Analysis of Travelodge Hotels in Hospitality Industry

This report provides a comprehensive analysis of Travelodge Hotels within the hospitality industry. It begins with an introduction to the hospitality sector and Travelodge's position within it. The core of the report involves a PESTLE analysis to assess the impact of political, economic, social, technological, legal, and environmental factors on Travelodge's operations and future prospects. A SWOT analysis then evaluates the company's internal strengths and weaknesses, as well as external opportunities and threats. The report further examines the impact of these external factors on Travelodge's development, current and potential trends in the hospitality industry, and Travelodge's ability to adapt and innovate in terms of products and services. The analysis considers factors such as sustainability, technological advancements, and changing consumer preferences. The conclusion summarizes the key findings and emphasizes the importance of strategic planning and adaptability in the dynamic hospitality sector. The report uses various sources and provides a detailed overview of the Travelodge's position in the market.

Contemporary Hospitality
Industry

Table of Content
• Introduction
•Analysis of PESTEL to determine the impact of External Environment
•SWOT analysis for assessment of Internal factors.
•Impact of external factors on the development of Travelodge Hotels
•Current and Potential trends in hospitality industry
•Evaluation of the ability of Travelodge to develop products and services
•Impact of external factors on current and potential trends
•Conclusion
•References

Introduction
Hospitality industry is recognised as the broader segment of service industry which
constitute several business and services aimed primarily to provide leisure and customer
satisfaction. Unlike other business that caters to the needs of the customers, service
industry serves to provide experience, enjoyment, pleasure and luxury to their clients and
guests who make use of their services. Lodging, food and beverages, event management,
Themes Park, travel and tourism are the part of a broad hospitality service industry.
Travelodge Hotels Private limited company was founded in the year 1973, headquartered
at Thames, England. Travelodge is an independent largest hotel chain in United Kingdom
with more than 550 hotels across UK, 11 in Irelands and 5 Hotels in Spain. Objective of
report is to examine the impact of internal and external factors along with current and
potential trends impacting hospitality industry.

PESTLE Analysis
Business under hospitality sectors operates in market environment which makes them
susceptible to the changes taking places, therefore analysis of external factors through pestle
helps Travelodge Hotels limited to determine the future threat and challenges.
 Political factors: Imposing of travel ban, changes in the political parties and rigid laws of
business impact the way the Travelodge operate in different nations. However,
governments of few nations promote and foster tourism through attractive and liberal
policies to increase the hospitality business thus beneficial for the hotel brand.
 Economic factors: Changes in the economic factors also impacts the performance level
of Travelodge as economic instability, recession, inflation rates, interest rates affect the
purchasing power thus decline in the sales of hotel. On the other hand, stable and strong
foreign currency of a nation makes the travel inexpensive thus brings more travellers
across globe.

Continue…
 Social factors: New and young generation share intense desire to travel primarily because
of strong cultural influence, attractive travel packages, and more disposable income which
is beneficial for the Travelodge. On the other hand travellers prefer more budgeted,
friendly and private place to stay which have increased the demand of Airbnb and home
stays. Travelodge is adapting to the changing needs of customer and providing services
like gym, pools and massage parlours.
 Technological factors: Technological advancements have changed the way hotels
operates, Travelodge have integrated technology to provide enhanced security, wifi for
better connectivity, intercom and online services to promote contactless services. Apart
from this company also make use of social media platforms to promote, sell and stay
connected with customers.

Continue…
 Legal factors: UK government have made it compulsory for hotel business to comply with
GDPR (general data and protection act) to ensure safety of the guest’s confidential
information and adherence with other laws such as employment, discrimination and
minimum wages laws which have enhanced the brand image and prevent from
controversies. On the other hand, there is also a tax deduction from government to boost
the economy and hospitality industry.
 Environmental factors: Rising concerns with regards to environment and depletion of
natural resources government and conservationist are putting pressure to mitigate the use
of water, electricity and natural resources and to opt for a sustainable business practices.
Apart from that severe weather conditions is reason which can impede the success and
growth as people refrain to travel.

SWOT Analysis
Conducting detailed analysis of internal factors helps Travelodge in making decisions in several aspects
such as expansion of business, new launch of services, strategies for increase in sales, profitability and
adoption of promotional tactics to increase brand image.
Strengths
 Travelodge is one of the leaning hospitality companies in United Kingdom with more than 500 hotel
properties across UK, Spain and Ireland.
 This hotel brand has a strong reputation in the market primarily because of the affordable pricing
and frequent booking deals and offers to attract customers.
Weaknesses
 Due to their attractive promotional campaigns they have over booking of hotels leading to a conflict
and tuning away many customers even after prior bookings with credit cards.
 Limited range of services, inability to meet customer’s expectation and ordinary appearance of hotel
have made the customer shift towards competitors.

