The domestic tourism market is fairly static, facing both strong competition from overseas destinations offering cheaper prices and the lure of low-cost flights. Can the market benefit from the “staycation” trend despite the bad weather of the past two summers? As the current economic conditions begin to take their toll, budget hotel operators are benefiting with cost conscious consumers choosing to downgrade. Short breaks continue to be the mainstay of the UK hotel market with many holidaymakers supplementing their annual two-week break abroad with shorter holidays within the UK. Inbound visitors present mixed opportunities; the high spending US market continues to struggle whilst those from the euro zone make the most of favourable exchange rates but tend not to stay for so long.

The pursuit of pleasure is a key driver of the “leisure economy”; taking holidays is a top spending priority for many consumers. And highlighting the nation’s current love affair with food and eating out, hotel guests are prepared to pay a premium for a quality restaurant. High frequency business users are a key sector and as such loyalty must be courted. Likewise, families with young children and those from the third age and retired lifestage groups tend to favour a break in the UK.

This report examines hotels in the UK used by consumers for business, leisure and visiting friends and relatives (VFR) purposes. It explores the factors affecting market growth, identifies current trends and innovations, assesses how the market has changed and outlines future developments.

Key report themes:

The occupancy/revPAR performance of the UK’s hotels by city/country as a whole

The performance of UK hotels compared with other EU countries

The relative room/bed/property capacities of the UK’s major chains and their expansion plans

The rise of budget hotels and ‘boutique budget hotels’

Innovations in the sector in property, service, and ‘frills’

The performance of UK hotels compared with other accommodation

Relative use of UK hotels for business/leisure

The industry’s view on the development of the marketplace

The importance of location versus facilities