Building Resilience for Sustainable Business Operations

RESEARCH PROPOSAL TEMPLATE

Title : Crisis management in hospitality industry in the recent COVID 19 era

Introduction

In the recent era of globalisation, the firms are suffering from diverse issues in running their operations, which leads to poor performance and lack of productivity (Reuter, Hughes and Kaufhold, 2018). The firms can lose the competitive advantages in the market and additionally, the recent pandemic situation is one of the serious issues for the organisations in running their operations (Wolbers, Boersma and Groenewegen, 2018). All the companies in the hospitality industry are facing threats in managing their operations due to COVID 19 era. There are several crises that have been faced by the organisations, which deteriorate the performance of the companies and hamper the business operations. Through the research, it is possible analyse different crisis in the hospitality sector as well as develop alternative solution to mitigate the crisis and create effective strategic planning for the hotel to run their business sustainably. If businesses are struggling with all these challenges, seeking business dissertation help can provide the most valuable insights and strategies for overcoming all these hurdles.

Aim :

The aim of the study is to analyse diverse crisis management in order to explore the crisis in hospitality industry and evaluate the crisis in Premier inn for developing alternative solution in the recent pandemic era.

Objectives:

The research objectives are such as,

To review the crisis management principles in the organisations in order to run their operations successfully

To evaluate the existing crises that the hotel Premier inn face in the recent pandemic era

To recommend some suitable suggestions for tacking the crises at premier inn and develop good branding in near future

Rationale:

The COVID 19 era creates critical issues for the organisations, to operate sustainably in the market. The major issues that the organisations face are poor performance of the employees, high employee turnover, labour retrenchment, reduction of organisation revenue and sales volume due lockdown and social distancing (Iaquinto, Jancenelle and Macpherson, 2017). The organisations in the hospitality industry face diverse crises in running their operations, including lack of employees, remote working, poor management, reduction of sales volume and profitability. The hotel Premier inn is a British limited service hotel chain and the UK's largest hotel brand, with more than 72,000 rooms and 800 hotels (Premier inn, 2021). The company is successful to serve the best hospitality services to all the customers across the international markets. The room decorations, additional service and cleanliness, safety as well as good catering services at Premier inn are the major success factors for which the hotel is successful in gaining high competitive advantage (Paraskevas and Quek, 2019). However, due to this pandemic situation, there are several crises including deterioration of revenue and sales volume, poor customer’s retention, employee retrenchment and poor management due to lock down and social distancing (Maphanga and Henama, 2019). Through this research, it is possible to explore the crises and develop alternative solution for managing the existing crisis in the hotel.

The research is about analysing the existing crises in the recent years, there are critical issues including lock down, social distancing, slowdown of social development and stagnant economic growth. These factors have serious impacts on the hospitality industry, and through this study it is possible to explore the existing crises that the hotel industry face and evaluate the problems critically (Abo-Murad and Abdullah, 2019). The researcher would like to analyse the crises management practice sin the hospitality sector so that alternative solutions can be built in future to protect the organisational operations sustainably.

Main task : Methodology

3.1 Research method

Multiple approaches and methods are applied in the research study for developing suitable process of conducting in depth study successfully through data analysis and evaluation (Basias, and Pollalis, 2018). The research is about analysing the existing crises in the hospitality industry and exploring solution for crisis management (Kumar, 2018). Thus, the researcher decides to gather authentic data and analyse it for understanding the crises in the hotel and fulfil the above mentioned research aim and objectives. The research onion hereby provides a systematic way to choose the right method of conducting the study including research philosophies, approaches, strategies, choices and ethical considerations (Basias, and Pollalis, 2018).

3.2 Research approaches

Deductive and inductive approaches are important in the study that helps the researcher to choose the way of conducting in depth research (Brannen, 2017). In this particular study, the research currently emphasizes on the existing crises in the hospitality sector in the recent era of globalisation (Kumar, 2018). Deductive approach is the process of gathering data, understanding theories and analysing the data for drawing conclusion. Inductive method is different where the researchers gather data and analyse it to develop new theories and models related to the research topic. Hence, the deductive approach of research will be adopted to develop a conclusion on the grounds of research questions. Through deductive approach, it is possible to explore diverse theories and concepts, gather data and authentic information for further analysis and valuation of the research topic.

