It is low a cost budget hotel chain with rooms starting at £ 15 and has special rates for block bookings and corporate bookings (Travelodge website).It has a practice of overbooking its capacity and very frequently resorts to shifting its clients to nearby hotels when overwhelmed with arrivals. This keeps occupancy rates at a very high level but causes dissatisfaction and distress.In 2004, it bought the Drury Lane Moat House hotel for £11millions and the London Ryan, London Islington and the Thistle hotels for £55millions In July of that year, it decided to sell 136 of its hotels for £400million, and then lease them back. It plans to build twenty more budget hotels in London (costing £140million), in preparation for the London 2012 Olympics.On the EFQM’s excellence model, all enablers appear to be in a weak position. The stockholders as stakeholders are not involved in policy at all and treat the company as an investment opportunity only. The leadership, therefore, has no clear directions for strategy accepts for growth without strengthening the base. The strategy is unclear as on one hand they acquire properties at a phenomenal rate but at the same time sell and lease back quite a few of them.Human resources are not well trained nor is there any organizational culture. Resources seem ill-managed and there is under usage of technology. Customer relations are at all-time low and complaints are on the rise.A. The ownership of Travelodge has changed several times during the last 10 years but is still on a high growth trajectory. This seems to be a build-up for the London Olympics in 2012. However, this is surface reality. What will happen when property prices and room rates shoot up at the time of the Olympics and then plummet after the event?B. Travelodge has presently got a 25% market share of hotels in the UK (see Appendix) but when compared with the growth rate it appears low. Apparently new hotel properties are small as a result they cannot offer more rooms.
Managing Contemporary Organisations