Business Health Check of Travelodge Hotels: Analysis and Strategies

This report conducts a comprehensive business health check for Travelodge Hotels Limited, a major player in the hospitality industry. It begins with an analysis of the company's objectives, mission, and vision, followed by an examination of factors impacting its operations, including SWOT, PEST...Read More

BUSINESS
HEALTH
CHECK

Table Of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analyse the objectives of business........................................................................................1
1.2 Define the factors that impacts business operations in a considerable manner....................2
1.3 Potential improvements in business operations....................................................................6
D1 Contribution of Ansoff's growth matrix in the improvement of Travelodge Hotels ltd.......8
TASK 2............................................................................................................................................8
2.1 Effectiveness of business......................................................................................................8
2.2 Plans to improve the business effectiveness.........................................................................9
M2 Determination how effectiveness of business can contribute to the organisational growth
...................................................................................................................................................10
D2 Analysis of development plan which can lead to the improvement in business.................11
TASK 3..........................................................................................................................................11
3.1 Determination of the current skill of management and staff...............................................11
3.2 Plan for developing management and staff skills...............................................................12
M3 Analyse of current experience, skills and abilities of management and staff.....................13
D3 Different methods that can be used to develop the skills of management and staff...........13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business health check is a formative process within which detailed analysis of required
and essential element are done which are utilize in business operations. In this there is a, various
aspects in context with business individual is done in order to view organisational activities from
various prospects (Borchers, Chang and Gershwin, 2017) . Health Check of Business
organisation consists proper diagnostic of a business along with attained end results with the help
of which strength can be easily evaluated in well defined manner. Present report has been
conducted on Travelodge Hotels Limited which is a private operating organisation dealing in
hospitality industry. Company was established in the year 1985 and headquartered in England,
UK. In this report formative discussions has been made on, objectives, missions and vision of
business in addition with those elements that lead towards impacting if operations of business.
Along with this project include concept on plans that are required to frame as to improve
business in justifying manner. Lastly, current skills of staff and management are covered in
constructive way.
TASK 1
1.1 Analyse the objectives of business
Travelodge Hotels Limited a privately managed organisation operate their services in
hospitality industry. Organisation headquartered in Thames, England, UK. Travelodge have
estimated number of 500 hotel within UK provinces and have revenue upto 637.1m Euros till the
year 2018. Company is included in the list of second largest budget hotel sector in UK.
Organisation effectively offer their services with having 11,000 and more than employees.
Travelodge mainly serve areas of, United Kingdom, Republic of Ireland and Spain. Hotel
provide exquisite range of services that include, convention, lodging, food services, meetings and
timeshares to wide range of customers in order to satisfy customers with immense satisfaction
level. In addition with this services that are offered by Travelodge are of best quality that helps
them to gain more market share and stability.
Mission: Travelodge operate their business operations with a mission to immensely offer
satisfaction to customers with their attractive range of services along with products with of
superior quality. By providing personalised services organisation can effectively able to
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attraction attention of large base of customers through which long term sustainability and
profitability of company can be ensured.
Vision: To be in the list of international four star hotels. In order to achieve this vision
Travelodge is required to gain more competitive edge against their competitors. This can be
effectively achieved by offering products and services of standards quality.
Objectives: There are mainly two form of objectives that are required to be frame by an
organisation in order to effectively accomplish actual objective of company. In context with
Travelodge, company have make strategies in context with short term and long term objectives
which is further defined below in descriptive manner (Camp And et. al., 2019) .
Short Term Objectives:
 To increase revenue base of organisation up to 20% in next coming 3 years.
 To increase overall profit margin of organisation by 15% in next two year.
 To expand business services on those areas which are still untouched as to satisfy large
base of customers.
 To evaluate factors which are related to cultural, social, economical that impacts on
organisation services that are offered by them.
Long Term Objectives
 To offer services and facilities in a best standardised manner as to provide memorable,
relaxing and comfortable services to guest and other clients.
 To facilitate activities and attractive programmes which communicate measures that are
adopted by company in context with environmental concerns as to increase brand of
company in directive way.
 To develop rich guest experience through the procedure of respecting, recognising and
caring needs and wants of organisational workforce.
 To offer attractive and appropriate services and facilities to guest by asking for proposal
from holidaymakers. Main motive of this is to increase organisational profit and market
share in a well defined manner.
