Travel Lodge UK for Operations and Supply Chain Management Assessment Answer
The purpose of the assignment is to focus on the Travel Lodge UK and to understand its operations and supply chain management. By background, the company Travelodge, UK is the fastest growing and the most emerging and better recognized Hotel. The hotel is known as the budgeted Hotel Company and has so far recorded an expansion through the 466 hotels and serving to offer 32,477 rooms within the UK, Ireland along with Spain (Schönsleben, 2016). The hotel also has one of the operations to look over the 1,100 hotels in Europe which are currently offering the 100,000 rooms in 2025. Due to the majority of the 5,714 rooms along with the 40 hotels offered within the capital, the hotel Travelodge, is also expanding through the constant largest brand innovation and even has ensured to provide service quality (Roth 2016). Through this paper, the main objective is to understand the company background, analyze the operational and the supply chain theories and even link with the competitors to determine the market. In the end, the conclusion and recommendation are also drawn.
Travelodge is one of the budget hotels which was established in 1985 in the UK. The company has so far expanded its operation with the 380 hotels that have opened to the booking of the 26,500 rooms within the UK. Travelodge is currently focusing to expand and even operate with the 1000 more hotels that can be done by 2020. So far the company employs the 5500 people and it has a success rate of 87% that can be catered through the booking made online (Wamba, 2018).
It is important to note how the UK hotel market has so far expanded to the provision of the 700,000 rooms. The company has captured the UK hotel market and the company has a distance plan to expand in other countries. The UK hotel market so far has the four categories including the brander full service that has a total of the 14% of the market share, along with including the branded budget and also includes the 12% branded mid-market along with the category of the 62% along with the unbranded independents The company has so far known to be 62% of the current economic environment drop that can wok the unbranded independents and it would prefer to book through the consistently branded budget which can be done through the network coverage. The company is known for its strong brand strength and it has a better balance sheet along with the distribution. Travelodge has a 19% revenue growth and it has been estimated to be room sold to increase by 9 percent to 6 million (Papadopoulos, 2017).
Relevant Operations, Logistics and supply chain management theories
The operational activities within the given market segment orients to the customer’s behavior that can help to identify the loss-averse and a risk-averse problems. The problem of the unsystematic and lack of the strategic factors can contribute to the increasing attributes. The theory is based on the assortment planning includes planning and pricing for the product category (Meredith, 2018). Supply chain and operational management theory includes a sense of modeling aimed to better serve the consumers. The operational activity is nested through multinomial and two different hierarchical based assessments. It can include the brand-primary models and depending on the consumers choice depending as per brand. The chosen brand and the type of primary model it can serve the consumers as per the product type. The relevant operations, logistic and the supply chain theories.
Transaction Cost Analysis
It is the method, includes calculation through financial models that would integrate transaction cost analysis (TCA). It streamlines the process by focusing on the key determinants of goods or not goods segregated as per the lower price which can be sold at a high price. It is a type of analysis, that can be used at a specific period (Melnyk, 2018). It is applied based on the supply chains and includes the methodology of TCA estimated through materials or products that can be priced well. It includes purchasing and selling through better prices.
For example, of the Travelodge company, would like to understand the travel history of the booking during the peak period and also comparing it with the past data of the holiday season, then the TCA can help to determine the fair prices based on which the goods can be purchased and sold off. It is also understood how the supply chain managers would be applied based on the information which can make the decisions far better than the stocking warehouses.
Source (Bendoly, 2019)
It is one of the theories, which helps to determine the supply chain and helps the logistics companies to handle as per the chain of the multiple businesses. It is the theory, that links and associate with the best interest by considering the individual channels which can be productively be coordinate to combat the overall costs and can save time (Holmström, 2019). It is the theory, which explains the Chanel of coordination and how it can lead to well-defined inventory management and ordering.
Source (Bendoly, 2019)
The theory includes the third-party logistics provider (3PL) that can help to identify the companies in comparison to the others. It involves a theory of estimation based on leveraging the money that can be saved and can fine-tune to the network perspective (NP).
The NP model can help to contribute and address the existing network as per the businesses and can help what’s currently there. NP connections includes a“formal” basis to the traditional business deals or agreements.
Source (Bendoly, 2019)
Through this theory, supply chain can be estimated through the effective value chain and determined on the basis of interrelationships works that can cover the values.
Materials Logistics Management
The theory includes how the Travelodges UK can use the best of the strategy to forecast the business selling products. It is dependent on the online, business and warehousing, fulfillment along with shipping.
It uses the supply chain and includes the shipping final goods. The methodology involves companies calculating through the raw materials which need to be value-based based on the affordable options including the materials logistics management (MLM) (Fahima, 2019).
Source (Bendoly, 2019)
MLM includes the steps of planning, sourcing, and also be attributed to the distribution as per the physical materials.
The company Travelodge.UK should focus on supply chain management which can directly identify the need to have a better command over the product quality, delivering best services and increasing the overall profitability. Managing Quality ensures quality control per the supply chain which can aim for the better competitive market and the operating costs. It is important to note that without quality control, it would be a waste that can be beyond a tolerable amount.
Defects and Scrap
The company has to check, all hotels and the hospital services are functional or not, and how much of the areas are flaws or problematic to operate (Lamba, 2017). The company has to focus on checking the entire hotel industry within its market and provide the standardized, upmost and best services to customers. It should focus on scaling and reaching heights. The company also has to work methodology in streamlining the production lines and checking any inefficiency. The company has to ensure, that the rates provided by the hotels are providing the best and better quality services in the industry. As any hotel providing inferior quality services and bad deliverables, it would cause the loss of the brand image and reputation. It is also important to ensure, that there is a better-engaged staff, customized services and providing the best services.
