Table of Contents
Introduction
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- Definition
- Abbreviations
Executive Summary
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- The market
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- Figure 1: Forecast volume of hotel trips, 2007-17
- Domestic visits dominate use of hotels
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- Figure 2: Share of all hotel trips, domestic and inbound visits, 2007-11
- Figure 3: Share of all nights at hotels, domestic and inbound visits, 2007-11
- Market factors
- Olympic impact
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- Figure 4: Hotel price comparison across the 10 most expensive European cities, August 2012
- Hotels top inbound visitor choice
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- Figure 5: Number of inbound trips, by accommodation used, 2011
- Staycations dominated by short breaks
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- Figure 6: Short breaks vs mid-length holidays vs long holidays in Great Britain, by volume, 2006-11
- Companies, brands and innovation
- Market share
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- Figure 7: Top 20 hotel companies, by number of UK hotels, 2012
- Brand index
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- Figure 8: Hotel brand index, August 2012
- Innovations
- The consumer
- Hotel stays
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- Figure 9: Reasons for hotel stays in the last 12 months, August 2012
- Factors influencing hotel choice
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- Figure 10: Factors influencing hotel choice, August 2012
- Attitudes towards hotels
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- Figure 11: Attitudes towards hotels, August 2012
- What we think
Issues in the Market
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- How can hotels take advantage of parents’ responsiveness to on-site facilities?
- Is there scope for further innovation in the budget hotel market?
- What can operators do to benefit from poor weather, such as 2012’s ‘washout’ spring/summer (and possibly autumn)?
- How can operators benefit from the growing spread of better broadband?
- Is attempting to attract non-stayers to use hotel facilities worthwhile?
- How can hotels benefit from the ageing population’s impact on their user base?
Trend Application
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- Play Ethic
- Extend My Brand
- 2015: Brand Intervention
Market Drivers
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- Key points
- Holiday business
- Staycation trend continues
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- Figure 12: Volume, value and average spend on domestic holidays (GB), 2007-11
- Short breaks reign supreme
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- Figure 13: Short breaks vs mid-length holidays vs long holidays in Great Britain, by volume, 2006-11
- 2012 – rain stops play
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- Figure 14: Volume of GB holidays, January-May 2011 vs 2012
- Business back up
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- Figure 15: Volume, value and average expenditure on domestic business travel (GB), 2007-11
- Domestic competition and purpose
- Number of stays
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- Figure 16: Number of domestic* trips (all travel purposes), by accommodation used, 2007-11
- Figure 17: Accommodation used as a percentage of all domestic* trips (all travel purposes), 2007-11
- Serviced accommodation tops nights and expenditure
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- Figure 18: Total number of nights spent on domestic* trips, by accommodation used (all domestic travel purposes), 2007-11
- Figure 19: Expenditure* on domestic** trips, by accommodation used (all travel purposes), 2007-11
- Shifting business stays
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- Figure 20: Percentage of population staying at hotels, 2010-12
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- Figure 21: Star rating of the hotel(s) stayed in the last 12 months, 2011-12
- Inbound on the up
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- Figure 22: Inbound visits to the UK, by reason for trip, 2007-11
- Figure 23: Expenditure on inbound visits to the UK, by reason for trip, 2007-11
- Hotels are top choice for inbound visitors
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- Figure 24: Number of inbound trips, by accommodation used, 2007-11
- Figure 25: Number of inbound nights, by accommodation used, 2007-11
- Figure 26: Expenditure on inbound trips, by accommodation, 2007-11
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- Figure 27: Exchange rates for Sterling, 2008-12
- Olympics – provisional estimates suggest price rises drove yield, but occupancy remains unclear
- Hotel sector still growing in UK – but debt dents Travelodge ambitions
- Packages promotion
- Online booking comes under scrutiny
- Double-dip recession entrenched
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- Figure 28: GDP quarterly percentage change, Q1 2004-Q2 2012
- Figure 29: UK consumer confidence index, January 2010-September 2012
- Ageing along
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- Figure 30: Trends in the age structure of the UK population, 2007-17
- Figure 31: Forecast growth in adult (15+) age groups in the UK population, 2012-17
Competitive Context
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- Key points
- Olympic impact on price – a tale of one city
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- Figure 32: Hotel price comparison across the 40 most popular European cities, 2008-12
- Long holidaymakers and business travellers spend most
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- Figure 33: Average spend per trip, by category, 2006-10
- Figure 34: Average spend per category, by type of trip, 2010
- UK cities score highly for occupancy
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- Figure 35: Room occupancy of hotels in TRI selected key destinations, 2010-11
- Figure 36: RevPAR of hotels in TRI selected key destinations, 2010-11
Who’s Innovating?
