Travelodge, the budget hotel chain, is introducing a £5m package of price cuts across its hotels for the rest of the year. The price cuts are part of an “aggressive price war” against its competitors.
Average room rates at Travelodge will fall from £50 a night to £29 until the end of this year and will drop to about £9 a night by next spring. It is hoped the move will drive volume and increase its market share.
Last week, Travelodge proposed to cut a number of jobs across divisions including members of its marketing team. It says that the redundancies will also provide it with funds to launch an price war on the mid-market.
It follows the price cut strategy by replicating the success of similar strategies form budget airlines such as Ryanair and easyJet.
Travelodge currently has 350 hotels in the UK and 11 overseas and plans to open 22 new hotels before Christmas.