Continue…
Opportunities
 Focus towards green and eco tourism have created an opportunity for business to flourish as
hotel brands with eco-friendly and sustainable business practices will gain recognition and
positive feedback from customers.
 Use of digitalisation and new methods for entering into foreign market have opened up a new
way for establishing good brand image, large customer base and enhanced profitability.
Threats
 Changes in the customer’s expectation and emergence of innovative stay options like Airbnb
have made it lower in the demand of Hotels and resorts.
 Travelodge have a limited presence in global market, limited customer segment and poor
brand image due to which foreign customer are not aware of the brand.

Impact of External factors on Travelodge
Analysis made from evaluation of external factors revealed some positive and negative aspects
which have influenced the development of Travelodge hotels to a greater extent.
Positive Impact
 Shifting trends from traditional way of doing business to eco-friendly and sustainable way
have created a positive image of Travelodge hotels which helps in gaining band recognition
and positive attitude of tourists, guests and clients.
 Pressure from government with regards to adhere with discrimination and general data and
protection act laws (GDPR) brings transparency in the hotel business and customers are
ensured that their data and confidential information is safe from theft and misuse.

Current and Potential Trends
Below mentioned are the few current and potential trends prevailing in hospitality industry:
 Increased emphasis over health: Emergence of pandemic and rise of other chronic diseases made
travellers more conscious about health and are looking for gym, yoga and wellness centre, vegan
food, air purification and vitamin infused shower.
 Seamless technology: Advancement in the technology has made it use for seamless technology
across several platforms and devices to provide hassle free services. Hospitality industry is widely
using mobile check-inns and digital concierge services with the help of smart rooms and smart
mobile app which provide a solution at finger tip from room booking to order a meal in restaurant.
 Sustainability: Growing concern towards environmental protection and conservation of natural
resources have made many hotels to focus on renewable energy solutions and limiting the use of
water. Use of solar panels, water management, recycling of wastage and automatic power on-off
of appliances.

Evaluation of the ability to develop products and
services
Travelodge is quick and proactive in adapting to the necessary changes to build and develop an
eco-friendly and sustainable hotel operations. Hotel has installed solar panels and effective water
management system to avoid and mitigate the misuse of water. With the help of automation and
technology in rooms, all the electrical appliance are switch on and off as the guests enters or
leaves room, contributing towards conservation of energy and electricity. Travelodge have
responded well to the socio-economic factors and provide free yoga sessions to the guests with
well trained and professional yoga teacher. This is not all; they have also added vegan and organic
dishes in the restaurants to promote vegetarianism and vegan diet all across globe. Furthermore,
Travelodge provides personalised services through use of mobile application and social media
platforms to be able to keep relevant and competitive in a hospitality industry.

Evaluation of the impact of external factors on
potential trends
Evidently, growing concern towards environment and pressure from government have brought
positive revolution and innovation in hospitality industry as big hotel brand such as Travelodge is
opting for a sustainable and eco-friendly hotel operations. Eco-friendly tag not only builds the
brand image of the hotel brand but also encourage others to promote sustainable practices and
contribute towards conservation of planet and people. However, changing trends of travelling
have reduced the demand of big hotel brands but have forced hotel businesses to integrated
several amenities like gym, swimming pool and yoga centre to provide health solutions to the
guests and clients. Additionally, technological advancements has opened up a new path for hotel
business to expand its customer base, maintain strong presence across globe and deliver
personalised services to customers.

Conclusion
From the above report it is concluded that in order to work efficiently and effectively in
hospitality industry there is requirement of several skills which have a direct influence in
delivering good or bad services to the customers. Furthermore, there are distinct operational
and functional departments in the industry which works in coordination with each
department to deliver uninterrupted and high quality of services. In order to minimise the
impact of external factors it is essential to conduct PESTLE analysis which helps in
determining future treats and challenges company is more likely to face in near future.
Furthermore, it has also been revealed that hospitality industry is a huge sector in service
industry which is regarded as largest contributor towards economic development.

References
Baquero, A., and et. al., 2020. The influence of transformational and authentic leadership on the
satisfaction of hotel customers in the Canary Islands. Tourism and Hospitality Research. 20(3).
pp.331-344.
Kallmuenzer, A., Peters, M. and Buhalis, D., 2020. The role of family firm image perception in host-
guest value co-creation of hospitality firms. Current Issues in Tourism. 23(19). pp.2410-2427.
Kim, W.H., Malek, K. and Roberts, K.R., 2019. The effectiveness of green advertising in the
convention industry: An application of a dual coding approach and the norm activation
model. Journal of Hospitality and Tourism Management. 39. pp.185-192.
Huang, D., and et. al., 2019. Users and non-users of P2P accommodation: Differences in perceived
risks and behavioral intentions. Journal of Hospitality and Tourism Technology.
So, K.K.F., Li, X. and Kim, H., 2020. A decade of customer engagement research in hospitality and
tourism: A systematic review and research agenda. Journal of Hospitality & Tourism
Research. 44(2). pp.178-200.

Thank You