Impact of Environmental Changes on Travelodge Hotels

Case study

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Specific environmental changes and how these changes have affected the stakeholders......3
Restructuring and re-integration taking place at the industry level.......................................4
Effect of global environmental changes on the market positioning, resources and strategic
capabilities of the organization..............................................................................................6
CONCLUSION........................................................................................................................13
REFERENCES.........................................................................................................................14

INTRODUCTION
The environmental changes have a huge impact over the business organization. These
changes influence the different aspects of the business. In this report, Travelodge Hotels
limited is taken an organization in the hospitality industry. It is UK’s biggest hotel chain and
brand with over 570 hotels all across the United Kingdom. This report provides an analysis of
how environmental changes will affect the stakeholders and also deals with the current
restructuring and re-integration activities taking place at the industry level. Along with that,
how global environment is affecting the market position of the company and its resources and
strategic capabilities.
MAIN BODY
Specific environmental changes and how these changes have affected the stakeholders
There are two industries which are closely connected to the environmental changes
which are hospitality and the tourism industry (Darvishmotevali, Altinay and Köseoglu,
2020). The two main reasons for determining the viability and attractiveness of the hotel is its
surrounding and the natural environment and the climate conditions over there. The main
environmental trends which are affecting the hospitality industry are stated below.
Change in climate
The increasing emission of greenhouse gases in the atmosphere has been the cause of
climate change and global warming. Climate change can eb referred to as global occurrence
and the main influence or effect of it can be seen at the local scale. It includes rise in sea
level, variation in the ocean currents, melting of glaciers, changes in the precipitation patterns
and so forth. These factors determine the destination place of tourist’s interest which has a
direct effect over the hotel industry and also on the profitability of the company or the
industry as a whole. Policies have been implemented to lower the emission of harmful gases
which will invariably affect the operating cost and attractiveness and competitiveness of the
destination for longer destinations.
Depletion of natural resource
The rise in the paucity of the natural resources which are required to meet the needs of
the industries will lead to increase in the number of effects. The main factors which has
affected the availability of the natural resources are food production, water and energy, rising

population level and economic development. The outcome of the peak oil leads to increase in
the expenses of the fossil fuels which is based on the energy sources. The decrease in the oil
production with the increase in demand of it will lead to the rise in the fuel costs. Therefore,
the carbon economy is set to push the need for the energy efficiency level and the investment
in the renewable sources of energy. In the near future, half of the global population would be
facing shortage of resources due to scarcity (Cerchione and Bansal, 2020). This will also have
an impact over the hospitality industry as well. This will lead to insufficient supply of
resources to the guests or increasing the cost of the service which will have a direct impact
over the footfalls and consequently, affecting the profitability of the business of the industry.
This will affect the stakeholders as well because investors have invested money in the
company for the purpose of gaining higher return and if their desire is not match then it will
affect the funding of the company. Other stakeholders like employees, government,
customers will look for alternatives as business is not able to manage itself with respect to the
changing conditions and also government might also intervene in knowing all the regulatory
requirements are being met or not under Corporate Social Responsibilities activities.
Loss of bio diversity
As per the repot of United Nations, the main danger is over the loss of species
biodiversity is the loss of habitant. This loss is expected to have a substantial effect over
those destinations which are known and highlighted by the nature based surrounding and
environment or the eco tourism. It will affect all those companies within the industry which is
known for the habitation of wide variety of species or rare species. Thus, the changing
environmental factor will hamper the popularity of these places which will directly affect the
revenue of the business along with its profit and indirectly the interest level of the
stakeholders.
Restructuring and re-integration taking place at the industry level
There are large number of hotels and the hospitality industries in UK along with the
top-notch hotel chains and all these together requires huge source of resource consumption
and waste. Therefore, an initiative by one hotel will not have any changes in this grand
industry. There are steps which are being taken by the hospitality industry as a restructuring
and ire-integration initiatives in its business operating process for meeting with the changing
environmental factors so that it won’t affect their business on a large scale.
Installing Energy Saving Technologies