1.2 Define the factors that impacts business operations in a considerable manner
There are wide range of services within external and internal elements that put their
impact on business operations. All these factors can be effectively evaluated with the aid of
micro and macro factors analysis that include SWOT and PESTLE. In addition with this to gain
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more competitive edge it is essential for Travelodge manager to take advantage of Porter's Five
Forces. With the help of all these measures Travelodge company can effectively able to evaluate
those factors that may affect their business functioning and harm daily basis operations:
SWOT analysis of Premier Inn
SWOT analysis benefits a business organisation to effectively evaluate strength,
opportunities, threats and weaknesses in order to overcome weaknesses and take advantage of
numerous growth opportunities. In addition with this, this analysis effectively benefit Travelodge
to evaluate those factors that are hampering their functioning. Mentioned below SWOT analysis
of Travelodge is defined:
Strengths Weaknesses
 Occupancy rate of company is above
80% and company gain high profits in
regions where they operate.
 It is the largest hotel brand in UK with
more than 70,000 rooms at around 700
locations.
 Hotel supply different offers and deals
to their customers while online
booking.
 Company posses a huge network of
supply and distribution.
 Hotel faces big issues with hygiene as
employees in housekeeping department
are found using guest towels for toilet
cleaning.
 Compared to other market giants,
Travelodge Hotel operates in limited
countries due to which they have less
access to high customer base.
 Company charges surplus amount for
facilities such as parking, Wi-Fi etc.
which are offered by rival companies
for free.
Opportunities Threats
 Company can initiates more strategic
tie-ups with international businesses to
expand their services (Fotiadis,
Vassiliadis and Piper, 2014)
 Hotel can invest more in digital
marketing so that customers can use
their services through advanced means.
 Economic recession in UK economy is
the large threat to the success of
Travelodge Hotel
 Threat from competitors such as
Holiday Inn and Travelodge is high as
they offer same services in less price.
 Due to the carelessness in hygiene and
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 Hotel can go for market development in
which present services will be offered
to people in new regions to attain high
PESTLE analysis for Premier Inn
revenues.
other issues, hotel faces a high risk of
legal actions.
With the effective evaluation, Organisations can easily able to evaluate strength and
weaknesses with the help of which they can effectively able to identify formative business
opportunities can take business towards more success. Along with this, by evaluating threats and
weaknesses company can able to formulate best form of decisions with the help of which they
can facilitate smooth flow of work functioning.
PESTLE analysis for Travelodge Hotel:
PESTLE evaluation benefits an organisation to identify factors that may impact on
business functioning in adverse manner. With the proper understanding of all these factors which
is related to environmental, social, technological, political and more Travelodge can effectively
able to identify their strength and weaknesses for this effective strategies can be formed as to
increase efficiency of organisational performance:
Political factor:
This factor include elements which is linked with political stability of a country, taxes,
custom duties and tariffs. As Traveloge is looking forward to expand their services in other
national and international regions thus, organisation is required to consider subsidies and tax
rates of government institutions. All this will effectively aid company to overcome political
turbulence in best effective way. Example of Political factor, increase in rate of tax rates benefits
travelodge to make a simultaneous increase in their profit, but slight increase in VAT may lead
company towards negative impact on their overall organisational performance. s
Economic factor:
Element that an economic factor consists include, fluctuation in currency, GDP,
economic growth, exchange rates, inflation rates and tax rates. These factor affect an
organisation in both negative and positive manner that may fluctuate smooth operations. Thus,
for this traveldoge is require to consider factors within economic segment as to effectively ensure
organisation smooth work functioning. In addition by this, with the proper consideration of all
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these factors company can effectively able to find opportunities and take advantages of the same
in well effective manner as to increase profitability and productivity ratios in simultaneous
manner.
Social factor:
This factor include elements which is related with believes, value, perceptions, living
standards and lifestyle of individuals. Thus it is essential for Travelodge to effectively consider
society value and believes as to operate functions without hurting society sentimental. By
considering all these measures travelodge can effectively satisfy needs and demand of society. In
addition with this with the effective consideration of social factor in best effective manner
company can effectively able to create loyalty and trust of society towards company. This will
effectively aid them to gain more productivity and profitability (Gallie, and et al, 2012) . .
Technological factor:
As technology is dynamically changing with fast phase thus, it become essential for
business organisations to implement different types of new and advanced technological measures
as to offer products and services to customers that are as per according to taste, trend and
preferences that are currently adopted. With the effective consideration of this factors travelodge
can able to offer technological advanced services to their clients as to gain more developmental
opportunities. In addition with this, by offering products and services as per prevailing trend
trevelodge can effectively able to gain more market share and profitability.