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- Key points
- By the hour
- Hotel Tonight
- Religious evolution
- Retailers entering market
- Sustainability moves
- Wellness focus
- Ideas from overseas – mobile check in, green fund, Tingo
Market Size and Forecast
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- Key points
- Staying power
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- Figure 37: Volume of trips and nights staying in hotels, 2007-17
- Domestic trips grow fastest
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- Figure 38: Volume of trips and nights staying in hotels, by domestic and inbound visits, 2007-12
- 2012
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- Figure 39: Year-on-year % change in occupancy for full-service hotels in UK, London and regions, February-July 2012
- Inbound
- Domestic
- Forecast
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- Figure 40: Forecast volume of hotel trips, 2007-17
- Figure 41: Forecast volume of nights staying in hotels, 2007-17
- Forecast methodology
Segment Performance
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- Key points
- Domestic visits dominate
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- Figure 42: Share of all hotel trips, domestic and inbound visits, 2007-11
- Figure 43: Share of all nights at hotels, domestic and inbound visits, 2007-11
- Performance across the UK
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- Figure 44: Performance indicators for UK full-service hotels, 2010-11
- London
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- Figure 45: Performance indicators for London full-service hotels, 2010-11
- England (excluding London)
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- Figure 46: Performance indicators for England (excluding London) full-service hotels, 2010-11
- Wales
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- Figure 47: Performance indicators for Wales full-service hotels, 2010-11
- Scotland
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- Figure 48: Performance indicators for Scotland full-service hotels, 2010-11
- Budget getting bigger
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- Figure 49: Estimated occupancy rate, average room rate and room revPAR for UK budget hotels, 2011
Market Share
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- Key points
- Premier Inn leads the pack
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- Figure 50: Top 20 hotel companies, by number of UK hotels, 2009-12
Companies and Products
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- Wyndham Worldwide
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- Figure 51: Key financial information, Wyndham Worldwide, 2010-11
- Whitbread (Premier Inn)
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- Figure 52: Key financials for Whitbread Plc*, 2011-12
- Travelodge
- Marriott International
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- Figure 53: Key financial information, Marriott International, 2010-11
- Jurys Inn
- InterContinental Hotels Group
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- Figure 54: InterContinental Hotels Group hotels – Europe, Asia, Middle East and Africa, August 2012
- Figure 55: InterContinental Hotels Group – Rooms by ownership structure, Europe, Asia, Middle East and Africa, 2011
- Figure 56: Key financial information, InterContinental Hotels Group, Europe, Asia, Middle East and Africa segment, 2010-11
- Hilton Worldwide
- De Vere Group
- Best Western GB
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- Figure 57: Key financial information, Best Western UK, 2010-11
- Accor
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- Figure 58: Key financial information, Accor, 2010-11
Brand Research
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- Brand map
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- Figure 59: Attitudes towards and usage of brands in the hotel sector, August 2012
- Correspondence analysis
- Brand attitudes
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- Figure 60: Attitudes by hotel brand, August 2012
- Brand personality
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- Figure 61: hotel brand personality – macro image, August 2012
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- Figure 62: Hotel brand personality – micro image, August 2012
- Brand experience
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- Figure 63: Hotel brand usage, August 2012
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- Figure 64: Satisfaction with various hotel brands, August 2012
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- Figure 65: Consideration of hotel brands, August 2012
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- Figure 66: Consumer perceptions of current hotel brand performance, August 2012
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- Figure 67: Hotel brand recommendation – Net Promoter Score, August 2012
- Brand index
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- Figure 68: Hotel brand index, August 2012
- Figure 69: Hotel brand index vs. recommendation, August 2012
- Target group analysis
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- Figure 70: Brand target groups, August 2012
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- Figure 71: Hotel brand usage, by target groups, August 2012
- Group One – Conformists
- Group Two – Simply the Best
- Group Three – Shelf Stalkers
- Group Four – Habitual Shoppers
- Group Five – Individualists
Channels to Market
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- Key points
- Online and direct
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- Figure 72: Hotel booking methods, August 2012
- Figure 73: Hotel booking methods, online vs not online, August 2012
- Booking vs purpose of stay
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- Figure 74: Hotel booking methods, by holiday/leisure usage in the last 12 months, August 2012
- Figure 75: Hotel booking methods, by business and family occasion usage in the last 12 months, August 2012
- Bookings on the go
Stays at Hotels
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- Key points
- One in two stayed for a holiday/leisure purpose
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- Figure 76: Reasons for hotel stays in the last 12 months, August 2008-August 2012
- Top earners take hotel holidays
- Get them while they’re young
- Facility users
Factors Influencing Hotel Choice
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- Key points
- Price remains most influential…
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- Figure 77: Factors influencing hotel choice, August 2012
- … but percentage of consumers saying that falls
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- Figure 78: Influencing factors with greatest changing percentage of hotel users, Sept 2010-August 2012
- Women, parents, young adults and high-earners
- Brands for holidays
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- Figure 79: Factors influencing hotel choice, by holiday/leisure reasons for hotel stays in the last 12 months, August 2012
- Figure 80: Factors influencing hotel choice, by business/family reasons for hotel stays in the last 12 months, August 2012
Hotel Facilities – What Would People Pay For?
