Research Korner: Hotel Industry in the United Kingdom

Environmental Analysis of Travelodge UK

Environmental Analysis of Travelodge UK   The Travelodge UK chain of budget hotels is the second largest in the United Kingdom, with 380 branches in the UK, Ireland and Spain which are offering more or less 20,000 rooms. The chain employs innovative marketing strategies that have resulted in 6.5 million guests staying in their hotels in 2010 and 2.2 million people visiting their website each month.[1]    Travelodge is the lowest-priced hotel that offers more value for money spent and is committed to a healthy environment with its 100% smoke-free policy. The hotel allows  browsers to compare its rate with those of other establishments and to check what it offers for the lowest price, which is basically towel, pillows and tea. It also provides personalized directions to the location of the preferred hotel branch of customers, as well as a mobile booking service for time-pressed customers. Travelodge prioritizes the privacy and security of customers in their online and mobile transactions and has a customer-friendly website. The chain’s focus on low price and the C and D market is its competitive edge and what makes it attractive to budget-conscious travelers. This also accounts for its 31% market share in budget hotels.[2]   The business strategy suitable for Travelodge UK can be analyzed using several models or frameworks. The Political, Economic, Social, Technological, Legal and Environmental (PESTLE) analysis tool considers the bigger picture in which the business is operating. By understanding the operating environment of a business independent of its internal operations, the business can take advantage of the opportunities and minimize  the threats both present therein. PESTLE is useful in understanding risks connected with market growth and decline, and their relevance in the position, potential and direction of the business.[3] Porter’s 5 Forces modeling framework for business analysis considers the following factors:[4] Rivalry – refers to the striving of firms for a competitive edge over their rivals. Threat of Substitutes – refers to the impact on product demand of price changes in products of other industries. Buyer Power – refers to the price determination by the buyer in a market where there are many suppliers. Supplier Power – refers to the impact of high-priced raw materials to the business. Threats of New Entrants and Entry Barriers – refers to the entry of new firms in the industry that will pose competition and the artificial lowering of prices by the business to prevent potential market entrants. The Boston Consulting Group (BCG) matrix tool considers the life cycle of a product in a portfolio to determine the priorities of a business. The categories in a portfolio are the following: [5] Stars – refer to high growth, high market share products that use plenty of cash. Cash Cows – refer to low growth, high market share products that need minimal investments. Dogs – refer to low growth, low market share products that should be minimized and avoided by a business. Question Marks – refer to high growth, low market share products that demand plenty of cash and effort to increase market share. The Ansoff growth vector matrix considers the business’s present and potential products and markets via the following product-market combinations:[6] Market Penetration – refers to achieving growth with existing products and markets. Market Development – refers to achieving growth by introducing products to new markets. Product Development – refers to developing new products for existing markets. Diversification --  refers to achieving growth by developing new products for new markets.   After reviewing these business analysis frameworks, my choice for the most suitable and recommendable for Travelodge UK is the PESTLE analysis tool. This well established and patronized budget hotel business must continuously monitor economic, social, technological and environmental developments both locally and globally in order  to make adjustments as needed. Regular and potential customers are seeking more  value for money spent, convenience, excellent customer service and environment friendly settings in these times of economic uncertainty. 	 	 		 		 		 		 		[1] “Strategic Analysis of 		Travelodge, UK”, 4 June 2011, <http://ivythesis.typepad.com/term_paper_topics/2011/06/strategic-analysis-of-travelodge-uk.html> 		 		[accessed 8 June 2011] 	 		 		 		 		 		[2] ibid 	 		 		 		 		 		[3] “PEST/PESTLE Analysis Tool – 		History and Templates”, RapidBI, 29 January 2007, 		 		<http://rapidbi.com/created/the-pestle-analysis-tool/>  [accessed 8 June 		2011] 	 		 		 		 		 		[4] “Porter’s Five Forces” 		QuickMBA, 2010, <http://www.quickmba.com/strategy/porter.shtml> 		 		[accessed 8 June 2011] 	 		 		 		 		 		[5] “BCG Matrix”, Value Based 		Management.net, 7 January 2011, 		<http://www.valuebasedmanagement.net/methods_bcgmatrix.html>  		[accessed 8 June 2011] 	 		 		 		 		 		[6] “Ansoff Matrix”, 		VectorStudy.com, 2008, <http://vectorstudy.com/management_theories/ansoff_matrix.htm> 		 [accessed 8 June 2011]

Environmental Analysis of Travelodge UK

Environmental Analysis of Travelodge UK The Travelodge UK chain of budget hotels is the second largest in the United Kingdom, wit...

