Table of Contents
Introduction
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- Definition
- Abbreviations
Issues in the Market
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- What is the likely impact of the Olympics on the hotel market?
- What can hotels offer in response to the threat of rising petrol prices in order to add further value to short breaks?
- How can hotels appeal to the growing 65+ age group?
- What can hotels do to maximise the potential of their food offering?
- How can hoteliers most effectively market their hotels to potential customers?
Executive Summary
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- The market
- Tale of two markets
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- Figure 1: Market size and forecast by volume of trips staying in UK hotels, 2006-16
- Figure 2: Market size and forecast by volume of nights staying in UK hotels, 2006-16
- Figure 3: Performance indicators for UK full-service hotels, 2009-10
- Budget growth
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- Figure 4: Performance indicators for UK budget hotels, 2009-10
- Market factors
- Staycation effect continues
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- Figure 5: Visits by UK residents on domestic holiday and business trips, 2006-10
- Weak Pound boosts inbound leisure
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- Figure 6: Visits by inbound visitors on holiday and business trips, 2006-10
- Olympian expectations
- Companies, brands and innovation
- Fragmented market
- Budget expansion
- Hi-tech hotels
- The consumer
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- Figure 7: Reasons for hotel stays in the last 12 months, August 2011
- Short breaks lead
- Price must be right
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- Figure 8: Factors that most influenced decision to stay at a particular hotel, August 2011
- Food at a premium
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- Figure 9: Hotel facilities worth paying a premium for, August 2011
- Chain versus non-chain
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- Figure 10: Attitudes towards hotels, August 2011
- What we think
Future Opportunities
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- Trend: Greenfluencers
- Trend: Immaterial World
Internal Market Environment
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- Key points
- Staycation here to stay?
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- Figure 11: Visits and spending by UK residents on domestic holiday trips, 2006-10
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- Figure 12: UK domestic holiday visits by duration, 2006-10
- Business shows slight pick-up
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- Figure 13: Visits and spending by UK residents on domestic business trips, 2006-10
- London on rebound
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- Figure 14: UK regions visited (all domestic travel purposes), volume, 2006-10
- Figure 15: UK regions visited (all domestic travel purposes), expenditure, 2006-10
- Leisure boosts hotel stays
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- Figure 16: Number of trips (all domestic travel purposes) by accommodation used, 2006-10
- Figure 17: Accommodation used as a percentage of all trips (all domestic travel purposes), 2006-10
- Average stay falls to 2.1 nights
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- Figure 18: Number of nights by accommodation used (all domestic travel purposes), 2006-10
- Average spend falls on hotel trips
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- Figure 19: Expenditure on trips, by accommodation used* (all domestic travel purposes), 2006-10
- Road warriors
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- Figure 20: Percentage of GB population staying at hotels, 2011
- Three/four star dominates
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- Figure 21: Star rating of the hotel(s) stayed in the last 12 months, 2011
- Inbound – overall decline but leisure growth
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- Figure 22: Inbound visitors to the UK, by reason for trip, 2006-10
- Inbound leisure spend grows by a third 2006-10
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- Figure 23: Expenditure by inbound visitors to the UK, by reason for trip, 2006-10
- Half of overseas visitors stay in hotels
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- Figure 24: Number of inbound trips by accommodation used, 2006-10
- Figure 25: Number of inbound nights by accommodation used, 2006-10
- Figure 26: Expenditure on inbound trips by accommodation used*, 2006-10
- Olympic bonanza?
- London leads hotel pipeline
Broader Market Environment
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- Key points
- Misery index rises
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- Figure 27: GDP quarterly percentage change, Q1 2004-Q3 2011
- Figure 28: UK consumer confidence index, November 2010-October 2011
- AB growth favours hotel market
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- Figure 29: Forecast adult population trends, by socio-economic group, 2006-16
- Young professional growth
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- Figure 30: Trends in the age structure of the UK population, 2006-16
- Weak Pound still helping hotels
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- Figure 31: Annual average exchange rates for Sterling, 2007-11
Competitive Context
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- Key points
- Continent-wide recovery
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- Figure 32: Room occupancy of hotels in selected key European destinations, 2009-10
- Figure 33: Average room rate of hotels in selected key European destinations, 2009-10
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- Figure 34: RevPAR of hotels in selected key European destinations, 2009-10
- London hotels the fifth most expensive
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- Figure 35: Hotel price comparison across the 50 most popular European cities, 2008-11
Who’s Innovating?
