Business Analysis: Travelodge

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Travelodge is basically numerous hotel chains operating around the world. The corporation has its branches in United States, Canada, United Kingdom, Spain, Australia, New Zealand, and Ireland. Travelodge has been termed as the first value hotel brand of Britain when started in UK. The first hotel was initiated at Barton under Needwood in the centre of England. From this point onwards, the company has been moving forward by achieving success rapidly in all of its operational areas. The corporation has become the UK’s largest independent hotel brand comprising of 500+ hotels and 37,000+ guest bedrooms which is spread across UK, along with Ireland and Spain. In this report, the positioning of the Travelodge will be discussed in the sector of hospitality. …show more content…

The corporation can use its name as its strong base to attract the attention of new customers as well as to make certain that it is holding on to the old ones. Furthermore, economy of scale plays a significant role in this industry. Travelodge has a higher profitability aspect than the single operations (Wilkinson, 2013). If a new competition enters the market, they will find it difficult to compete with Travelodge as setting a proper quality and price regarding the economies of scale takes time. For Travelodge management, the capital intensive industry is tied with the fixed costs which make the entry of any entrant extremely …show more content…

The main reason behind using value chain will be that it will allow the organisation to judge the areas that require more focus and should be used as a profitable means. Primary Activities Inbound Logistics Travelodge makes certain that it is utilising the right type of components which will be delivered to the correct manufacturing target at the appropriate time (Antràs, & Chor, 2013). Furthermore, the management should appoint the right supplier so that they are able to adjust with the terms and conditions resulting in inbound logistics working perfectly. Operations Travelodge is divided into 3 areas which are reception, food service and room service. The food service is provided through the restaurant which works as an individual business and provides quality in all of its dishes. However, there have been issues with customers reporting complaints about cleaning and security, and this is something that the company will take care of in improving their room service and reception aspect. Outbound Logistics Travelodge focuses in getting customers from the travel agents that are looking for cheap budget

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