ASA Adjudication on Travelodge Hotels Ltd

Ad

A national press ad, for Travelodge Hotels, was headlined "Expensive by Holiday Inn". Text below stated "TRAVELODGE £39 EXPRESS BY HOLIDAY INN £65 SAVE £26".

Issue

The complainant challenged whether the comparison in the ad was misleading because she believed the Holiday Inn room price included breakfast but the Travelodge price did not.

CAP Code (Edition 11)

Response

Travelodge Hotels Ltd (Travelodge) said they contracted an independent company to source national price data for hotels, which they did by extracting data from their competitors websites. They checked approximately 1,300 prices, for each day between seven and 30 days from the initial check, specifically based on a single nights stay with no extras. The price quoted in the ad for each brand was the average of a single nights stay in that period, with no extras.

They sent a copy of data related to a price check conducted four days before the ad was published, which related to dates from seven to 30 days after that check. They had conducted their search to exclude extras such as breakfast to allow a direct comparison with Travelodges rate. They noted a stay in Holiday Inn included a complimentary continental breakfast but the fact that it was free meant that it was not part of the cost stated in the ad.

Travelodge did not believe the ad was misleading or inaccurate; they compared like with like and had stated the date the prices were sourced and the period the average price was based on. They felt they had presented the facts clearly and unambiguously. They had established the brand as a clear leader for budget hotel rooms; they were consistently the best value nationwide. It was intended that the ad would provide consumers with comparative information to highlight the gap between Travelodge and other hotel brands thereby allowing them to reach an informed decision.

Assessment

Upheld

The ASA noted Travelodge did not consider Holiday Inns complimentary breakfast to be part of the room rate; it was not referred to in their price comparison data, which did not include extras. We noted however that although it was offered as a free addition to their advertised rate, consumers who booked a room at a Holiday Inn would nevertheless be eligible for that breakfast; those who stayed at Travelodge would be required to pay an additional charge if they wished to opt for breakfast. We considered that the basis of the comparison was not clear and the ad should have stated that the Holiday Inn price included a complimentary breakfast. We concluded that the ad was misleading.

The ad breached CAP Code clauses 7.1 and 7.2 (Truthfulness) and 18.1 (Comparisons with identified competitors and/or their products).

Action

The ad must not appear in its current form. We told Travelodge to ensure that the basis of comparisons were clear in future ads.

Adjudication of the ASA Council (Non-broadcast)