An Investigation on Recruitment and Retention Policies that Affect the Profitability of an Organization: A Case Study on Leicester Marriott Hotel

An Investigation on Recruitment and Retention Policies that Affect the Profitability of an Organization:  A Case Study on Leicester Marriott Hotel Leicester Marriott Hotel is situated in the magnificent city of Leicester in United Kingdom.  It is a 5-storey hotel and has modern facilities, with 227 rooms.  It has been built for fourteen years.  It has already acquired total assets of more than 22 million euro in the Leicester City.  This 22 million euro hotel has been completely built in May 2006.  In that year, Marriot Group took over the operations of the entire hotel.  Eventually, Leicester Promotions began to merge to Marriot Group in March 2005.  During this early period of emergence, high ranked employees together with the promotion’s team had a meeting with the hotel’s senior management and marketing teams to discuss further the joint efforts, assistance and guidance of each other for the favorable and successful positioning of the hotel in its location.  Moreover, the Leicester Shire Promotions has been very helpful in promoting the tourism industry aspect of the hotel as well as its place.  (http://mediafiles.thedms.co.uk/Publication/LM/cms/pdf/CASE%20STUDY%20Leicester%20Marriott.pdf) 	 		 		  	  More than that, recruitment and retention policies are very important aspect in the growth and profitability of any hotel organization.  And, to be able to recruit more hotel guests as well as to retain the patronage of the existing clients and guests; it is  more effective to focus on lean thinking in order to determine and be focused on the right strategic tools needed to improve the existing service and hotel facilities for the satisfaction of the  clients and guests. Whatever strategic plan it is, it must be aligned with the goals and objectives of the organization and that is to    have recruitment and retention policies that would increase the income of the hotel business.  Remember, the success of one hotel largely depends on the kind of service and facilities that the entire hotel staff and employees provide for the hotel guests.  And, if the guests are truly satisfied with the facilities and services, there is an assurance that the clients and guests will be kept coming back in the hotel.  This is the reason that Marriott Operations Manager Heidi Lyman attended the Center’s Lean Experience seminar.  This is a five-day session that provides advanced transformation of ideas for the further growth and development of the hotel industry.  This program helps for the successful operations of the Leicester Marriott Hotel ; in fact, within a year, the hotel’s service score increases from 10 points  up to 87 points.  This improved service score from the guests is a very remarkable sign that the hotel is doing lean principles in manufacturing as well as surpassed the expectations of the clients and guests when it comes to providing excellent service to them.  And, Ms. Lyman being the Operations Manager of the hotel taught the lean thinking that she has learned from the program to her hotel staff such as having daily interaction with the guests is a very effective way of knowing what is the other needs and wants of the hotel guests. (http://mediafiles.thedms.co.uk/Publication/LM/cms/pdf/CASE%20STUDY%20Leicester%20Marriott.pdf) Correspondingly, this is the proper way also to know if they are satisfied to the service rendered by the hotel staff.  All these things will be worked out perfectly if the employees are well knowledgeable about the demands and needs of the hotel guests.  In addition, it is also significant that all employees in the hotel are always on the go and full of vigor to be able to “infect” that enthusiasm to the hotel guests.  Furthermore, the second lean concept is  all about the connections of the hotel employees and the guests.  The management should always think and understand the needs of his or her employees in order to provide effective service to the clients and to be able to perform their tasks efficiently.  Relatively, spending more time with her subordinates makes Ms.  Lyman realized that designing together for the key responsibilities and functions of the employees keep them more focused on their job and they are more able to provide great service value to the hotel guests.  The last but not the least concept  is;  the hotel designed a responsive system that enables  the hotel manager to listen and be sensitive enough  to the needs of her  subordinates.  According to Ms. Lyman, any hotel manager should treat their employees as their customers or clients.  Doing this, will make the employees feel their great importance in the organization.  They come to realize that their value as an employee is the primary asset of the hotel and most especially to their customers.  In the same fashion, helping out the employees to make the job done quickly is a primary important in any hotel business. Backing up employees with proper coaching and support system is very vital in order them to provide effective and continuous excellent service to each hotel guests. 	 		 		  	    (http://www.nextplc.co.uk/nextplc/newsevents/rns/rnsitem?id=4175050)     References: (http://mediafiles.thedms.co.uk/Publication/LM/cms/pdf/CASE%20STUDY%20Leicester%20Marriott.pdf) (http://mediafiles.thedms.co.uk/Publication/LM/cms/pdf/CASE%20STUDY%20Leicester%20Marriott.pdf)  (http://www.nextplc.co.uk/nextplc/newsevents/rns/rnsitem?id=4175050)

An Investigation on Recruitment and Retention Policies that Affect the Profitability of an Organization: A Case Study on Leicester Marriott Hotel

An Investigation on Recruitment and Retention Policies that Affect the Profitability of an Organization: A Case Study on Leicester Marri...

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