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Travelodge considers job cuts to fund price war

10 November 2008 by

Budget hotel chain Travelodge is considering cutting a number of jobs in central operations to fund a "prolonged and aggressive" price war.

The group, which employs 5,000 staff, is aiming to save £2m to put towards a campaign targeting the mid-market of the hotel sector.

A total of 12 roles in the UK are at risk, including two of six marketing roles as well as positions in finance, operations, and international & development. Travelodge announced that it was increasing its UK marketing budget by 20% in 2007 as part of its £3.5b plans to open 4,000 new rooms per annum until 2020

The move comes 18 months after the company announced that it was increasing its UK marketing budget by 20% in 2007, as part of its £3.5b plans to open 4,000 new rooms per annum until 2020.

A spokesman for Travelodge said: "I can confirm that as part of a routine company-wide costs review, 12 central roles are at risk of redundancy.

"The fund will be used to launch a prolonged and aggressive price war on the increasingly vulnerable mid-market sector."

Earlier this year, marketing director Daniel Heale left the budget hotel chain after less than six months in the post.

Since then, Travelodge has scrapped the role of top marketer and the post's responsibilities have been taken over by chief operating officer Guy Parsons.

Travelodge increases UK marketing budget by 20%>>
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Travelodge exchanges five more sites>>

By Gemma Sharkey

E-mail your comments to Gemma Sharkey here.

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