TRAVELODGE ANNOUNCES £20 MILLION BRAND RELAUNCH AND 4,500 NEW JOBS
13th Mar 2005
-New brand identity rolling out from 14 March 2005
-Travelodge to create 4,500 new jobs across the UK over the next three years
-Travelodge to open 2,500 rooms in 2005
-15,000 rooms to be added in the next six years
-Travelodge named joint number one hotel brand in the UK by BDRC British Hotel Guest Survey 2005
LONDON, Sunday 13 March 2005: Travelodge, the UK’s fastest growing and most successful budget hotel company, today unveiled a new Travelodge identity, and future growth and job creation plans.
Commenting on the announcement, Grant Hearn CEO of Travelodge, said, “We had a lot of work to do with Travelodge; it needed it. The new identity represents a lot more than just a new look. We have implemented a new low cost business model that delivers strong growth and allows us to offer consumers the best room rates around. We have serious plans to drive the growth and usage of the budget sector. We want people to save money by staying with us, rather than spending more than they need to for a quality nights sleep”.
We will open 15,000 rooms over the next six years and create 4,500 jobs in the next three years”.
Under the new management team led by CEO Grant Hearn, over £20 million has been spent on the estate over the last two years, with a further £20 million earmarked for brand rollout and advertising support over the next two years. Every room in the Travelodge estate is either a new build or has been redecorated in the last eighteen months.
The brand, which has remained untouched for the last 20 years, is being brought up to date to reflect the changes at Travelodge since it was acquired by Permira in 2003. The new identity, which is the end result of major consumer research work, will appeal to both new and existing customers and give Travelodge a contemporary style that better reflects the experience of staying in a Travelodge.
The latest BDRC British Hotel Guest Survey (February 2005) named Travelodge as the joint number one hotel brand in the UK* and the number one budget brand. Travelodge was also named as “The Most Improved Budget Brand”.
Guy Parsons, Sales and Marketing Director, commented, “Nine out of ten people know Travelodge. Now is the right time to bring out a new identity. Rebranding when we bought Travelodge would have meant nothing. Now it does. We have put a lot of work into getting the business right and getting the brand right and we will only need to do this once”.
“We know that people are starting to use budget hotels in the same way that they do low cost airlines and we are well placed to deliver that offer. Dingy or uncomfortable rooms are a thing of the past at Travelodge; it is worth a visit and it won’t cost too much”.
The business announced details that it is focussed on building its UK market share by opening 15,000 rooms over the next six years, with 2,500 opening in 2005. The budget hotel sector is the fastest growing part of the UK hotel business with the highest returns and this sector is expected to grow to 100,000 rooms by 2010.
Travelodge has seen strong business growth in 2004. Travelodge’s business has been completely reengineered to reduce central costs and minimise overheads that impact the rate that can be offered to customers. This includes drawing on successful models from different sectors, rather than the typical hotel business model. As part of this, there has been a strong focus on driving online sales. Travelodge now secures 45% of its bookings through its website and plans to grow this to 65% in 2005.
The Travelodge brand enjoys phenomenal awareness with nine out of ten consumers aware of the brand. The new identity is about marking the changes in the business and also to encourage new customers to try Travelodge. It also encourages consumers who may have a historic perception of the offer to re-evaluate the brand and stay at Travelodge again. The new identity will be introduced across the estate from Monday 14 March 2005.
* Joint with Hilton Hotels
For Further Information please contact:
Travelodge PR Manager
Direct Line: 0121 521 6638
Photography available on request
Travelodge Hotels Ltd
-Over six million people stay with Travelodge every year.
-Travelodge has currently 258 locations throughout the UK. These are conveniently located in most major UK cities, on all major motorways and ‘A’ roads
-Travelodge was the first budget brand to launch in the UK in 1985
-In 2003 Permira Advisors bought Travelodge
-Travelodge offers an online booking service at www.travelodge.co.uk and also via telephone on 08700 850 950
-Travelodge room rates start from just £26 per room, per night. (£26 room rates are subject to availability and can only be booked online)