The budget hotel chain saw softer sales growth at the start of 2024, amid a quieter period for both business and leisure travel
Travelodge, the budget hotel chain, is hoping for a boost in sales from Taylor Swift and AC/DC concerts this summer.
The company’s boss revealed that they had record earnings last year, but sales have slowed down a bit at the start of 2024. Jo Boydell, the chief executive, said she was still “encouraged” by the small rise in sales, about 2%, at the beginning of the year. She also said that bookings are higher than they were this time last year.
She said that the company is hopeful for more growth throughout the year, thanks to big sporting and cultural events. “We have solid bookings for Easter and beyond this year”, Ms Boydell said. “There are plenty of events we are looking forward to, like the Lionesses at Wembley, we are seeing positive sales around the Grand National and FA Cup semi-finals.”
“In the summer we also have big concerts like Taylor Swift and AC/DC that people will be booking for.” The chief executive explained that Travelodge is meeting the demand from leisure and business customers “for strong value”, especially with the cost-of-living going up.
However, she did warn that Travelodge might have to raise prices again later this year because costs are going up between 5% and 6%. This news comes as the company announced it made a profit in 2023, with earnings growing by 14.6% to £243.9million.
Meanwhile, the company’s revenues soared by 13.7% to £1.04billion for the year. They praised strong customer demand, with events like Wimbledon contributing to record revenues in London.
Sales also got a boost from high demand during Eurovision and a big bounce back in face-to-face business conferences. Ms Boydell said: “I am delighted that Travelodge has delivered another record performance in 2023, with revenue above £1 billion for the first time. Our results reflect the hard work and commitment of our teams and the underlying strength of our business.”
