Table of Contents
Executive Summary
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- The market
- Hotel operators will need to rely on inbound tourists for growth
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- Figure 1: Volume forecast of hotel/motel/guesthouse nights, 2014-19
- Number of hotel visits forecast to increase 9% by 2019
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- Figure 2: Volume forecast of hotel/motel/guesthouse trips, 2014-19
- Market factors
- Google Limited Offers could disrupt the hotel booking market
- Skyscanner wins appeal to re-open the investigation into rate parity
- Legal reforms pave the way for Airbnb to expand in the UK
- Domestic market has contracted for three consecutive years
- Inbound tourism market is booming
- Market share
- Premier Inn and Travelodge continue to dominate the UK market
- Web traffic to Premier Inn and Travelodge has declined
- Over 15,000 rooms are in the pipeline for 2015
- Budget hotels hold a 23% share of rooms; London accounts for 22%
- The consumer
- Chain hotels have been more successful at courting Millennials
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- Figure 3: Accommodation used, August 2014
- Lodging services present a growing threat
- Mobile growth could prove detrimental to independents and direct bookings
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- Figure 4: Device used for research, August 2014
- Only half of guests book directly with the hotel
- Mobile accounts for a fifth of online bookings
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- Figure 5: Device used for online booking, August 2014
- Brands need to facilitate a cross-platform customer journey
- A quarter of guests booked less than a week before check-in
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- Figure 6: Booking lead time, August 2014
- Mobile provides an opportunity for brands to capitalise on impulsiveness
- Price and location are most influential factors when choosing a hotel
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- Figure 7: Influencers on hotel choice, August 2014
- Just 4% of guests are influenced by hotel loyalty schemes
- Only half of guests visit a hotel’s website before booking
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- Figure 8: Attitudes towards hotels, August 2014
- Hotel’s need to integrate peer reviews into their websites
- Deal hunting has not contributed to shorter lead times
- What we think
Issues and Insights
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- What are the opportunities and challenges presented by the growth of mobile?
- The facts
- The implications
- How can hotel operators react to a decreasing number of touch points?
- The facts
- The implications
Trend Application
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- Trend: Make it Mine
- Trend: Influentials
- Trend: Let's Make a Deal
Market Drivers
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- Key points
- Google Limited Offers could disrupt the hotel booking market
- Skyscanner wins appeal to re-open the investigation into rate parity
- Legal reforms pave the way for Airbnb to expand in the UK
- Domestic market has contracted for three consecutive years
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- Figure 9: Domestic tourism market (GB) (all tourism), 2009-14
- Inbound tourism market is booming
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- Figure 10: Inbound tourism market (UK) (all tourism), 2009-14
- A weak domestic performance is depressing the wider market
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- Figure 11: Combined domestic and inbound tourism markets (all tourism), 2009-14
Who's Innovating?
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- Key points
- Marriott, Hilton and Starwood embrace mobile check-in and keyless entry
- Hilton strikes an industry first by letting guests select their own rooms
- BeMate bridges the gap between hotel operators and Airbnb
- Hotelrevu uses sentiment analysis to improve the accuracy of hotel ratings
Market Size and Forecast
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- Key points
- Hotel operators will need to rely on inbound tourists for growth
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- Figure 12: Total volume of trips and nights staying in UK hotels/motels/guesthouses, by domestic and inbound visits, 2009-14
- Strong growth in bed nights forecast to 2019
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- Figure 13: Forecast of hotel/motel/guesthouse trips and nights, 2009-19
- Fan charts
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- Figure 14: Volume forecast of hotel/motel/guesthouse trips, 2014-19
- Figure 15: Volume forecast of hotel/motel/guesthouse nights, 2014-19
- Forecast methodology
Segment Performance
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- Key points
- London occupancy rates outperform the rest of the UK
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- Figure 16: Full-service hotel performance indicators, by region, 2013
- Regional hotels enjoy a more even spread between revenue streams
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- Figure 17: Revenue breakdown, by region, 2013
- London continued to perform well in the post-Olympic year
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- Figure 18: London full-service hotel performance indicators, 2012 and 2013
- Regional England also improved across every metric
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- Figure 19: England (excluding London) full-service hotel performance indicators, 2012 and 2013
- Edinburgh and Aberdeen fuel a strong performance from Scotland
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- Figure 20: Scotland full-service hotel performance indicators, 2012 and 2013
- Wales enjoyed a boost from key sporting events and concerts in 2013
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- Figure 21: Wales full-service hotel performance indicators, 2012 and 2013
Market Share and Supply
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- Key points
- Premier Inn and Travelodge continue to dominate the UK market
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- Figure 22: Top 20 UK hotel groups, by number of hotels in the UK, September 2014
- Web traffic to Premier Inn and Travelodge has declined
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- Figure 23: Top ten UK hotel websites, by unique monthly visitors, 2012-14
- Over 15,000 rooms are in the pipeline for 2015
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- Figure 24: UK hotel market supply, pipeline and closures, September 2014
- Budget hotels account for 23% of UK hotel rooms…
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- Figure 25: UK room and hotel supply, by category, September 2014
- …while London holds 22%
