Promotion artwork

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Appendix 28 – Promotion time plan & budget

Taking in considerations the product mix of this promotional campaign, first step (1 st quarter) would be
plan the promotion and terms of promotion properly besides all its characteristics involved relevant.
Would revise the promotion plan here suggested and officially print a new and update last version of the
terms and conditions for Friends & Family Inn London. At this point meetings must be allocated
between staff and proper communication within the different departments must happen, having ready the
decisions by the beginning of the first quarter annually analyzed.

The budget for the first quarter is low as not much will be done, justifying why only £2,100 to be spends
under printing and research (for mature the promotion idea and finalize).

At the beginning of the 2nd quarter will Press Release the promotion - we will be advertising on monthly
magazine like Travelmag and from the end of the period we will be advertising in some of the weekly
and daily news paper like evening standards, the guardian and the mirror, targeting different group of
customer. We will be using poster advertising in the tube station and at the city and airports hoarding
boards. We will be as well advertising in website like google.co.uk, facebook.com and youtube.com so
that we can have a worldwide coverage as well. We will be also providing flyers and leaflet to all the
travel agents and to all the Whitbread Company by the end of this period. We will be sending web-mail
to the entire guest database we have and a pop-up advertisement in the entire travelling website like
expidia.co.uk, tripadvisor.co.uk, lastminute.co.uk. We will be creating a strong relation with some of the
regular airlines like Air France & British Airways and some budget airlines like Ryanair & Easyjet
which are more likely to be potential clients of Premier Inn.

The budget of £39,000 here, about 51% of the total to spend was distribute between these activities
considering contracts with company for advertising, printing of brochures – prices have been researched
and printing of flyers is about 0.11 per page when in large scale as necessary plus the hoarding boards
and posters to be spread around. E-commerce for advertise on the websites since a lot of potential
customers are constantly in the virtual world. And research a small budget with a reserve for the quarter.
Assignment 2 - Report Premier Inn 37

At the beginning of the 3rd quarter w e will be organizing some relation building for some dinks and
nibbles with the travel agents personal will give continuity to the advertising process and get some
feedback on how they feel about the promo and what was the customer feedback so far and – forms of
control promotion effectiveness – enquiry and sales response to the adverts; customer awareness of
adverts; response to merchandising; etc.

The 3rd quarter have a budget of £32,300, about a bit more them 40%, using most of the rest of the cash
for marketing activities taking place during the promotion period. Values are calculated in proportion to
necessity and according with the time plan.

The 4th quarter will have the analysis and evaluation of the effectiveness of its promotion. The rest of the
money for marketing purposes should be use for it.

Appendix 29 Forecast revenue

In the next page there is a simple revenue forecast considering that basic costs of a room would be 40%
and any additional cost relating to the room 20%. Taking the expenditure of marketing only, the profit in
the end of the year (Jun 2010 – May 2011) is £ 2,966,061.20. It is important to know this is not a
realistic forecast and would change according with conditions of expenditure, but even to considerate a
20% profit on total of revenue sold - £1,520,833.60, taking the marketing budget forecast of £76,041.68
Premier Inn would still have a considerable profit of £1,444,791.92. Finally, this promotion would
effectively improve the performance of the budget hotel.
Assignment 2 - Report Premier Inn 38