Travelodge: From San Diego to the UK, a Growing Budget Hotel Brand

Travelodge Travelodge is private hospitality industry

The Travelodge brand was founded by Scott King (Travelodge Corporation Founder) from America. And the first Travelodge was established in San Diego in 1940. Travelodge has several hotel chains around the world and many of them are operated under independent companies without having connection with brand operating in other countries. Travelodge in UK Travelodge in UK was founded in 1985 which brand was bought in 1980 by the same person Lord Forte. It is the first budget hotel brand and now the fastest growing hotel company.

Currently Travelodge is serving all over the UK and in Republic of Ireland and Spain. Travelodge has become second largest budget hotel brand and third biggest hotel chain in UK as it contains approximately 26,148 rooms’ within 368 hotels. And since August 2006, till now Travelodge in UK is operated under Dubai International Capital. Newly designed rooms are decorated in new buildings and refurbished hotels. Every Travelodge in UK contain family rooms, double rooms and disabled rooms. Each rooms feature en-suite bathroom and heater attached in lower wall.

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Free tea and coffee with kettle is available on attached table. Wi-Fi internet connection is available at all hotels with the small charge add. Whereas for food and beverage there is bar cafe and vending machine in those almost every hotel except very old ones which are very near to other restaurant. These are overall facilities and other more are there. Situation Analysis PEST Political Analysis The rules and regulation is being changing very frequently for the international students which will affect the daily purpose of the Travelodge. Because than half of the workers are international students in Travelodge. But due to the changing rules and regulation, the under graduate students don’t get work permit from 2012 and those workers must leave the job at once. Last time when there was a great festival of Nepalese people the 50% of Travelodge in UK were in shortage of housekeepers because most of those international workers and students went back to there country for celebrating their festival. So the changing regulation might affect the smoothness of Travelodge because more than half of the workers are international students in almost every Travelodge.

Economical Analysis Economically Travelodge is in very good situation as it is fastest growing hotel and is providing the room in low price. This year Travelodge is proving various special discount offers in every month. Just this March, Travelodge provide a room in ? 10 per night. And Travelodge in UK is also adding 3000 room per year which shows their economic situation is quite good. Social Analysis Nowadays the peoples travel more due to the availability and flexibility of the Travelodge. Their living style is changing as they can afford the hotel rooms.

Travelodge has become the needy facility and services in society due to the cheapness, flexibility and mobility of it. Technical Analysis Online reservation system is very famous in Travelodge. 80% of booking is made online in Travelodge. The room’s door is opened with car key. Even check-in and check-out can be done in machine inside the Travelodge. Advance online payment is most famous and profitable for both the Travelodge and customers. SWOT Strength In present situation, Travelodge in London is considered as fastest growing hotel chain.

It is providing good services like online reservation, excellent customer services plus quality food services. Special disability access rooms are available for handicapped guest. Due to it’s availability in most of the places there is no transportation problems. Good car parking system is provided by Travelodge. Plus point the rooms are cheaper. And the company brand is famous through out famous countries like America, Canada, Australia, etc. Travelodge in UK is providing the room in cheapest price where there are no other competators in that matter. Weakness

There’s no room service in Travelodge and there is no refund policy after the reservation is made. Sometimes there is shortage of workers. And there is problem in personal development of junior staffs. Travelodge also lacks party place. Some workers might be good in work but lack the communication skills. Though the hotel is growing faster, its facilities are stable still. There are no any new promotions. Due to the increasing number of Travelodge there seems to be lacking of marketing expert. Opportunities Travelodge should must make some party place and function rooms.

More permanent workers should be collected and hire more marketing experts. With various offers the promotion and advertising is needed. And as being responsible of their workers, Travelodge must fight against the changing rules and regulation. And being in Growth stage, the right place must be filled with Travelodge with proper plan. Threats The changing rules and regulation of UKBA is making hard for more than half of workers in Travelodge as many of them are not going to get the work permit from this coming 2012. And maximum numbers of workers in Travelodge are par time workers including those international students.

Premier Inn has more number of hotels and rooms than the Travelodge and it’s only the one which has largest budget hotel brand even being founded after Travelodge. And right now Premier Inn has made the Travelodge second in budget hotel brand. Seasonality Travelodge in UK are very busy in summer. Most of the every people in the UK have holidays from their work in summer season. And in this season it’s favorable for them to travel. Due to cheap and sweet facilities of Travelodge, almost every those travelers prefer more to spend their nights in Travelodge.