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- Figure 26: UK room and hotel supply, by region, September 2014
Companies and Products
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- Whitbread (Premier Inn)
- Background
- Financial performance
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- Figure 27: Financial performance of Whitbread PLC, 2013 and 2014
- Travelodge
- Background
- Financial performance
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- Figure 28: Financial performance of Travelodge Hotels Limited, 2012 and 2013
- InterContinental Hotels Group (Holiday Inn)
- Background
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- Figure 29: InterContinental Hotels Group’s European portfolio, June 2014
- Financial performance
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- Figure 30: Financial performance of InterContinental Hotels Group, 2012 and 2013
- Accor (Ibis)
- Background
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- Figure 31: Accor’s portfolio in Central, Nordic and East Europe (not including France), June 2014
- Financial performance
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- Figure 32: Financial performance of Accor, 2012 and 2013
- Hilton Worldwide
- Background
- Financial performance
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- Figure 33: Financial performance of Hilton Worldwide, 2012 and 2013
- Marriott International
- Background
- Financial performance
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- Figure 34: Financial performance of Marriot International, 2012 and 2013
- Carlson Rezidor Hotel Group (Radisson)
- Background
- Financial performance
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- Figure 35: Financial performance of Rezidor, 2012 and 2013
Brand Perceptions and Social Media
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- Brand perceptions
- Key brand metrics
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- Figure 36: Key brand metrics, June 2014
- Brand map
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- Figure 37: Attitudes towards and usage of brands in the hotel sector, June 2014
- Correspondence analysis
- Brand attitudes
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- Figure 38: Attitudes, by hotel brand, June 2014
- Brand personality
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- Figure 39: Hotel brand personality – macro image, June 2014
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- Figure 40: Hotel brand personality – micro image, June 2014
- Brand usage
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- Figure 41: Hotel brand usage, June 2014
- Brand experience
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- Figure 42: Hotel brand experience, June 2014
- Social Media and Online Buzz
- Social Media Metrics
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- Figure 43: Social media metrics of selected hotel brands, September 2014
- Online mentions
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- Figure 44: Share of online conversation of selected hotel brands, 29 September 2013 – 28 September 2014
- Topics of discussion
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- Figure 45: Topics of discussion around selected hotel brands, 29 September 2013 – 28 September 2014
- Where discussion occurs
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- Figure 46: Share of brand conversation, by page type, 29 September 2013 – 28 September 2014
- Analysis by brand
- Hilton
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- Figure 47: Topic cloud around mentions of Hilton, 29 September 2013 – 28 September 2014
- Marriott
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- Figure 48: Topic cloud around mentions of Marriott, 29 September 2013 – 28 September 2014
- Premier Inn
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- Figure 49: Topic cloud around mentions of Premier Inn, 29 September 2013 – 28 September 2014
- Holiday Inn
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- Figure 50: Topic cloud around mentions of Holiday Inn, 29 September 2013 – 28 September 2014
- Travelodge
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- Figure 51: Topic cloud around mentions of Travelodge, 29 September 2013 – 28 September 2014
- Radisson
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- Figure 52: Topic cloud around mentions of Radisson, 29 September 2013 – 28 September 2014
- Ibis
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- Figure 53: Topic cloud around mentions of Ibis, 29 September 2013 – 28 September 2014
The Consumer – Accommodation Used
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- Key points
- Chain hotels have been more successful at courting Millennials
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- Figure 54: Accommodation used, August 2014
- Lodging services present a growing threat
The Consumer - Research and Booking Methods
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- Key points
- Mobile growth could prove detrimental to independents and direct bookings
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- Figure 55: Device used for research, August 2014
- Only half of guests book directly with the hotel
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- Figure 56: Booking method, August 2014
- Mobile accounts for a fifth of online bookings
-
- Figure 57: Device used for online booking, August 2014
- Brands need to facilitate a cross-platform customer journey
The Consumer – Booking Lead Time
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- Key points
- A quarter of guests booked less than a week before check-in
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- Figure 58: Booking lead time, August 2014
- Mobile provides an opportunity for brands to capitalise on impulsiveness
The Consumer – Influencers on Hotel Choice
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- Key points
- Price and location are most influential factors when choosing a hotel
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- Figure 59: Influencers on hotel choice, August 2014
- Just 4% of guests are influenced by hotel loyalty schemes
- Peer reviews and star ratings are key drivers for independent hotels
The Consumer – Attitudes towards Hotels
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- Key points
- Only half of guests visit a hotel’s website before booking
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- Figure 60: Attitudes towards hotels, August 2014
- Hotels need to integrate peer reviews into their websites
- Deal hunting has not contributed to shorter lead times
Appendix – Market Size and Forecast
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- Figure 61: Volume forecast of hotel/motel/guesthouse trips, 2014-19
- Figure 62: Volume forecast of hotel/motel/guesthouse nights, 2014-19
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