Table of Contents
Overview
-
- What you need to know
- Covered in this Report
Executive Summary
-
- Climate of uncertainty
-
- Figure 1: Total volume forecast of hotel/motel/guesthouse trips (domestic and inbound), 2011-21
- Market of two halves
-
- Figure 2: Volume of nights staying in UK hotels by domestic and inbound visitors, 2011-16
- Made for China
-
- Figure 3: Inbound tourism (all purposes), top ten source markets by value, 2015
- Weak Pound likely to bolster demand for UK trips
-
- Figure 4: Sterling annual average exchange rate against euro and US$, 2011-15 and spot rate as at 31 October 2016
- Market becoming more branded
-
- Figure 5: Top 10 hotels in the UK, by site numbers, October 2016
- Boutique/lifestyle leads innovation
- Budget dominates but half of guests still use mid-market hotels
-
- Figure 6: Types of hotel stayed in over the past 12 months, September 2016
- Hotels lose share of booking
- Guests demand flexible approach
- Hotel Millennial
-
- Figure 7: Hotel preferences (factors rated as either very important or somewhat important), September 2016
- What we think
Issues and Insights
-
- How hotels can respond to competition from Airbnb
- The facts
- The implications
- Older guests are under-represented in luxury segment
- The facts
- The implications
- Hotels can be either a laboratory for new technology or an oasis of human contact in a world of automation
- The facts
- The implications
- Well-being and the Hygge Hotel
- The facts
- The implications
- Offering incentives for direct booking
- The facts
- The implications
The Market – What You Need to Know
-
- Flattish growth in 2016 following rise in 2015
- Short leisure breaks robust
- But inbound rise has provided biggest boost
- Terrorism fears are a problem but weak Pound is a plus
- Inflationary pressures could dampen willingness to spend
- Annual hotel trip growth of 2% expected
Market Size, Segment Performance and Forecast
-
- Inbound tourism has been key growth driver for hotels
-
- Figure 8: Total volume of trips and nights staying in UK hotels/motels/guesthouses, 2011-21
-
- Figure 9: Volume of trips and nights staying in UK hotels/motels/guesthouses, by domestic and inbound visits, 2011-16
- Brexit and beyond
- Consumers set to become even more budget-conscious
- Business travel looks challenging
- Forecast
-
- Figure 10: Total volume forecast of hotel/motel/guesthouse trips (domestic and inbound), 20011-21
- Figure 11: Volume forecast of hotel/motel/guesthouse nights (domestic and inbound), 20011-21
- The impact of the EU referendum vote
-
- Figure 12: Alternative market scenarios for the post-Brexit Hotels market, by volume of trips, 2016-21
- Figure 13: Detailed Post-Brexit scenarios for the post-Brexit Hotels market, by volume of trips, 2016-21
- Staycation mark #2 could boost hotel sector
Market Background
-
- The macro-economic context
- Domestic tourism performance up and down
-
- Figure 14: Domestic tourism market (UK) (all tourism), 2011-16
- Robust short break segment
-
- Figure 15: Domestic tourism by trip volume and purpose, 2011-15
- Inbound going from strength to strength
-
- Figure 16: Total inbound tourism markets (all tourism), 2011-16
- But concerns over terrorism are a threat
-
- Figure 17: Inbound tourism by trip volume and purpose, 2011-15
- Chinese visitor growth an opportunity for hotels
-
- Figure 18: Inbound tourism (all purposes), top ten source markets by value, 2015
- Cost of a UK hotel break drops 13%
-
- Figure 19: Sterling annual average exchange rate against euro and US$, 2011-15 and spot rate as at 31 October 2016
- Figure 20: City break holiday living costs, 2016
Key Players – What You Need To Know
-
- Budget sector drives majority of supply growth
- Supply surges after post-Olympic lull
- Premier Inn has most positive brand perceptions
- Proliferation of boutique brands
- New ways to wellness
- New hotel themes
- Room service by AI
Market Share
-
- Dramatic growth of branded budget sector
