Evaluating the Impact of COVID-19 on Travelodge Hotels' Performance

This report examines the significant impact of the COVID-19 pandemic on Travelodge Hotels, a major player in the UK hospitality sector. The study explores the challenges faced by Travelodge, including a drastic decline in sales due to lockdowns, travel restrictions, and reduced customer demand. The report provides a comprehensive analysis of the situation, presenting research findings based on primary data collected through questionnaires and secondary data from various sources. It highlights the operational difficulties, financial losses, and the need for strategic responses to navigate the crisis. The research delves into the specific impacts on guest frequency, operational adjustments, and the overall business environment. Finally, the report offers recommendations for Travelodge to mitigate the negative effects of the pandemic and sustain its business in the face of ongoing uncertainties, including strategies for adapting to changing consumer behaviors, improving operational efficiency, and exploring new market opportunities.

PROFESSIONAL
DEVELOPMENT AND
PRACTICE (PDP)

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
BACKGROUND.............................................................................................................................4
Aim..............................................................................................................................................4
Objective......................................................................................................................................4
Research Questions......................................................................................................................4
Significance.................................................................................................................................4
RESEARCH METHODOLOGY....................................................................................................5
RESEARCH FINDINGS.................................................................................................................7
Primary research data..................................................................................................................7
Critical evaluation of identified issues......................................................................................17
RECOMMENDATIONS...............................................................................................................20
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................23
APPENDIX....................................................................................................................................26
Questionnaire.............................................................................................................................26

