Business Model and Strategic Plan
SWOT Analysis
Political
There exists massive unionization of workers and consumers in both the US and UK hospitality industries. Travelodge is not immune to cases of increased demands for better working conditions, protection, information, and cost of operation. The rather stable political environment offers legislation to help maintain a high standard for these demands. The positive side of this factor is reduced turnover that lower long-term costs.
Economic
Consider first the fact that Travelodge Hotels Limited operates on a conscious budget model. The management seems to have factored in issues in growth rates as well as exchange and inflation rates. It is an ideal source of residence for numerous travelers based on the current state of the global economy.
Social
The population characteristics of the UK is more or less similar to that of the US. In this sense, both regions face a demand from consumers who push for affordable prices and value for their money. The consumers also have adequate flexibility and knowledge with a tendency of expecting superior valued services in attractive environments.
Technological
The hotel uses modern technologies in most of its operations. The increased use of technologies and innovations would further excite the existence of superior benefits such as enhanced security systems, online booking, and record keeping. Also, Travelodge’s guests can now enjoy high-speed Wi-Fi connectivity. However, technological advancements require extra caution to reduce the risk of financial and identity fraud.
Legal and Regulatory
The company has a legal obligation of remunerating their employees using the stipulated living wage rates. The law also dictates that they operate under national regulations with appropriate licensing mechanisms. These mechanisms include adhering business legalities as well as positive labor and consumer-related practices.
Environmental
Travelodge, as any other significant player in the hospitality industry, is at risk of locking horns with environmentally conscious organizations for their carbon footprint. Global warming as an emerging issue remains a major concern for many agents at the micro- and macro- levels. The company needs to formulate a strategy that improves its image as an environmental friendly entity. They could exercise caution when it comes to recycling, energy production, and consumption.
Competition
The current economic conditions imply that Travelodge should have the ability to maintain its status as one of Europe’s budget-conscious hotels. It would remain preferable among people with a definite hold on their finances. The company enhances its competitive advantage by partnering with reputable companies such as Virgin Wines and GSD Club to offer consumers services at discounted prices.
Supply Chain Analysis
The Supply chain is a vital element in the hospitality sector. It is crucial in the way it builds a relationship between suppliers and the hotel. Therefore, Travelodge requires a sound supply chain to help improve service rendered towards consumers. One of the main suggestion for creating a sustainable supply chain is the optimization of the provision of products. JIT delivery systems would improve the availability of inputs as well as place Travelodge in a flexible situation. Barcode systems would also increase automation to help leverage upon inventory keeping. The timely delivery of goods forms an essential component of this company. It results in increased consumer satisfaction and subsequent profitability. It also plays a crucial part in cost reduction measures. Indeed, barcode-related solutions improve supply chain visibility throughout the company thus limiting administration costs (Simchi-Levi, Wu, & Shen, 2004).
Issues
There are two primary issues Travelodge faces based on the analysis above. These issues include globalization and technology. Globalization as an issue is both as an opportunity and challenge to Travelodge. On one side, it offers the hotel a chance to expand its operations into international markets for sustainable development. On the contrary, the expansion could increase chances that Travelodge faces adverse factors such as increased competition and inflation. Technological advancement is also another issue worth analysis. In this case, it is worth conducting a study on the effects of technological advancements on Travelodge’s operations:
Research Question 1: What are the impacts of globalization on Travelodge’s operations on an international front?
Hypothesis 1: Globalization has a positive effect on Travelodge’s operations in both domestic and international fronts.
Research Question 2: What relationship exists between technology and related innovations on Travelodge’s operations?
Hypothesis 2: Technological advancement has a positive change on Travelodge’s operations.
References
Simchi-Levi, D., Wu, D., & Shen, Z. (2004). Handbook of Quantitative Supply Chain Analysis: Modeling in the E-Business Era. London, UK: Kluwer Academic Publishers.
