Travelodge sales increase as more customers seek cheap hotels
Monday, May 15, 2023
Travelodge expects consumers to cash in on the consumer response to the cost of living crisis by selling more high-end hotels for more affordable one. It, which has almost 600 locations, predominantly in the UK but also Ireland and Spain, added to its results as it reported higher sales.
The firm, which has nearly 600 locations mostly for UK businesses but also in Ireland and Spain, included some eight new hotels planned to open this year in its earnings update.
The chain said last month that there is potential to strengthen its network with 300 additional British Travelodates.
The expansion comes as underlying overall revenue grew to £909.9m in 2022, compared to £559.7m a year earlier and £727.9m earlier in 2019.
Over the same period, sales per room were £52.59 compared with £33.04 and £42.46 respectively.
As well as the opening of six hotels in 2022, the industry also started reeling from the pandemic, staging a wide range of events boosting tourist demand to stay, including the Commonwealth Games in Birmingham and the anniversary.
Chief executive Jo Boydell said: 'The market recovered, with strong demand for events and short staycation breaks throughout the year as well as for essential business travel and we continued to outperform the midscale and economy segment.'