Budget hotel chain Travelodge is exploring the expansion of self-service accommodation options, following the success of a new type of hotel where you never have to speak to anyone.
The company launched its inaugural “hybrid” hotel last month, enabling guests to avoid any face-to-face interaction with staff. Visitors can complete check-in procedures and obtain a digital room key entirely through a mobile application.
Customers can also retrieve items such as ironing boards from storage areas without needing to request assistance from staff. This follows a completely “contactless” Travelodge, which opened in St Albans, Hertfordshire.
The new 395-room StaySmart hotel in the City of London additionally offers kiosk check-in alongside a staffed reception desk and customer service team. Travelodge chief executive Jo Boydell described the self-service facility as a tremendous triumph: “On average, more than two-thirds (of guests) are using it.”
She explained that customers “don’t expect to stand in a queue to check in” as part of the appeal.
While still in the early stages, Ms Boydell indicated that the initial achievements meant the company was “definitely” contemplating launching additional sites, the Mirror reports.
She justified the experience, noting that guests need not speak to anyone throughout their entire visit, highlighting the widespread adoption of self-service checkouts at supermarkets and airport terminals.
Ms Boydell declined to provide details regarding staffing levels at the innovative hotels, though this development coincides with Travelodge’s cost-cutting measures following profits nearly halving during the six months ending June, dropping from £82.1million to £47.3m.
The firm attributed a £20million spike in expenses to April’s rise in national insurance contributions and the national minimum wage, alongside inflation-linked rental increases.
The chain also felt the impact of fewer crowd-drawing spectacles compared to last year’s Taylor Swift tour.
Nevertheless, recent months have received a lift from Ozzy Osbourne’s farewell “Back to the Beginning” Black Sabbath performance in Birmingham at the beginning of July, alongside the Oasis and Coldplay concerts.
Takings during the six-month period dropped from £486.7m to £471.3m, attributed to fewer major events and “softer demand”, especially across Greater London.
Travelodge revealed it had recently introduced ‘Buy Now, Pay Later’ payment schemes for guests, delivering “encouraging initial results”.
This development comes as the chain pushes forward with its most ambitious growth programme in over ten years, having opened 11 new hotels across the UK during the first half of this year, with a minimum of nine more scheduled by the close of 2025.
Ms Boydell cautioned that additional expansion plans might be affected by the government’s proposed business rates overhaul, which could raise its property expenses.
“We are definitely concerned about the impact of business rates,” she said. “It could definitely increase our costs.”