Research Planning of the Travel Lodge Hotel in the UK - Assignment Example

Research Planning of the Travel Lodge Hotel in the UK Background Information Travelodge is a chain of hotels having its business across the world. The major areas where these hotels chains exist are United Kingdom, Canada, Span, Australia, Republic of Ireland, United States, and New Zealand. Most of these hotels in some of the location are operated by private companies that do not have any such relationship with that of the original brand. Travel Lodge Hotels in UK is a private limited company that forms a part of the vast hospitality and hotel industry. The hotel chain is a part of the Travelodge and in the budget hotel segment it is the second largest hotel and in terms of the number of bedrooms it possess it is the third largest hotel group located in UK. However in the present scenario the hotel chain is under private ownership and do not have merged operations with the Travelodge located in United States. The company was founded in the year1985 by Lord Forte who had bought the brand of Travelodge that was in United States and established it in the United Kingdom. From 1985 to the present scenario the company has been able to sustain in the market because of its good quality bedrooms and dining facilities and the cost effective approach that it incorporates in the business operations. There is a great need for the company to conduct the research so as to know the exact reasons behind the low performance in relation to other competitors in the industry. The research would even reveal as to what are the measures in term of digital communication and social media that needs to be considered by the company so that it is able to interact more effectively with its existing customer base. The research to be conducted in this field is also very essential as it would help the company to survive the competition and even know the areas the customers feel that the company should improve upon in terms of digital communication and social media so that a more effective communication platform is established between the customers and the organization. Research Objectives The research criteria of the company are based on understanding how it can improve upon the usage of social media so that there is more of interaction with the existing customers. The goal of the research is to compare the social media and digital communication platform that is used by other players in the hotel industry with that of Travel Lodge Hotel of UK (Armstrong, Kotler, Harker and Brennan, 2009).The platform of social media is already incorporated in the system of the company but the rate of usage is low which states that the company needs to take effective measures so that they are able to establish more strong connections with the customer base. In the scenario of such tough competition in the hotel industry it is very important for a company in this sector to retain the customers and this can be achieved successfully through the use of social media (Batey, 2012). As a market research agency the major objectives of the research study so as to meet the criteria for research of the company would be as follows- To identify the effectiveness of using social media by Travel Lodge Hotel UK according to the perception of customers To identify the areas of improvement in terms of digital communication and social media that needs to be taken into consideration by the organization To analyze the impact of using well structured social media platform on the growth of the company These research objectives are aligned with the major goal of the research that is to analyze the loopholes of the company in terms of communication and to determine the measures that can be adopted by the company so that it can develop more of customer loyalty. Different attitudes across the client organization’s main customer segments The two major customer segments for the Travel Lodge UK are that of business customers and families who intends to spend small breaks. The company has been able to provide desirable facilities and that too at the lowest cost possible so that it can offer its customers value for money. The families can spend their time in this budget hotel when they are doing long journeys so as to relax. On the other hand it even serves as a meeting point for the business customers and even the location of these budget hotel chains makes it convenient for this customer segment to attend meetings. These two forms the major customer segments and they possess different set of attitudes towards the company using social media so as to interact with them (Cateora, Gilly and Graham, 2010).The customers who visit these hotel chains along with their families feel that social media would help them to analyze the various offers that are given by the organization and would also help them to locate these budget hotels well in UK (Hollensen, 2003).The customers feel that they are not able to track well the different facilities that are offered by the company in comparison to other organizations that communicate well with the customers through these interactive tools (De Mooij, 2009). On the other hand the attitude of business customers towards such approach is that they prefer social media platforms just to know the room cost and locations of these hotel chains so that they can save time that needs to be invested in their business meetings (Hooley, Piercy and Nicoulaud, 2012).This customer segment is often not interested to interact much with the hotel chain and considers digital communication platform to serve as a platform through which they can acquire information (Doyle and Stern, 2006).On the other hand the other set of customers who visit these budget hotels with their families feel that social media and digital communication is not just a medium of sharing information so as to enhance accessibility but also is an effective tool through which strong bonds can be developed by the company with the existing customers. Thus there is vast difference between the attitudes of these two main customer segments. The attitude towards the company using social media would differ between those customers who are frequent switchers in comparison to those who tend to stick with a brand if all its demands