Environmental factor:
Environmental factor include factors which is concerned with environment laws and
measures along with climate change. As travelodge operate their business functions at
international level in many different locations. Thus there is a requirement for company to
operate their functions by considering environmental measures and laws.
Porter's Five Forces
This theory represents five type of threats which gives a shape to the competitive image
of any organization. Travelodge Hotels is second largest company in hospitality sector in UK, it
needs Porter's five forces analysis in order to understand market competition and trend. Porter's
five forces analysis for Travelodge Hotels is as under:
Threat of new entrants: It is a well known fact that hotel industry needs a high capital
amount, fixed costs ratio and trained staff. But growth and opportunities in hospitality sector is
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also very high. Hence chances of competition from new entrants is moderate for Travelodge
Hotels .
Bargaining power of buyers: Buyers are more updated towards high quality and low
costs. They can find new substitutes and make comparison. So customers of selected hotel are in
position to affect prices of services provided by the organization. Tendency of bargaining is quite
high for Travelodge Hotels (Green And et al, 2013).
Bargaining power of suppliers: The most important supply for an hotel is Trained staff.
Their are so many suppliers available in the market to provide expert and experienced
personnels. So threat of bargaining power of suppliers is low for Travelodge Hotels.
Availability of substitute products: Competition in hospitality industry is so high that
competitors are ready to provide high quality services with minimum profit. Customers are able
to find better substitutes without any switching cost. Hence threat from substitutes is high for
Travelodge Hotels.
Rivalry with existing Firms: Existing firms are capable to give a tough competition to
Travelodge Hotels. but with its well known brand name and strong backing parent company,
threats from rivalry is moderate for selected Hotels.
1.3 Potential improvements in business operations
To achieve improvements in a business operation implement Ansoff growth matrix.
Improvement should be important for their growth to stay for long time to generate higher
profits. This is as follows -
Ansoff Growth Matrix
It is known as corporate growth strategies where focused on the firm's present and
potential product and customers (Inoue, Tsurugano, and Yano, 2012). In this matrix there are
four ways to grow and improve a business model and it should be presented in diagram form,
which is as under:
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The Procedure of this matrix are as follows:
Market Penetration
The particular strategy is less risky because the Travelodge can use their products in
existing market. The main aim of the company to enhance their market share with the help of
market penetration strategy (Howard, 2017)
Market Development
According to the strategy selected company focus on develop new products to carry out
in the existing market. It is mainly adopted by company when they have strong understanding of
current market and able to provide innovative solutions to meet the needs of the existing market.
Product Development
This strategy may be selected by business's strength is connected to their expected
customers rather than of their specific product itself. On the basis of particular strategy,
Travelodge Hotels can focus on the strength of the company to develop their core products in
respect to customers.
Diversification
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It is considering as more risky strategy from the all above Ansoff matrix. It is related to
alteration in both products as well as market. Moreover, diversification strategy should be taken
reasonable into account of others elements. There are getting benefit of diversification where
consist of entry in the attractive industry and deduct of portfolio risk of business.
D1 Contribution of Ansoff's growth matrix in the improvement of Travelodge Hotels ltd
Travelodge Hotels Ltd can apply of Ansoff growth matrix to improve their core business
processes. In the strategy use four matrix which can help to modify the functions of business and
their operations. For example – Selected hotel is leading company in hospitality industry so
Travelodge hotels Ltd can apply diversification strategy to modify their profitability.
TASK 2
2.1 Effectiveness of business
Business effectiveness - Effectiveness in business is a term that refers to efficiency and
quality of outcomes. Business effectiveness ensures that results can be achieved with minimum
efforts and maximum profit. Hotel Travelodge has to achieve business effectiveness in these
fields:
Products/Services: Product and/or services are the major sources of cash flow and
effective operations and management is mandatory. Effectiveness of products/services can
increased by reducing cost and increasing quality. There are so many services provided by
Travelodge Hotel like luxury rooms, club, wedding and meeting halls and others. The
organization is managing and operating these services with standard quality so that it can
increase the profitability (Iwai, 2011) ..
Marketing: Marketing terms are related to advertising, selling, distribution and after
selling services of product and services. Productive and creative market strategies are important
to achieve the business effectiveness. Research and marketing team of Travelodge Hotel Ltd. is
always ready to adopt creativity and uses marketing tools and strategies to analyse the market
trends and customer needs.
