Analysis of Travelodge Hotels: Leadership, SWOT, PESTLE, and Ethics

This case study provides a comprehensive analysis of Travelodge Hotels, commencing with an introduction that outlines the report's structure, which includes SWOT and PESTLE analyses to assess the company's strengths, weaknesses, opportunities, and threats, alongside an examination of political, economic, social, technological, legal, and environmental factors. The study then evaluates the influences on opportunities and threats, leveraging the company's strengths to mitigate weaknesses. A comparison of various leadership styles is presented, culminating in a recommendation for the most suitable approach for Travelodge Hotels. The report also addresses the company's ethical and social responsibilities. Finally, the study concludes with a reflective report that summarizes the insights derived from the research, providing a well-rounded examination of Travelodge Hotels' strategic and operational facets.

Case Study

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task 1...............................................................................................................................................3
SWOT Analysis of Travelodge hotels........................................................................................3
PESTLE Analysis of Travelodge hotels.....................................................................................4
Task 2...............................................................................................................................................4
Evaluation of factors that influence opportunities and threats....................................................4
Travelodge hotel's strength to negate threats and weaknesses....................................................5
Task 3...............................................................................................................................................6
Different styles of leadership......................................................................................................6
Appropriateness of leadership styles for Travelodge hotels.......................................................8
Task 4...............................................................................................................................................8
Suitable leadership style for Travelodge Hotels ........................................................................8
Task 5...............................................................................................................................................9
Travelodge Hotel's ethics and social responsibilities..................................................................9
Task 6.............................................................................................................................................10
Reflection report.......................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In this report an analysis of the company profile of Travelodge hotels UK is made
through SWOT and PESTEL is made. An evaluation of the factors that influence the
opportunities and threats and use of company's strength to neutralize the effects of threats and
weaknesses. Also, a comparison of different leadership styles with recommendation and
justification of the use of chosen leadership is provided. Further a description of responsibilities,
response and obligation in the ethics and social responsibilities of Travelodge hotels is imparted
(Dvorský and et.al, 2020). At the end a reflection report on the conducted study is provided on
the gained insights from the research.
MAIN BODY
Task 1.
SWOT Analysis of Travelodge hotels
Strength
Affordable prices offer by the company with a free business membership. Additional
benefits includes modern rooms, 570 hotels across UK. As a budgeted hotel chain Travelodge
hotels provide deals that attract customers and also offer unlimited breakfast. The company has a
tag-line say 'over 2 million rooms available for £29 or less that put a great impression on the
customers.
Weakness
As a hotel it does not categorise as a luxury hotels chain. The hotel does not provide its
customers a full range of services that are generally offered by the luxury hotels. The hotels also
lack in appearance and is plain and simple looking.
Opportunities
Due to recent economic downturn people of the country are more avoiding pay for the
leisure and travel services and are shifted towards the affordable places (Gürel and Tat, 2017).
Also, Travelodge hotels uses resources that incur less cost that help the company to provide more
service and offer at low prices.
Threats

Competition in UK is increasing and more businesses are beginning to offer variety of
services at low cost. Change in the hospitality business policies by the government is a threat as
the business has to change its entire process which is a costly affair.
PESTLE Analysis of Travelodge hotels
Political
Government of UK is on the hotel business. The hotels have to compliance and follow
changing regulations due to recent economic fall and food and health regulations.
Economical
Although Travelodge hotels provide packages at affordable prices but the purchasing
power of the population of UK is decreasing and people are saving more for their necessity
rather than leisure.
Social
Presently in the UK the elderly population are increasing in number. Travelodge hotels
have to provide more customer specific services i.e. for the elderly people at low cost (Perera,
2017).
Technological
The technologies are changing rapidly. Travelodge hotels have recently upgrade around
30,000 hotel rooms by spending £100 million.
Legal
Payment to the colleagues is a legal matter and for this purpose the government has
provide National Minimum Wage and National Living Wage rates.
Environmental
The environmental and pollution issue is a threat and hotels are seen as one of the factor
that contributing to these issue.
Task 2.
Evaluation of factors that influence opportunities and threats
People of UK and population around the world are facing the rapid changes in the
economic environment of the countries. Current outbreak of COVID-19 has created a disruption
in the world and people are shifted from spending on to leisure and hospitality to savings and
necessities. The business of hotels in UK is decreasing with the time. The government of the