The company has work to systematically over the chain quality control and checking if there is any un-functional, non-operating, uncooperative and unsystematic areas which can lead to the failures of the operations. The customers would be forced to return what has to booked and at the same time, there has to be a purchasing based on the reviews and good feedback. The company has to focus on the control over supplier inputs and has to ensure that the risk returns along with any hazardous failures.
Location and Layout
The company location is virtual and it's online-based, where all the people can access the information and can make strategic decisions. It is also important that the company is not investing in large financial investments and it is also based on the irreversible. The company is set up based on the commission-based model, which takes a commission or the extra charges form the hotels when the customer's book. The company even takes the customer reviews seriously and to promote a particular hotel or hospitality service, they provide promotional and better-customized services (Bozarth, 2019). All the factors associated with the company are driven based on the market-related factor which can be tangible or cost factors along with ensuring steps to take the intangible or qualitative factors creating a better choice.
Operations Management Comparison to competitors
Each of the operational management of the three companies chosen Travelodge.UKBooking.com along with Hotels.com is limited to the given sectors and the domains and caters to the specific markets. Each of the markets, in which they operate are leaders, such as while booking specifically in the market of the UK, Spain, and Ireland, the Travel lodge would be trusted to compare information and also book the cheapest hotels and the hospitality sector (Bendoly, 2019) Similarly, to book in any part of the country, globally the Booking.com can be trusted to book accommodation, hotels, flights and the various other domains. It is a one-stop destination to offer travel deals, package tours, destination bookings. It also allows the customers to provide the feedback, reviews and the various suggestions, upon which the vendor hotels, cabs, flights and other types of services. Similarly, the Hotels.com only books the hotels and compare the cheapest and the most accommodating hotels in the far fetched places. It even includes the destination inputs and addresses the customers to book at ease (Fahima 2019).
The Travelodge can be compared with the Expedia.com, with the hotels.com and Booking.com which can be compared based on the below factors-:
Comparison Source (Bendoly, 2019)
|Marketing Tools||Travel Lodge.UK||Bookings.com||Hotels.com|
|Product||The company provides concrete information in hotels and research over the UK.||Best prices offered to book Hotels through the online booking site.||It is known for the good for large hotel chains|
|Price||The prices are sorted based on the preferences and from the cheapest to the most expensive.||It offers the best prices along with the great discounts, most reliable which would be easiest to use||The company is known for the best prices offered and has a great discount to offer.|
|Place||The online site, virtual existence in between the buyer and the seller.||The online site, virtual existence in between the buyer and the seller.||The online site, virtual existence in between the buyer and the seller.|
|Promotion||Provides a quick review, feedback, suggestion, and convenience at ease to book and promotes within the UK.||It is the best-known site, which has expanded in the other domains and functions. It can be used by various users across the globe (Bozarth, 2019).||It is known as the, most reliable and easiest to use|
The triple ascent bottom line has three Ps: people, planet, and profits. The Travelodge.UK has to apply the sustainability concept of the "triple bottom line," which includes working in the given environment that can consistently work to measure through sustainability.
|3P’s||Travel Lodge.UK||Booking .com||Hotels.com|
|People||The market is limited to the UK. It is operating in the hotels and hospitality and covers the United Kingdom, Ireland and Spain||Apart from the hotel booking across the globe, it focuses on global countries.||The market is limited to the Hotels industry only. It caters to worldwide hotels.|
|Planet||It has a functionality of the online platform with limited infrastructure. It does not produce or sell out things, which can harm the environment.||It promotes a combination of the resources to be served through online services.||It is a friendly product, which works on the online platform. It does not require much infrastructure.|
|Profit||The profit is commission based earned through the profits commissioned through buyers and more promotion is done to sellers. It has a highly profitable market due to catering to a limited market.||The model is oriented to hospitality and hotel based industry earned through the online platform through commission and discount based system. It caters to the globe hotel and has a better-targeted market.||The model is more like working in between customers and hotels and all the booking is done through an online system. It has limited infrastructure.|
Conclusion and recommendation
In the end, though the company is sailing from the furious competition, it has to continuously look over the ways to expand and also open to generating more revenue. It is important to build and associate with some steps to recreate their business. It needs to diversify and expand over the major expansion plans ((Bendoly, 2019). It is important that Travelodge.The UK can help to open to the hotel's operation management which can use the reservation inventory and at the same time, it can also consistently focus to increase its occupancy rate. Similarly, the company can focus on the revenue Management techniques and integrate some of the models of overbooking which can be applied in a better manner that can help to maximize the revenues based on the hotels. It is important to focus on the possibilities related to customer dissatisfaction and focus on the risk of loss of reputation that can lead to delays in the service or may indulge in the malpractice of capturing the market through the overbooking.
The company should work over its “best estimation that can help to develop the risk and opportunity and at the same time, it can be helpful for the best profit”. The company also has to overcome the current economic environment drop and work over the unbranded independent hotels and the hospitality to ease booking through the consistently branded budget which can be done through the network coverage. The company is known for its strong brand strength and it has a strong balance sheet along with the distribution. The company can focus on the customers which can provide flexible cancellation terms, and at the same time integrate the policies, procedures and substantially over the fluctuating demand through the approach of the hedge funding. The company can also arrange through the overbooking levels by approaching through the revenue-maximizing properties (Holmström, 2019).