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- Key points
- Breakfast tops the chart
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- Figure 81: Hotel facilities worth paying a premium for, August 2012
- Fewer would pay
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- Figure 82: Trend in hotel facilities consumers consider to be worth paying a premium for, August 2008 – August 2012
- Figure 83: Percentage-point change in consumers who consider hotel facilities to be worth paying a premium for, August 2008-August 2012
- Scope to appeal to young adults and parents
- Wellness for business
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- Figure 84: Hotel facilities worth paying a premium for, by holiday/leisure reasons for hotel stays in the last 12 months, August 2012
- Figure 85: Hotel facilities worth paying a premium for, by business/family stayers and lapsed/non-stayers in the last 12 months, August 2012
Attitudes Towards Hotels
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- Key points
- Hotels seen as part of holiday
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- Figure 86: Attitudes towards hotels, August 2012
- Younger adults are researching
- Cost and children
- Chain choices
- Mobile and social media
- Business likes mobile
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- Figure 87: Attitudes towards hotels, by most popular reasons for hotel stays in the last 12 months, August 2012
- Figure 88: Attitudes towards hotels, by next most popular reasons for hotel stays in the last 12 months, August 2012
Targeting Opportunities
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- Key points
- Target groups
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- Figure 89: Hotel user target groups, August 2012
- Highly Engaged Heavy Users
- (20% of internet users aged 16+, or approximately 8 million adults)
- Demographic profile
- Marketing message
- Chain Fans
- (23% of internet users aged 16+, or approximately 9 million adults)
- Demographic profile
- Marketing message
- Choosy, With Cash
- (22% of internet users aged 16+, or approximately 9 million adults)
- Demographic profile
- Marketing message
- Least Likely to Stay
- (35% of internet users aged 16+, or approximately 14 million adults)
- Demographic profile
- Marketing message
Appendix – Market Size and Forecast
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- Figure 90: Volume forecast of hotel trips, best and worst case scenarios, 2012-17
- Figure 91: Volume forecast of nights staying at hotels, best and worst case scenarios, 2012-17
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Appendix – Segment Performance
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- Figure 92: GB regions visited (all domestic travel purposes), volume, 2007-11
- Figure 93: GB regions visited (all domestic travel purposes), expenditure, 2007-11
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Appendix – Brand Research
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- Figure 94: Brand usage, August 2012
- Figure 95: Brand commitment, August 2012
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- Figure 96: Brand momentum, August 2012
- Figure 97: Brand diversity, August 2012
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- Figure 98: Brand satisfaction, August 2012
- Figure 99: Brand recommendation, August 2012
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- Figure 100: Brand attitude, August 2012
- Figure 101: Brand image – Macro image, August 2012
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- Figure 102: Brand image – Micro image, August 2012
- Figure 103: Profile of brand target groups, by demographics, August 2012
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- Figure 104: Psychographic segmentation, by brand target groups, August 2012
- Figure 105: Brand usage, by target group, August 2012
- Brand index
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- Figure 106: Brand index, August 2012
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Appendix – Channels to Market
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- Figure 107: Hotel booking methods, by demographics, August 2012
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Appendix – Stays at Hotels
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- Figure 108: Most popular reasons for hotel stays in the last 12 months, by demographics, August 2012
- Figure 109: Next most popular reasons for hotel stays in the last 12 months, by demographics, August 2012
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- Figure 110: Other reasons for hotel stays in the last 12 months, by demographics, August 2012
- Figure 111: Use of hotel facilities without staying at hotel in the last 12 months, by demographics, August 2012
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Appendix – Factors Influencing Hotel Choice
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- Figure 112: Factors influencing hotel choice, by hotel booking methods, August 2012
- Figure 113: Most popular factors influencing hotel choice, by demographics, August 2012
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- Figure 114: Next most popular factors influencing hotel choice, by demographics, August 2012
- Figure 115: Other factors influencing hotel choice, by demographics, August 2012
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Appendix – Hotel Facilities – What Would People Pay For?
