The total number of bed nights stayed in UK hotels by both domestic and inbound tourists increased 2.9% in 2013 and Mintel expects the market to grow a further 0.9% in 2014. However, a strong performance from the inbound segment has been depressed by falling demand from domestic tourists, particularly from the domestic corporate travel segment.

Market supply is generally positive, as growth from new hotel rooms increased significantly in 2014 and the rate of room reductions through closures has fallen. However, continued lacklustre demand from the domestic segment means operators face the potential of overcapacity in 2015. Operators will also have to contend with the challenge of a shift towards mobile booking and research channels, decreasing brand loyalty, and an increasing level of disconnect with guests fuelled by the growth in popularity of accommodation booking and metasearch sites.

This report examines UK hotel stays taken by both domestic and foreign tourists; and forecasts how the market will perform of over the next five years. It explores the challenges and opportunities that brands operating in the hotel market will face in 2014/15, investigates the core drivers behind changes in the market and highlights some key innovations. The report also examines hotel research and booking behaviours, influencers on hotel choices, consumer attitudes towards hotels and consumer perceptions of selected hotel brands. This subject was last explored in Mintel’s Hotels, UK - October 2013.

This report examines hotels in the UK used by both domestic and foreign tourists for any leisure, business and visiting friends and relatives (VFR) purposes.

An adult, for the purposes of Mintel’s research, is anyone aged 16 or over.

Value figures are inclusive of VAT unless stated otherwise.

The standard travel and tourism definitions used in the terminology of this report are as follows:

• Tourism is any travel which involves at least one overnight stay away from home.

• A holiday is a subjectively defined form of tourism, as defined by the tourist in response to surveys such as the International Passenger Survey (IPS). A holiday can be distinguished from other leisure travel such as visits to friends and relatives (VFR) or shopping trips.

• Short-haul refers to destinations within Europe. The following destinations are considered to be short-haul: Austria, Belgium, Bulgaria, Croatia, Cyprus EU, Cyprus Non-EU, Czech Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Hungary, Iceland, Irish Republic, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey and Other Europe.

• Long-haul refers to destinations outside of Europe.

• The Canaries are included as a part of the Spanish market, and Madeira and the Azores are included as part of the Portuguese market.

• A package holiday is defined as the simultaneous sale of at least two elements of a holiday to the traveller: fares on public transport (eg flights) and commercial accommodation (eg hotel or self-catering apartment). Other elements, such as meals or excursions, are not essential to the definition of an inclusive tour. The term ‘all-inclusive’ is used to describe a special type of resort holiday in which food, drink, excursions and other services are provided as part of the total holiday cost.

• An independent holiday is one in which the traveller organises and books transport and accommodation from separate sources (eg a Channel ferry crossing and a caravan site in France).

This report uses performance indicator figures from hospitality intelligence company HotStats. HotStats provides a profit and loss benchmarking service to hoteliers from the UK, Europe and the Middle East, enabling monthly comparisons of performance against competitors. The company provides in excess of 100 performance metrics, covering 70 areas of hotel revenue, and its database holds 1,650 properties representing 360,000 rooms in 200 markets across 100 different brands.

For further information visit www.hotstats.com, email enquiries@hotstats.com or call +44 (0)20 7892 2234.

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