They visit the place whole day and to spend night there is availability of Travelodge in most every place. Travelodge can be found in most of every famous place. And nowadays the holiday travelers travel many places rather than spending whole holiday by traveling in one place. It’s easy to switch the Travelodge anywhere within the UK for travelers because of its availability. So Travelodge seems abit busy than usual. The traveling to the beach in the summer is very famous in UK. In comparison it’s found that these years more number of UK residents are traveling within the UK than traveling outer country.

Where the Travelodge grab the chance to attract the customers and become successful due to it’s reasonable facilities for guest. It has become most flexible for the travelers traveling within the UK. It’s just opposite in winter. Travelodge keeps running but not as much as usual because the people in UK prefer to stay inside home being warm in this season. Whole UK is full of snow in winter season. So most of every peoples do not travel around rather than staying home being warm. Travelodge is quite in this season. So winter season is considered as off pick season of Travelodge in UK;

Travelodge occupancy is average in other seasons. This same trend goes every year. And in weekly basis, Travelodge in UK seems busy in the weekend than in weekdays. Product Lifecycle Introduction Growth Maturity Decline. Product Lifecycle of Travelodge in UK The figure above shows that, there is Four Stage in Product Lifecycle of Travelodge in UK. In Introduction stage there is one product, limited place and penetrating situation. The size of Market and Growth is very slight and the competition is very few.

The marketing cost is high in this stage to test the market. Moreover in this stage it's hard to gain more profit. So in this stage the product must be carefully monitored to ensure the product development or market development. This is necessary because it’s the stage where the business is starting from zero level. Gain awareness is the main marketing objective in this stage. Secondly in Growth stage there is more versions of product and more outlets and start gaining market and cost of product is reduced. The competition is more.

The demand increases so the product too, and the sales increases dramatically in this stage. Stress differentiation is the main marketing objective in this stage. Thirdly in Maturity stage there is full product line and maximum outlets. There are many more competitors and every companies fight for market share. It is stage when the high profit is earned by market as a whole. In this stage both marketing and finance become key activities. Pricing is forwarded defending the market share and profit. And the main marketing objective in this stage is maintaining brand loyalty.

Lastly in Decline stage there are only best sellers. The competition goes down to normal. Every company tries to stay profitable and promotional activities are quite silent. The profit keeps reducing so the final stage of company is indicated in this stage. The product management is done very carefully to control the amount of stock of the product. In present situation, Travelodge in UK is in Growth stage. Rising profitability is one of the indicators of Travelodge being in Growth stage. Due to the increasing competition Travelodge has reduced the price of room according to the guest’s early booking time. More the advance you booked the room , more the cheaper you will find the room in Travelodge’. And in the present condition sales volume is increasing very significantly. Due to increasing sales volume Travelodge in UK is in process of adding more outlets. It is gaining market share and promotion is automatically increasing. In over all we can say that there is rapid in sales and profit. Travelodge in UK is increasing it’s availability by building more Travelodge. In other words the product lines of Travelodge in UK are widening. Its main reason is because of increasing profit and competition. Marketing Report

Geographically the Travelodge in UK is segmented within whole UK focusing more around the Central London. Few of them are can be found in Country side. Numbers of Travelodge in UK are constructed according to the density. Numbers of Travelodge’s are established inside and around the Central London to make it available within short distance of travel. And wherever the density is high, Travelodge with more rooms is constructed over there. Famous places in the country side are focused and Travelodge are constructed over there. Demographic segmentation is done in Travelodge focusing to the different family sizes.

Travelodge in UK are available with family rooms, double rooms and disable rooms where the family rooms are managed separately with different set up for single person, two person or couple, family with one child, family with two child, etc. Same way the double rooms are also managed with different set up for single person and two people. Families with different age can enjoy the Travelodge rooms up to four people. Different rooms are segmented according to the floor and mostly disable rooms are available in ground floor which makes it easy and fast to move to disable peoples.

Pshychographically Travelodge is established focusing the social class. According to the location the price of room differs in Travelodge. And to make it affordable for everyone, Travelodge is available with various discount offers. . Travelodge in UK is grabbing the guest while they are in holiday. Every weekend there is holiday for the almost every official worker or any other workers. So Travelodge get busy in weekend. And mainly it is found around the busy places. It is made affordable in such a way that, regular customer, light customer or heavy customer everybody can afford it. Product of Travelodge in UK.

The main product of Travelodge in UK is clean room to provide lodging service. And as a side facilities bar cafe is available for food and beverages. As hospitality industry, Travelodge in UK mainly focus for the guests who are seeking for spending there nights outside. For which Travelodge is available with fresh cleaned rooms. Rooms are with limited facilities according to the number of guest to be inside room. The main things in Double room are like, King size double bed with small attached furniture and dim light. And attached furnished small and big wardrobe with table where LCD TV is also attached on the table.

