Travelodge offers £25 rate for web bookings

Travelodge, the budget hotel chain, is slashing the cost of 500,000 hotel rooms across the country this year with the introduction of a £25-a-night room rate.

The £25 pricing policy will be supported by a heavyweight advertising campaign, due to break later this month. This will continue the 'Welcome to Travelodgic' creative message, which was launched last year.

The campaign, which has been created by Travelodge's advertising agency Euro RSCG London, will use a down-to-earth approach to emphasise the price initiative.

The activity will include radio, national press, posters, ad-vans, online and transvision electronic poster screens at national rail stations.

The lower room rates are only bookable through the Travelodge web site, but will be available year-round.

Consumers will have to book early to take advantage of the offers, and the system will operate in a similar vein to the way in which low-cost airlines price their seats.

Travelodge chief executive Grant Hearn said the company had decided to introduce the aggressive pricing model because it has the "flexibility to offer an approach to pricing that competitors are not equipped to match".

The company has introduced the rates with the intention of encouraging customers to book early and online, enabling it to keep costs low.

Travelodge claims it will pass on any savings made as a results of the initiative to the consumer by introducing even lower rates.

It is not the first time that Travelodge has cut room rates. The company has run a number of low-price offers, including a 'fiver-frenzy deal' last year, where a limited number of rooms offered for sale online were available for £5 a night.

Travelodge appointed Euro RSCG London to handle its £3m advertising business in July last year.

The agency has been briefed to run an advertising campaign that will differentiate Travelodge from competitors such as Premier Lodge and Travel Inn.

The hotel chain also hired Conran Design Group last November to create a distinct identity, which evolves from the down-to-earth positioning work of the campaign.

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