PDR201 Case Analysis: Revenue Management Strategies at Travelodge

This report analyzes the revenue management strategies of Travelodge Sydney Martin Place, a subsidiary of TFE Hotels. It explores the importance of creating effective deals, automating transactions, and utilizing data analytics for revenue managers. The report examines key distribution channels in the tourism and hospitality industry, including company websites and online travel agents (OTAs), and discusses emerging trends such as increased health and wellness concerns and sustainability. The report provides an overview of Travelodge Sydney Martin Place's current strategies, including its online distribution channels and marketing campaigns. It also emphasizes the importance of stakeholder engagement, particularly with suppliers and employees, and outlines communication strategies to foster innovation, sustainability, and corporate responsibility. The report concludes that establishing strong strategies is crucial for success in the competitive tourism industry.

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REVENUE MANAGEMENT
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Introduction
The demand for travelling is increasingly growing, owing to the strong global economy.
Due to the global economy as well as the proliferation of technology, the tourism and travel
sector is witnessing continued disruption. The market and industry place is extremely
competitive as there is low barrier to entry. Therefore, it has become crucial for the travel
companies to establish strategies to protect and gain market share in the highly competitive
market. The travel and tourism companies are facing challenges due to the lack of flexibility of
the legacy systems and hence are not able to change to the highly competitive market
environment (Anderson & Han, 2016). There are high level of competition between the
companies and the suppliers, hence impacting the pricing policies and transactions of the
companies (Ballou, 2017). Therefore, the travel companies need to build new strategies and
capabilities on their infrastructure in order to grow the business. The purpose of this report is to
analyze the Travelodge Sydney Martin Place, which is one of the owned brands of hotels in
Australian with the subsidiary of TFE hotels. The report describes the different distribution
channels in the Tourism and hospitality industry, the emerging trends that can impact the
distribution and the revenue management. Further, is discusses on the current strategies adopted
by Travelodge Sydney Martin Place and determines the communication strategy with the
different stakeholders in the organization and concludes the report.
Discussion
1. Strategies for successful revenue managers

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In the highly complex business environment, creating the right deal for the customers can
be considered as the foremost important strategy for the revenue managers of the Travel and
Tourism Company. Creating and implementing comprehensive deal management systems help
the revenue managers to address the challenges in the organizations (Ballou, 2017). The
managers can consider the historical based insights which will help them to analyze the needs
and preferences of the customers and hence deal with the popularity. They must consider the
agility in the sales negotiation process along with simulation capability. There can be an
automated process for implementing the comprehensive deals to the clients. The other strategies
that can be adopted by the revenue managers are automating the settlements of the clients, this is
important as it helps to initiate faster and error free transactions (Boyd & Bilegan, 2013). It must
support Multilanguage, invoices and multi currency bills. There must be automated systems for
managing the contracts, calculating the fees and the revenue shares of the company along with
automated alerts for managing the contracts. Further, having dashboards powered by analytics
can be another strategy for the revenue managers (Chiang, Chen & Xu, 2017). They need to
consider various flexible analytic tools and other configurable exports for different levels in the
company. These are some of the strategies that can be adapted by the revenue managers as it can
enable efficiency in the operations of the business.
2. Distribution channels in the Tourism and Hospitality industry
The two most important and widely used distribution channels are the company’s own
website and the use if Online Travel Agents (OTAs). Using the company’s own website as
distribution is considered as the most cost effective marketing tool. The cost of developing the
website and maintain the website is low as compared to the other forms of distribution channels.

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The company website can be the most ideal channel for deliver the intended message to the
target audience in order to appeal them (Hendler & Hendler, 2014). The website can be
customized and personalized to appeal the target audience and increase the visibility of the
company, such as SEO and updating content regularly (Hoang, 2017). Through the online
website of the company, it can generate more direct sales and generate booking options through
the website itself. There are many other travel and tourism companies which offer incentives and
discounts on direct booking from the own website of the company. The important details can be
updated in the website with adequate and relevant information for the target audience.
Another distribution channel for the travel and tourism company is online travel agents.
These includes: Booking.Com, Hotel.com, Expedia, Orbits and Priceline.com. This distribution
channel is comparatively costly; however, there are many benefits to this channel (Hoang, 2017).
The major benefit of this distribution channel is that it has extra exposure allowing more guests
and tourists through these channels. The OTA distribution channel is highly popular among the
mobile phone users (Kimes, 2011). While implementing this distribution channel in the
company, it is important to keep the information up to date and ensure that the descriptions are
provided accurately. Further, the client reviews and comments must be addressed timely.
3. Emerging trends that can impact distribution and revenue management
With the increase in the demand for tourism and travel industry and globalized economy,
the travel and hospitality industry is facing huge challenges and opportunities. There are several
trends such as technological development, sustainability concerns, developments and others
which impact the distribution and revenue management (Milla & Shoemaker, 2018).
Increased concerns on health and wellbeing: There is an increased trend of health
consciousness and wellbeing among the guests and tourists. They are highly responsive to