are met effectively by the company (Hastings, 2013).Some of the customers belonging to the family customers segment of the company even state that incorporation of digital communication and social media in the system helps to connect with all the customers and even remind them of their experience with the company so that in their next vacation they contact with this hotel chain to get the best of offers as an existing customer (Tehrani, 2008). Perceptions of existing customers towards using social media by organization in comparison to competitors Social media and digital communication tools has been used by Travel Lodge Hotel UK but at a very low scale in comparison to other competitors such as Premier Inn which operates in the same sector and is the market leaders of the budget hotels. Customers often has to make their bookings with the Travel Lodge through phone and in such cases there is no such effective tracking that is maintained by the company which leads to more of over booking in the system (Lau, 2011).The effectiveness of social media as per the current scenario of the company is very low as there is no such strategic initiative that is taken by the company so as to improve upon the communication platform. The company uses social media and digital communication platform such as websites, social media sites such as Twitter, Facebook, etc., just a medium of advertisement so that its facilities and tariffs are well known to the customer segment and which can even help them to arrive at a decision while choosing from a wide range of budget hotels in their desired locations (Richter, 2012).The common perceptions of the customers towards the company in terms of using the platform of social media is that they feel that the company do not establish long term relationships with the customers that can be very effectively done through using social media (Steers, 2006).Also the company can encourage more of bookings by the customers through such digital communication platform as that is applied by one of its biggest competitor that is Premier Inn but the customers feel that the company considers social media and digital communication platform to be not a very important tool in its business operations (Vemon, 2000).The customer’s perception is such that they consider that this budget hotel is not interested to develop strong relationships or customer loyalty which in turn is bringing down the profit level of the company (Ståhlberg and Maila, 2013). Its major rival that is Premier Inn has made its presence very strong on all the social media platforms so that it can encounter the factors that customers appreciates in regards to the services that they offer and can even handle the negative responses very effectively and work on it so that they are able to deliver more value added services to the customer base in the future (Walker, 2008).As per the perception that customers has developed towards Travel Lodge Hotel UK they feel that this budget hotel offers best facilities but there are no such initiative that is taken by the company so as to facilitate customer service and loyalty once they have spend a holiday or rather stayed in this hotel (Wheeler, 2009).The company uses social media just to make a presence but there is no such continuous practice that is incorporated by the company so as to build relationships, enhance customer loyalty or to increase the convenience of booking for the customers, and hence the effectives of such tools is very low in the case of the company (Baker and Hart, 2008). Key types of contact situations Social media and digital communication are some of the effective tools that help to improve upon the communication level when there is a distance factor between both the parties. Often these kind of interactive platforms helps in exchanging ideas as well as sharing of information that cannot be done effectively through the traditional methods of communication (Pride and Ferrell, 2014).The existing customer base of the Travel Lodge Hotel UK feels that there are certain situations in which it becomes very essential for a company to get in touch with the customers as it helps to develop strong bonds with the customers and reduces the chances of customers to shift to any other company or brand (Dutton, Helsper and Gerber, 2009).The major contact situation arises when the customers need to know required information such as there are any special offers or discounts that are going or any other information that is related to their booking. Social media and digital communication platform reaches out to the customers in the least time possible. The majority of the customers feel that an organization would surely contact them via such communication platform when there is any special occasion such as birthdays, anniversaries, etc. This in turn develops a strong brand preference in the minds of customers as they feel that they are given importance by the company (Boyd and Ellison, 2007).If Travel Lodge Hotel develops mechanisms based on such communication platforms and get in touch with the customer base in such key situations then it would increases the chances of forming a loyal customer base and in turn initiates more of revenue margins either through the existing customer base or the referrals that are given by such highly satisfied customers. The other such key contact situations that is perceived by the customers important to be contacted by the company via digital communication platform or social media is that of any form of discounts on special occasions or festivals that are given by the company to the existing customer base. In such scenario digital platforms play a very critical role in getting in touch with a wide range of customer base (Gummesson, 2008).The other such situations would comprise of any new location where the company starts its hotel so as to inform its customer base and even in cases of new achievements that is encountered by the company in the hospitality industry. These constant set of information that is delivered to the customers via social media helps the customers to gain more knowledge about the company and even refer the hotel to their peers and family so that they can even have a pleasant experience at this budget hotel (Johnson and Gustafsson, 