Travelodge UK: Organisational Structure, SWOT and PESTLE Analysis

This report provides a detailed analysis of Travelodge's business organization within the UK hospitality industry. It examines the company's organizational structure, highlighting the roles of owners, managers, and operational staff, along with the advantages and disadvantages of this structure. The report further analyzes Travelodge's business environment using SWOT and PESTLE frameworks to identify internal strengths and weaknesses, as well as external opportunities and threats. The SWOT analysis reveals Travelodge's brand image and service quality as strengths, while limited service offerings and market share are noted as weaknesses. Opportunities include the growing trend of eco-tourism, while threats include intense competition and changing consumer spending habits. The PESTLE analysis explores political, economic, social, technological, legal, and environmental factors impacting Travelodge's operations, including government regulations, economic fluctuations, evolving customer preferences, technological advancements, and environmental concerns. The report concludes by emphasizing the importance of understanding these factors for Travelodge's sustainable growth and success in the competitive UK market. Desklib offers a variety of similar solved assignments to aid students in their studies.

Understanding Business
Organisation

Table of Contents
.........................................................................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organizational Structure of Travelodge.......................................................................................3
Analysing the Business environment of Travelodge...................................................................4
SWOT Analysis of Travelodge....................................................................................................4
PESTLE Analysis of Travelodge.................................................................................................5
REFERENCES................................................................................................................................1

INTRODUCTION
Business organization is an structure formed for the purpose to carry on the commercial
work. It can be in the form sole proprietorships, partnerships and limited liability company.
Travelodge is said to be UK's largest independent hotel. It has more than 600 hotels and 40,000
rooms in UK. Travelodge hotels comes under the industry that is very competitive and there are
more competencies operating that compete with the hotels. It is important to know about the
micro and macro factors of the organization which affects the working of the organization.
The report is going to contain the organizational structure of Travelodge which is
operating in UK. It also shows the advantages and disadvantages faced by the hotel company. It
further contains the Business environment followed by the organization. Different internal and
external factors of the organization and how they impact the organization. Moreover, the report
will identify the internal environment through SWOT analysis which will highlight the strengths
and weakness of the organization and External environments through PESTLE model which will
highlight the external factors which affects the working of the organization. These models will
help the organization to identify the problems and to accomplish the goals of the organization.
MAIN BODY
Organizational Structure of Travelodge
Organizational Structure is the outline of how organization's activities are directed to
accomplish the goals of the organization (Andersson and et.al, 2019). It is important to have for
an organization to have a organizational structure to carry out the daily activities. It delegates
authority, divide task and specify the job of each department. Following is the organizational
structure of the hotel:
 Owners and Top Level Managers: The top-level of hotel is consisted of the Hotel
owner and the executive mangers. They are responsible to set the standards of the
hotel and create policies for all the levels. The managers are responsible to
manage day-to-day activities of the business.
 Assistant Manager: They are responsible for communicating with all the
Departments and handles issues regarding the performance to maintain the
standards of hotel. They also handle customer services issues to deal with the
serious problems.

 Mid-Level Managers- Mid level managers include the position of the sales
manager, housekeeping manager and human resource managers. They are
responsible to manage there departments individually.
 Operational Staff: This includes the duties and responsibilities performed by the
workers at different departments. These positions are filled by the chefs, room
service waiters etc.
Benefits and Disadvantages of the Organizational Structure of Travelodge
Organizational Structure provides several benefits to the organization. It Improves the
customer service as it helps in dividing work in the organization. It also helps in creating a
positive environment between employees which helps in increasing there motivation. Further, it
enhances the performance of employees by creating policies and strategies for them. It helps the
business to operate locally and globally.
There are certain drawbacks of organizational structure in Travelodge. It sometimes
creates conflicts between the different levels of departments due to differences in their positions.
It also increases the inflexibility to make changes in the business environment.
Analysing the Business environment of Travelodge
Business Environment is the Combination of all external factors, forces and institutions
which are not in the control of the organization but influences the growth and functioning of the
organization. In the hospitality business, External factors are political, technological, social, legal
and other factors which affects the growth of the organization (Sołoducho-Pelc and Sulich,
2020.).
SWOT Analysis of Travelodge
SWOT Analysis is a tool undertaken by the organization to identify its internal strengths
and weakness, as well as its external opportunities and threats. In hotel industry, it helps in
identifying the areas which are performing well (Benzaghta And et.al, 2021.). It includes:
Strengths
 Travelodge has a good brand image in market which helps it to differentiate from other
industries. It helps the company to maintain its credibility in the industry.
 It also provides high quality of services to its customers which helps in gaining
maximum customer satisfaction. It helps the company to get a good position in the
company and to earn a good profit margins.

