Travelodge Hotel: PESTLE, SWOT Analysis and Future Hospitality Trends

This report provides a comprehensive analysis of Travelodge Hotels, a major player in the hospitality industry, covering its operational roles, required skills, and strategic positioning. The report begins with an introduction to the hospitality sector and the focus on Travelodge, then delves into a detailed PESTLE analysis, examining the political, economic, social, technological, environmental, and legal factors impacting the hotel's operations. Following this, a SWOT analysis evaluates Travelodge's internal strengths and weaknesses, along with external threats and opportunities, offering insights into its competitive landscape. The report then highlights current and potential trends in the hospitality sector, such as eco-lodgings, technological advancements, catering to millennials, and the tech explosion, which are crucial for the hotel's future growth and adaptation. The report concludes by summarizing the key findings and emphasizing the importance of strategic planning and trend awareness in the dynamic hospitality market. The report references various academic sources to support its findings and conclusions.

CONTEMPORARY
HOSPITALITY INDUSTRY
(TASK 3 & 4)

Table of content
• Introduction
• PESTLE analysis
• SWOT analysis
• Potential and current trends
• References

Introduction
Hospitality sector deals with a variety of people in their daily operations who visits a place
for their personal or professional purpose. It includes a wide range of services such as
includes event planning, transportation, lodging, travelling and tourism. The present
presentation is based on Travelodge hotels which is a hotel chain having headquarter at
England, United Kingdom. This presentation will discuss the operational roles and skills
required for these roles. Lastly, PESTLE and SWOT analysis along with the implications of
current and potential trends in hospitality sector.

PESTLE analysis
PESTLE analysis is useful for the Travelodge hotel for determining the external
environmental factors which impacts the hospitality sector. These factors are discussed below:
Political: These factors include the labour law,foreign trade policy, environmental law
etc. Digital Economy Act 2010 which is implemented by the government of UK for reducing
the file sharing and copyright infringements can impact the business operations of Travelodge
as they have to decide if to provide free internet or Wi-Fi to customers or not. The Travelodge
is charging for the Wi-Fi and internet connectivity in order to reduce the negative impact of
this law on business of hotel.

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Economical: These includes economic growth,inflation,deflation,per capita income,GDP
etc. The economic condition of the UK is not stable due to the Brexit as inflation rates are
increasing (Kandampully, Zhang and Bilgihan, 2015). Travelodge is providing their
services at low prices due to which the customers dose not worry about the inflation rates
and it will also positively impacting the revenue and sales of the hotel.
Social: These includes tradition,culture,belief of individuals. The customers of UK are
preferring the low priced good quality services which is provided by the hotel. Travelodge
is providing their services such as accommodation, food and transportation to customers at
affordable prices de to which the customers are preferring the offerings of the hotel.

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Technological: These includes the advancement in technology. The technology is
considered by the Travelodge hotel while providing their services to the customers.
For this, the hotel is providing free internet, Online room booking which are also
preferred by the customers as they does not need to go anywhere and can book the
hotel from their home. This is positively impacting the hotel in terms of sales,
profit and productivity.
Environmental: These includes pollution, scarcity of resources etc. The hotel is
planning to use the vertical gardens in their hotel for providing cool rooms and
healthy pollution free environment to the customers. Through this, the hotel can
attract more customers towards the hotel which can further assist the hotel in
improving the revenue and profit.

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Legal: These includes health and safety, rights and laws, equality etc. The hotel is
following the regulations such as health an safety act, equal wages act, anti
discrimination act etc. which is positively impacting the firm as employees are
motivated due to the protection of their rights (Legrand, Chen and Sloan, 2013).
Due to this motivation, they provides the services to the customer in an effective
manner which ensures customer satisfaction.

SWOT analysis
SWOT analysis is useful for the Travelodge for determining the internal strengths and
weakness along with the external threats and opportunities. Also the management of
Travelodge can use the SWOT analysis for taking important decisions. SWOT of the
Travelodge is discussed in further slides:

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SWOT analysis is useful for the Travelodge for determining the internal strengths and
weakness along with the external threats and opportunities. Also the management of
Travelodge can use the SWOT analysis for taking important decisions. SWOT of the
Travelodge is discussed in further slides:
Strengths Weakness
 The prices of the rooms
are affordable and lower
than the competitors.
 Travelodge hotel
provides the Travelodge
account card through
which customers can
book hotel easily in less
time.
 The rooms of the hotel
are not fashionable in
terms of the decoration
which is a weakness.
 Also the hotel is not
suitable for the big
families due to having
smaller rooms.

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Threats Opportunities
 Travelodge is facing stiff
competition from the
competitors such as Hilton,
Marriott in terms of attractive
offers and huge customer
base.
 Customers can demand for
luxurious places and rooms
in the hotel due to having
growth potential in UK
economy.
 Travelodge has opportunities
for expansion in the other
areas of Europe other than
the Ireland and UK.
 Partnership or joint venture
can provides the huge
customer base and improved
brand image of the hotel.

Potential and current trends
Hospitality sector is growing at a fast pace because of the drivers such as Changing
consumer lifestyle trends, sustainability and ethical considerations, the impact of the digital
revolution on production and consumption, emerging markets and brand developments etc.
These trends are discussed on further slides:

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Potential trends
 Focus on green and eco-lodgings: This is the future trend as people are aware of
protecting the environment and they will need clean and pure air to live comfortably.
Travelodge can respond to this trend by using the vertical garden concept in their
hotel in which the plants are planted on roofs and walls.
 Intelligent hotels with advanced technology: This is also a future trend which can
arise due to the advancement in the technology (Lub and et. al., 2012). Travelodge
can use the guest’s virtual fingerprint for the check-in, charges, check-out, etc. and
building casino, shops, theatre, theme park, etc. in the hotel campus.