2000). These situations are very common in the hospitality industry and require importance to be given by the company so that they are able to maintain a more satisfied group of customers. Ways in which customers believe that the organization can improve on the use of social media The use of social media and digital communication as a platform to interact with the existing customers is very low in case of Travel Lodge Hotel. The company though has a lot of opportunity in terms of exploring such communication platforms but it has not been able to make use of it and has thus created a negative perception amongst the customers. The customers feel that the company offers value for money through their best facilities and services but do not implement any such strategies so as to interact with the existing customers. The low usage of social media and digital communication has also lowered down the performance level of the company in comparison to all the other players in the industry (Wilson, 2006).As per the customers review the most important measure that needs to be undertaken by the company is in the form of developing such interactive platforms in the business system as a constant feature that can be regulated with the changing scenario (Peelen, 2008).The social media platform can be effectively used through designing websites, chat groups and even creating web pages on the social networking sites so that the company is well aware of the market reputation that it holds and can develop strategies that can help the company to mitigate some of the problems that is addressed by the customers on the social media. There is various ways of using such digital communication platform so as to increase the interaction with customers; firstly, it can be done through email marketing and text messages. Both these forms would make it easier for the customers to know more about the company and to even gain knowledge about some of special offers or new projects that are being undertaken by the company. The use of social media is not just limited to these approaches but it even involves creation of communities on the websites that would represent the company and even to be active in the various social networking sites. However the most effective tool that is used by the company is through emails and pushed text messages that enable strong interaction with the existing customer base. The other approach that can be implemented by the company is through writing blogs this would engage the customers with the organization ads they are able to share their opinion and information on a common platform (Schafer, 2007).The best measures that can be incorporated by the company in terms of using social media and digital communication is by sending text messages, emails etc. on special occasions or events such as birthdays, anniversaries or even on new year’s and Christmas. These greetings would make the customers feel that they are being valued by the company and even facilitate interactions by the company. The company can even create a separate recommendation and critic’s column on their websites so that they are able to track the ideas of the customers visiting their hotel chain on basis of their experience with the company. Research Methodology The research criteria for this study clearly indicates that the research study would be focused towards the experience of the customers in this hotel chain and the diverse ideas that these customers possess in relation to the implementation of social media in the business system (Punch, 2006).The problem area of the research is the low performance of the company in comparison to all other players which is mainly due to the low usage of digital communication and social media tools. The research methodology that is to be undertaken by the market research agency would comprise of qualitative as well as quantitative research techniques (Creswell, 2003).The qualitative tools would majorly comprise of journals, websites and articles that denotes the effectiveness of using social media in the current decade and would even involve a focus group study comprising of existing customers who would be able to portray the exact areas in which the company is lacking to develop strong bonds with the existing customers (Maylor and Blackmon, 2005). The quantitative research method would comprise of questionnaire survey so as to analyze the impact that the use of social media has been able to create on the customers and even to determine the areas that needs further improvement so that the company is able to be at par with the competitors (Bryman and Bell, 2003).The research methods that is being used for the research is aligned with the research objectives as it aims at analyzing the various customer perception (Mason, 2002).These research tools would even help to determine as the appropriate methods that can be used by the company so that it is able to move forward along with the concept of social media and digital communication in order to facilitate an interactive framework for its customers like that of all other players in the industry. Conclusion Travel Lodge Hotel UK has been able to develop a strong market position because of its value for money approach and its best facilities amongst the budget hotels sector. However there is a certain turmoil that is noticed by the company in terms of low usage of social media and digital communication platform. This research study is based on identifying the various aspects majorly in terms of communication tools that has lowered down the performance level of the company. The study is focused towards analyzing the various perceptions that has been created by the existing customers of the company in context of this field so as to determine the best possible measures that can be incorporated by the company so that it is able to effectively interact with all the existing customers. The research study would be highly beneficial for the company as it would help to analyze the areas where the company is lacking in terms of usage of social media and would support certain methods that can be applied by the company so that it is able to sustain in the highly competitive market of the hospitality industry. 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