Understanding Travelodge: Business Organization Report

This report provides a comprehensive business analysis of Travelodge, a major hotel chain primarily operating in the UK. It begins with an introduction to the hotel industry and Travelodge's position within it, highlighting its hierarchical organizational structure comprising departments such as Financial, Front Office, Human Resources, Food & Beverages, Sales, and Logistics. The report then delves into the business environment, followed by a detailed SWOT analysis, outlining Travelodge's strengths (affordable rates, diverse room options), weaknesses (poor customer service, limited facilities), opportunities (expansion in Europe, new partnerships), and threats (competition, lack of international presence). Furthermore, a PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors impacting Travelodge. The report concludes that a strong organizational structure is crucial for market presence, and the analyses provide insights into Travelodge's strategic position and potential for growth, while also acknowledging areas needing improvement and external challenges.

Understanding business
organisation

Table of Contents
.........................................................................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organizational structure ..............................................................................................................3
Business environment Analysis...................................................................................................4
SWOT Analysis...........................................................................................................................4
PESTLE Analysis........................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Hotel industry play a major role in tourism, UK has versatile places which have their own
book records. Many tourist comes from different region to visit the places. The organization
which will be taken in this report is Travelodge, that is basically a hotel chain company generally
have many hotels in the United Kingdom and also have footmarks all over the world majorly
covered Australia, Spain, Ireland etc. Travelodge have many strength by which they grow
continuously and now become the largest hotel brand without any support of other brand that
means it grows independently. For survival in the market Travelodge follow hierarchical
structure which reflects the positive and relevant in company's output. Organisation structure
play a major role in enhancement of business at bigger scale because it is not possible for
handling a business without a team or organization than this report will discuss on the
environment aspect on which the company grow in a progressive manner than SWOT analysis is
done with the better aspect in the future and PESTLE analysis is being discusses with a greater
knowledge of the organization. This report has a proper brief description on the above mention
topic for the growth, profitability and productivity.
MAIN BODY
Organisational structure
For continuation of growth and efficient work there is need to be a proper organization to
execute daily operation. It majorly helps in dividing the function according to the expertise of
individual in a particular department (Page and Connell, 2020.). Job specification definitely
increase company's productivity, profitability and efficiency. Particular structure is followed by
the functioning of organization here Travelodge follow Hierarchical structure, it basically has six
components which are as follows:
 Financial- The department which majorly have information about financial transactions,
they prepare statement on accounting and deals with other supplier for raw material
costing and control the expenses.
 Front office- It is important department among all other departments because direct
interaction between consumers and management are there. Front office includes room
management, services, etc.

 Human Resources- The department which hire and recruit a right candidate at right
place. They handle and train new joineries thereby arrange training, promotion, make
rules and regulation in favour of company.
 Food & Beverages- The hotels are prominent by the savour of food so that is min point
of concern. Basically this department divides into two categories such as restaurant and
kitchen. Restaurant provide dinning room, waiter for services, unstain services, etc. on
the other hand kitchen responsible for preparation of food and beverages.
 Sales- The department which main role in selling of room according to thee need of the
customers and also provide special services for some customers. They mainly done their
work through marketing, direct contact or advertising.
 Logistic- this department mainly focus on the suppliers, security and purchasing which is
primarily required for the business.
Travelodge have all this department for their organization and many employees are also
present in each department, and they all perform their function according to instruction of
seniors.
Business environment Analysis
Travelodge have many hotel sites which majorly located near place of interest of
customers and many hotels have high rate of productivity. The environment of business get
affected internally and externally. If the management is not work accordingly which may result
in loss of the business that comes in internal environment. Any natural calamities arise by which
business affects that comes under in external environment.
SWOT Analysis
STRENGTH
As Travelodge spread over worldwide with great image in the market, the major strength
of this hotel is farm out at a reasonable and affordable rate which is payable by each level of
candidates (SWOT Analysis: What It Is and When to Use It. 2022.). There are variety of rooms
according to the demand of customers by which hotel get in position in the surroundings. For
businessmen Travelodge appeals a card by which they can book room according to convenience.
Travelodge green programme campaign appeal by the hotel which main target to attract
environmental conscious people, and they also give it in budget.
WEAKNESSES