country to prevent the economies to fail and overcoming these disruptions taking stringent
actions (Safa and et.al, 2018). These actions include creation of rules and regulations to put
safety measure and human rights. Income of the population decrease but on the contrary the
prices of the resources are increasing. The whole external environment of the Travelodge hotels
is rapidly changing which is not only creating little opportunities but also serving as the threat
because the company has to incorporate changes in its business process as well. With the change
in the external environment the legal authorities are also providing liberty in rules. These
liberties includes providing grants to the businesses which results in the increasing competition
in the market. Customers are shifted to other service providers that are promising more services
in low costs. This serve as a threat as well as opportunity for the Travelodge hotels as it can
acquire new premises and invest in new businesses at low cost. Also the change in the mindset of
the population about not to harm the environment, decreasing carbon emission and pollution
leads to people prefer those hotels that generating sustainability. Travelodge hotels can use this
change in mindset and adopt method that helps to create a green image of the hotels that will
help in to attract more customers.
Travelodge hotel's strength to negate threats and weaknesses
The company's weakness is their low cost and simple looking hotel premises as the
customers who pay for the services are demanded more from the business. One of the drawback
of the Travelodge hotels is the hotels are not providing room services to their customers. For to
counter these drawbacks the Travelodge hotels is offering free membership and 5% discount on
bookings also a recent transformation of 42,000 rooms in over 570 hotels around UK with offer
loads of amenities. Although, the appearance of the hotels is kept simple which decrease the
appeal of the hotels as compared to the luxury hotels in UK. But by providing affordable prices
for accommodation and value for money services Travelodge hotels is able to attract large
number of customers. The threats are the competitors that are increasing and offering low cost
services to the customers (Zellweger, 2017). These competitors ruin the business of the
Travelodge hotels by shifting their customers. The company to negate the threat have made
expansion of its business around UK to provide its hospitality services. There are 190 bars and
cafes that are serving drinks and foods till late nights help Travelodge hotels to provide
additional services. By opening business account with the company offers a card that provide up
to 6 weeks interest free credit and the assistance provided by the dedicated support teams provide

advantage to the business. To lure the customers Travelodge hotels have started a campaign with
a name SuperRooms that claims to offer additional comfort at a dedicated floor. Also the
company provides free Wi-Fi service for 30 minutes and after £3 for 24 hours. These initiatives
help the Travelodge hotels to negate weaknesses and threats that are affecting opportunities for
the business.
Task 3.
Different styles of leadership
It has been observed by the scholars that leadership is always depends on situation.
Leadership is a process to influence organised groups towards achieving the objectives
(Anderson and Sun, 2017). The leaders follow their own styles to create influence.
Autocratic leadership style
It is the traditional approach towards the leadership. The managers have the authority to
take the decisions and the employees only have to follow the orders. The employees are not even
allowed to give inputs. No explanations to the employees are provided and motivation among the
employees are created by the set of punishments and rewards.
Advantages
This leadership style create control over the employees. Discipline is developed and the
flow of work goes on without interruption.
Disadvantages
This creates tension and dissatisfaction among the employees. Interest of the group is not
seen and development is not made as the employees only have to follow orders.
Authoritarian leadership style
In this leadership style the leader has the authority. The leader provide all the instructions
what is needed to be done, when and how it is to be done. This leadership style is less creative as
little and no inputs are taken from the employees (Alheet and et.al, 2021).
Advantages
Rapid and smooth completion of the tasks. Members of the groups know what they
needed to be done and how to complete the task.
Disadvantages