-
- Figure 21: Estimated number of UK hotels and rooms by type of hotel, 2015
-
- Figure 22: Estimated growth in number of UK hotel rooms by type of hotel, 2007-15
- Rapid growth has continued in 2016
- Risk of over-supply
- Market leaders
-
- Figure 23: Top 20 hotels in the UK, by site numbers, October 2016
Launch Activity and Innovation
-
- Boutique boom
- Down with the kids
- Themed hotels: kids TV, gaming and gin
- Cultural content and events
- Convenience shopping
- Wellness
- Humans
- The purple pound
Hotel Brand Research
-
- Brand map
-
- Figure 24: Attitudes towards and usage of selected brands, September 2016
- Key brand metrics
-
- Figure 25: Key metrics for selected brands, September 2016
- Brand attitudes: Hilton scores highest on quality
-
- Figure 26: Attitudes, by brand, September 2016
- Brand personality: Best Western suffers jaded image
-
- Figure 27: Brand personality – macro image, September 2016
- Premier Inn – honest and reliable
-
- Figure 28: Brand personality – micro image, September 2016
- Brand analysis
- Premier Inn seen as best value brand
-
- Figure 29: User profile of Premier Inn, September 2016
- Brand analysis
- Marriott needs to convince the uninitiated
-
- Figure 30: User profile of Marriott, September 2016
- Brand analysis
- Hilton exclusive but worth it
-
- Figure 31: User profile of Hilton, September 2016
- Brand analysis
- Holiday Inn seen as friendlier than upscale brands
-
- Figure 32: User profile of Holiday Inn, September 2016
- Brand analysis
- Mercure less well known but high “excellence” rating
-
- Figure 33: User profile of Mercure, September 2016
- Brand analysis
- Best Western tackling problems with major re-brand
-
- Figure 34: User profile of Best Western, September 2016
- Brand analysis
- ‘Basic’ Travelodge struggles to shrug off past image
-
- Figure 35: User profile of Travelodge, September 2016
- Brand analysis
The Consumer – What You Need To Know
-
- Independent opportunity
- Over-45s the most drawn to mid-market hotels
- Third party booking grows
- Older guests most likely to post reviews
- High-tech versus low-tech
- Consumers expect greater flexibility
- Local knowledge
- Networking hotels
Overall Accommodation Use
-
- Opportunity for independents in heavily branded industry
-
- Figure 36: Types of accommodation stayed in over the past 12 months, September 2016
- P2P threat
Hotel Use – Type, Frequency and Purpose
-
- Ageing population offers opportunities for mid-market hotels
-
- Figure 37: Types of hotel stayed in over the past 12 months, September 2016
-
- Figure 38: Types of hotel stayed in over the past 12 months, by age group, September 2016
- But older guests less likely to choose luxury
- Mix and match hotel guests
- One in five is a ‘Frequent Guest’
-
- Figure 39: Number of hotel stays over the past 12 months, September 2016
-
- Figure 40: demographic profile of frequent hotel guests (4+ stays)
- Shorter holiday patterns good for hotels
-
- Figure 41: Purpose of last hotel stay, September 2016
- Business and leisure combinations
Hotel Booking Process
-
- Downward drift of direct booking
-
- Figure 42: Method of booking last hotel stay, September 2016
- The battle for the customer
- Who are the influencers?
-
- Figure 43: Use of hotel customer review sites, September 2016
-
- Figure 44: Use of hotel customer review sites, by type of hotel stayed in, September 2016
- Interest in more personalised reviews
-
- Figure 45: Opinions on customer review sites, September 2016
Attitudes, Preferences & Opportunities
-
- Hotel tech-lovers vs Tech-escapers
-
- Figure 46: Attitudes towards hotel technology, September 2016
- Most guests are highly budget-minded
- Greater flexibility demanded
-
- Figure 47: Hotel preferences, September 2016
-
- Figure 48: Hotel preferences (factors rated as either very important or somewhat important), September 2016
- Insider dealing
- Hotel Hygge
- Millennial matters
Appendix
-
- Definition
- Abbreviations
Back to top