Some of your business travellers may not see it this way, but budget hotels have a lot to offer the corporate sector.

Only a decade or so ago, there was a stark choice between booking with an expensive global hotel group or a cheap but unknown quantity. Now the market is awash with big-name budget brands that do exactly what they say on the tin.

At this price point, a brand name provides reassurance in offering an affordable stay where travellers know exactly what they’ll get. That usually means city centre locations, affordable breakfasts, 12pm check-out and reasonable fees to check in early or check out late. Add in decent Wi-Fi, comfortable beds and 24-hour security and it’s job done.

The budget sector grew by targeting leisure travellers but has learned to cater for the corporate world, especially SMEs, and now brands actively court business travellers with dedicated programmes.

One theme is common to all: core comforts, as easyHotel Chief Executive Karim Malak explains: “Four-star mattresses, black-out curtains, sound proofing. You don’t pay for what you don’t use, like spas and swimming pools.”

His brand has close to 50 hotels with, on average, a third of guests staying for business. Malak believes the corporate sector no longer thinks of budget hotels as a less-favoured option. As a result, easyHotel has added workstations in rooms and work areas in public spaces. “Those weren’t there 20 years ago,” he says. “It used to be tough to send staff to budget hotels, but that’s not the case anymore because the concept has changed. The habits of the leisure traveller progressively creep into the business market. Twenty-five years ago, people would attach social currency to staying in one brand or another. It’s still true, but only at the very fine end of the market.”

“Low-cost hotels tend not to have atriums and pools and tend to be modular and new, so therefore are probably more sustainable”

Paul Dear, SAP Concur Senior Director, EMEA Global Supplier Strategy, is seeing a real shift in booking trends, not just driven by price, and has added budget brands to Concur Travel’s inventory.

“It’s definitely a coming together of cost, ability to book and sustainability. We’re seeing a groundswell in European markets,” he says. “It’s almost inappropriate to say ‘low-cost’ hotels – low-costs are coming up slightly and three- and four-star are probably coming down slightly.

“Cleanliness and comfort are the key. Low-cost hotels understand the business market much better. The lower end of the scale understands how to work with TMCs better.”

He adds that budget hotels win when it comes to sustainability. “Low-cost hotels tend not to have atriums and pools and tend to be modular and new, so therefore are probably more sustainable. We use Thrust Carbon to see emissions and have several customers with carbon budgets; they can stay 10 times in a low CO2 hotel and six or seven times in one that’s higher.”

Obviously, easyHotel has an advantage in its brand association with easyJet and Malak believes the budget hotel sector generally has benefited from consumers’ faith in low-cost airlines.

“Everybody understands the concept; it appeals to all segments. Investment bankers fly easyJet, it’s the same with easyHotel.”

“Travelodge is continuing to upgrade its estate, with 65% of rooms refitted with its updated design.”

One issue for corporates is that with budget hotel direct sales channels being so prevalent, booking direct – and therefore, outside policy – is an issue. Booking tools like Concur have had to react.

“Leakage is a problem; so we bought all of that content into our product,” says Dear. OTAs have also been included.

“If you want an Expedia hotel, you can get it. The traveller’s voice meant we had to do that. We have to counter staff saying I can get it cheaper,” he adds.

However, hotel brands have also been courting corporates direct with their own programmes. One such is Premier Inn Business, open to corporates and TMCs and offering between 5% and 15% off Flex rates. There are no spend thresholds and tracking is possible, plus members receive up to six weeks’ interest-free credit. The programme boasts more than 50,000 UK business members and it’s free.

In addition, the chain now has more than 2,000 Premier Plus rooms aimed firmly at the corporate market. Most come with free Ultimate Wi-Fi (normally £5 for 24 hours), faster than the standard connection, plus a bedside USB port, mini-fridge and water, hot drinks, snacks, iron and ironing board. Other differences include an “improved” workspace, rainfall shower, upgraded toiletries, armchair and hairdryer.

Travelodge has a similar corporate programme, Travelodge Business, with more than 45,000 companies registered. It offers 5% off all flexible booking rates plus up to six weeks interest-free credit. Around half of Travelodge’s 22 million guests are business travellers, which it says range “from independent contractors and SMEs to major FTSE 100 companies”.

Travelodge Business is backed by a UK support team and allows pre-payment of expenses via the Travelodge Business Pay card, so staff do not need to pay out from their own pockets.

Travelodge says Business Pay “is used by tens of thousands” of UK companies.

Further benefits include no card or booking fees and a dashboard enabling tracking and control of spend. Another perk is that bookings can be amended or cancelled up to midday on arrival date.

Travelodge is continuing to upgrade its estate, with 65% of rooms refitted with its updated design.

“SuperRooms are located on a dedicated floor which tends to be quieter,” a spokesperson explains. “This balance of comfort and cost-efficiency appeals to SMEs, contractors and large corporates alike. Since the rollout of our new next generation rooms, we’ve seen a noticeable shift in the types of business travellers choosing Travelodge, particularly from professional sectors such as legal and financial services.”

“It used to be tough to send staff to budget hotels, but that’s not the case anymore because the concept has changed”

Accor’s budget brand Ibis has designed services with business guests in mind.

“We offer round-the-clock snacks and drinks at our bars that suit irregular hours often worked by business travellers,” says Julie White, CCO Premium Midscale Economy Brands in Europe & North Africa.

“We also offer flexible dining options and breakfast buffets that cater to early starts or late arrivals. Our hotels have social hubs that double as networking spaces, with a selection of Ibis properties also offering well-equipped meeting rooms.”

Another brand with a business travel niche is Days Inn by Wyndham, with more than 1,500 properties in over 20 countries, including 35 at UK motorway service areas. Some are being rebranded as Super 8 by Wyndham, including those at Durham and Chester.

Jackie Brown, Wyndham Hotels & Resorts Regional Director North & West Europe, says brands have adapted to business travel trends: “Hybrid and remote events have become a central aspect of the modern event landscape. As a result, our hotels and meeting rooms are equipped with state-of-the-art technology to support in-person and virtual participants.”

Brown says Days Inn has strong relationships with TMCs and corporates, “particularly among contractors, drivers and government travellers” and collaborates with Welcome Break and Roadchef to respond to RFPs.

It’s all a far cry from how roadside accommodation used to be and yet another sign the budget sector is stepping up to cater for the business sector. There’s now a world of choice – with the good news that in both cash and sustainability terms, it isn’t costing the earth.