Budget hotel chain Travelodge is considering expanding its self-serve hotel concept. Recently, the company unveiled its first “hybrid” hotel where guests can check-in and access their rooms digitally through an app without any face-to-face interactions with staff. Additionally, guests can retrieve amenities like an ironing board from a storage area independently. This initiative follows the success of a contactless Travelodge in St Albans, Hertfordshire.
The new StaySmart hotel in London offers guests the choice to check-in either at a kiosk or a traditional front desk with customer service support. Travelodge’s CEO, Jo Boydell, reported that more than two-thirds of guests are opting for the self-serve option, citing the convenience of avoiding check-in queues as a key factor.
Boydell indicated that the positive response has prompted the company to consider opening more such hotels in the future. She defended the self-serve model by drawing parallels to the popularity of automated services in supermarkets and airports. While specific staffing details for the new-style hotels were not disclosed, Travelodge is aiming to streamline operations following a significant drop in profits in the first half of the year.
The company attributed the profit decline to increased costs driven by higher national insurance contributions, minimum wage hikes, and rent escalations. Travelodge’s revenue also dipped due to fewer major events, particularly impacting demand in Greater London. Despite these challenges, the introduction of a ‘Buy Now, Pay Later’ payment option has shown promising initial results.
Travelodge is pursuing its largest expansion in over a decade, with 11 new hotels already opened in the UK this year and plans for at least nine more by 2025. However, future expansion plans could be affected by potential increases in property costs due to government reforms on business rates. Boydell expressed concerns about the impact of these changes on Travelodge’s operational expenses.