Research Korner: Hotel Marketing Strategies

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...

THESIS STATEMENTS ON HOTEL MARKETING STRATEGIES AND SLOGANS

One of the ways to establish a name in the market is by creating an original, powerful and attractive slogan for a particular product. It is also known as brand marketing. Brand marketing has been a popular concept in business strategies. Three of the known hotels in the world use their slogans in that manner. Holiday Inn hotel for example, uses a number of different slogans, in different locations. They have seven slogans that they have been known for. Those are Relax, it’s Holiday Inn, We put a smile back on your face, Pleasing people the world over, The best surprise is no surprise, Holiday Inn; The World’s Inn Keeper, Your host from coast to coast, and The Nation’s Innkeeper.             Ramada Hotel in U.S and Canada uses the slogan Ramada. A very good place to be.  Ramada Hotel International on the other hand, that is excluding U.S and Canada uses the slogan Everything Except Excess.             Hyatt Hotel is using one unique slogan Feel the Hyatt Touch.             According to marketing strategists, effective brand marketing is a combination of the RIGHT message, delivered in the right way, to achieve RIGHT results.             This study is interested to find out the relationship of marketing strategies of the three hotels to the slogans. This study would like to explore on the reasons why a particular hotel was chosen to promote the hotel.             This study will research on the marketing strategies of the hotels and check on what way do the marketing strategies match the current slogan. This study is also interested in gauging the effectiveness of the slogans in promoting the hotel.             This study will be beneficial to hotels and business firms in general.

THESIS STATEMENTS ON HOTEL MARKETING STRATEGIES AND SLOGANS

One of the ways to establish a name in the market is by creating an original, powerful and attractive slogan for a par...