Premier launches bookings war on Travelodge
PREMIER Inn has embarked on a budget-hotel price war with rival Travelodge amid signs that industry-wide promotions are beginning to stem the collapse in hotel bookings.
The UK’S biggest budget-hotel chain is offering rooms for £29 a night, matching Travelodge.
Premier Inn, owned by hotels-and-restaurant group Whitbread, had resisted a costly price-cutting battle but has launched the offer to attract holidaying families over the summer.
With revenue per available room (REVPAR), the key industry measure, down 11.1 per cent year-on-year in April, hoteliers are doing all they can to keep guests coming through the door.
Holiday Inn and Holiday Inn Express owner Intercontinental has seen a big take-up of its promotion offering guests staying on Friday and Saturday nights the Sunday night free.
While cross-industry profit levels are under threat, discounting and promotions appear to be working.
Research from Deloitte shows REVPAR decline has slowed, with weekend leisure and London weekday corporate demand actually up over the past five months.
Whitbread is due to update the City on first-quarter trading, with analysts at KBC Peel Hunt warning that Premier Inn’s woes could lead to profit downgrades, while the performance of its Costa Coffee chain will be of interest as rivals such as Starbucks struggle in the economic downturn.