PESTEL analysis is a strategic technique that provides a useful framework for analysing the pressure which is faced by an organisation Travelodge is looking for strategies to gain considerable competitive advantages they must be a planning framework in order to consider what external factors it would face as an organisation these factors include tax laws, new changes, demographic changes and government policies. Political Factor These are government policy and how they affect the economy such as taxes vat tax on beverages and tobacco.
Travelodge in recent years has been finding ways on how government policy would not affect its customers also how to maintain a stable market strategy. Political factor could be limited beneficially restrictive factors are factors that can affect its profits such as constraints placed on an organisation example fair trade law, minimum wage legislation and pollution laws political factors can have an huge impact on vital aspect of its business.
Economical Factor Organisations must consider the current economic situation these factors interest rates, taxation, and exchange rates Travelodge has seen an increase in sales after it fell in 2008 by 5. 9% the weakness is pounds was a major factor which made more travellers to visit Travelodge and it was also an opportunity for the company. Economic factors refers to the nature in which firms compete against organisations are interconnected as a result of global economy.
Travelodge aim is to monitor and forecast its physical conditions outside the organisation the market in which it competes with its competitors it must also look into consumer spending patterns in the other hand if the economy is unstable it will record a slow profit and reduce spending power of its consumers economic issues entangled closely with the modern external environments. Socio- Cultural Factor changes in social trends can be an impact on how the demand for Travelodge services.
Statistic shows how household structure has changed they have been an increase in the rate of single families and also divorced couples. Also eating and drinking out there was also an increase in the number of youths and elderly which often want to spend time outside their home the ageing population also has an impact on its demand the 2012 Olympic being held in London will impact tourism and Travelodge would accommodate more visitors than any other competitor in London. Technological Factors
Travelodge has introduced a new system called self-check in system which reduces the time of from longer minutes to lesser minutes and it saves time for both the customer and the staff and also the online survey which helps a customer to give feedback on his experience with Travelodge, statistics shows that the number of online booking grew in 2007 more people would rather book online and it saves time and money for both the customer and Travelodge you can book and reserve a room at the comfort of your home more people are beginning to see this as a great challenge.
Travelodge is working with apple to introduce a software with can have create an app on the Iphone this would attract more uses of Travelodge to make reservations anywhere in the world if you have an Iphone, also Travelodge is offering nectar points on which you can earn an spend on cinemas and other online stores. . Environmental factors
Environmental factors such as the weather and climate changes in weather condition can be an impact on Travelodge major climate changes has occurred during this past years due to global warming and pollutions the Government are looking on ways which they could tackle the growing desire to protect the environment has an impact in every organisation in 2010 during the winter period there was an unfavourable weather condition visitors outside UK used Travelodge because of its hospitality and they recorded the highest profit during this period.
Most people left their homes and used Travelodge in order to get a safer place during the winter weather difficulties.