Despite, number of hotels are there, but they didn't give a proper service to customers
which creates a negative impact of company on the guest's mind. As Travelodge have many
budget hotels in those hotels they didn't equip well with customers and the ambience is also not
satisfying. Only basic facilities are giving to the guests no room services, concierge services is
there. Travelodge have no greater space for large parties and family get together. So thereby the
profitability of the business decreases in short period.
OPPORTUNITIES
As European market have more number of tourist place and major source of income is
tourism soon thereby Travelodge expand their business in abroad and earn higher amount of
wages. Travelodge also enter with new partner by which market reputation of company get
increase and also gain their positioning in the different region.
THREATS
Travelodge have large covered area, but they didn't have many facilities in their hotels
and competitors take that advantages and farm out their hotels in low budget so by that
Travelodge may suffer. The hotel industry have neck to neck competition in the market thereby
customers attracts by the interior and luxury of hotels where Travelodge lack. Internationally
Travelodge didn't have branches so it quite difficult for interact with customers, and they choose
to stay at familiar hotels (Blagoev, Nikolskaya and Popov, 2019.).
PESTLE Analysis
Political factor
The business get drastically affected by political environment because it comprises rules
and regulation which is implemented by government and that must follow by each sector in the
hotel industry (PESTEL Analysis. 2022.). UK's government had imposed Digital Economic Act
2010, the main purpose behind that is declination in illegal sharing of file and infringements of
copyright in the cybernated society. New Immigration Policies, immigration policies may
affect hotel industry because it revised according to government norms.
Economic Factor
Economic factor directly affected the hotel and consumers. Economic factors play a
major role in the success of any company. Company need to be alert for any economic change
that happen in the UK in which a company operates its business. Economic factor will affect the
business revenue, sales, distribution & profit. Travelodge have high profit rate so it may

affect the economic factor. At the time of pandemic, UK economy decrease drastically by which
every sector affects.
Social Factor
Customers are with the market trend and nobody like to book hotel rooms manually so
everyone wants to go with online sites. In the UK market majority of customers book room
online and Travelodge have provided long last goods to the customers, and they also have their
cards by which quick booking can be done. So Travelodge work according to the market trend
that creates a positive effect on the business which increase in profitability.
Technological Factor
technology increase day-by-day with increasing in the demand. UK has many advanced
type of technologies and in the hotel industry this factor play a major role in the growth because
customers go through with the latest technology and booking of rooms can be done by online
so Travelodge may suffer in that area and also competitors are there with the technologies have
created a footprint on customers mind.
Legal Factor
Hotel industry may affected by the legal factor because the government execute many
rules and regulation on that by which they didn't get a large amount of profit margin because a
fix amount of rates which is given by the business to government. There are two type affecting
factors in the legal administration which basically termed a internal and external (Stringam and
et.al., 2020.). The law implies by which a restricted time is given to the hotels for their opening
in a da. Many law are implement on the company at a regular interval that effect a profit.
Environmental Factor
For hotel industry environment play a major role in attracting of tourist because if the
hotel are near to place that creates a positive impact on the company growth, furthermore a
location at which a suitable surrounding and environment are there, so the customers wants to
visit that hotel. If the environmental is not favourable (covid pandemic) for human so the
visitors avoids that place. External and internal environment is foremost for the bushiness
(Sampson, 2020.). Travelodge have many hotels which are located near tourist places.
CONCLUSION
This report is totally based on the hotel industry which is growing day by day and which
require high amount of investment at the initial level but get the effective output. This report

took a hotel chain brand named as Travelodge which have many hotels in the United Kingdom.
On the basis of above discussion this report concludes that a managerial organisation is must for
the company image in the market place. Later this report discuss SWOT analysis of Travelodge
in which many strength is described some areas where it lacks that comes under in weakness
part. The opportunities are to enter at new region by which company increase their profitability
and threats of competition may see in the declination of growth. Later this report discussed on
the PESTLE analysis of Travelodge in Political and Social factor have many reasons for
declination of business. By environmental factor, the company growth rate increases. Travelodge
Business analysis did on the above basis that abstract the great result on the company profile.

REFERENCES
Books and Journals
Blagoev, V., Nikolskaya, E. Y. and Popov, L. A., 2019. THE HOSPITALITY INDUSTRY:
Understanding Hotel Business. Varna University of Management.
James, K., 2019. 11 Hotel History. The Future Past of Tourism: Historical Perspectives and
Future Evolutions. p.133.
Page, S. J. and Connell, J., 2020. Tourism accommodation and hospitality services.
In Tourism (pp. 216-241). Routledge.
Sampson, H., 2020. Hotel Bibles are still a thing. But for some brands, they're on their way
out. The Washington Post, pp.NA-NA.
Stringam, B. B. and et.al., 2020. Hospitality Industry Structures and Organization. In The
Routledge Companion To International Hospitality Management (pp. 49-64).
Routledge.
Online
SWOT Analysis: What It Is and When to Use It. 2022. [Online] Available through:
<https://www.businessnewsdaily.com/4245-swot-analysis.html>
PESTEL Analysis. 2022. [Online]. Available through:
<https://corporatefinanceinstitute.com/resources/knowledge/strategy/pestel-analysis/>
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