Table of Contents
Overview
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- What you need to know
- Covered in this Report
Executive Summary
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- The market
- Record highs in 2017, but slight dip expected in 2018
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- Figure 1: Total volume forecast of hotel/motel/guesthouse trips (domestic and inbound), 2013-23
- Figure 2: Total volume forecast of hotel/motel/guesthouse nights (domestic and inbound), 2013-23
- Companies and brands
- Branded chains control an estimated 50% of market
- Big two budget chains account for an estimated 14% of rooms
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- Figure 3: Top 10 hotels in the UK, by site numbers, October 2018
- The consumer
- Consumer demand has dipped…
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- Figure 4: Use of hotels in the past 12 months, August 2014-September 2018
- …but frequent guests have increased
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- Figure 5: Number of hotel stays in the past 12 months, September 2018
- 62% of guests go budget
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- Figure 6: Types of hotel stayed in during the past 12 months, September 2016-September 2018
- OTAs assert control
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- Figure 7: Overall channels to market used for last hotel stay, September 2015 and September 2018
- Food and personalisation are key ways for hotels to stand out
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- Figure 8: Factors that can attract hotel guests, September 2018
- Super-budget hotels grow but most consumers are prepared to pay for a better experience
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- Figure 9: Attitudes towards hotels, September 2018
- Hotels preferred to Airbnb
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- Figure 10: Attitudes towards hotels versus Airbnb, September 2018
- What we think
Issues and Insights
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- Engaging the Airbnb generation
- The facts
- The implications
- Luxury/budget polarisation amongst Millennial travellers
- The facts
- The implications
- Mix-and-match guests
- The facts
- The implications
- Personalisation is the key to loyalty
- The facts
- The implications
- Embracing wellness trends
- The facts
- The implications
The Market – What You Need to Know
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- Hotel stays and nights reach record levels in 2017...
- …but demand has softened in 2018
- Brexit uncertainty ahead
- 2017 marked a new staycation high
- US and Chinese visitor spend rising
Market Size, Segment Performance and Forecast
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- Inbound visitor surge takes hotel stays to new high in 2017
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- Figure 11: Total volume of trips and nights staying in UK hotel/motel/guesthouse, 2013-23
- Overseas visitors accounted for almost half of hotel nights in 2017
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- Figure 12: Volume of trips and nights staying in UK hotel/motel/guesthouse, by domestic and inbound visits, 2013-18
- Performance metrics strong in 2017, flatter in 2018
- Brexit challenges
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- Figure 13: UK hotels forecast, 2017-19
- Figure 14: Total volume forecast of hotel/motel/guesthouse trips (domestic and inbound), 2013-23
- Figure 15: Total volume forecast of hotel/motel/guesthouse nights (domestic and inbound), 2013-23
Market Background
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- Economic growth sluggish but wages begin to rise
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- Figure 16: UK average weekly earnings (excluding bonuses)* vs CPI inflation, percentage change year on year, January 2014-September 2018
- Domestic tourism visits up 4% in first half of 2018
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- Figure 17: Domestic tourism market (GB) (all tourism), 2013-17
- Staycation record
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- Figure 18: Domestic tourism, by trip volume and purpose, 2013-17
- Inbound slump likely to be felt most in London after record growth
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- Figure 19: Total inbound tourism markets (all tourism), 2013-17
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- Figure 20: Inbound tourism, by trip volume and purpose, 2013-17
- Emerging opportunities
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- Figure 21: Top 10 inbound source markets, by volume*, 2013-17
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- Figure 22: Top 10 inbound source markets, by value*, 2013-17
- Currency matters
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- Figure 23: Spot exchange rate, Pound Sterling versus euro and US Dollar, June 2016-October 2018
Companies and Brands – What You Need to Know
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- Half of rooms in branded chains
- Whitbread to focus on Premier Inn
- Travelodge launches ‘budget chic’
- IHG expanding luxury UK offer
- Accor focusing on guest tech
- Boutique lifestyle trend
- Premier Inn has strongest brand
Market Share
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- Over 800,000 hotel rooms in 2018
- Branded chain share is growing
- Premier Inn
- Travelodge
- InterContinental Hotels Group
- Accor
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- Figure 24: Top 10 hotels in the UK, by site numbers, October 2018
- Best Western
- Hilton
- Marriott
- Wyndham
Brand Research
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- Brand map
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- Figure 25: Attitudes towards and usage of selected brands, August 2018
- Key brand metrics
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- Figure 26: Key metrics for selected brands, August 2018
