Travelodge app drives up direct bookings and earnings

Direct distribution channels now account for more than 85% of sales at Travelodge, the budget chain revealed while issuing annual financial results for last year.

Direct distribution channels now account for more than 85% of sales at Travelodge, the budget chain revealed while issuing annual financial results for last year.

The company’s mobile app has been downloaded by more than 180,000 customers since being introduced last April.

The app has an average booking conversion rate almost twice that of the Travelodge website as a whole. The new initiatives contributed to web sales up 12% on 2014.

Travelodge confirmed that total revenues in 2015 were up 13% to £558 million, with strong growth in both London and the UK regions.

Business travellers remained one of the principal drivers of the improved performance, with direct business sales up 45% on the prior year.

Reported earnings [EBITDA] for the 12 months to 31 December 2015 will exceed £100m for the first time in Travelodge’s history.

The ‘That’s Travelodgical’ advertising, launched in May 2015, has received “tremendous” customer feedback, raising brand awareness and heightening awareness of the group’s upgraded rooms.

Chief executive, Peter Gowers, announcing a record year for the chain, said: “We are seeing significant growth from business customers and like for like sales growth was again substantially ahead of the UK hotel market.”

He added: “There continues to be strong underlying growth potential for value hotels. 

“Travelodge has continued to outperform its market segment in the first weeks of 2016 and we have 19 new hotels scheduled to open this year.  

“We have identified 250 further potential UK locations for new hotels and with our strong brand, direct distribution model and growing development pipeline, the board believes the company is well positioned to continue to deliver substantial further growth in the years ahead.”