Travelodge hits out at ‘misleading' ads

Budget hotel brand Travelodge has accused four hotel groups of misleading consumers by advertising ambiguous prices.

Travelodge made the rip-off accusations against Hilton, Marriott, Swallow and Macdonald hotels in a full-page advert in The Times last week.

The budget group claimed its rivals' ads headlined a price-per-person rather than a price-per-room rate, when its rates were based on two people sharing for a minimum of two nights. This could mean an advertised rate of £49.95 was likely to cost almost £200 for the stay.

A spokeswoman for Travelodge said that greater price transparency was needed to persuade UK residents to stay in hotels more often. She added that only 30% of people in the UK stayed in a hotel in 2004.

The four hotel brands strongly refuted the claims of tricking consumers.

Marriott was "shocked and dismayed" by the claims and said it had received no complaints from customers or from the Advertising Standards Authority.

Macdonald Hotels insisted it followed the recognised industry norm, while Hilton said it would not enjoy its high levels of occupancy and repeat business if it were not transparent with customers.

"It is always a mistake to underestimate the intelligence of your customers," added a Hilton spokeswoman.

Swallow Hotels, too, believed its customers were bright enough to understand its pricing structure. Managing director Peter Gray said: "In addition, we offer a full service at our hotels while so-called budget groups such as Travelodge offer little more than a bed for the night."

Travelodge has registered its complaint with the advertising standards watchdog and is compiling a dossier of ads it feels are misleading, to present to the Consumer Association.

By Angela Frewin