Weakness
 Travelodge does not offer all the services to its customers. They don't provide porter's
services and room services (What Is a SWOT Analysis and How to Do It Right 2022.).
These issues can cause Travelodge some disadvantage as travellers have more choices in
other competitive hotels.
 Travelodge also have a limited market share in comparison with its competitors. This can
create fewer opportunities for hotel in growth and development .
Opportunities
There are certain opportunities for the Travelodge. In recent years, Government has been
in a wide promotion of the eco-friendly and ecotourism has been in a trend. Travelodge has a
very good image and reputation among the customers and this can create a good opportunities
for the organization and also helps in increasing the profit margins of the company.
Threat
 Travelodge is facing the huge competition as it belong to a hospitality industry. The
rivals are offering the same services and substitute hotels ranging from one to five star.
After pandemic situation, peoples are spending less on hotels by staying in cheaper
hotels.
 They also uses less promotional strategies which makes difficult for the foreign tourist
to hear about it. This can become a big threat for the organization in growth and
development of the business.
PESTLE Analysis of Travelodge
PESTLE model is the technique used to identify the various different factors which
affects the working of the organization (Nicolae, 2018. ). It is helpful in understanding the risk in
the market and how it affects the organization.
Political Factor
It includes the rules and regulations made by the government which are mandatory to be
followed by the organizations. Legislations and trade unions affect the standards of business. The
employees in the hotel are demanding more protection and better working conditions and
knowledge regarding the services which increases the cost of the organization. Due to pandemic
situation, government has created policies to provide employment opportunities to people.

Travelodge can hire fresh talent for its organization, which will help in creating a good brand
image.
Economic Factor
Economic factor affects drastically, hotel and consumers. It plays a crucial role in
company's growth and standards. Travelodge look on the economic change which occur in the
UK. Economic factor affect the business revenue rates, profit margin, etc. Post pandemic crises
affect economic of UK at large level (Yu, 2018.).
Social Factor
Customers demand according to market trend and nobody in particular to book rooms of
hotels manually so hotels booking are majorly done by websites. Travelodge provides long last
goods, and Travelodge have number of employee with adequate knowledge and they also upfront
in the newspapers. This hotel work in terms of market demand creates a effective impact on the
company's profile.
Technological Factor
Technologies are at the peak in UK and has numerous technologies according to latest
updates. Hotel industry run with the technology with version of last update. Travelodge
company's booking can be done through online method. Travelodge may suppress in the region
where surrounding competitors may have better technologies.
Legal Factor
Hotel industry influence by legislation power of government because they implement
rules and regulation according to the norms (PESTLE analysis 2022.). At the time of pandemic
many laws are implemented by the government for welfare of consumers and tear are strictly
imposed in every sector of business. The factor which affects though legal aspect generally are of
two types Extrinsic- The factor which includes documentation and authentication of employees
on the basis of region where the firm is located.
Intrinsic- The authorization of business on the target sites.
Environmental Factor
Environment is important for tourism and hotel industry decline if the tourism rate
decrease due to reasons such as natural calamities, pandemics, etc. because the hotel which place
near to place where inflammation rate is high the tourist attraction is less and that results in
declination of growth of business. On the other hand, a location of hotel is favourable and

suitable are present, that have seen in the business profitability by increasing demand of rooms
and services.
CONCLUSION
Conclusively, this report reflects the business organisation of hotel industry. This
industry grow in an effective manner in the United Kingdom. Many hotels are organizes their
business with diffident ideology for making an image in the market place. In this above
discussion, a company would be taken for business organisation is Travelodge. Travelodge
company basically spread in the UK at a very large scale and have 600 hotels with their unique
location that majorly attracts tourist. Later this report discussed strength, weakness, threats and
opportunities (SWOT) analysis in which Travelodge mainly lack in services and luxury which
was in demand oh customers. So thereby company meet through amount of loss. The brand
reflects the organization image with positive attribute. At last this report explain the factor by
which company may suffer in the marketplace such factors are Political. Economical, Social,
Technological, Legal and Environmental. That all are major factor on which Travelodge run
their business in an efficient manner. This whole report majorly target the point by which
business grows and reach at higher level.

REFERENCES
Books and Journals
Andersson, T. and et.al, 2019. Building traits for organizational resilience through balancing
organizational structures. Scandinavian Journal of Management. 35(1). pp.36-45.
Benzaghta, M. A. And et.al, 2021. SWOT analysis applications: An integrative literature
review. Journal of Global Business Insights. 6(1). pp.55-73.
Nicolae, P., 2018. Use of the PESTEL Model in the Management of the Tourism Branch of the
Republic of Moldova. Ovidius University Annals, Economic Sciences Series. 18(1).
pp.370-375.
Sołoducho-Pelc, L. and Sulich, A., 2020. Between sustainable and temporary competitive
advantages in the unstable business environment. Sustainability. 12(21). p.8832.
Yu, Z., 2018. PESTEL Model Analysis and All-for-One Tourism in Luoping. Journal of Qujing
Normal University. 37(5). p.60.
Online
What Is a SWOT Analysis and How to Do It Right 2022. [Online] Available through:
<https://www.liveplan.com/blog/what-is-a-swot-analysis-and-how-to-do-it-right-with-
examples/>
PESTLE analysis 2022. [Online] Available through:
<https://www.cipd.co.uk/knowledge/strategy/organisational-development/pestle-
analysis-factsheet#gref>
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