3.3 Data collection

Primary and secondary are the two types of data collection method, which provides a scope to progress in the research and complete it successfully (Kumar, 2018). The primary data collection method indicates the process of gathering the first hand data through questionnaire, survey, case study analysis and interview (Saunders, Lewis and Thornhill, 2009). On the other hand, the secondary information is the process of gathering secondary information including theories and concepts by reviewing the books, journals, and articles and published company report (Basias, and Pollalis, 2018). The researcher in this study selects the primary data collection method which is gathered with the help of an interview. The researcher tries to involve the participants in the study in order to gather authentic information and first hand data about the existing crises in the hotel Premier inn. The primary data collection method is hereby fruitful to collect valid information and analyse the above mentioned research topic. 3 managers of the hotel Premier inn will be empowered through the interview process for sharing their opinion related to crisis management in the hotel. On the other hand, the researcher also selects the secondary data collection method, where the books and journals are reviewed for developing critical understanding on crisis management. Additionally, the published blogs, newspaper articles and company website review on Premier inn will be helpful to explore the existing issues in Premier inn and analyse it for resolving the issues in near future.

3.4 Data analysis

The data analysis methods are of two types, one is quantitative and another is qualitative data analysis (Basias, and Pollalis, 2018). Both the analytical tools are advantageous for conducting the in-depth analysis and evaluation about crisis management (Brannen, 2017). The quantitative data analysis is the process of analysing the gathered data and information through charts, tables, graphs and statistical tools. On the other hand, the qualitative data analysis is the process of interpreting the findings by implementation the theories and concepts for develop critical discussion on the research topic. In this particular study, the data gathered needs further analysis with the appropriate application of a method and hence the qualitative data analysis is being chosen, in order to analyse the interview transcript. The data analysis in this particular research will be done through thematic analysis to meet the research objectives. The researcher will be able to develop different themes on crisis management and analyse and interpret the interview data gathered directly from the managers of Premier inn.

3.5 Ethical consideration

Ethical considerations are important where the researchers try to complete the study ethically and within allocated time and in this study, the researcher ensures that, the gathered data and information are utilised only for this particular study, and there will be no issue related to data breach under the data protection practice. No identity of the respondents will be revealed which helps to protect them as well as secure the collected data by implementing Data Protection Act 1998 (Saunders, Lewis and Thornhill, 2009). Maintaining anonymity and confidentiality of the participants is an integral consideration in this particular research by managing the respondents ethically (Basias, and Pollalis, 2018). Relevant and valid data are included for fulfilling the above mentioned research questions and in the recent pandemic situation, the researcher selects online interview technique to maintain social distancing. The researcher respects each member and convinces them to take active part in the telephonic interview, so that the data and information related to the hotel can be gathered. Maintaining transparency and integrity are also beneficial for meeting the above mentioned study aim.

References used so far:

Primary data sources : Interview

Secondary data sources: Books, journals and organisational website

Research Questions?

The research questions are such as,

What are the crisis management principles in the organisations in order to run their operations successfully?

What are the diverse crises in the hospitality industry?

What are the existing crises that the hotel Premier inn faces in the recent pandemic era?

What would be the suitable suggestions for tacking the crises at premier inn and develop good branding in near future?

2.1 Introduction

Literature review is important to review the concepts and theories related to the research topic. Reviewing the secondary sources of information, including books, journals and articles is effective for the researchers to understand the concept of crisis management and review the existing literatures for improving understanding. Crisis management practices, importance of crises management in the organisations as well as the existing crises in the hospitality industry are useful for the researcher to develop effective literature review and progress in the study for further critical evaluation.

2.2 Crisis management

Crisis management is the process of the organisations to deal with a disruptive and unexpected event that threatens to harm the organisations and its stakeholders. It is the form of transformation where old system is being changed with innovative solution to run the operational activities efficiently (Abo-Murad and Abdullah, 2019). The stakeholders are engaged with the business operations, and it is the responsibility of the corporate leader and management team to review the existing crisis and explore alternative solutions to protect the interest of all the stakeholders (Iaquinto, Jancenelle and Macpherson, 2017). There are suitable stages of crises management which are warning, risk assessment, response, management, resolution and recovery, where the leader and managers try to identify the existing crises, analyse the issues and develop alternative strategies to overcome the problems and lead the business towards achieving the future success (Thams et al., 2020). The leaders play a crucial role in this context of crisis management where the leadership skills such as communication, adaptability, self-control. Relationship management and creativity are fruitful to tackle the existing crisis and develop creative planning to meet the company’s goal (Maphanga and Henama, 2019).

