Premier Inn Swot and Pestel Analysis

HUB® by PREMIER INN® PROPOSAL

ACQUISITION OF SNOOZEBOX®

SWOT AND PESTEL ANALYSIS:

        This section of the CEO report will address the key drivers for change that are considered to have a highest degree of impact on this proposal. The first aspect to be analysed, in this regard, is the technological factor, which is a significant strength of this proposal.

        Top-notch innovation and technology in engineering, “domotics” or “home automation” and architecture allowed PREMIER INN® (Premier Inn, hereafter) to maximise price discrimination and to minimise accommodation, thus leading the way to profit maximisation.

        On the cost side, this high technology enabled the provision of the minimum necessary amount of physical space that a person necessitates to rest, satisfy their personal hygiene needs and to spend some work or leisure time. In consequence, building costs per room, which represent a significantly high cost in this business, are drastically reduced.

        As a way of compensating for the considerable lack of comfort that the abovementioned space reduction implies, HUB® (Hub, hereafter) has endowed these 11.4m2 room with the latest technology in domotics. This technology allows the guest to have complete control of the room’s temperature, lights, television channels, etc., directly from their smartphone. In addition, to this comfort, the guest can also realise the check-in and check-out from this application and they can also order food, in the same way.

As a direct consequence of the considerable reduction in the amount of square metres per room, Hub can construct approximately twice as many rooms as in the traditional Premier Inn rooms – which have an average area of 21.3m2 – thus considerably reducing construction or purchasing costs per room. In this regard, the amount of money per room that a person is willing to pay remains constant and the costs for Hub are drastically diminished, by the reduction in physical space per room. In consequence, profits significantly increase.

        Based on this initial remarkable strength, originated in the top-notch technological aspect of this business, the acquisition of SNOOZEBOX® (Snoozebox, hereafter) would enhance even further this strength. In this regard, the acquisition of this company would allow to apply Hub’s technology and know-how to this “portable hotel”. By realising this significant innovation, the amount of comfort that a person can obtain in these rooms is considerably increased, thus allowing the amount of money to be charged per room to be raised.