Tea, coffee, sugar and milk packs are arranged in cuddy according to number of guest. Kettle with cups and spoon are sorted on a side of attached table. En-suite attached bathroom is available inside room. Small bins are kept under the table and inside the bathroom. Heater for winter season is attached in lower side of a wall. Breakfast menu, Main menu and Wi-Fi menu are arranged on the table just below the big mirror on the table. Finally the needed linens are fixed inside the room. Similarly the main things in Family room are as same like in Double room but are abit bigger in size and one sofa is added with single bed under it.

More number of wardrobe and single duvets are kept as per the number of guest. And sofa can be converted into single bed and under it there is another single bed. And disabled room is also with the same facilities as in double room but are bigger in size as Family room. Bathroom is bigger than in Family and Double room with special arrangements to make easy for handicapped ones. Bed can be separated into two parts if it’s difficult to the disable guest. And there is one rope to pull for emergency help which alarm’s immediately to the reception after pulling it.

Room is as bigger as family room but there is no sofa because of which it is abit wider and easy to move for the handicapped guest. There are other different facilities like daily cleaning the room even if the guests are staying over. More number of pillow, duvets, etc are available for free. And many other services like iron, baby cot, hair dryer, etc are available with small charge. Even Wi-Fi internet connection facility is also available here with small amount of charge. Bar cafe is there beside the reception for food and beverages. And the vending machine for chocolate, water and cold drinks are available.

Pricing Strategy Travelodge in UK is using Skimming strategy. In statistics it’s called riding down demand curve. Skimming Price of Room of Travelodge in UK. The figure above shows the present pricing strategy condition of Travelodge in UK. The X axis is room price whereas Y axis is Quantity of Room. And the curve in the middle that’s the Demand curve of room which is increasing. Lower the price, higher the demand is shown clearly by the figure. In past years rooms of Travelodge in UK used to cost higher than now because it was only the hotel chain with highest budget within the UK.

To satisfy the guest and travelers. Promotion of Travelodge in UK Travelodge in UK promote itself through advertisement. They advertise through various means every time when they bring the new offer. Advertisements are conducted through TV channels, Newspapers and Internet. Even a huge flex just around every Travelodge is displayed clearly. Public awareness is in process itself automatically as far as Travelodge can be found in most of every place within and around the London city. There is increasing awareness in public due to its flexibility services and its various discount offer.

It is necessary to promote through channels as far as TV has been one of the daily needs in this 21st century. Similarly, it’s same with newspapers which we can see in every peoples hand mostly in the morning time. And through internet, the whole world can search and find out about it in details. And the flex around it makes people to know about its cheap room price.

Distribution Channel Travelodge in UK has direct distribution strategy. The customer is guest and the product is room. As soon as the customers checked-in, they will get a card key, this directly let them inside the room. The rooms are cleaned by the housekeepers and are supervised by supervisor. The new linens enter inside the Travelodge everyday and same way the dirty linens are separated in cage to send it to laundry. The rooms are checked properly after it’s cleaned. Now a product is ready. This product is directly handed to the customer by the Travelodge after the guest paid for it.

There is no complicated distribution strategy in Travelodge. It directly hands the product to the customer. Branding Branding is really very important to this organization. ‘Travelodge’ is the brand name which signifies the every Travelodge in UK wherever they are. Travelodge brand name was founded in America but now it’s already been in UK, Canada, Australia, Ireland and Spain. These hotel chains are of same brand name even if it’s under the other independent companies. Yes, we can say its brand name is important because even though it’s controlled by different independent organizations, the brand name is same everywhere.

This brand is international brand. ‘Travelodge’ brand name itself is the combination of word travel and lodge. This also means the house where we can stay while we travel. This brand name directly attracts the travelers even from it’s name. Strategic Planning Travelodge need to increase the number of rooms within the busy areas without changing the room price offers of present situation. Travelodge in UK is right now in growth stage. Due to increasing demand Travelodge have great opportunities to upgrade. In my opinion, I think it’s time to increase the number of Travelodge choosing the busy area.

The lower price room with safety lodging is everybody’s demand. Travelodge is very suitable for that. More other Travelodge near the famous place must be established. Travelers traveling inside the nation are increasing in UK and for that more rooms must be created in busy destinations. The changing rules and regulation is pushing back the under graduated international students to their own country. And most of every Travelodge in UK are filled with international student’s part time workers. So for this, the fulltime workers with work permit must be searched to replace them.

