Travelodge is now making more money out of business travellers than tourists

 
Helen Cahill
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Peter Gowers, Travelodge's chief executive (Source: Travelodge)

Travelodge is now making more money out of professionals on business trips than tourists.

In its full-year results today, the firm said that business customers now make up for more than 50 per cent of the company's overall revenue.

The figures

Total revenue at the hotel chain rose 6.8 per cent for the year ending 31 December, up from £559.6m to £597.8m.

Earnings before interest, tax, depreciation and amortisation grew 4.76 per cent to £110.1m from £105.1m the year before.

Why it's interesting

Travelodge said today that cost issues will remain a problem for the business, as both the retail and leisure sectors struggle with rises in business rates and the national living wage. And hotels are now having to handle stiff competition from room-sharing website Airbnb.

Read more: Och aye: Brexit vote and TV locations lure Brits to Scottish staycations

But, it seems Travelodge is tapping into a new market by growing its popularity with businesses. And the value hotel chain has been benefiting from the rise in staycations, a trend that emerged when the pound slumped after the Brexit vote.

What Travelodge said

Peter Gowers, Travelodge's chief executive, said: "Clearly the macroeconomic picture remains uncertain and there are increased cost pressures from the national living wage, business rates and other regulated cost increases.

"However, our growing brand reputation and strong development pipeline positions us well to benefit from the opportunities presented by businesses looking to reduce travel costs in uncertain times and leisure travellers opting for staycations as an alternative to higher priced foreign travel."

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