Basically the hotel industry is one the competitive industry with many different hotels .Travelodge hotels owns a group of hotels in Europe. There are about 537 hotels owned by the company in various major cities and about 39000 rooms under its brand. The competition in the hotel industry is increasing at a rapid speed so its becomes important for the organizations to be fully aware of the external factors that could have impact on the industry.
Internal Analysis: Internal analysis includes the Strengths and weaknesses of a particular organization. The internal analysis of Travelodge is as follows:
1. Affordable prices of rooms
2. Travelodge account card which helps in quick bookings
3. Committed to their campaigns(Evans, Stonehouse & Campbell (2012)
1. Very basic not fashionable in terms of decorations
2. Limited customer services
3. Not good for large families
1. Expanding their company abroad except Ireland and UK
2. Participation with new partnerships and enhance the reputation(Lynn, Megan & Nadia (2014))
1. Competition from many other budget hotels providing attractive offers to the customers
2. There is a growth in the economy in future according to research due to which customers will demand more luxurious places
3. No future expansion plans seen
Pestle analysis is one of the tools which help the organization to understand the impact of various different factors on the working of the organization. As the organization operates in an external environment so there could be different factors which could have positive and negative impacts on the organization. Pestle analysis is very helpful in knowing the risks connected the change in the market conditions and how these changes can be affective for a particular organization. So, Pestle analysis helps the organization to be aware of those impacts and plan their strategies accordingly. PESTLE stands for:
1. Political Factors: The regulation of a particular business is highly affected by the political environment. The political environment includes the rules and regulations set by the government that are to be followed by the organization while carrying out its operations. Some of the political factors that may have effect on the Travelodge hotels are:
A. Digital Economy Act 2010: this act came in to being in the year 2010 with the main objective of decreasing the amount of illegal file sharing and copyright infringements in the digital society. This act may put the hotels in the problematic situations as now the hotels will have to decide if they shall charge for the internet connectivity or not.
B. New Immigration Policies: As the immigration policies have been revised this may affect the hotel industry in a way that there may be shortages of hospitality sector due to the caps imposed on this industry.
2. Economic Factors: The economic factors have a direct effect on the companies like Travelodge as well as the customers. Due to the effects of the economic factors Travelodge provides its services to the customers with cheap rates through a chain hotel in U.K.(Marked by teachers (2003))
3. Social Factors: Social factors includes the changing trends like in the hotel industry these days no one likes to book the rooms manually or telephonically everything is web based. According to the recent research it has been found that people book their rooms in UK through online booking methods. The hospitality industry has made a trend through its company Travelodge providing the long lasting products which helps the travelers to books their rooms at Travelodge at a very cheap rate. (Evaluation Of A International Marketing (2013))
4. Technological Factors: As the technology is developing day by day it is affecting the UK business of Ecommerce. In the same way Travelodge is also affected by the development of technology. The main business of Travelodge is by booking rooms and the quick advancement of technology makes the market more competitive as different new ways are developed by the advancement of technology
5. Legal Factors: The legal factors have both internal and external sides. There are many laws and regulations affecting the business of the organization. Travelodge is also affected by the legal factors like time and again different new laws come in to existence which affect the operation of the industry.(Clarke & Chen (2009))
Pestle analysis is very important for every organization as it gives the clarification of the massive picture of the effects of the surroundings on a particular organization. With the help of Pestle analysis the organization can grasp the advantages of different opportunities available at its disposal and ignore or avoid the various risks which may affect the working of the organization.
1. Clarke, A & Chen, W (2009), International Hospitality Management - Page 382, British Library, Burlington.
2. Evaluation Of A International Marketing (2013), viewed 21 November (2015).
3. Evans, N, Stonehouse, G & Campbell, D (2012), Strategic Management for Travel and Tourism, British Library, Burlington.
4. Lynn, Megan & Nadia (2014), Understanding the Market Process, viewed 17 Feburary (2015).
5. Marked by teachers (2003).