Right these days Travelodge in UK is having very reasonable price for room i. e. , ? 19 if booked in 21 days advance. This offer is amazing that more than 85% of rooms are sold out through online booking in 21 days advance. This offer must be going on. Strategic Aims of Travelodge in UK Travelodge in UK has step up with aggressive growth strategy. As Travelodge is in Growth Stage, it is looking for adding the 3000 rooms per year and 10000 rooms within 3 years. In this coming Olympic 2012, the maximum hotels will be very busy and Travelodge is also going to be one of them. So for that, more rooms are being constructed.

It is already press released that 20 new hotels in capital is going to be established with 3500 new rooms for upcoming Olympic 2012. And 750 new jobs will be offered as planned. Travelodge in UK is coming up with more ambitious plans growing its brand name significantly and has already covered the republic areas of Ireland and Spain. It is growing rapidly by choosing the area with strong domestic tourism market. And in this upcoming year 2012 the decoration and furniture inside room is changed to new style ones. The LCD TV is on the table will be on wall in 2012. And other new changes are also arranged.

A new biggest low cost hotel called London CityRoad Travelodge is already in release and has five meeting rooms. Travelodge in Heathrow Terminal 5, Euston and Southwark with total 699 rooms is already done. This is established because Heathrow Terminals are going to be busy in coming Olympic year. And there is noticed free shuttle service within the Travelodge of those 5 terminals in Heathrow Airport. The main motive is that everybody would prefer to spend their night under ? 30. Travelodge in UK is already working for 2012 Development Programme with Flagship London Hotel Opening.

A new product called Kipshaw is also already introduced by Travelodge in UK. It’s a bicycle rickshaw with complete attached single bed with mattress, duvet and pillow. This service right now is only available in London CityRoad Travelodge and is in process of spreading. SMART objectives Specific Travelodge in UK is growing aggressively under certain strategies. It is increasing 3000 rooms per year. It specifies that within upcoming year Travelodge in UK increases 20 more hotels. In total 3500 rooms will be added within Olympic 2012. And it’s also creating job opportunities.

It is also specifying to be the biggest hotel brand within the Olympic 2012. There upcoming target is fully linked with Olympic 2012. Measurable The plan to increase numbers of hotel can be measured according to the project starting and ending time. It also depends in counting of how many projects are under process. And it also can be done by estimating the project contract period. For example - there was a project to be finished within six months to construct 3 hotels in Heathrow Terminal 5, Euston and Southwark with 699 total rooms and was successful.

Achievable

They are achievable since it’s carried out in many places at once. And also The Flagship London Hotel Opening is helping them for this 2012 development project. It is moreover almost completed. And it’s becoming fast because some new Travelodge’s are acquired one. Like Chaucher hotel is now going to be converted into 60 rooms Travelodge. Realistic It is in smooth under process as far as 2012 is coming nearer. But it wasn’t that complicated because this project was started from 2007. So every developments are being conducted slowly by estimating the proper time and plan.

No longer period is needed to complete it. Flagship London Hotel Opening assist to Travelodge in UK from the very first of this development plan. Time This set objective is to be achieved before the 2012 Olympic starts. Within the starting of Olympic the Travelodge will be success to achieve its target. And seeking the chance Travelodge in UK is in target to gain the name of biggest hotel brand by running together with the

Here in above the figure, we can see there are four strategies in Ansoff Matrix. The first one is Market Penetration where we market our existing product in existing market to customers. It’s also a stage of productivity. We promote our product to increase the revenue with present product. It can be break down into different product and different segments to know in which segment there is market growth or market share growth. After that there’s nothing to do within the Market Penetration to grow the sales and profit. The second one may be any of it among Product Development, Market Development and Diversification.

In Product Development strategy, new products are introduced in existing market. It’s done by updating the existing products by changing some features and its looks. Those products replacing the older ones are marketed to existing customers to increase the profit. And In Market Development, the products are not changed but the existing product is introduced in the new market. This means to introduce the existing product to new customers by widening the market. It is done by exporting the product and marketing in new region. Lastly Diversification means to be completely in the new market with new product.

The Diversification is of two types and are Related Diversification and Unrelated Diversification. Related Diversification means to be diversified in the business which is familiar to previous one.

It is suitable because the price quoted by the Travelodge in UK is very reasonable one comparing to the service and facilities that it provides. And the occupancy rate is almost always full i. e. more than 85%. The room price is very cheaper than the other hotels all over the UK and available with sweet service. The many peoples, guest and travelers are attracted to Travelodge and the main reason behind it is that it cost less than. Most of every customer and travelers in Travelodge are to sleep tight and have safety. So, the product should not be changed inside the Travelodge and its rate of room must be stable.

