Impact of Inflation on Travelodge Ltd.: Causes, Theories, and Models

FUNDATION YEAR RESEARCH PROJECT
INTRODUCTION
 Inflation is the prevailing circumstances where an economy
faces the problem of higher prices and lower demand.
 It impacts all the organizations but in this case Travelodge Ltd.
Has been taken into consideration which is getting operated in
tourism business form so long and went through this phase
(Sofronov, 2018)
 The poster will be discussing causes which led the organization
to be affected in term of its ability of making profits.
 At the end some better theories and models would be discussed
in order to reduce the negative impacts of inflation over the
entity.
REFERENCES
 Séraphin, H. and et.al., 2018. Events and tourism development within a local
community: The case of winchester (UK). Sustainability. 10(10). p.3728.
 Rita, P., Brochado, A. and Dimova, L., 2019. Millennials’ travel motivations
and desired activities within destinations: A comparative study of the US and the
UK. Current Issues in Tourism. 22(16). pp.2034-2050.
 Kovaçi, I., Tahiri, A. and Bushi, F., 2020. Travel and Tourism Industry
Development-The Case of Kosovo. Analele Universităţii din Oradea, Seria
Geografie. 30(2). pp.147-156.
Theories and models
 There are range of models which could be used to deal with
the situation of inflation and reducing the all negatives it
brings to an organization. Over the time, Travelodge has faced
some severe issues which led it to be trapped in inflation.
 “Contraction monetary policy” has been used by the
organization to reduce the negative impacts of inflation. It has
been quite drastic since in the year 2020 the inflation started
taking a sharp upward turn. Which led it to be quite higher till
the year 2021 (Price, Wilkinson, and Coles, 2022) there were
range of causes but the biggest was Covid-19 so in such
predicament it became highly essential for the organization
applying this model. They brought a new organizational
monetary policy. This policy was all about reducing the
charges so can bring more customers and can attract them. In
these predicaments of inflation, the customers are less likely
to spend out of pocket. So the sole way to grab their attention
was to offer them salubrious packages (Sharma, Thomas, and
Paul, 2021)
Overview of the organization and their product and services
 Travelodge is a UK based private entity which is
engaged in tourism sector. The organization came into
existence in the year 1985. it is having around 11000
employees at present across the world. The
organization is having its total revenue around 63.71
cores GBP as per the data extended in the year 2018.
The collaborative practices made the organization
achieve its position. In last couple of years, the stars of
the entity went in ditch which led severe repercussions
to the entity (Kovaçi, Tahiri, and Bushi, 2020)
Period and causes of inflation the entity has faced in the past
Covid 19: This was the major reason due to which the company operations had
been impacted in negative manner. Further, it was seen that due to pandemic
there were certain operations that could not be carried out easily and due to
this the company was unable to provide the services to large number of target
customer. Furthermore, it was reported that due to such kind of pandemic the
firm was also not able to plan better activities within the business as the firm
was forced to keep the prices of its various packages higher that had not
allowed the firm to attract more customers in current times.
Poor monetary policy of government: Monterey policy of the government
was another reason that had created the problems of inflation. Also, due to
improper development of the monetary policies it was reported that there was
higher inflation rate and there was not right circulations of the money within the
economy. As such people of the country were not able to fulfil the basic needs
that in the most efficient manner within their own country
CONCLUSION
Form the poster above it can be twigged that the duration of inflation
affected organization in severe manner. This came with range of
negatives such as toppling demand of hotels, poor feedbacks of
customers, lack of innovative ideas in the organization, poor ability to
align with hyper sectoral development etc. Then some theories and
models were also depicted which could have been helpful for the entity
to deal with the crunches.