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- Figure 116: Hotel facilities worth paying a premium for, by hotel booking methods, August 2012
- Figure 117: Hotel facilities worth paying a premium for, by most popular factors influencing hotel choice, August 2012
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- Figure 118: Hotel facilities worth paying a premium for, by next most popular factors influencing hotel choice, August 2012
- Figure 119: Hotel facilities worth paying a premium for, by other factors influencing hotel choice, August 2012
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- Figure 120: Most popular hotel facilities worth paying a premium for, by demographics, August 2012
- Figure 121: Next most popular hotel facilities worth paying a premium for, by demographics, August 2012
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- Figure 122: Other hotel facilities worth paying a premium for, by demographics, August 2012
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Appendix – Attitudes Towards Hotels
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- Figure 123: Attitudes towards hotels, by other reasons for hotel stays in the last 12 months, August 2012
- Figure 124: Attitudes towards hotels, by hotel booking methods, August 2012
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- Figure 125: Attitudes towards hotels, by most popular factors influencing hotel choice, August 2012
- Figure 126: Attitudes towards hotels, by next most popular factors influencing hotel choice, August 2012
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- Figure 127: Attitudes towards hotels, by other factors influencing hotel choice, August 2012
- Figure 128: Attitudes towards hotels, by most popular hotel facilities worth paying a premium for, August 2012
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- Figure 129: Attitudes towards hotels, by next most popular hotel facilities worth paying a premium for, August 2012
- Figure 130: Attitudes towards hotels, by other hotel facilities worth paying a premium for, August 2012
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- Figure 131: Agreement with the statements ‘A hotel and its facilities are part of the holiday experience’ and ‘It’s always worth spending a lot of time researching hotels before choosing/booking’, by demographics, August 2012
- Figure 132: Agreement with the statements ‘A hotel is just a base from which to explore nearby attractions’ and ‘I just want a hotel to provide the basic essentials’, by demographics, August 2012
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- Figure 133: Agreement with the statements ‘I always check online reviews before staying at a hotel’ and ‘The recession has made me cut back on hotels’, by demographics, August 2012
- Figure 134: Agreement with the statements ‘I prefer to use hotel chains because they are reliable and you know what to expect’ and ‘Hotel chains are too ‘samey’’, by demographics, August 2012
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- Figure 135: Agreement with the statements ‘Hotel chains lack character’ and ‘I prefer to stay in budget hotels if they are available where/when I need to stay’, by demographics, August 2012
- Figure 136: Agreement with the statements ‘I prefer to pay more and have a luxury experience at a hotel’ and ‘Non-chain hotels are better because of their individuality’, by demographics, August 2012
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- Figure 137: Agreement with the statements ‘I prefer to use other types of accommodation instead of hotels for financial reasons’ and ‘Non-chain hotels are better because of their authenticity’, by demographics, August 2012
- Figure 138: Agreement with the statement ‘I’m more likely to book at a hotel that I can book/access information on through my mobile/tablet/other portable device’, by demographics, August 2012
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Appendix –Targeting Opportunities
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- Figure 139: Attitudes towards hotels, by target groups, August 2012
- Figure 140: Reasons for hotel stays in the last 12 months, by target groups, August 2012
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- Figure 141: Hotel booking methods, by target groups, August 2012
- Figure 142: Factors influencing hotel choice, by target groups, August 2012
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- Figure 143: Hotel facilities worth paying a premium for, by target groups, August 2012
- Figure 144: Target groups, by demographics, August 2012
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