In the pre-crisis phase, the leader tries to identify the risk and plan for the ways to minimise the risk factors. Continuous monitoring process and early warning system are being developed in the organisational workplace, so that the senior management team can develop the crisis management plan by utilising the organisational resource and capabilities (Paraskevas and Quek, 2019). The crisis management tem is being hired in the workplace to respond different crises in the organisation, and communicate with the employees, so that the staff members can be empowered in this process. There is good communication and cooperation in the workplace during the crisis management practice, where the leader and managers aim at tackling the issues creatively. Post crisis period is also effective for reviewing, adjusting and updating the response for achieving future success (Oliveira and Nadais, 2021). Continuous supervision, quality management and monitoring process are effective to review the crisis management plan and analysis its success in the workplace so that the leaders and managers can mitigate the crisis and develop innovative business operations to meet the strategic goal of the company. Hereby, during crisis management practice, it is mandatory to develop good decision making skill and problem solving skill where the managers and leaders take collaborative decision for mitigating the existing issues. During the change management practice, all the employees are empowered and the leaders communicate with organisational vision, creative planning and resources. The leader and managers try to cooperate with the staff, as the employees are the major stakeholders in running the operations successfully. The employees are encouraged to show their relativity and share their opinion to develop creative ideas to tackle the risk factors.

2.3 Existing crises in hospitality industry

COVID 19 has its serious impacts on diverse activities in the economy across the globe, where the individual are not safe n living a healthy life style (Leta and Chan, 2021). There are serious impacts of such pandemic era on the business activities, where financial position of the organisation is being hampered over the period of time, for which the corporate firms cannot maintain their position in the market and it becomes serious for them to operate sustainably. The hospital; industry is being affected with huge loss and poor financial performance (Ansell and Boin, 2019). There is lack of investment opportunities in the hospitality industry across the globe and there is huge loss. Due to lockdown and social distancing, the customers cannot the hospitality services. Additionally, international trade and transactions have also been stopped for which there is no such demand for the hospitality services across the globe (Bynander and Nohrstedt, 2019).

The international flights are not available due to such pandemic era and it becomes serious concern for the hospitality leaders to sustain in the market (Ivanov et al., 2020). There are no such sales volumes due to poor demand for their services as well as poor customer’s retention which hamper the brand position. The companies are running through huge loss and the employee retrenchment. The hospitality companies cannot manage huge employee base in such critical phase and they start labour retrenchment. Poor management in the workplace as well as lack of operational efficiency are other crises in this pandemic situation, where the hotels are facing difficulties to maintain their market position (Parker et al., 2020). Lack of revenue generation and poor profit maximisation principle further affect the companies in global hospitality sector. There is lack of corporate governance and customer retention practice in the company due to local lock down and social distancing (Trachsler and Jong, 2020). Employee management also become hampered due to remote working practice, where there are other issues related to human resource management including misunderstanding, resistance to change, internal conflict of interest and poor management (Kao, Wang and Farquhar, 2020).

2.4 Crisis management strategies

In such critical phase, it is mandatory for the organisations to take active initiatives so that the hospitality sector become strong and the hotels can regain their position in the market. The crisis management strategies are effective for the firms in the hospitality industry to overcome such crises and develop alternative solutions to regain their brand position (Uitdewilligen and Waller, 2018). The strategies of service innovation are mandatory to overcome such critical phases, where the customers can get the best quality hospitality services at affordable prices. Hence, the product and pricing strategies are beneficial for the organisations to provide the best quality services as per the preferences and needs of the customers. Proper placement of the hospitality services is also essential where the companies try to establish hotels at crowded locations so that the customers can access the services (Saroj and Pal, 2020).

The supply chain management and distribution network must be improved by utilising latest technology in order to placing the products and services and retain more customers in long run. For regaining the brand position, the hotels across the globe must focus on promotional activities through pricing offers and other additional services in order to target the customers and retain them in long run (Wolbers, Boersma and Groenewegen, 2018). The market condition after COVID 19 era is improving over time, where economic activities have been recovered through international trade, increasing gross domestic products, employment opportunities and efficient operational activities. Additionally, internal management system must be strong along with corporate governance in the hotels so that the managers and leaders can provide the best quality services to the customers (Prayag, 2018). The employee management practice is also another crisis management strategy for strengthening their employee base and run the business operations sustainably.

2.5 Importance of crisis management in the organisations

Crisis management mainly gives a detailed overview of the roles and responsibilities of the employees during the crisis. The managers try to operate with the staff and provide them clear roles to each staff, for enhancing their performance in such critical phase. It also reduces the effects of crisis at the workplace by protecting the employee base and leading the staff members innovatively towards achieving the future success (Wut, Xu and Wong, 2021). Focused approach during the emergency period as well as protecting organisational stakeholders is also possible through crisis management. It is crucial phase of the organisations to identify he risks associated with the workplace, operations and organisational activities so that the new alternative strategy can be developed. Through crises management, the companies can enhance their creativity and technological innovation in the recent era of globalisation (Reuter, Hughes and Kaufhold, 2018).

