Travelodge Hotel Case Study: SWOT and PESTLE Analysis

This case study examines the organisational structure and business environment of Travelodge, a UK-based hotel chain. The report delves into Travelodge's departmental structure, highlighting its benefits such as focused teams and innovative potential, while also acknowledging drawbacks like distractions and increased stress. The analysis includes a SWOT analysis, evaluating the company's strengths, weaknesses, opportunities, and threats within the market. Furthermore, a PESTLE analysis explores the political, economic, social, technological, legal, and environmental factors influencing Travelodge's operations. The study concludes by emphasizing the impact of organisational structure on task management and the importance of adapting to external factors like market competition and changing customer expectations, providing a comprehensive overview of the hotel's strategic positioning.

Case Study

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Organisational structure............................................................................................................1
Business environment Analyse................................................................................................2
SWOT Analysis........................................................................................................................2
PESTLE Analysis....................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Organisational structure is the procedures which an organisation follows in which the work
of the organisation flows. This allows group and departments to work together with that they
have to perform their individual functions as well. There are different types of the organisation
structure which an organisation follows in order to create proper functioning structure.
Travelodge is a hotel brand in the UK. It is the hotel chain in the UK. There are Bar cafes in the
hotel with appropriate dinning facilities. The hotel can into existence in the 1973. It is the
private hotel chain that operates in multiple countries such as in US, Canada, UK and many
more(Anand and Mantovani, 2021). There are different types of the organisational structure
such as Hierarchical organisation structure, functional organisational structure, divisional
organisational structure, horizontal organisation structure, matrix organisational structure,
network and team based organisational structure. The aim of this report is to highlight the
organisational structure of the hotel and how does that structure brings the benefit to the
employees and what are the drawbacks of that structure. It also covers the evaluation of the
business environment with the help of SWOT and PESTLE analysis.
TASK
Organisational structure
The structure of the Travelodge is comprehensive and the duties and the responsibilities are
divided in the department wise. This structure brings transparency in the working of the
employees and the tasks evaluation becomes easy for the management. There are currently
more than 2000 employees working in the hotel(Bibi and Saeed Akhtar, 2020). Handling them
under one head is the difficult task. The hotel is providing all the services that an accommodation
services provider has to provide to their customers. Operating their services in the chain makes
them capable to generate the structure in accordance to the people of the place where the hotel is
operating. They have initiated their services and booking from their websites. They are having
all the department in their organisation such as accounting, marketing, human resource, finance
and many more.Thus aligning them in accordance to their abilities is what demanded. There are
some benefits and drawbacks which are discussed below:

Benefits
 Gain better insight- Implementation of the department working makes the teams to focus
on the one thing at a time and this enhances their working in the particular field. Having
deep knowledge in the particular field.
 Generates innovative ideas- If the team is working particularly in the one aspects then it
is possibility that their experience and expertise develops the innovative ideas and bring
uniqueness in the working.
Drawbacks
 Regular distractions- An organisation is working with the view of achieving goals, there
are other department also which depends on the one another. Getting invasion from those
departments brings more distractions.
 Increased stress- Department working puts the pressure on the single working
department to complete all the work related to that aspects on time(Büyüközkan and
Ilıcak, 2018). This brings stress on the particular department to provide appropriate work
on time.
Business environment Analyse
The working structure of hotel Travelodge is standard and develops in the short period of
working . The company beliefs to complete the working in the small tasks . So that the
achievement of the long term goals became easy(Contributor, 2020). Employees of the
organisation helps each other in the working. The working environment is helpful and healthy.
SWOT Analysis
 Strengths- This included all the strengths of the hotel which works as their unique
selling point in the maerket. The strengths of the Hotel Travelodge is to effectively deal
with the customers with effective services. The management of the hotel have followed
all the rules and regulations as per the provision by the government. The services of the
hotel is qualitative with the affordable prices(Hajizadeh, 2019). The management of the
hotel is having expertise in handling customers since three decades.
 Weaknesses- These are the abilities in which organisation is lacking and requires quick
improvement in respect to stand strong in the market. The Hotel Travelodge is not equip
with its customers in the whole range of their products and services. Such as they do not