The employees show the defiance to the leader. Confidence among the employees
becomes low and skilled employees were not identified.
Democratic leadership style
This leadership style also known as participative style as the leader encourages its group
members to provide suggestions and inputs in the decision-making. Creativity between the group
is developed and provide important insights to their employees that will help to improve their
performance and work will be completed smoothly (Al Khajeh, 2018).
Advantages
It increases sense of motivation among the employees and new and creative ideas are
welcomed and promoted. It increases confidence of the employees.
Disadvantages
It is a time-consuming as leader has to convey and ask for the opinions of the employees
to implement a process.
Laissez-Faire leadership style
In this leadership style the leader will provide its group members as much as freedom as
possible. The authority and responsibility to complete the task is handed over to the members.
The managers of an organisation use this leadership style when they see that the employees are
self-sufficient and are able to complete the task on their own.
Advantages
This leadership style provides no or less burden over the employees. Freedom to the
employees to choose and perform task own their own.
Disadvantages
Excessive freedom leads to the misuse of the rules and the group do not work as a team to
achieve the objective.
Bureaucratic leadership style
In this leadership style the leaders takes all the decisions and all is done by the rules and
procedures that are previously used. All the procedures are taken into consideration and if any
issue is found out the leader will seek out to the person on the higher level above him/her (Al-
Khaled and Fenn, 2020).
Advantages

Standard policies and procedures are followed that provides reliability in the completion
of the task.
Disadvantages
New and creative methods are not applied and very little chance of development as
routine and same process is followed.
Appropriateness of leadership styles for Travelodge hotels
The business structure of Travelodge hotels is that the company had a portfolio of 570
hotels around the UK. The management of the Travelodge Hotels by following leadership style
to effectively manage the employees. Hotel business is all about attracting customers to buy the
services offered by the company (Al Zuned, 2017). The employees interact with the customers,
and they know what the customer demanded. From the valuable inputs by the colleagues in the
decision-making Travelodge Hotels are able to create strategies that will increase its sales.
Task 4.
Suitable leadership style for Travelodge Hotels
The company has to manage number of hotels across the country. The company has
under management 42,000 rooms and to provide quality services to the customers number of
colleagues are required. Management of Travelodge Hotels should follow democratic leadership
style as the colleagues are engaged with the customers. These customers provide vital
information about what they perceive the services of Travelodge Hotels to be. Colleagues are the
source of valuable information that is needed the business to improve and provide required
services that will help in to attract the customers. In democratic leadership the manager of the
company will encourage the colleagues to provide insights that will help the manager in the
decision-making. Colleagues will provide more creative solution to the problems that will arise
within the business (Al Khajeh, 2018). In the democratic leadership the authority and decision-
making is decentralised. The participation is made by all the subordinates which motivates the
colleagues to perform better. In democratic leadership involvement and expertise are divided
among all subordinates. It has been seen that the democratic leadership creates a positive impact
on the organisation as sense of responsibility is developed among the colleagues, and they tend
to perform better. This leadership styles provides opportunity for the colleagues to share creative
ideas and take participation in the decision-making. Travelodge Hotel's management by

implementation of the democratic leadership style will be able to create a transparent system that
will not only help colleagues but also the company to effectively perform the task and achieve
success.
Task 5.
Travelodge Hotel's ethics and social responsibilities
As the part of the hospitality industry the responsibility of Travelodge Hotels is to
provide quality services that are promised to the customers in their advertisement campaigns.
The company should follow integrity and provide transparency to its stake holders. Travelodge
Hotels serves around 19 million customers every year which is a quite high number. Customer
service is the core activity of the hospitality industry and to serve the customers better the
company have rules and regulations that serve as a guidance for the colleagues to provide
satisfactorily service possible. Travelodge Hotels use different customer's feedback tools to gain
insight about the experience of the customers. These findings are used to improve the procedures
and engagements with the customers. The information is shared among the colleagues by the
company (Dawson, 2018). Travelodge Hotels have around 12,000 colleagues who provide
feedback to the management of the company to take inform and correct decisions. In response to
improve the communication among the colleagues Travelodge Hotels conduct employees
engagement survey. Regular conferences and meetings are conducted to gain insights from all
the levels of the company. The company has a system to provide colleagues a mechanism who
wants to raise concerns in the policies of the company. Travelodge Hotels put a priority over
safety, security, social responsibility and environment. To address the issues and providing
solutions the company established a specialist agency that helps Travelodge Hotels to develop
sustainable business practices. Company have policies, procedures, control and an in-depth risk
assessment to ensure safety and security. A risk management process is followed that ensure
safety to the customers and to compliant with the regulations. Training and development
programs are conducted by the company to improve the safety and security management within
the hotel premises. Travelodge Hotels information management policies are in accordance with
the e General Data Protection Regulations (GDPR). The company has the obligation to secure
personal information of customers. For the protection of personal information and credit card
information of the customers and of employees industry grade methods are used. To reduce the

