Travelodge Sees Record Revenues, Hopes for Further Boost from Taylor Swift and AC/DC Concerts
Travelodge has reported a record-breaking financial performance for 2023, with revenues surging by 13.7% to £1.04 billion. The budget hotel chain also posted a statutory profit for the year, with earnings rising by 14.6% to £243.9 million. The impressive results come after strong demand from major events like Wimbledon and Eurovision, as well as the recovery of in-person business conferences, which significantly contributed to the company’s growth.
Despite a quieter start to 2024, Travelodge’s chief executive Jo Boydell remains optimistic. The company experienced a softer sales growth in the first quarter of the year, with bookings up by only around 2%, driven by a slowdown in both business and leisure travel. However, Boydell is encouraged by the early-year performance, highlighting that bookings are still ahead of last year’s levels.
Looking ahead, Boydell is confident that growth will pick up again, especially with the upcoming summer events expected to drive demand. The hotel chain is anticipating a significant boost from high-profile concerts such as Taylor Swift’s Eras Tour and AC/DC performances, both of which are expected to attract large crowds to London. Additionally, Boydell noted that sporting events, including the FA Cup semi-finals, the Grand National, and the Lionesses’ match at Wembley, are also expected to drive bookings, particularly for the spring and summer months.
Travelodge is focusing on providing strong value for both leisure and business customers, especially as rising costs of living continue to impact consumer spending. Boydell indicated that, despite this, the company might need to raise prices again later in the year due to ongoing inflationary pressures, which are expected to be in the range of 5% to 6%.
Boydell expressed her delight in the company’s performance, stating that the results reflect the hard work of Travelodge’s teams and the strength of the business. She also mentioned that the company is well-prepared for the busy months ahead, with solid bookings already secured for Easter and beyond.
Overall, Travelodge’s successful 2023 and positive outlook for 2024 suggest that the hotel chain is well-positioned to continue benefiting from key events and strong demand throughout the year.
