Travelodge's pricing strategy continues to build sales growth momentum
- Revenues increased by 19%*(1)
- Price cuts increased rooms sold by 24%*(1)
- Load Factor (Occupancy) up 4%*(1) points
Web bookings up 92%*(1), reflecting effectiveness of marketing strategy
- Customers increasingly booking early online to secure best deals
- 79% of rooms now booked online resulting in lower costs
Pipeline in great shape and on track to deliver 32,000 rooms within five years
- 2006 rooms - 95% secured
- 2007 rooms - 80% secured
- New openings this year include Heathrow Terminal Five, London Waterloo, Covent Garden (London) and Fort Dunlop (Birmingham)
Grant Hearn, Chief Executive of Travelodge said, "Our aggressive price cutting and web strategy is beginning to change the way customers use our hotels. They are now booking early and online to seek the best deals - just like the budget airlines. Our competitors have not risen to our challenge on price but are drifting ever closer to a three star offer. New hair dryers and more fancy bedspreads will not grow the hotel market - low pricing and good service will."
For further information, please contact:
Travelodge - Greg Dawson, Director of communications
Tel. 01844 358644
Finsbury Group - Rollo Head/James Leviton/Kirsty Flockhart
Tel. 0207 251 3801
*(1) Results are Q1 2006 on Q1 2005