The crisis management practice is also beneficial for the firms to maximise their revenue and profitability in long run through continuous creativity and innovation. The overall performance of the company as well as the productivity of the employees are also maximised over time through continuous crisis management strategic planning (Lai and Wong, 2020). The corporate leader can utilise the company’s resources and capabilities to achieve ultimate goal of the firm and gain high competitive advantage in the recent competitive market. Crisis Management hereby helps the managers to devise creative strategies to come out of uncertain conditions and also decide on the future course of action. It also helps the managers to feel the early signs of crisis, warn the employees against the aftermaths and take necessary precautions for the same.

2.6 Summary

In the recent years, the companies under hospitality industry and other face diverse threats in operating in the market due to slowdown of the market economy. there is lock and social distancing for which the major crises in the business environment arose which are employees retrenchment, unemployment in the economy, stagnant economic growth, lack of social development, poor market activities, break down in international trade as well as deterioration of the sales volume in the market due to lack of customers and poor purchasing power parity. Hence, there are diverse crises for which the companies under hospitality industry are suffering in running their operations smoothly and generating profitability in long run. The literature review is effective to explore the different crises in hospitality industry as well as understand the importance of crises management tactics so that it would be possible to develop alternative solutions for the business of hospitality industry.

Findings and discussion

4.1 Introduction

The data findings and analysis is effective for representing the findings and also develop critical discussion on the above mentioned research topic. The researcher mainly focuses on secondary sources of information and also arranges the telephonic interview with the managers of Premier inn so that it would be possible to collect primary data. The research questions and the interview transcript will be discussed below along the thematic analysis for representing secondary data and information.

4.2 Anticipated findings

Premier Inn’s stated that, around 1,500 staff has left the business as a result of travel restrictions and decreased demand caused by Covid-19. This is a major crisis, where there is staff shortage and the managers cannot retain the experienced employees to manage the operational activities at the hotel. The company is successful to expand their business across the globe and staff shortage further raise difficulties to manage the market activities successfully (The Guardian, 2020).

It has also been revealed that, total UK accommodations sales were down by 55.2 per cent in the third quarter of 2020, with occupancy at just 49.3 per cent, as Covid-19 restrictions continued to create very challenging hotel market conditions. It is hereby very difficult for the managers and leaders of the hotel Premier inn to manage their activities with such huge loss and shortage of labour (Mauvija and Peters, 2021).

Additionally, total market share growth of 4.1 per cent to 11.4 per cent, and the accelerated growth of the Premier Inn brand in Germany has been seen during this period due to leadership roles and creative activities (Caswell, 2021). There are investment opportunities in Germany for which market share has been grown, but the customers sales volume is being affected due to local lock down and social distancing.

There is £ 725 million loss in the hotel due to this lock down and social distancing, where the demand of the customers in the market for the hospitality services has been deteriorated drastically (Mauvija and Peters, 2021). The business of the Premier inn is being hampered with such low demand and lack of customer’s retention. Due to lock down, social distancing, no international trade, the company is going through challenges in sustaining in the market and regains their market position in the global hospitality industry.

4.3 Interview transcript

What are the major crises in the hotel?

The first manage reveals that the major crises at the organisation are poor management, lack of employee retention practice and labour shortage, where it becomes difficult for the managers to handle the operations across the globe with low numbers of employees. The second manager also stated that, poor management and lack of incentives for the staff lead to labour shortage. There is also lack of cleanliness and health and safety policies as well as no travel allowance for the staff, for which the employees cannot continue with this job due to lack of availability of transportation services. The third manager also provide good feedback about the internal crises at Premier inn which are poor employee retention practice, lack of communication, mistrust and lack of ethical practices at the workplace, for which the workers have left the job.

What are the serious impacts of this pandemic era on the hotel Premier Inn?

COVID 19 pandemic era affects the business activities critically where the firms in the global hospitality industry are facing challenges in running their operation and sustaining in the market. According to the first manager, due to lock down and social distancing, the customer’s demand for the hospitality services has been deteriorated over the period. It is main issue that Premier inn has faced during this pandemic period for which there is huge loss. On the other hand, the second manager reveals that employee retrenchment due to lack of demand and international activities is another major issues along with huge loss. The third manager also stated the same that there is huge loss in Premier Inn for which the company is not able to maintain the brand position in the market.

