Budget hotels taking business from dedicated conference centres

The branded budget hotel market in the UK continues to be dominated by large
players, Premier Inn and Travelodge, according to new research by TRI
Hospitality Consulting.

 Andrew Sangster, editor of Hotel Analyst,
which published the research, described the budget hotel market as “the most
dynamic segment of the UK hotel industry”.

The new research confirms recent reports from
dedicated conference centres that indicate a trend for organisers to book day
meetings and leave their delegates to book their own

“Inclusive residential 24-hour bookings are
becoming more scarce, as companies tend to book the venue on a daily basis,”
said Chartridge Conference Company’s MD Peter

“The delegates shop around for the
cheapest last-minute room-only rates. Travelodges probably do quite well, but it
adds extra hassle for the delegates.”

Figures from Budget Hotels 2010 UK show Premier Inn is
the biggest budget brand, with 41,511 rooms at the end of 2009, giving it a
market share of almost 38 per cent, to Travelodge’s 25 per cent.

1993, the number of branded budget hotel rooms in the UK has grown
more than ten-fold, increasing from 10,555 rooms to 109,528 rooms at the end of
2009. And while Premier Inn and Travelodge dominate, there have been many new
brands entering the growing market.

The most successful challenger has
been Holiday Inn Express, which now has 109 hotels with 12,464 rooms; less than
half the number of rooms of Travelodge.

“An easy way for any business to cut costs is
to stop paying a small fortune to stay at mid-market hotels and instead switch
to the budget sector,” says Chief Executive of Travelodge, Guy Parsons. “With
rooms from £19 at over 450 hotels and with the average executive spending 43
nights a year in hotels; the savings that can be made by switching from a
mid-market hotel are substantial.”

The UK’s leading branded budget hotel


 Number of

 Number of rooms







Inn  Express






 Jurys Inn












 Days Inn



 Days Hotel



Picture: Guy

Paul Colston


Paul Colston

Managing Editor, Conference News & Conference & Meetings World.

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