Premier Inn's Strategic Brand Investment Catapults it to the Pinnacle of UK's Favorite Brands
Premier Inn, owned by Whitbread, attributes its brand success to strategic investments With only 37% of rooms sold under £80 a night, the hotel chain boasts 86% of sales from loyal customers, solidifying its position as one of the UK's most beloved brands
In their latest financial report for the first half of the year, Whitbread emphasizes that their decision to prioritize regular brand marketing activities for Premier Inn during the previous financial year has yielded remarkable results. This approach has led to a substantial increase in the percentage of customers considering booking at Premier Inn, with the hotel chain achieving an impressive brand awareness score of 93%.
Premier Inn has continuously been the top-ranking hotel and leisure brand in the UK over the past year, according to YouGov's BrandIndex.
While the company remains dedicated to its reputation as a budget hotel, it has decreased the percentage of rooms priced at £80 or less to 37% of total bookings. This is a decline from last year's figure of 51%. Premier Inn attributes this change to its innovative trading model, which enables centralized management of pricing strategies across all hotels. As a result, the company has gained better control and adaptability to market dynamics.
Premier Inn remains steadfast in maintaining brand loyalty, despite the existence of elevated prices. According to their assertion, over 86% of their five million plus bookings in the first half originated from repeat customers.
Whitbread further elaborated, stating, "Through extensive investment, the exemplary quality of our offerings, and unparalleled customer service, Premier Inn has established itself as a beloved brand within the United Kingdom."
Premier Inn has reported a 15% increase in its UK sales during the first half of this year, compared to the same period in the previous year. In comparison to 2020, the sales have risen by 55%. The hotel chain is now focused on expanding its operations and improving profitability in Germany, where it has experienced an impressive 82% increase in sales compared to last year, reflecting the growth of the brand's presence in Germany.
Whitbread achieved a 17% growth in total revenue, amounting to £1.57bn. Furthermore, its adjusted profit before tax experienced a significant increase of 44%, reaching £391m. Additionally, the company is actively considering additional investments in its network, with the goal of expanding it to 125,000 rooms, surpassing the current count of approximately 84,000.
"The CEO, Dominic Paul, attributed the surpassing of pre-pandemic margins in the UK to the strengths of our operating model and our ongoing dedication to enhancing cost efficiencies throughout the business. He expressed confidence in the Group's promising outlook, highlighting its strong performance and substantial growth possibilities in both the UK and Germany."