How would you suggest overcoming such challenges?

It is beneficial for the leader and management team to mitigate such crisis through effective crisis management planning and as per the first manager review; they try to promote their services across the globe in order to boost the demand of the customers for their creative services. Second manager reveals that, hotel establishment and additional services are there with different pricing offer to maximise customers demand so that the hotel can overcome their loss and lead the business activities efficiently towards the market competitive advantage. The third manager also reveals that, it is mandatory to hire experienced staff and develop good employment rues for strengthening the employee base so that it would be positive to tackle the existing crisis and enhance good corporate governance for running the business operations sustainably across the international hospitality industry.

4.4 Critical discussion

As per the above findings and discussion, it can be stated that, the COVID 19 era raise difficulties for the business firms in the global hospitality industry to manage their operations. There are several crises that have been raised during this pandemic era, and it is serious concern for the organisations in the hospitality industry to manage such crises and regain their brand position in the market. Huge loss is the main cases, where the hotels are not able to retain the customers in such critical phase due to lockdown and social distancing. The demand of the restaurant service is also deteriorating over time which leads to huge loss for the hotel Premier inn (Premier inn, 2021). The global hospitality industry loses their market share price and also there is lack of profit maximisation due to low demand and poor customer’s retention. Other issues are related to employees such as employee retrenchment and shortage labour. premier in is facing challenges in shortage of labour, where the staff members have left this job due to lack of availability of transpiration and other employment services in the hotel. Moreover, the hospitality companies focus on labour retrenchment due to lack of customers and poor demand for their services (Wut, Xu and Wong, 2021). In this context, it is difficult for the leader and manager to ear the employment cost. The internal management system is also hampered due to lack of communication and cooperation, remote working practice that further leads to misunderstanding and mistrust among the labours. The leaders and the managers face difficulties in tacking the existing crisis due to lack of financial stability and poor employee management (Oliveira and Nadais, 2021). The hotel premier inn cannot able to manage their operations in such lock down and social distancing. Financial loss, poor management and employee’s retrenchment are hereby the major crises that must be mitigated over time so that the hotel Premier inn can regain their position in the global hospitality industry and run their operations smoothly.

Conclusion and Recommendation

5.1 Conclusion

The research is effective to explore diverse crises that have been faced by the hospitality industry across the globe in this recent pandemic era. It is important to evaluate the crises that the hotels are facing over this period of time, so that it would be possible to evaluate the changes and develop alternative solution for the firms to overcome their crisis. Through critical discussion, it is possible to meet the above mentioned research objectives. The major crises that the hotel Premier inn has faced during this COVID 19 era are such as huge loss, lack of profit maximisation practice, poor customer’s retention, labour retrenchment, poor internal management and shortage of experienced labour in the organisation. Due to lack of demand for the hospitality services in such lock down and social distancing situation, the hotel faces the issue in sustaining in the market and manages their operations. Lack of financial stability as well as poor employee management further deteriorate the operational efficacy of Premier inn and thus it is important to suggest suitable recommendations to the corporate leader and managers of the hotel so that they would be able to overcome the existing crises and regain their position in the global hospitality industry.

5.2 Recommendations

The corporate leader of the hotel Premier inn must focus on managing their employees efficiently in order to strengthen their employee base ad develop the operational strategy. Providing clean workplace and maintaining hygienic factors at the hotel is mandatory to protect health and safety of the staff in such pandemic era, so that they can work safely. Additionally, the organisation must develop structured salary, incentives and transpiration allowance so that the employees can bear additional cost. Performance related pay must be designed well in order to motivate the staff and encourage their creativity in working efficiently in the hotel to meet the customer’s preferences.

It would be beneficial for the hotel managers to enhance creativity in providing hospitality to the customers. Incorporating additional services such as welcome drink, free breakfast o the first date of arrival at the hotel as well as free Wi-Fi, additional access of the areas and lounges in the hotel are effective to attract more audiences in such critical phases. On the other hand, pricing offers must be provided so that the customers can afford the services. Seasonal offers and the social customer’s loyalty programs must be introduced in order to regain brand position in the market by strengthening their customer base.

On the other hand, promotional activities are necessary to be designed will to retain more clients across the globe. Social media advertisement through Facebook, Twitter and Instagram are essential to engage the social communities and share the pictures, additional services at the hotel Premier inn. Additionally, the television advertisement and promoting organisational website would be advantageous premium in to mitigate the crisis of huge loss and lack of financial stability as the promotional activities will provide a scope to strengthen their customer’s base and stabilise the financial position of the brand.

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