INTRODUCTION
Covid-19 has become one of the major issues for the world because it has impacted
various business sectors like retail, logical, food, clothing and hospitality sector negatively.
Hospitality and Travel and Tourism industry is highly impacted by Covid-19 as compared other
industries such as retail industry enable to sell it’s product and services across the world through
digital media. But hotel industry cannot sell it’s hospitality services to the customer. There are
most of countries governments have taken initiatives of lockdown to break chain of virus
spreading and alerts people not to go out from their houses and avoids travelling and staying in
hotels. Such alteration in people brings scariness so people are avoiding to go for visitingdue to
this no one booking hotels for staying purpose (Fernandes, 2020). Such consequences have
brought huge financial loss in the hospitality industry. Wide number of employees have lost their
job in hospitalitysectors because most of hospitalitycompanies have closed. In this research
assignment will discuss about issues or challenges which are faced by Travelodge company in
hospitalitysector due to Covid-19.
This research will prove helpful for the hospitality sectorbecause in recent time, most of
the hospitalitycompanies are facing biggest challengesdue to Covid-19. As know this pandemic
is not only impacted UK’s hospitality industry but also entire world’s hospitality industry. There
are various hospitality companies which unable to close their business in this sector because
maintenance cost and productivity of employees are quite high so they unable to pay on time.
This research assignment will evaluate all realistic issues which are facing by hospitality
companies in the hospitality sector. In this research will take all realistic and authentic data
related to research topic so that adequate conclusion can be portrayed (Fletcher, 2017).This
research assignment will discuss over solutions to deal with such pandemic situation which will
supports entirehospitalitysector to sustain in the business market and make them active to deal
with such consequences in future. Overall, this research willprove productive and solution of
existing and upcoming challenges related to hospitalitysector.
Travelodge Hotels is aprivate limited organization which runs it’s business in hotels and
hospitality sector effectively across the UK. It is one of the largest independent hotel brands in
UK along with it’s 570 hotels. It is highly impacted by Covid-19 like other hospitality
companies. It offers hospitality services only in UK with it’s chains but when UK’s government
announced for lockdown strictly then UK’s population and other countries people do not plan for
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visiting and booking hotels. Due to this it has to face huge financial loss in it’s firm. In this
research assignment will cover aims and objective of the Travelodge Hotels.
BACKGROUND
It is evident that the outbreak of the Covid- 19 has heavily jeopardised the growth of the
hospitality sector in UK which was already extremely sceptical about its future after the potential
Brexit that occurred recently. The hospitality industry is the major contributor in the overall GDP
of UK amounting to approximately 5% and the rules of social distancing, cancellation of all
major events, lockdown of the economy etc. have ultimately affected the overall hotel industry
severely (Donthu and Gustafsson, 2020). It is evident that the hotel industry is particular is
facing the most cruel brunt of this pandemic where the smaller business ventures have come to
the point of shut down and the larger organisation are struggling with multiple challenges. It is
therefore necessary to evaluate that how Covid- 19 has affected the sales in the hotel industry
and what are the prominent challenges and problems that they are facing. The research will also
clearly indicate that what the probable solutions are those can be adopted in order to minimise
the negative impact and keep the businesses in hotel industry going.
Aim
“To evaluate the severely negative impact on sales in the hospitality sector of the UK after the
global pandemic of Covid- 19. A case study on Travelodge hotels.”
Objective
 To analyse the overall impact of Covid- 19 on the sales in the hospitality sector.
 To identify the impact that this pandemic has on the sales of Travelodge hotels in particular.
 To discuss the multiple challenges that the declining sales will present.
 To develop proper recommendations based on the challenges identified.
Research Questions
 How the hospitality industry in UK has been affected by the Covid- 19?
 What is the impact of this pandemic of sales of Travelodge hotels?
 What are the multiple challenges that arise before the hotel due to declining sales?
Significance
The topic that has been selected details on the different aspects that are associated with the
impact that the global pandemic of Covid- 19 will have and is having on the hospitality sector. It
is important to analyse the negative impacts and challenges that businesses are facing due to the
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decline in sales that is being experienced. The research will help in significantly identifying that
what are the different factors that are associated with the overall reduction in the sales of the
hotels in particular. It is important to conduct research in this topic because it will help in the
better analysis of the impact that the pandemic has created currently and will further affect in
future as well (Zheng, Goh and Wen, 2020). This research will help in identifying that what are
the critical challenges that businesses in the hospitality industry will face. This research will also
act as a representative of the problems and probable challenges that will be faced by the
organisations in the hospitality sector of UK specially. Hence the research can be referred not
only by scholars and other researchers but also by the managers and owners of the organisation
who have been operating their businesses in the hospitality sector in UK.
RESEARCH METHODOLOGY
 Research Type: Research is the systematic procedure of searching new ideas, information
and thoughts which helps to influence strength of the business. There are two type
research methods i.e. qualitative and quantitative that supports organization to gather
quality data about topic related to research (Kumar, 2019). However, qualitative method
maintains quality of collected information so that informative content can be recorded for
the research. While quantitative method is the procedure of gathering information into
mathematical term. Qualitative research method will use for gathering data related to
research topic because it requires for maintaining quality of gathered information.
 Research Philosophy: This method is properly based on theories which supports to gather
data. This method comprises two type philosophies i.e. positivism and interpretivism.
Positivism philosophy supports to gather actual data which is already available in the
environment. While interpretivism method is used to evaluate reality of business
environment and pick appropriate data from extensive collected date (Gössling, Scottand
Hall, 2020). Positivism philosophy will use for this research because it requires actual
data for further research process.
 Research Design: It method helps to introduce research in the business market. This
approach comprises three type research designs i.e. inductive, deductive and abductive.
Inductive research design will practice for this research because it is essential for the
qualitative research method (Islam and Fatema, 2020).
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 Research Approach:It is categorized into three research approaches such as exploratory,
descriptive and explanatory. Descriptive research approach is used understand attitudeof
individuals while explanatory approach is proposed to determine factors which impacts
on business environment directly and indirectly. Exploratory approach is designed to
achieve logical answering of given questions. This approach will use for the research
project.
 Research Sampling: There are two methods of data collection such as probably and non-
probably method. Random sampling method will use for this research project because it
offers equal opportunity to the people to become part of sample population accordingly
their acceptance. Travelodge Hotels confirms 10 random employee as sample population
for the interview gathering.
 Data Collection: It is another important method of data gathering that plays vital role in
research project. Primary and secondary are two method of data collection. Primary
method is used to gather information through interview session while secondary method
also will use to collect information from published books, internet, social media and
latest articles related research topic. I will use both primary and secondary data for
collecting authentic and realistic content.
 Data Analysis: Data analysis research method gives opportunity to pick authentic data
from existing data in efficient manner. Thematic and statistics are two methods of data
analysis whereas thematic method is used to distribute entire collected data into themes
that can be easily interpreted by anyone. Thematic method will use for this research
assignment because it is essential for developing questionnaires from whole collected
data related to research topic.
 Ethical Consideration: It is systematic set of rules and legislations that requires to keep
wellbeing of individuals who are going to be major part of sample population.
Accordingly, ethical consideration, researchers should conduct research by undertaking
all ethics and principles which are proposed and imposed by government for such
research project. However, Travelodge Hotels fulfil all ethical consideration and take
care of maintain dignity and respect of sample population in the interview session.
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RESEARCH FINDINGS
Primary research data
The primary research has been conducted in accordance with the aim formulated and the
crticial findings that were collected through the respondents using the questionnaire method will
be analysed in this section. Using the thematic data analysis technique, the collected data can be
presented in following manner.
Theme 1: Maximum of the respondent agreed that Travelodge hotels have been severely
affected.
How has Travelodge been affected by the corona virus
pandemic?
Frequency
Extremely affected 28
Affected 2
Neutral 0
Unaffected 0
Completely unaffected 0
Total 30
Interpretation: The chart above helps in clearly ascertaining that the respondents have been
extremely affected due to the Covid- 19 pandemic and the decline in their business was
significant. This is evident from the fact that h global lockdown of the economies and the
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incurable virus forced people to shift back to their homes and ultimately the hotel industry has
faced the most severe consequences (Kurmann, Lale and Ta, 2020). Hence, it is logical that 28
out of the 30 respondents stated that they were severely affected from the pandemic.
Theme 2: All the respondents were found to have begun the acceptance of the guests.
Have you begun acceptance of guests? Frequency
Yes 30
No 0
Total 30
Interpretation: The illustration depicts that all the respondents have prepared their hotels for the
recipient of guests in the different branches of Travelodge hotels spread throughout UK. This is a
logical flow of activities when after the lockdown, the businesses are slowly opening up and
hence the Travelodge hotels are also being opened again ready to invite and serve customers.
The fact that none of the respondent has kept the hotel shut down indicates the keenness of the
management of Travelodge hotel to be back into business as soon as possible (Baum and Hai,
2020).
Theme 3: The arrival frequency of visitors is rare in most of the hotels.
What is the arrival frequency of the guests in the hotel post Frequency
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pandemic?
Regular 0
Once in a while 4
Rarely 25
Customers are no longer visiting 1
Total 30
Interpretation: The pie chart above indicates that 83% of the respondents agreed that the visitors
in the hotels are still rare. This can be interpreted from the fact that after Brexit, the uncertainty
related to trade relations between UK and EU and the trade fairs in consequence were already
affecting the tourists and visitors in the country. Now this global pandemic has further reduced
the overall chances of gaining visitors thus affecting their numbers significantly (Gössling, Scott
and Hall, 2020).
Theme 4: Majority of the respondents have begun to operate their restaurants as usual now
that the lockdown has been removed.
Currently, are you operating as quarantine centre or housing
health care workers or homeless?
Frequency
Health care workers 5
Quarantine 5
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Homeless 0
Running restaurant as usual 20
Others 0
Total 30
Interpretation: There were only as few as 5 out of 30 respondents who are operating as a centre
for either health care workers or for acting as quarantine centres. Remaining all the Travelodge
hotels are working as the restaurants only ready to serve their customers as soon as they arrive.
The ones that are operating as centres are also in their last phase and are in process to quickly
begin their restaurants again (Al-Awadhi and et.al., 2020). Additionally, none of the hotels acted
as a shelter to homeless or involved in any other activity.
Theme 5: Welfare schemes were the most common form of assistance that was received by the
respondents.
Have you received assistance from the government in any
manner?
Frequency
Assistance through loans 8
Implementation of different welfare schemes 10
Tax relief 8
All of the above 0
10

