UK Budget Hotels Case Study Example | Topics and Well Written Essays - 3500 words

UK Budget Hotels - Case Study Example The industry will account for over a quarter of the total hotel industry market share come the year 2027, this is according to different research done. According to Melvin Gold a consultant in the industry and whom it is reported that has done the most comprehensive research in the industry, he states that the industry presently enjoys a market share of 12% and it is predicted that it will reach a market share of 26% in the next 20 years. This is attributed to the fact that consumers are increasingly demanding for low cost hotels. (Hotel benchmark, 2002) Despite a lower demand in the hotel sector, in the UK and Europe as whole, budget hotels and mid -market hotels have continued to grow at an average of 12%. The improvement of the budget hotel sector is witnessed in the UK market where the rate of occupancy has moved up. The sector is the only one posting improved occupancy in the hotel industry in the UK. The budget hotel sector has continued to grow despite the factor that the hotel industry has been declining. (Hotel benchmark, 2002) Premier inn budget hotels are the biggest UK band hotel, with a total of more than 32,500 rooms and a chain of over 490 hotels. Initial the chain was operated under the "travel in" name. The hotel chain is owned by Whitbread Company and it was opened to over competition to the Travelodge. The very first group of the hotel were built next to Beefeater in 1987-1988. Ever since 1987, the premier hotels have developed to become the biggest chain of hotels in the whole of UK. In the year 2004 Whitbread re-branded the travel inn company to be known as premier Travel Inn after acquiring the rival group Premier Lodge that was owned by Spirit group at a total sum of 505 US Dollars. The name has been re-branded again to Premier Inn in this year (2007) Company logo; source (Premier Inn, 2007) Premier inn summary information (Premier Inn, 2007) Type Public Founded 1987 Headquarters Flag of England Luton Area served United Kingdom Industry Hospitality Parent Whitbread Rooms capacity 32,500 Rooms The hotel chain has created a policy of having similar rooms in all of its hotels; the rooms usually have a double bed/ twin beds, a working desk, shelves, a TV set and a shower. Some rooms have extra pull-out beds or on sofa, there are referred as family rooms. Usually these rooms are not priced higher than the standard rooms, as they are same in size. In the year 2006 premier inn modified their general room design; however the rooms still have the same standard of facilities as in the past. Currently, the company offers a few numbers of rooms where smoking is allowed, but as from January 2008, the company aims at making banning smoking in all rooms. (Premier Inn, 2007) Pricing policy Premier Inn's charges a daily amount per room occupied not considering the number of people occupying the room, the maximum allowed number is two adults and two children. The price of a room according to the company website is from $ 48, however many of its chain charge a minimum of $55, though the pricing depends on where the hotel is located and on particular days of the week. For example prices are higher on a week day than during a weekend. Unlike their main competitor