Budget hotel chain Travelodge is exploring the introduction of self-service hotels. Recently, the company unveiled its first “hybrid” hotel where guests can complete check-in procedures and access their room using a digital key through a dedicated app, eliminating the need for face-to-face interactions with staff.
In addition, guests can conveniently retrieve items like an ironing board from a designated storage area without the need for assistance. This initiative follows the successful launch of a fully “contactless” Travelodge in St Albans, Hertfordshire. The newly opened 395-room StaySmart hotel in London offers guests the choice to check-in at a self-service kiosk or through the traditional manned front desk with a customer service team available.
Travelodge’s CEO, Jo Boydell, expressed satisfaction with the self-serve option, noting that over two-thirds of guests are utilizing it on average. She attributed this preference to customers’ desire for swift check-in experiences without waiting in queues. Despite being in the early stages, Boydell confirmed that the positive reception has prompted the consideration of opening more such hotels in the future.
Boydell defended the self-service concept, highlighting its alignment with the increasing popularity of automated services such as self-checkout options in supermarkets and airports. Although she refrained from providing specifics on staffing numbers at the new-style hotels, Travelodge’s cost-cutting efforts are underway following a significant drop in profits from £82.1 million to £47.3 million in the first half of the year due to increased costs driven by higher national insurance contributions, minimum wage hikes, and inflation-related rent escalations.
The company faced challenges in the previous period due to a lack of major events like the Taylor Swift tour, but recent months have seen a boost in revenue with successful events like Ozzy Osbourne’s final Black Sabbath gig and performances by Oasis and Coldplay. Despite a revenue decline driven by fewer large events and softer demand, particularly in Greater London, Travelodge introduced a “Buy Now, Pay Later” payment option for customers, which has shown promising initial results.
As part of its extensive expansion plans, Travelodge has opened 11 new hotels in the UK in the first half of the year, with plans for at least nine more by the end of 2025. However, the chain is wary of potential impacts from the government’s proposed business rates reform, which could escalate property costs. Boydell expressed concerns about the implications of increased business rates on the company’s expenses, emphasizing the need for careful consideration of future plans in light of these potential changes.