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- Key points
- New hotel designs
- Green roof
- iPad concierge
- London’s most hi-tech hotel
- e-Book at Bedtime
- Technology amnesty
- Social media promotion
- Family-friendly
Market Size and Forecast
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- Key points
- Market volume grows 3% 2006-10
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- Figure 36: Market size by volume of trips and nights staying in UK hotels, 2006-16
- Figure 37: Market size by volume of trips and nights staying in UK hotels, by domestic and inbound visits, 2006-16
- Tale of two markets
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- Figure 38: Performance indicators for UK full-service hotels, 2009-10
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- Figure 39: Performance indicators for UK budget hotels, 2009-10
- 2011 and future
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- Figure 40: Market size and forecast by volume of trips staying in UK hotels, 2006-16
- Figure 41: Market size and forecast by volume of nights staying in UK hotels, 2006-16
- Forecast methodology
Segment Performance
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- Key points
- Full service revenue mix
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- Figure 42: Hotel market mix analysis for UK, London, England, Scotland and Wales, by stays in full service hotels, 2009-10
- Figure 43: Full service hotels departmental revenue contribution, UK 2010
- Austerity-proof London
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- Figure 44: Full service hotel performance indicators for UK, London, England, Scotland and Wales, 2010
- Figure 45: Budget hotel performance indicators for UK, London, England, Scotland and Wales, 2010
Market Share
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- Key points
- Fragmented market
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- Figure 46: Top 30 hotel companies by number of UK hotels, 2009-11
Brand Research
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- Brand map
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- Figure 47: Attitudes towards and usage of hotel brands, September 2011
- Brand attitudes
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- Figure 48: Attitudes by hotel brand, September 2011
- Brand personality
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- Figure 49: Hotel brand personality – macro image, September 2011
- Figure 50: Hotel brand personality – micro image, September 2011
- Correspondence analysis
- Brand experience
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- Figure 51: Hotel brand usage, September 2011
- Figure 52: Satisfaction with various hotel brands, September 2011
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- Figure 53: Consideration of hotel brands, September 2011
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- Figure 54: Consumer perceptions of current hotel brand performance, September 2011
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- Figure 55: Hotel brand recommendation – Net Promoter Score, September 2011
- Brand index
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- Figure 56: Hotel brand index, September 2011
- Figure 57: Hotel brand index vs. recommendation, September 2011
- Brand target group analysis
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- Figure 58: Brand target groups, September 2011
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- Figure 59: Hotel brand usage, by brand target groups, September 2011
- Group One – Conformists
- Group Two – Simply the best
- Group Three – Shelf stalkers
- Group Four – Habitual shoppers
- Group Five – Individualists
Companies and Products
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- Accor
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- Figure 60: Key financial information, Accor, 2009-10
- Best Western
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- Figure 61: Key financial information, Best Western, UK, 2009-10
- De Vere Group
- Hilton Worldwide
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- Figure 62: Key financial information, Hilton Worldwide, UK, 2009-10
- Intercontinental Hotel Group
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- Figure 63: Hotels, Intercontinental Hotel Group, Europe, Middle East and Africa, June 2011
- Figure 64: Hotels by ownership structure, Intercontinental Hotel group, Europe, Middle East and Africa, 2010
- Figure 65: Key financial information, Intercontinental Hotel Group, Europe, Middle East and Africa segment, 2009-10
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- Figure 66: Development pipeline, Intercontinental Hotel Group, UK, June 2010-May 2011
- Jurys Inn
- Marriott International
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- Figure 67: Key financial information, Marriott International, international lodging segment 2009-10
- Travelodge
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- Figure 68: Key financial information, Travelodge, UK, 2009-10
- Whitbread (Premier Inn)
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- Figure 69: Key financial information, Whitbread, UK, 2009-10
- Wyndham Worldwide
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- Figure 70: Key financial information, Wyndham Worldwide, 2009-10
Hotel Stays
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- Key points
- Short breaks still in demand
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- Figure 71: Reasons for hotel stays in the last 12 months, August 2008-August 2011
- Family bias increases
- AB male business profile
Hotel Booking
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- Key points
- Seven in ten book directly
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- Figure 72: Hotel booking methods last 12 months, August 2011
