Travelodge today announced a first step into the £674m* travel insurance market with the launch of Travelodge Travel Insurance. The new tie up with AIG, one of the world's leading insurance companies, has been designed to capitalise on the budget chain's brand dominance and major online following.
The insurance launch is the first major product push in its new online retailing strategy announced last month. The budget chain has targeted web revenues beyond core accommodation reservations including tickets to attractions, third party tie ups and retailing overnight necessities.
Travelodge CEO, Grant Hearn commented:
"We have one of the most powerful consumer brands in the UK and this step into the insurance market is designed to capitalise on that. Travel insurance is a natural fit with our business and given that it is largely purchased online, our two million monthly website users can now purchase an insurance product with a brand they know and trust".
Eighty three percent of Travelodge's reservations are now booked online and its website is one of the top five travel websites in the country. With the bulk of the travel insurance purchased online, the budget hotel chain believes it has the right product in the right place.
The Travelodge travel insurance will cover international travel through both single trip and annual policies. In line with Travelodge's budget approach; the insurance prices are set to undercut most other major brands**.
Travelodge Travel Insurance is provided by AIG Europe and underwritten by New Hampshire Insurance Company and Landmark Insurance Company.
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Notes to editors:
Further information contact:
Greg Dawson: 01844 358644
Travelodge
Emily Blyth: 020 7251 3801
Finsbury Communications
*Source - Mintel travel insurance market report 2006
**Price Comparison Table:
Company:
2 days (EU) 8 Days (EU) 11 days (EU) 8 days(WW) 11 days (WW)
Travelodge: £6.61 £12.20 £14.37 £25.11 £29.56
Post Office: £7.00 £20.00 £24.00 £46.00 £53.00
Marks Spencer: £15.12 £19.07 £21.17 £40.43 £44.70
Lastminute.com: £13.49 £16.38 £19.27 £42.39 £50.10
Tesco: £8.99 £14.99 £19.99 £29.99 £39.99
HSBC Inusrance Brokers Ltd is acting as Travlodge's insurance broker and is responsible for managing the Travelodge accreditation with the FSA.
About Travelodge:
Travelodge operates 312 hotels, with 300 in the UK, nine in Ireland and three in Spain. The budget chain's aggressive UK growth strategy is on track to deliver a total of 32,000 UK rooms in the next four years.
Travelodge aims to be the biggest budget operator in London by the 2012 Olympics with over 7,000 rooms in the Capital. Eighty three percent of its bookings are now made online through its industry leading website
Travelodge was the first budget hotel brand to launch in UK. In 1985, Forte-owned Travelodge opened its first hotel on the A38, North of Lichfield, before developing another six roadside hotels in its first year. Travelodge was acquired by Permira in February 2003, and its sale to DIC was completed in September 2006. Travelodge employs over 5,000 staff.
About Dubai International Capital:
Established in 2004, Dubai International Capital LLC. (DIC) is a Dubai based international investment company that primarily focuses on private equity. It is a wholly owned subsidiary of Dubai Holding, a large and diversified group that operates in the fields of healthcare, technology, finance, real estate, research, education, tourism, energy and communications. UK investments include the £800 million acquisition of Tussauds Group and the £700 million acquisition of the Doncasters Group Limited.