The Travelodge Marketing Plan - Case Study Example

The Travelodge marketing plan Introduction For each and every business organization, the market is spread and varied depending on the demographics of the population that is within an economy. For international organizations of business, the demographics even present a wider challenge that is varied by segmentation of the different cultures and traditions within nations. The process of marketing is made more difficult by a number of factors that relate to the demographic perceptions and compositions (Lazer 1994). In the hospitality industry, the marketing communication and its efficacy is even varied and more difficult in nature. The main reason could be the variety of demographics and the seasonality of the industry in some cases like when it is tourism based. For any marketing executive, the process would be complex and in some case might require a unique marketing mix that would fit within the different market segments. The implication of this statement is that the different market segments identified require a specific marketing communication in order to receive a level of response or performance related to the same. In this paper, Travel Lodges a UK-based hospitality business specializing in accommodation is reviewed in terms of its internal capabilities and external influences that affect its market. The aim of the evaluation and research is to determine the appropriate marketing mix that it could adopt in order to reach profitability. As noted in this introductory section, the marketing mix applicable in the tourism and hospitality industry is varied and mixed in nature due to the unique nature of the industry (Reid & Bojanic 2010). This assertion was also made by (Buttle 1996) about the generic applicability of a marketing mix in the services sector. It is therefore needed that the application of the conventional marketing strategy be modified (Reid & Bojanic 2010) to suit the industry. Situational analysis A SWOT matrix intends to develop a critical perspective in any organization (Pahl & Richter 2009). It is one of the most viable tools that have been used over a long period to study various perspectives of an organization. A comparative model was developed by Michael Porter that looks at the different forces affecting any business organizations within specific industries (Hill & Jones 2010). The main strength associated by the Travel Lodges is the ability of the customers to make a special recognition of the brand amid a crowded field of players in a short period. The effect of such recognition can be given by the fact that within a short period, the brand has grown to be a market leader in the hospitality industry. The number of facilities, whether franchised or owned by the business, has grown from the initial number of a single property of 20 bedroom hotel to an overall presence of over 200 properties in the UK. The overall presence of the Hotel in London and Ireland is an indication that the brand has a level of reputation within the period that it has been in operation. Brand recognition is a potential strength in that the general public or the targeted market can make an association about the business without a possibility of an explicit reminder (Gelder 2005). In fact, the study identifies perception generated by the public as the general cause of such level of brand recognition. A rapid establishment and the general acceptance of the brand in the hospitality industry is an indication of the fact that the business is focused in the right direction. The company even offers incentives to visitors that include a variety of entertainment facilities within the rooms, a comfortable and unforgettable experience and free news papers for the visitors (Travelodge 2015). The aim of these provisions is to create a differentiation in their products and assist in providing a marketing edge. It can be considered that these unique ancillary benefits have managed to provide a level of advantage to the firm as its presence in the market has steadily grown over the period from its establishment. Within the nation, the marketing communication has been effective. The overall national brand awareness of the company is good as depicted by brand activity nationally. Despite having a 25% market share, the hotel only offers budget accommodation that could only be convenient to a traveler. Complementary services of the hospitality industry (Prideaux, Moscardo & Laws 2006) have been an issue of concern to the Hotels. Despite the fact that the hotels are primly located at points where visitors could enjoy the first class service of other facilities in the industry like eateries and hotels, the provision of the same would enhance visitation. The impact of complementary services is that the complementary services have the power to add value to the services offered by a business institution and would also serve as a distinction on the service offered (Bak & Stair 