Budget hotel chain Travelodge is exploring the implementation of self-service hotels. Recently, the company unveiled its first “hybrid” hotel, offering guests a contactless experience with no need for face-to-face interactions with staff. Through a dedicated app, guests can check-in and access their room using a digital key, even retrieving amenities like an ironing board from a designated storage area without assistance.
Following the success of its contactless hotel in St Albans, Hertfordshire, Travelodge has launched the 395-room StaySmart hotel in London, introducing the option for guests to check-in either at a kiosk or a manned front desk with customer service support.
Travelodge’s CEO, Jo Boydell, expressed satisfaction with the self-serve approach, noting that more than two-thirds of guests are utilizing it. She attributed this trend to customers’ preference for avoiding check-in queues. Encouraged by the initial positive feedback, Boydell hinted at the possibility of expanding the concept to more locations in the future.
Boydell defended the self-service model by pointing to the popularity of similar automated systems in supermarkets and airports. While she refrained from disclosing specific staffing details for the new-style hotels, Travelodge’s cost-cutting measures come in the wake of a significant profit decline in the first half of the year, attributed to increased costs stemming from national insurance contributions, minimum wage hikes, and inflation-linked rent adjustments.
Despite the financial challenges, recent months have seen a boost in revenue, partly due to events like Ozzy Osbourne’s final Black Sabbath gig and performances by bands like Oasis and Coldplay. However, overall revenue for the period declined, influenced by reduced demand and fewer major events, particularly in Greater London.
To enhance customer payment options, Travelodge has introduced a ‘Buy Now, Pay Later’ scheme, which has shown promising early results. The chain is currently undergoing its largest expansion in over a decade, with plans to open nine new hotels by 2025 in addition to the 11 recently launched in the UK.
Looking ahead, Boydell expressed concerns about potential impacts from the government’s planned business rates reform, emphasizing the need to monitor and manage potential cost increases.