Travelodge backs online focus with hike in spend

Budget hotel chain Travelodge has become the latest brand to shift its marketing budget away from traditional media and into online.

The company plans to divert its traditional spend, investing the vast majority of its budget online, and has hired DS-J to handle its first digital CRM campaign.

Travelodge has been running a heavyweight campaign, promoting its £26 a night room rate, available only online. Web bookings represent 80% of the chain's total.

According to Nielsen Media Research, Travelodge spends more than £3.1m a year on advertising in the UK. Press activity accounts for £1.9m, compared with £300,000 for online. The rest is spent on TV, radio and outdoor work.

'We want to lead the industry in our use of e-marketing,' said Stephen Welham, interactive marketing manager at Travelodge.

The agency's initial brief is to create an email campaign targeting both existing and prospective Travelodge customers. This will comprise an e-bulletin, which will promote the chain's range of new hotels through discounts and special offers.

The strategy of driving customers to make bookings on the web reflects a wider trend in the hotel industry. Last week, Hilton announced that it expects online bookings to total £1.2bn this year, compared with £373m in 2001. Online sales now account for 17.2% of business, compared with 9.1% in 2002.

Last year, Travelodge appointed Doner Cardwell Hawkins to handle its relaunch and drive traffic to its website.

According to the IPA's Bellwether report last month, 15% of companies spend more than 15% of their marketing budget online. It also found the proportion of companies allocating less than 1% of their marketing spend online dropped from 75% to 50% over the previous year.

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