None of the above 5
Others 1
Total 30
Interpretation: Implementation of different welfare schemes of the government was found to be
that scheme which was most profitable or which is giving maximum assistance to the Travelodge
hotels operating at different places. These are however closely followed by tax relief and
assistance through loans which have been voted for by 8 out of 30 respondents. The loans are
being given at reduced interest rates with interest charges being waived off for the initial 3 to 4
months and the reliefs in the taxes also collectively acts as a major advantage to the hotels like
Travelodge that operate at such a wide scale in UK (Seetharaman, 2020).
Theme 6: Majority of the respondents agreed that they are facing a variety of challenges.
What according to you is the major challenge that
Travelodge will face post Covid- 19?
Frequency
Occupancy of the rooms 5
Reduced prices 8
Labour supply 7
All of the above 10
Total 30
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Interpretation: 33% of the respondents agreed that they are not just facing one challenge in the
operation of the Travelodge hotels post lockdown and agreed that the occupancy of rooms is
close to zero, they have to forcibly reduce prices so that they can gain at least some of the visitor
and the labour supply has been cut off so that the cost can be saved (Jiang and Wen, 2020).
Therefore, they clearly state that they are facing all of the challenges rather than one in
particular.
Theme 7: Online and offline flexibility increase was voted as the most favourable measure.
What measures can be adopted to meet up with the challenge
that has been posed before the hotels?
Frequency
Reduce number of employees/ salary cut 1
Reduction in the operational cost 5
Increase online and offline flexibility 17
Formulate new partnerships and tie- ups 7
Total 30
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