Sales – The particular term described as the transfer of products and services from seller
to buyer in return of money. It will show effectiveness on the company performance in positive
and negative manner. If sales are decreasing then effectiveness will be low on the other hand if
sales are increasing then show effectiveness will be high. As a result it is getting that sales is
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directly linked up with the effectiveness. In Travelodge hotels ltd focus on their sales growth is
high and increasing continuously which defines the effectiveness.
Finance – It is considering as success key of any organisation because finance
department more important because without it business can not survive. The particular element
can measure the effectiveness. In the Travelodge hotels Ltd, they have various source of finance
in order to selling of services and products.
Staffing – The particular term connected to group of employees which can perform
different types of activities in selected tasks on the basis of their skills and abilities. The
effectiveness of employees show according to their skills if they have good employees with skills
so effectiveness increase. It is possible when staff member with their services easily satisfy to
customers. In Travelodge hotels Ltd provide training to improve their skills and conduct meeting
to understand of customer requirement (Lussier, 2011).
Record Keeping – It is important for every business to keep record of customers which
can help to take feedback from them. If organisation have detailed record so it will help to
understand of information in effective way. For example – In the context to Travelodge hotels
limited keep different types of book where they record about the customer and take feedback
about their services. According to their experience and negative feedback try to improve
services.
2.2 Plans to improve the business effectiveness
Business Planning – The business planning is a continuous process where evaluating of
commercial organisation's objectives, strategies and projected action in reference to boost their
survival and development in the particular period of time. In Travelodge hotels Ltd, there is need
to produce business plan which can consider to improve their effectiveness. Herein, below the
way of preparing plan of Travelodge hotels Ltd is mentioned below: Executive summary – It is a first step of business plan where introduce of business and
provide reason to produce business plan. It is considering as major step of business plan
as expected investors will often make a provisional judgement on the basis of executive
summary. In the Travelodge Hotels Ltd is required to prepare effective business plan
which is based on the presented information (Saaty. and Vargas, 2013) . Business Description – In the second step provided detailed information that will
categorise into four parts -
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People – There are including those people who can breakdown the management structure
like promoters and shareholders.
Product – There are consisting of products and services of Travelodge hotels Ltd. It is
essential to cover products and services for development.
Objective – The main objective of the selected company to achieve business goals and
see their business over the next 5 years (Nelson and Staggers, 2016) .
SWOT Analysis – It is internal system which can analysis of internal activities and know
about strength, weakness, opportunity and threat. Market Analysis – There are analysing of market activities as well as competitors
strategy. Through market research carry out of business description and move into viable
market for the products and services. In Travelodge hotel Ltd focus on target market,
market trends, competitors profile and competitive advantages Marketing/Sales Strategies – After market analysis company prepare marketing and
sales strategies to reaching of target market and develop their interest in their products
and services. In Travelodge hotels Ltd to sell their products in market and increase sales
prepare effective market, sales and competitors strategy. It can help to get good position
in market and methods use for products/services at market place. Staffing and operation – There is focused on structure of the company in reference to
management, number of employees and physical operation requirement. In Travelodge
Hotel Ltd focus on these parts are management organisation chart, staffing and training
plans.
 Funding Requirement – It is last step where focus on the funding which can help to
execute business plan properly.
M2 Determination how effectiveness of business can contribute to the organisational growth
The effectiveness of business is essential for the business growth. If all the features of the
company are effective then automatically it will help to modify business growth. Such as in the
Travelodge hotels Ltd have various aspects such as products, services, business image and sales
which can help to upgrade their business. Through effectiveness improve those areas which are
not working in effective manner. There are identifying staffing and marketing are not in good
position so effectiveness can help to improve growth of overall business (Ojala and Tenold,
2017)).
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D2 Analysis of development plan which can lead to the improvement in business
The development plan can help to the companies to improve the differences areas for
which it is prepared. There are including different elements like time frame, objectives and
Proper planning. Here in the Travelodge Hotels Ltd, prepare a development plan where they can
set time period to achieve current skills and purpose of the plan to improve the marketing, sales
and staffing skills. To fulfil the purpose there is required to follow all the steps of development
plan in effective manner which can carry out effectiveness. The development plan includes some
steps which can follow by manager as well as staff members (Ransbotham and et. al., 2017) .
TASK 3
3.1 Determination of the current skill of management and staff
Technical skill – Technical skill are the attributes and abilities to use the knowledge
about a specific field and achieve expertise in the task. There are considering many task relating
to particular skills which are physical, mental, digital or mechanical. These skills are important
for employees which can help to improve their position in company and help in career growth.