provide instant room services. And in the certain areas of their services they are not
effective and the budget is not suitable as per the customer range to pay.
 Opportunities- The opportunities for the hotel Travelodge is that they should develop
their services on the online mode which make reduction in the personal contact with the
customers(Lewis and Clark, 2020). After the pandemic there is need to make the hotel
environment safe and secure and if the travelodge is safe in their working then it is
beneficial for their image.
 Threats- These can be said as the challenge and the hurdle in the path of the success.The
most possible threat is increasing competition in the UK market and there are multiple
new hotel chain which are operating as per the rules of the government. It is evaluated
that the other hotel are making changes in their working as per the people preferences
and the market(Madsen and Stenheim, 2022). Hotel Travelodge should also need to
modify their working as per the competition.
PESTLE Analysis
 Political factors- The government of the UK holds immense power over the hotel
industry. Such as if the government implements some travel ban , then it effects the
tourism and hotel industry. Hotel Travelodge regulate their functioning as per the
government rules but post pandemic the operations became quite difficult to handle. This
impacts the working environment of the hotel and results in lots of losses.
 Economic factors- The losses amount in currency, countries economic cycles, the
offering rates of the interest and many more. This factor majorly provides profits to the
hotel Travelodge as UK value in terms of the currency is quite high which makes them
strong in the global market(Pathak, 2020). The hotel also makes changes in the working
structure by complying with the various interest rates such as employment rate, inflation
rate and many more.
 Social factors- These are the factors which is based on the local people of the places and
their demand and expectations. Travellers wants and expected certain type of behaviour
from the hotel employees and Travelodge wants to makes changes in accordance to that.
The values and the cultures of the local community needs to respected and taken care of

that. Travelodge lacks in certain aspect but they are gradually making changes in that
aspect.
 Technical factors- Implementation of the current technology in the hotel industry is what
attract customers the most. Technological aspects also works in the making promotion of
the hotel through social media with corrective implementation of the technology(Saiti
and Stefou, 2020). With the application of the technology in the infrastructure it is also
important for the hotel to make use of it their working and functioning.
 Legal factors- A regulation of the organisation cannot be handle properly until following
all the legal procedures. Operating hotel functioning requires to follow the legal
procedures of handling human power and how to treat the customers. Such as proper
documentation of the hotel , taking care of employees in terms of their right, providing
basic amenities to the employees. The travelodge follows innkeeper laws which make
sure the welfare of the safety of the guests and their respective properties.
 Environmental factors- This the common aspects which influences the working of the
hotel industry majorly. As different climatic conditions of the nations makes changes in
the plan of the people and that impacts the revenue generation of the hotel. Travelodge
also impacted from this majorly as recent bad climatic conditions results in loss of
thousands of customers(Su, Rungtusanatham and Linderman, 2021). The local climatic
conditions are the deciding factors whether the hotel is earning well or getting losses.
CONCLUSION
From the above report it is concluded that working stricture of the different organisation is
depends on implemented organisational structure as this impacts the ability of the management
to regulate and manage the tasks and projects. The report is being made in the context of hotel
Travelodge which operates their functioning in the various nations such as UK, US, Canada and
many more. This report covers the what type of organisation structure is implemented in the
hotel travelodge. The organisational structure is department wise as in the hotel every department
and its working is separated according to the specialisation. From the SWOT analysis it is
generated that the hotel industry is changing as the great pace and the hotel needs to make
changes in accordance to that. Constant changes creates problem for the hotel as employees
demands time to inherit changes. From the PESTLE analysis it is evaluated that there are

various external factors that affects the working of the hotel Travelodge such as bad climatic
conditions impacts in customer generation. And if the people expect certain changes from the
hotel industry then they have to work as per that. Pestle analysis gives the overview of the
upcoming hurdles in the business . And business can regulate changes as per the problems.

REFERENCES
Books and Journals
Anand, A. and Mantovani, G., 2021. Homegrown Terrorism: An Analysis of Its Effects on
PESTLE Factors. In Transdisciplinary Perspectives on Risk Management and Cyber
Intelligence (pp. 21-46). IGI Global.
Bibi, N. and Saeed Akhtar, M.M., 2020. Relationship between Organizational Structure and Job
Performance of Teaching Faculty at Higher Education Level. Journal of Research & Reflections
in Education (JRRE), 14(1).
Büyüközkan, G. and Ilıcak, Ö., 2018. Integrated SWOT analysis with multiple preference
relations: Selection of strategic factors for social media. Kybernetes.
Contributor, P., 2020. PESTLE Analysis of Artificial Intelligence: The 6 Factors that Affect AI.
Hajizadeh, Y., 2019. Machine learning in oil and gas; a SWOT analysis approach. Journal of
Petroleum Science and Engineering, 176, pp.661-663.
Lewis, A. and Clark, J., 2020. Dreams within a dream: Multiple visions and organizational
structure. Journal of Organizational Behavior, 41(1), pp.50-76.
Madsen, D.Ø. and Stenheim, T., 2022. SWOT analysis. In Encyclopedia of Tourism
Management and Marketing (pp. 323-325). Edward Elgar Publishing.
Pathak, R., 2020. What is PESTLE Analysis. Factors, Advantages and Importance. Retrieved
from Analytic Steps: https://www. analyticssteps. com/blogs/what-pestle-analysis.
Saiti, A. and Stefou, T., 2020. Hierarchical organizational structure and leadership. In Oxford
Research Encyclopedia of Education.
Su, H.C., Rungtusanatham, M.J. and Linderman, K., 2021. Retail inventory shrinkage, sensing
weak security breach signals, and organizational structure. Decision Sciences.