The price of product must remain same to challenge the competitors and to be forward in the market. Whereas the existing product should find new market. The market area must be wide and introduce the same existing product to every other new customer. It should do as it has done in the Republic of Spain and Ireland. Travelodge in UK must wide it’s market internally as well as externally in my view. Keeping the Product Development stable and increasing the Market Development widely seems to be most suitable for the development of the future of the Travelodge in UK. Market Research of Travelodge in UK

According to the DJS Research Ltd, “Market Research is a systematic, objective collection and analysis of data about a particular target market, competition, and/or environment. It always incorporates some form of data collection whether it be secondary research (often referred to as desk research) or primary research which is collected direct from a respondent. ” Purpose of Research The main purposes of research are as follows: -To find out what’s the satisfaction level of customers with the services of Travelodge. -To find out which aspects of the service makes them happy and which aspect doesn’t make them happy.

Both the primary and secondary research must be done to find out the as a whole outcome of Travelodge in UK Firstly let’s outline the stages of marketing research:

1. Identifying the target group estimating the size of sample for meaningful outcome
2. Recruiting, screening and selecting target sample
3. Designing Survey questionnaire or guide
4. Hiring and Training data collection tea
5.  Checking and cleaning the data 6th - Analyzing the data and studying the findings (last stage) Identifying the target group estimating the size of sample for meaningful outcome

There are more than two hundreds of Travelodge in UK. So I think in every Travelodge the occupied costumers must be made as target rather than asking outside pedestrians. This should be done with the customers in and out from Travelodge because outside customers haven’t experienced it yet to tell their satisfaction level. It’s just a waste of time and budget if we do it in society. But doing it inside the Travelodge without missing the customers saves the time and budget. The customer who has already left the hotel must be kept in link by saving there e-mail address.

And every customer inside the hotel must be asked without filtering the customers. Each and every customer must be listed in target list. The sample size may differ among the Travelodge’s but is doesn’t matter as far as the number of rooms in them also vary. Recruiting, screening and selecting target sample Travelodge mostly is busy in the weekend and mostly in the weekdays, it’s not so busy. So the research should be done as a whole week occupying customers. The every customer but only the ones inside the hotel must be listed in target. And they should be researched either while they stay more or just before they leave.

As far as we are doing everything inside the hotel, every check-in and check-out must be checked and observed properly and manage the sample in time. It is necessary because in Travelodge the some guest may leave without informing. Even the used rooms must be observed to know that how they have used the product. The targets should not be forced if they don’t want to participate. Designing Survey questionnaire or guide For collecting the primary data the questions must be asked to the existing customers about their preferences with the service and about their expenses made on it.

The customers should be made easy and free feel to reply while in the process. Hard questions and unnecessary questions should not be asked. The questions must be limited and must meet the objective with its answers. The questions must in both the interview-administered form and self-administered form. Interview-administered form is for the customers inside the hotel whereas self-administered form is for the customers who are linked through the internet. The questions should be framed correctly by avoiding ambiguous words, personal questions and other negative questions.

Do you have any feedbacks and any recommendation? If then you can say and suggest without hesitation? Hiring and Training data collection team A separate team should be made to do the research. The active ones with good speaking and smooth fluent communicator must be there. Somebody may not know English, so for them the writing sheet must be prepared in different language. And we can translate those later on. No. of teams must be arrange according to the size of Travelodge. They should be trained properly before starting the research. Data collection methods and process should be clearly mentioned while training.

Here now research is done in field, starting primary research according to guide and with the help of trained team. Weekly progress also must be drawn in chart for future purpose. Checking and cleaning the data The collected data must be re-checked and re-arranged. The mistakes in data must be corrected and should be ready by arranging it systematically. The data should be true where fault data should not be mixed. It should be easy to read and understand. The fresh data will be prepared from it. Analyzing the data and studying the findings . The fresh prepared data are inspected, transformed and modeled in this last process.

This process concludes the answers of the objectives of individual Travelodge. Now finally, the secondary research starts where the every analyzed data are collected in headquarter of Travelodge in UK located at Thame, England UK. Then, main data analysis is done here to know the answers of the research. This way we can achieve the objectives of our research.

Works Cited

1. http://www. youtube. com/user/MrSleepZzzSquad For more you can visit Mr Sleep & the Zzz Squad channel in website called www. youtube. com
2. Olympic 2012. Ansoff Matrix [pic] http://www. marketingteacher. com/lesson-store/lesson-ansoff. html Fig :- Ansoff Matrix
3. http://www. youtube. com/user/OxfordLearningLab#p/a/u/0/AORoMxgp428 Among these strategies, the Market Development Strategy is most suitable for the Travelodge in UK.

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