2011). Opportunities are still available to the expansion of Travelodge. In the current tourism market, it is projected that the Chinese market of tourism will grow to an average of over 100 million travelers internationally (Mcgiffert 2009). This is an opportunity for the hotel to expand it horizon of services to include the Oriental world in its market drive. Other nations that are tourist destinations could also offer an expansion opportunity. In fact, the hotel could use its overall brand reputation in the UK to expand to other territories. Conclusion The Travelodge Hotel faces a stiff competition from the other players in the hotel industry. Despite holding more than 20 % of the overall market, the possibility of the other players overturning this position is high and likely. Despite being a leading brand, the hotel specializes in the provision of budget accommodation facilities and services which limits its possible client base or market segments. The expansion of the Hotel has been rapid signaling the fact that the business model employed by the hotel is good. It can attract new customers and sustain its growth. The problem identified here is the level of sustainability in the low visitor season. In low visitor seasons, the hotel could be forced to downsize due to the level of occupancy experienced by the hotel. Due to these the level of sustainability in terms of customer base is an issue that could be addressed by a good marketing mix Recommended marketing mix The strategic location of the hotels is seen as of convenience to customers who travel along national highways. But by the fact that the hotel offers budget accommodation is limiting in the nature of its product. The variety of products and services offered by the hotel can help improve the client base and will increase the customers that are likely to use the hotels. Iwaarden & Wiele (2006), suggest that the improvement of variety in any business serves as a basis of improving the turnover. This increase in turnover is likely to improve the revenue received in the long run and the possibility of profiteering (Someren & Nijhof 2010). To attract high-class tourists and travelers who have a taste for luxury products it is, therefore, essential that the range of products should be increased to cover both budget and economy class of clients. The variety creation on the products will also lead to economies of scope to the hotels (Hirschey 2009; Moschandreas 2000). As a result of the economies of scope, the efficiency of production of services by Travelodge Hotels will be high thereby keeping operating costs low. Travelodge has extensively invested in the public relations section and created a wide presence on the internet. According to the publication of (Morris & Goldsworthy 2008), the hotel uses a wide variety of public relations technique referred to as proactive in nature. This technique involves research and publication of information that aims at either entertaining or informing the public about facts in the hotel industry. The media has a special liking for this kind of stories. This is because the information plays a role of giving substantive content that is of use to the media. The hotel should, therefore, enhance its media presence in print by using this kind of technique that involves publication of relevant information on the industry. Lisboa & Handford (2012) are of the opinion that the Travelodge Hotel chain has grown substantially in the recent past. It has established many hotel branches locally in the UK and even internationally in Spain. International visitors are mainly tourists and business executives who fly into the country to attend business meetings or specific tasks. Despite Travelodge offering meeting facilities for their business clients, it has failed to offer the tourist with a whole holiday package. This would include services ranging from catering, travel, and accommodation. In goods and services, the packaging is more or less a physical impression given to the customers (Pride & Ferrell 2010). It serves a brief introduction to the contents of the product and a point at which the customer starts to judge a commodity (Mckenzie-Mohr 2012). The difference in clients signals the fact there is a need to package its services differently for each market segments. While travelers would just need a place to stay, other guests like a tourist would want to have an experience at accommodation and related services in the hospitality industry. Travel agencies provide a solution to the packaging of services in the sector. They provide a whole holiday services to tourist from the time of home departure to the point of return and ensure that the customers receive value (Singh 2008). A partnership with the reputable travel agents can serve as an avenue for improvement of the packaging of its services and products. Andreu and Kozark (2007) argue that the level of partnership can improve the quality of service delivery and portray a different