Travelodge sees profits increase on business travellers

Hotel News - 18/09/2008

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Travelodge currently runs over 300 hotels in the UK, and is reporting that income from business guests has increased by 45 per cent through mid-September 2008, as compared to the same months last year. A company spokesperson commented that this addition to revenue was not expected, as their sales typically rely on leisure traveller bookings.

The hotel operator’s managing director for the UK, Guy Parsons, added: "Many of the traditional business-orientated hotels charge an enormous excess for facilities and room extras that customers simply do not use. I am confident that we are going to see a further increase in business bookings as firms realise they are spending a fortune unnecessarily."

Analysts have sounded a warning, though, suggesting that this trend could be short-lived if the economic downturn continues and employers lay off greater numbers of staff who travel for business purposes.

Travelodge is not the only lower-cost leisure chain that is benefiting from the so-called "Aldi effect" – which takes its name from the budget supermarket chain that saw an increase in its business when the economy started to slow down.

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