They also offer extra services such as breakfast, dinner, WIFI or late check out, both online and face to face, in order to meet customer’s expectation. Therefore, as it can be seen, they are highly aware of customer´s particularities.
In order to raise flexibility of their services among customers, there is the possibility to book flexible rooms that may be cancelled or amended until the date of arrival with not additional charges. Moreover, the company also operates a relocation policy; thus if a room is unavailable on arrival they will either provide a room in another hotel or the booking cancellation and money refund.
Travelodge´s strategy of expansion and development is base on a program of building conversion; therefore it provides a great flexibility to the hotel in setting above or below other uses.
According customers reviews, for instance at Tripadvisor.com, Travelodge offer the possibility to its clients to make complains through their website and the lag time response normally takes five working days. Travelodge makes an effort to study customers´ needs.
Additionally, the budget chain also offers its customers fast check in services and not need to check out ()
Travelodge also offers a fast track management program to its employees, to promote internal motivation and development. The hotel has also embraced the concept of “speed recruiting” management through the implementation of a three minutes interview’s system ()
Moreover, Travelodge is the fastest growing hotel company in UK, using a combination of new developments, mixed schemes, “going concerns” and office conversions in major locations across UK ()
In terms of pricing strategy, Travelodge’s guarantees customers the best available rate – if customers find a cheaper rate they will match it and will also offer a 10% discount- . The hotel chain offers a unique pricing system in which:
Best prices are online
- Prices charged per room and not per person
- The earlier you book a room the better its price (rooms bookable up to a year in advance)
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Retail price checking programme that compares prices with other hotel chains to ensure the lowest price provision (www.2travelodge.co.uk)
Travelodge also offers two different types of rates, the £19 saver rate and the £46 flexible rate, and children under 15 eat free. They also offer breakfast online discounts and free buffets
All in all, Travelodge is always reviewing operating expenses to reduce costs in order to provide the lowest possible price. The chain does not offer toiletries, hair-dryer, irons, unlimited towels, teapot, biscuits and other extras – they only provide the basics for a night’s sleep – in order to pass these savings to customers by offering cheap prices on rooms during the whole year.
TRAVELODGE STRATEGIC APPROACH
Travelodge was one of the first holiday Inn and was Lunched in UK in 1985 and currently UK’s major finest hotel with about 460 hotel across the world with branches in Spain, Germany, and Republic of Ireland and across UK. It was estimated that over 7million people visited Travelodge and like and it figures has risen since then. According to statistics 87% of its reservations were made online at it also has the cheapest room rates which starts from £19 per night. Travelodge currently has the highest number of staff than its competitors with around 6000 staffs. Growth, Travelodge is looking to expand from its current size of 32,000 bedrooms to about 100,000 rooms in addition 1000 new hotels would be created before 2025 and would be achieved according to it spokesperson. 60% of its growth will be achieved from this new development, while 20% would be as a result of converting office blocks and warehouses. Travelodge has targeted towns and city centres around England, and areas like the M25 M11 and A13. Travelodge currently has about 44 hotels in within the M25 district with the largest number of bedrooms of over 5,780 and it said to be the highest amongst its competitors within the M25 area. In addition seven more hotels are under construction. Travelodge has said to be the highest with over 6,561 bedrooms a 5.5% share of London hotel market.
In 2007 33 new Travelodge hotel was opened the figures grew in 2008 to 42 and in 2009 it was 22 and in 2010 it recorded the highest among its competitors with 74 new hotels Travelodge has targeted areas such as Bristol Cambridge Lancaster Birmingham London Stratford and Greater Manchester.
Low pricing strategy: since its inception Travelodge has been known for its price slashing amongst its competitors encouraging people to use Travelodge is aimed in delivering good value for money commitment to operational efficiency driven by low cost. This year Travelodge will offer rooms for as cheap as £29 or less.
Online: online reservation grew to 87% which was easier for customers to book in advance which can be found on their website also the website was easy to access less than 5mins you could book any room of your choice and save the time of walking into any of its branches. You can also book in advance it attracted over 2.2 million visitors from around the world each month, in 2008 Travelodge was UK most visited website offering not only cheaper rooms but also customers who are looking to save cost on their travel expenditure turn to Travelodge.
Employment: Travelodge employs entry level staff from different employment agencies and also in job centres and the local employment partnership 90% of staff employed into Travelodge where recruited from LEP and there are also working in partnership with job centres to become the highest employment organisation.67% of employers comes from the local job centres while another 70% from LEP.
Product: in the current bid to attract more customers for the 2012 Olympics, Travelodge introduced a bar cafe in 2007. The Travelodge cafe was fashioned with a modern style with a mixture of red white and blue and its rich furnishing and coloured lighting. A stylish flat screen TV and wireless internet system to attract more visitors. The room suite has updated its facilities to reflect the style this design was the first to be introduced since its inception in 1985.