picture of the overall experience of the customers in the hospitality industry. This notion is given by the fact that the proximity of the hotels to the complementary services does not guarantee that the tourists or visitors would be willing to use them. Due to this a partnership would offer the visitors the ability to customize their stays with other available services in the hospitality industry and have a memorable stay at the hotels. Apart from creating value, a well coordinated partnership can result in the long term relation between the clients of the hotel and the firm. This will be as a result of the unique experiences (Sengupta 2005) that the guests will have received as a result of the partnership. In the minds of the clients, a specific, unique brand image is developed that keeps them using the same brand all the time. It is also possible that this unique relationship or positioning can help in marketing the hotel to the future clients through the former. Positioning helps also in the long term sustainability of growth, and the hotel is likely to be less affected by low occupancy seasons. During low occupancy seasons, a pricing strategy would help to reduce the impact of the underutilized capacity (Baum & Lundtorp 2001). The local market can be the best stop to solve this problem (Andrews 2008) since international arrivals are low and considerably distant to access. The majority of its clients come from the middle-class businesses to low-income persons who opt for a modest budget to stay at hotels and use its services. Offering a discounted stay fee (Mohanty 2008) at the low international tourist seasons could help in motivating the prospected customers to take a vacation by taking advantage of the reduced costs. The functional flexibility of the hotel would have an adverse effect on the morale of the workforce which could then lower their quality of work (Jones & Lockwood 2004). It is, therefore, better to shift this uncertainty by providing offers to clients that would motivate them to stay at the hotels. Bibliography GELDER, S. V. (2005). Global brand strategy: unlocking brand potential across countries, cultures & markets. BAK, O., & STAIR, N. (2011). Impact of e-business technologies on public and private organizations: industry comparisons and perspectives. Hershey, PA, Business Science Reference. IWAARDEN, J. V., & WIELE, A. V. D. (2006). Innovative quality management cases. Bradford, England, Emerald Group Pub SOMEREN, T. V., & NIJHOF, A. H. (2010). Triple P business development in the Dutch agro-food sector: 9 cases of strategic innovation. Assen, Koninklijke Van Gorcum. HIRSCHEY, M. (2009). Managerial economics. Mason, OH, South-Western Cengage Learning. MOSCHANDREAS, M. (2000). Business economics. London [u.a.], Business Press. MORRIS, T., & GOLDSWORTHY, S. (2008). PR - a persuasive industry? spin, public relations, and the shaping of the modern media. Basingstoke [England], Palgrave Macmillan LISBOA, M., & HANDFORD, M. (2012). Business advantage. Cambridge, Cambridge University Press. PRIDE, W. M., & FERRELL, O. C. (2010). Marketing. Australia, South Western Cengage Learning. MCKENZIE-MOHR, D. (2012). Social marketing to protect the environment: what works. Thousand Oaks, Calif, SAGE Publications. SINGH, L. K. (2008). Management of travel agency. Delhi, Isha Books. ANDREU, L. & KOZARK, M. (2007). Progress in tourism marketing. New York. Routlige. REID, R. D., & BOJANIC, D. C. (2010). Hospitality marketing management. Hoboken, N.J., John Wiley & Sons. BUTTLE, F. (1996). Relationship marketing: theory and practice. London, Chapman. JONES, P., & LOCKWOOD, A. (2004). The management of hotel operations. London, Thomson. MOHANTY, P. (2008). Hotel industry and tourism in India. New Delhi, APH Pub. Corp. BAUM, T., & LUNDTORP, S. (2001). Seasonality in tourism. New York, Pergamon. ANDREWS, S. (2008). Textbook of hotel housekeeping management and operations. New Delhi, Tata McGraw-Hill. SENGUPTA, S. (2005). Brand positioning: strategies for competitive advantage. New Delhi [u.a.], McGraw-Hill. PRIDEAUX, B., MOSCARDO, G., & LAWS, E. (2006). Managing tourism and hospitality services theory and international applications. Wallingford, CABI TRAVELODGE: CHEAP HOTELS THROUGHOUT THE UK AND IRELAND, 2015. Available from: < https://www.travelodge.co.uk/ >. [15th April 2015] MCGIFFERT, C. (2009). Chinese soft power and its implications for the United States: competition and cooperation in the developing world : a report of the CSIS smart power initiative. Washington, D.C., CSIS (Center for Strategic & International Studies). PAHL, N., & RICHTER, A. (2009). SWOT Analysis - Idea, Methodology And A Practical Approach. München, GRIN Verlag GmbH HILL, C. W. L., & JONES, G. R. (2010). Strategic management theory: an integrated approach. Boston, MA, Houghton Mifflin. LAZER, W. (1994). Handbook of demographics for marketing & advertising: new trends in the American marketplace. New York, Lexington Books. Read More