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
accommodation.

“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
Darnell.

“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.

Since
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
operators: 

 Brand 

 Number of
Hotels  

 Number of rooms

 Premier
Inn

 582

 41,511

 Travelodge

 377

 27,010

 Holiday
Inn  Express

 109

 12,464

 Ibis

 53

 7,173

 Jurys Inn

 23

 5,828

 Innkeeper’s 
Lodge

 91

 2,652

 Etap

 17

 2,212

 Ramada
Encore    

 16    

 1,947

 Days Inn

 30

 1,834

 Days Hotel

 12

 1,562

Picture: Guy
Parso
ns

Paul Colston

Author

Paul Colston

Managing Editor, Conference News & Conference & Meetings World.

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