TRAVELODGE ACTION PLAN
Olympics 2012 – The 2012 Olympic will provide an opportunity and legacy to promote British tourism. Travelodge is investing over £410 million in London this funds is aimed at building more hotels in London to accommodate visitors from all part of the world it would also create more 750 jobs in London. A survey showed by Travelodge exploring its impact on the coming Olympics games it is said to generate another £3 billion which is £1 billion more than predicted. It has been estimated that UK tourism would seen a huge spending power as a result of the Olympic with 6.6 million visitors between 2007 and 2016 estimated at £14.2 billion in 2010 and would see an increase of £24 billion in 2016 creating more jobs for UK economy this will also reduce the huge £18billion deficit changing the face of UK tourism to be an inspiration for the future.
Business Account Card- Travelodge is offering its business customers a credit facility since its operation, this business account will create a greater relationship than any of its competitors in this sector. Travelodge is doing what it can to assists companies with their cash flow as wells as helping its customers in this present economic situation and also offering an unbeatable prices than any of its competitors. Since the inception of business account card Travelodge has seen a huge rise on the number of account card holders and more customers.
PESTEL ANALYSIS
PESTEL analysis is a strategic technique that provides a useful framework for analysing the pressure which is faced by an organisation Travelodge is looking for strategies to gain considerable competitive advantages they must be a planning framework in order to consider what external factors it would face as an organisation these factors include tax laws, new changes, demographic changes and government policies.
Political Factor These are government policy and how they affect the economy such as taxes vat tax on beverages and tobacco. Travelodge in recent years has been finding ways on how government policy would not affect its customers also how to maintain a stable market strategy. Political factor could be limited beneficially restrictive factors are factors that can affect its profits such as constraints placed on an organisation example fair trade law, minimum wage legislation and pollution laws political factors can have an huge impact on vital aspect of its business.
Economical Factor Organisations must consider the current economic situation these factors interest rates, taxation, and exchange rates Travelodge has seen an increase in sales after it fell in 2008 by 5.9% the weakness is pounds was a major factor which made more travellers to visit Travelodge and it was also an opportunity for the company. Economic factors refers to the nature in which firms compete against organisations are interconnected as a result of global economy. Travelodge aim is to monitor and forecast its physical conditions outside the organisation the market in which it competes with its competitors it must also look into consumer spending patterns in the other hand if the economy is unstable it will record a slow profit and reduce spending power of its consumers economic issues entangled closely with the modern external environments.
Socio- Cultural Factor changes in social trends can be an impact on how the demand for Travelodge services. Statistic shows how household structure has changed they have been an increase in the rate of single families and also divorced couples. Also eating and drinking out there was also an increase in the number of youths and elderly which often want to spend time outside their home the ageing population also has an impact on its demand the 2012 Olympic being held in London will impact tourism and Travelodge would accommodate more visitors than any other competitor in London.
Technological Factors
Travelodge has introduced a new system called self-check in system which reduces the time of from longer minutes to lesser minutes and it saves time for both the customer and the staff and also the online survey which helps a customer to give feedback on his experience with Travelodge, statistics shows that the number of online booking grew in 2007 more people would rather book online and it saves time and money for both the customer and Travelodge you can book and reserve a room at the comfort of your home more people are beginning to see this as a great challenge. Travelodge is working with apple to introduce a software with can have create an app on the Iphone this would attract more uses of Travelodge to make reservations anywhere in the world if you have an Iphone, also Travelodge is offering nectar points on which you can earn an spend on cinemas and other online stores.
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Environmental factors
Environmental factors such as the weather and climate changes in weather condition can be an impact on Travelodge major climate changes has occurred during this past years due to global warming and pollutions the Government are looking on ways which they could tackle the growing desire to protect the environment has an impact in every organisation in 2010 during the winter period there was an unfavourable weather condition visitors outside UK used Travelodge because of its hospitality and they recorded the highest profit during this period. Most people left their homes and used Travelodge in order to get a safer place during the winter weather difficulties.
Legal factors
Employer is required by law to pay their worker a minimum wage. Travelodge abide by the law which covers an employee which are as follows
- To protect workers from dangerous machinery.
- A reasonable workforce temperature is maintained for workers.
- Proper hygienic conditions and washing facilities are provided.
- Workers get adequate breaks between shifts.
Unfair dismissal it is against the law to dismiss an employee because he/she has joined a trade union of becomes pregnant. There are strict law covering an employee they should be a proper warning before dismissing an employee otherwise it could be treated as unfair dismissal.
Some factors which Travelodge adapts to meet the legal requirements by law
- Consumer protection
- Fair Trading Act
- Product and safety approvals
- Trade description act
Reference
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accessed 29/04/2011.
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01/05/2011