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- Figure 73: Online hotel booking devices used last 12 months, August 2011
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- Figure 74: Hotel booking habits last 12 months, August 2011
Influential Factors When Choosing a Hotel
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- Key points
- Price remains main factor
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- Figure 75: Factors that most influenced decision to stay at a particular hotel, September 2010 and August 2011
- Proximity follows price
- Seeing is believing
- Been before
- Travelling solo
Hotel Facilities
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- Key points
- Food a high priority
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- Figure 76: Hotel facilities worth paying a premium for, 2008-11
- Pull of the pool
- Spa and bar
- Concierge for longer stays
Attitudes Towards Hotels
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- Key points
- Half just want bare essentials
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- Figure 77: Attitudes towards hotels, August 2011
- Three in ten prefer luxury/lifestyle
- Chains versus independent
- Localising the brand
- Downshifting
- Negative perception
Targeting Opportunities
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- Key points
- Target groups
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- Figure 78: Hotels target groups, August 2011
- Experience Seekers
- (32% of UK internet users aged 16+ or 11.5 million adults)
- Demographic profile
- Marketing message
- Cloth Cutters
- (33% of UK internet users aged 16+ or 11.9 million adults)
- Demographic profile
- Marketing message
- Bare Essentials
- (35% of UK internet users aged 16+ or 12.6 million adults)
- Demographic profile
- Marketing message
Appendix – Market Size and Forecast
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- Figure 79: Forecasts for total trips involving UK hotel stays, best and worst case scenarios, 2011-16
- Figure 80: Forecasts for total nights staying in UK hotels, best and worst case scenarios, 2011-16
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Appendix – Brand Research
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- Figure 81: Brand usage, January 2011
- Figure 82: Brand commitment, January 2011
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- Figure 83: Brand momentum, January 2011
- Figure 84: Brand diversity, January 2011
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- Figure 85: Brand satisfaction, January 2011
- Figure 86: Brand Recommendation, January 2011
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- Figure 87: Brand attitude, January 2011
- Figure 88: Brand macro image, January 2011
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- Figure 89: Brand micro image, January 2011
- Figure 90: Profile of Brand target groups, by demographics, January 2011
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- Figure 91: Psychographic segmentation by Brand target groups, January 2011
- Figure 92: Brand usage, by brand target groups, January 2011
- Brand index
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- Figure 93: Brand micro index, January 2011
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Appendix – Hotel Stays
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- Figure 94: Most popular reasons for hotel stays in the last 12 months, by demographics, August 2011
- Figure 95: Next most popular reasons for hotel stays in the last 12 months, by demographics, August 2011
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- Figure 96: Other reasons for hotel stays in the last 12 months, by demographics, August 2011
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Appendix – Hotel Booking
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- Figure 97: Hotel booking methods last 12 months, by most popular reasons for hotel stays in the last 12 months, August 2011
- Figure 98: Hotel booking methods last 12 months, by next most popular reasons for hotel stays in the last 12 months, August 2011
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- Figure 99: Hotel booking methods last 12 months, by other reasons for hotel stays in the last 12 months, August 2011
- Figure 100: Online hotel booking devices used last 12 months, by most popular reasons for hotel stays in the last 12 months, August 2011
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- Figure 101: Online hotel booking devices used last 12 months, by next most popular reasons for hotel stays in the last 12 months, August 2011
- Figure 102: Online hotel booking devices used last 12 months, by hotel booking methods last 12 months, August 2011
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- Figure 103: Hotel booking habits last 12 months, by most popular reasons for hotel stays in the last 12 months, August 2011
- Figure 104: Hotel booking habits last 12 months, by next most popular reasons for hotel stays in the last 12 months, August 2011
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- Figure 105: Hotel booking habits last 12 months, by other reasons for hotel stays in the last 12 months, August 2011
- Figure 106: Hotel booking methods last 12 months, by demographics, August 2011
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Appendix – Influential Factors When Choosing a Hotel
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- Figure 107: Factors that most influenced decision to stay at a particular hotel, by most popular reasons for hotel stays in the last 12 months, August 2011
- Figure 108: Factors that most influenced decision to stay at a particular hotel, by next most popular reasons for hotel stays in the last 12 months, August 2011
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- Figure 109: Factors that most influenced decision to stay at a particular hotel, by other reasons for hotel stays in the last 12 months, August 2011