- Brand attitudes: Trust is high for Premier Inn and Holiday Inn
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- Figure 27: Attitudes, by brand, August 2018
- Brand personality: Hilton and Marriott seen as most exclusive
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- Figure 28: Brand personality – Macro image, August 2018
- Travelodge seen as basic/functional
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- Figure 29: Brand personality – Micro image, August 2018
- Brand analysis
- Premier Inn
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- Figure 30: User profile of Premier Inn, August 2018
- Travelodge
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- Figure 31: User profile of Travelodge, August 2018
- Hilton
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- Figure 32: User profile of Hilton, August 2018
- Marriott
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- Figure 33: User profile of Marriott, August 2018
- Holiday Inn
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- Figure 34: User profile of Holiday Inn, August 2018
- Best Western
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- Figure 35: User profile of Best Western, August 2018
- Airbnb
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- Figure 36: User profile of Airbnb, August 2018
Launch Activity and Innovation
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- Super-budget
- Budget-plus
- Accor using WhatsApp
- The smart room
- Alexa for Hospitality
- Personalised gestures
- Themed hotels – beer
- Themed hotels – wellness
- Experiences
The Consumer – What You Need to Know
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- Hotel penetration slips but frequency rises
- 62% of guests stay in budget hotels
- Third-party booking shift
- Food is key to standing out
- Experience valued more than functionality
- Millennials grasp capsule concept
- Consumers prefer hotels to Airbnb
Hotel Stays
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- Independent hotels dwindling but demand remains stable
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- Figure 37: Use of hotels in the past 12 months, August 2014-September 2018
- Hotel usage still far outstrips rental property
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- Figure 38: Use of all tourist accommodation in the past 12 months, September 2018
- Men are more frequent guests than women
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- Figure 39: Number of hotel stays in the past 12 months, September 2018
- Frequency of stay has increased
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- Figure 40: Number of hotel stays in the past 12 months, September 2016 and September 2018
- ‘Mix-and-match’ hotel guests
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- Figure 41: Types of hotel stayed in during the past 12 months, September 2016-September 2018
- Luxury/boutique segments have younger bias
- Affluent singles offer upscale opportunity
- Short leisure breaks account for 58% of trips
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- Figure 42: Purpose of last hotel stay, September 2018
Hotel Booking
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- Hotels grow more reliant on third-party bookings
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- Figure 43: Booking methods used for last hotel stay, September 2015 and September 2018
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- Figure 44: Overall channels to market used for last hotel stay, September 2015 and September 2018
Hotels – Potential Attractions
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- Going beyond price
- Foodie hotels
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- Figure 45: Factors that can attract hotel guests, September 2018
- Getting personal
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- Figure 46: Attitudes towards selected hotel brands, August 2018
- Country-house hotels in the city
- Total wellbeing
- The gastro-vegan hotel
- Designer/themed/high-tech/social hotels offer niche opportunities
- Airbnb-style experiences
- The cat hotel
- Bed, breakfast and service with a smile seen as core elements in a great hotel
Hotel Attitudes – Price versus Experience
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- 61% of adults think it’s worth paying extra for a better experience
- Hotel experience especially important to women and empty nesters
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- Figure 47: Attitudes towards hotels, September 2018
- Special-occasion luxury
- Hybrid Millennials
- Urban minimalism
Hotel Attitudes – Hotels versus Airbnb
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- Hotels retain traditional advantages over Airbnb
- 25% of adults see Airbnb as better value
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- Figure 48: Attitudes towards hotels versus Airbnb, September 2018
- Millennials show strong recognition of Airbnb strengths
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- Figure 49: Attitudes towards hotels versus Airbnb, Millennials versus others, September 2018
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- Figure 50: Attitudes towards hotels versus Airbnb, hotel guests versus rental property guests, September 2018
- Young urban professionals are most likely to prefer Airbnb
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- Figure 51: Hotels – CHAID – Tree output, September 2018
- Engaging the Airbnb generation
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- CHAID methodology
Appendix – Market Size and Forecast
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- Figure 52: Total volume of trips staying in UK hotel/motel/guesthouse, 2018-23
- Figure 53: Total volume of nights staying in UK hotel/motel/guesthouse, 2018-23
- Forecast methodology
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