effect of the carbon dioxide emission Travelodge Hotels examine and prepare report on the
emission and present in annual strategic report. To decrease carbon footprints Travelodge Hotels
have adopted new and sustainable methods to build and run hotels. The company have replaced
all the hotels lightings with the energy efficient LED bulbs. As to social response the company
have more than average colleagues as women and diversified group of people that have provided
high internal promotions. Travelodge Hotels have introduced National living wage for all
colleagues. The company's policies are in compliance with the Human Rights Act 1998 and
Modern Slavery Act 2015. In order to provide access to all kinds of people the company's
website is developed in accordance with the Web Content Accessibility Guidelines 1.0.
Task 6.
Reflection report
By conducting this research I have gained knowledge about the internal and external
environment and the factors that affects the hospitality business. A SWOT analysis is conducted
which helps in to find out the strengths, weaknesses, opportunities, and threats of Travelodge
Hotels. The PESTLE analysis helps in to find out the external factors that created impact on the
business. This analysis help me enhance my analytical and research skills. It provides a guide to
what the Travelodge Hotels is doing so far and what are the challenges the company is facing. I
have not aware about the laws and legislations that a hotel business has to follow. To conduct the
PESTLE analysis I have to go through different resources that help me acquire intellect about
rules and regulations that have to be followed by the Travelodge Hotels. I have learnt about
various leadership styles i.e. autocratic, democratic, laissez-faire and so on and its relevance to
the Travelodge Hotels (Winkel and et.al, 2017). I have provided recommendation to follow
democratic leadership style by the company to overcome the challenges. The company follows
number of ethics and responsible business practices that I come to know about. I am able to
evidence about the company's code of ethics which not only ensures safety and security but also
provides ample of opportunities to its colleagues to develop their skills and knowledge. The
social and environmental practices followed by Travelodge Hotels help people of UK to enhance
their life quality and also the measures to reduce pollution and to protect the environment are
decreasing impacts that the hotels creating. I have gained knowledge about the hospitality
industry and the study conducted upon Travelodge Hotels helps me to understand about the

structure and functions performed by the company. I have also leant about the recent issues that
are arises and how the company is able to cope up with it. Travelodge Hotels have taken
initiatives to provide its stakeholders a sustainable result which include taking effective measures
to mitigate the risk of safety and information leaks of the customers. Recent up-gradation and
promotional campaigns by Travelodge Hotels makes the business popular (Andriyani and et.al,
2017). I have learnt that the company has hotels all around in the UK, Ireland and in Spain. In
the conversion of the theoretical knowledge into practical approach I have learnt about different
concepts of management and research. The study have greatly helped me to enhance my
knowledge on the hospitality and tourism and also increase my research and analysis skills. I
have learnt loads of new things by conducting this study about Hotels Businesses, particularly
about Travelodge Hotels.
CONCLUSION
From the above study it has been concluded that every company part of any industry have
to face internal and external challenges. Vital information can be collected by the company
through the analysis of SWOT and PESTLE analysis (Our company, 2021). Travelodge Hotels
also have to face issues and to withstand the challenges Travelodge Hotels have taken major
steps that help the company to gain success and sustainable growth.

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