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different wellness equipments, such as fitness centers, spas, pools, healthy food options, air
purifications and others which can ensure health and wellness. There is a growing trend for food
and beverage developments among the tourists (Zapata Campos, et al., 2018). There is a growth
in health conscious customers and preference for eco-friendly commodities. The guests and
tourists are seeking for new culinary experiences in order to delight the senses. Customers prefer
high quality cuisine with an accessible price point. In today’s scenario, the visual delights are
also considered to be important along with deliciousness. Thus these trends can impact the
industry.
Sustainability concerns: There are issues of sustainability among the travelers and guests. The
issues of sustainability have increase the public awareness and consciousness among the guests.
The guests and travelers are seeking for global hospitability, hence, the travel company’s needs
to take a more comprehensive approach to the corporate social responsibility. Accountability and
transparency are two most important factors considered by the travelers (Kimes, 2011).
Therefore, the business needs to develop strategies that are sustainable and are socially
responsive. The resources need to be recycled and reused rather than disposing off. They need to
focus on eco-friendly practices, water scarcity and use renewable energy resources.
4. Overview of the current strategies of Travelodge Sydney Martin Place
Travelodge Sydney Martin Place comprises of complex web of relationship among the
various stakeholders of the company including, suppliers, tour operators and travel agents. The
company offers authentic, realistic and other marketing facilities of the hotel amenities along
with attractive hotel rooms for its customers (Milla & Shoemaker, 2018). The company
implements strategy such as online distribution channel and customized company website to
generate more sales. It operates self service reservations online. It uses mobile friendly website

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for the ease to use by the customers (Travelodge Hotels | Sydney Martin Place - Best Rates &
Free WiFi, 2019). The marketing campaigns organized by the Travelodge Sydney Martin Place
are unique in order to entice the potential tourists. Travelodge Sydney Martin Place promotes
itself through different online travel agencies in order to generate more sales. Other basic
strategy implemented by the company includes offering variety of services and amenities to the
customers.
Communication strategies to stakeholders of the company
The travel and tourism industry must consider stakeholder engagement and must be
highly committed to corporate citizenship which is critical to the success of the organization. It
must collaborate with the potential stakeholders of the organization, analyze and understand the
expectations and interests. The two different stakeholder of Travelodge Sydney Martin Place are
suppliers and employees (Hendler & Hendler, 2014).
Active engagement with the suppliers of the organization and by developing strategic
relationship with the suppliers of the company will help to foster more innovative and
environmentally responsive practices of the business. The company needs to consider the supply
chain management for the purpose of identifying and evaluating cost effective materials and
products, align with the brand standards and encourage sustainability (Milla & Shoemaker,
2018). The company must communicate while meeting with the suppliers regularly while
reinforcing their commitment to social and corporate responsibility. They must consider
engaging with the suppliers on topics such as sustainability awards and certificates, tracking
renovation projects and sustainable materials.
Employees and communities are considered to be one of the key stakeholders of the
company. The company must consider educating and communicating the strategies of the

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company by engaging with them through cross functional team representing every department
functional team throughout the company in order to support the sustainability imitative and other
strategies implemented by the company (Hendler & Hendler, 2014).
Conclusion
Therefore from the above analysis, it can be concluded that the travel and tourism
industry is growing rapidly due the strong global economy, proliferation of technology and
globalization. There industry is highly competitive with low barriers to entry, hence it is
highly crucial for the travel and tourism industry to establish strong strategies to gain competitive
advantage in the highly competitive business environment. The report has identified that
strategies required for successful revenue managers. A comprehensive deal management system
can help the management to address the challenges; an agile sales negotiation process and
implementation of advanced technologies such as automated systems for managing the clients
are some of the strategies that can be adopted by the revenue managers. The report has identified
the distribution channels in the tourism and hospitality industry. Further, the report has identified
the emerging trends in the travel and hospitality industry such as increased levels of health
conscious customers, suitability and advanced technology that impact the operations of the
business. The report had provided an overview of the current strategies implemented by
Travelodge Sydney Martin Place and the communication strategies to engage with the key
stakeholders of the company.

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