- Figure 110: Factors that most influenced decision to stay at a particular hotel, by hotel booking methods last 12 months, August 2011
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- Figure 111: Most popular factors that most influenced decision to stay at a particular hotel, by demographics, August 2011
- Figure 112: Next most popular factors that most influenced decision to stay at a particular hotel, by demographics, August 2011
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- Figure 113: Other factors that most influenced decision to stay at a particular hotel, by demographics, August 2011
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Appendix – Hotel Facilities
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- Figure 114: Hotel facilities worth paying a premium for, by most popular reasons for hotel stays in the last 12 months, August 2011
- Figure 115: Hotel facilities worth paying a premium for, by next most popular reasons for hotel stays in the last 12 months, August 2011
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- Figure 116: Hotel facilities worth paying a premium for, by other reasons for hotel stays in the last 12 months, August 2011
- Figure 117: Hotel facilities worth paying a premium for, by hotel booking methods last 12 months, August 2011
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- Figure 118: Hotel facilities worth paying a premium for, by most popular factors that most influenced decision to stay at a particular hotel, August 2011
- Figure 119: Hotel facilities worth paying a premium for, by next most popular factors that most influenced decision to stay at a particular hotel, August 2011
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- Figure 120: Hotel facilities worth paying a premium for, by other factors that most influenced decision to stay at a particular hotel, August 2011
- Figure 121: Hotel facilities worth paying a premium for, by least popular factors that most influenced decision to stay at a particular hotel, August 2011
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- Figure 122: Most popular hotel facilities worth paying a premium for, by demographics, August 2011
- Figure 123: Next most popular hotel facilities worth paying a premium for, by demographics, August 2011
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- Figure 124: Other hotel facilities worth paying a premium for, by demographics, August 2011
- Figure 125: Least popular hotel facilities worth paying a premium for, by demographics, August 2011
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Appendix – Attitudes Towards Hotels
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- Figure 126: Attitudes towards hotels, by most popular reasons for hotel stays in the last 12 months, August 2011
- Figure 127: Attitudes towards hotels, by next most popular reasons for hotel stays in the last 12 months, August 2011
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- Figure 128: Attitudes towards hotels, by other reasons for hotel stays in the last 12 months, August 2011
- Figure 129: Attitudes towards hotels, by hotel booking methods last 12 months, August 2011
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- Figure 130: Attitudes towards hotels, by most popular factors that most influenced decision to stay at a particular hotel, August 2011
- Figure 131: Attitudes towards hotels, by next most popular factors that most influenced decision to stay at a particular hotel, August 2011
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- Figure 132: Attitudes towards hotels, by other factors that most influenced decision to stay at a particular hotel, August 2011
- Figure 133: Attitudes towards hotels, by least popular factors that most influenced decision to stay at a particular hotel, August 2011
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- Figure 134: Attitudes towards hotels, by most popular hotel facilities worth paying a premium for, August 2011
- Figure 135: Attitudes towards hotels, by next most popular hotel facilities worth paying a premium for, August 2011
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- Figure 136: Attitudes towards hotels, by popular hotel facilities worth paying a premium for, August 2011
- Figure 137: Attitudes towards hotels, by other hotel facilities worth paying a premium for, August 2011
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- Figure 138: Attitudes towards hotels, by least popular hotel facilities worth paying a premium for, August 2011
- Figure 139: Agreement with hotel attitude statements, by demographics, August 2011
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- Figure 140: Further agreement with hotel attitude statements, by demographics, August 2011
- Figure 141: Further agreement with hotel attitude statements, by demographics (continued), August 2011
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Appendix – Targeting Opportunities
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- Figure 142: Reasons for hotel stays in the last 12 months, by target groups, August 2011
- Figure 143: Hotel booking methods last 12 months, by target groups, August 2011
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- Figure 144: Online hotel booking devices used last 12 months, by target groups, August 2011
- Figure 145: Hotel booking habits last 12 months, by target groups, August 2011
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- Figure 146: Factors that most influenced decision to stay at a particular hotel, by target groups, August 2011
- Figure 147: Hotel facilities worth paying a premium for, by target groups, August 2011
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- Figure 148: Attitudes towards hotels, by target groups, August 2011
- Figure 149: Target groups, by demographics, August 2011
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