Technical skills are the set of certain attributes and abilities which are requires to perform
specific tasks. These skills may be related to technology, mathematics, informations, mechanism,
science etc. criteria of the these technical skills may differ from industry to industry.
Management and staff should have these technical skills related to their industry so that they can
perform their daily activities efficiently and helps in achieving the organizational goals.
Travelodge hotels LTD. is conducting business in hospitality sectors which is known for its
technical skills like customer relationship management, flexibility and team building.
Management and staff of selected organization should have all these technical skills to compete
with other companies (Porter, and Tanner, 2012) .
Operational skill - Operational skills are the set of skills which are required to manage
and operate the daily transactions and activities in order to achieve the goals of the firm. Most of
the management attributes are covered in this skill set. A skilful management have leadership
quality, effective communication, strong delegation and negotiation skills and awareness with it.
The management and staff hired by Travelodge hotels LTD. Must contain these operational
skills in order to manage its operations and increase its productivity and profitability.
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Managerial skill – Managerial skills are the attributes that can plan the structure for
internal environment of the organization and motivate the workforce working within the
organization. A management team should have expertise in motivating the employees, create co-
ordination among various departments, planning for functions and decision making. Travelodge
hotels LTD. Can achieve its goals if it has all these managerial skills within its management
staff. They will be more confident and capable to manage the internal structure of chosen firm as
well as the external factors. Managers with managerial skills are more capable to motivate the
company's employees and communicate with other stakeholders in order to achieve
organizational aims (Shermon and Gilmour, 2016) .
3.2 Plan for developing management and staff skills
Development Plan – It is a type of plan where included various types of activities to
modify the skills and capabilities of individuals. In the reference of company, the development
plan play significant role because the planners can guide to those area which need to promote in
effective manner. Through the plan company also focus on skills and abilities of employees and
improve according to their efficiency. In the Travelodge Hotels Ltd, planners prepare of
development plan to modify the technical, operational and managerial skills of managers and
employees. Herein, defined about the development plan:
Development plan
Skills Objective Actions to be taken Measurement of
success
Time
period
Technical
skill
The objective of
to reduce lack of
technical skill and
learn different
aspects related to
particular skill.
The particular skill can be
improved by training on
the job and take advise of
seniors. As well as by
conducting any specific
course regarding to
technical skills.
To provide technical
work and analysis
effectiveness of their
work.
3 months
Operational
skill
The objective
operational skill
conduct various
The operational skills can
be intensify by create
strong communication
There are measuring
the success to ask
conduct meeting and
5 months
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operations in
effective manner.
skills and negotiation
skills. To improve it
required to interact with
their senior and try to
communicate as much as
possible.
present various task
with full of
efficiency.
Managerial
Skill
To take different
task and manage
in efficient
manner.
To improve managerial
skill need to understand
the concept and theories
of management and try to
daily official life. It can
help to improve
knowledge criteria and
communicate with
expertise and listen their
experience.
To measure the
success provide
different task and ask
to manage in
effective manner.
7 months
M3 Analyse of current experience, skills and abilities of management and staff
It is essential for all employees to have different types of skills and abilities to conduct
their business activities in effective manner. As a result they can perform effectively into various
kind of tasks and activities (Simoneaux and Stroud, 2011) . If they have not managerial,
operation as well as technical skills so it will show negative imp[act on their performance and
difficult to perform provide task. In the reference of Travelodge hotels Ltd, employees and
manager have different types of skills which can affect to their their performance as well as
business growth. So basically, the skills and experience of the employees effect the performance
of the business.
D3 Different methods that can be used to develop the skills of management and staff
It is important to modify the skills of management as well as employees so that
organisational goals can be acquired effectively. In Travelodge hotels Ltd, they apply
development plan in order to intensify of skills and capabilities of employees and their manager.
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According to plan manager and employees set objectives and take appropriate action which can
help to improve their skills and abilities. After that measure the success through different tasks in
particular time frame. If after set time can not improve skills then take another time to improve
skills. Along with strategies are also included as per the required skill (Wang, and Byrd, 2017) .
CONCLUSION
As per the above report it has been concluded that business health check is play
significant role in order to manage different business activities which can depend on the actual
situation. The particular report define the objectives of the organisation which belongs from
hospitality industry. The company prepare strategy to achieve their short term and long term
objectives. There are analysis of internal and external factors of the company to understand their
position them improve it in effective manner. To measure the abilities of staff member and
manager define particular skills managerial, technical and operational skills. These are helping to
improve performance and business growth. There are prepared development plan in order to
improve in specific period of time.
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Online
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