Travelodge offers bargain online rate

Budget hotel chain Travelodge is following in the footsteps of low-cost airlines by launching a time-sensitive booking system for its rooms.

The group is shaking up its pricing system and introducing year-round rates starting at £25. Customers who book early will be able to get the low rates, especially if they book online.

Chief executive Grant Hearn said: "Our decision marks a watershed in the UK hotel industry's attitude towards pricing and its customers. The traditional hotel approach has been to take a very fixed approach to pricing - almost a take-it-or-leave-it attitude."

He added: "Like with low-cost airlines, by encouraging our customers to book early and book online, we can keep our costs low and pass those savings on to our customers through low rates day in and day out, all year round."

The trend of introducing this kind of pricing system is not confined to budget hotel operators. Hilton Group is also launching a demand-based pricing system, where guests who book early are guaranteed a cheaper price than later bookers.

At Hilton, guests who book at least 21 days before their stay will be guaranteed the hotel's cheapest rate.