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Are budget brands best at all times?

Inntel’s survey shows that timing is everything for hotel savings.

A survey by business travel experts Inntel has revealed when it’s best to book budget hotels – and when taking the budget option may be a false economy.

Inntel contacted eight hotels in each of its top 25 UK locations with the same enquiry: one room for one night for the next day, the next week and in three months time. The minimum standard was 3* and, as well as getting the rates from a budget hotel in each location, Inntel looked at alternative brands such as Jurys, Best Western, Holiday Inn and Ramada, each within five miles of the budget hotel.

Surprisingly, overall only 32% of the cheapest rates were from the budget brands. Budget brands were the strongest for the next week enquiry, offering 46% of the most competitive rates. Booking enquiries for the next day were the worst, with only 25% of the budget hotels offering a more competitive rate.

Industry ‘rate band’ levels have widened significantly during the economic down turn, and the rates that Inntel is achieving show that now even the 4* brand hotels can be competition for the budget brand options.

Inntel’s research also shows that the budget brands are often less flexible about cancellation charges and are unlikely to be able to offer the ‘package’ pricing Inntel is able to negotiate elsewhere for its clients, to include breakfast in the rate or upgrade the room type at no extra cost. And many budget brand hotels don’t have in-house restaurants, which gives Billback clients a problem, as the traveller has to pay for dinner and then claim the costs through their expenses, increasing administration time, reconciliation issues and costs all round.

“There will always be a strong market for the budget option,” said Inntel Managing Director, Douglas O’Neill.

“In some cases, budget brands compete with the quality and décor style of mainstream hotels, with new build structures and great locations. And it’s true that some of the alternative hotels at this end of the market have seen better days and have a service delivery that needs attention. However, we found that where we were able to find cheaper alternatives to the budget brands we could, on average, offer more than two alternative hotels, providing a choice and a full service offering, enabling us to maintain standards and quality of property for our clients.

“It’s been an interesting exercise to compare rates – and I look forward to seeing how budget brands act to retain the client base that the recession has given them, when the economic climate becomes sunnier once more. As well as continuing to invest in upgraded properties and strong locations, I believe they will also take a good look at flexibility and service.”

For further press information please contact:

Inntel on 0844 847 5500