Travelodge reporting surge in bookings by business travellers

www.travelodge.co.uk

Business travellers, undoubtedly encouraged by their companies, are looking for cheaper hotel accommodation, according to budget hotel chain Travelodge, which has reported a rise in business travel-related bookings.

The hotel operator runs a total of 381 hotels in the UK, Ireland and Spain, has said that its revenues from business travellers in the year ended January rose by 30 per cent. The increase was an unexpected boost to a chain that typically relies on leisure travellers.

Grant Hearn, the company’s chief executive, said: “We’re seeing FTSE 100 companies switching from the Hiltons and Marriotts of the sector as firms realise there is no need to spend a fortune.”

Room rates in 2008 averaged about £44 a night, which was an increase of £3 over 2007. Travelodge noted, however, that it was forced to cut prices aggressively as many three- and four-star hotels discounted their rates to attract customers from a diminishing pool.

“We are in a scrap over prices but we’re comfortable with that because we have the lowest cost base in the industry,” Hearn said, adding: “If the hotel industry becomes involved in a war of attrition on price then Travelodge would win it.”

The company warned that the trading environment continued to be “challenging”, and that it would be some time before the 39 hotels it opened in 2008 would reach full occupancy.

Thanks to www.ft.com for the above quotes, for more information on this article please visit their website.

www.travelodge.co.uk