Table of Contents
Executive Summary
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- The market
- Volume of UK hotel stays expected to marginally increase in 2019
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- Figure 1: Total volume forecast of hotel/motel/guesthouse stays (domestic and inbound), 2014-24
- Value will dip in 2019 after which it will continue to grow moderately year-on-year
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- Figure 2: Total value forecast of hotel/motel/guesthouse stays (domestic and inbound), 2014-24
- Significant increase in room supply in the next five years
- Retaining staff increasingly important amid shortage in human resources
- Companies and brands
- OYO enters top 10 hotels in the UK by site numbers
- Alibaba aims to inspire the travel industry by opening the ‘hotel of the future’ in China
- Red Carnation Hotel Collection prioritises reducing plastic and food waste
- Virgin Hotels highlights accessibility features
- The consumer
- Chains remain twice as popular as independents
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- Figure 3: Use of tourist accommodation in the past 12 months, September 2018 and September 2019
- Vast majority of domestic hotel stays are leisure trips
- 16-34s more likely to research hotels on their smartphone and via smart speakers
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- Figure 4: Online research methods used for last hotel stay, September 2019
- Reviews matter to the vast majority of hotel guests
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- Figure 5: Attitudes towards research channels and methods, September 2019
- Families in cities most interested in using voice search to find hotels
- Chain hotels and hotel booking platforms do not feature high in ‘sustainable’ search results
- Hotels still challenged to raise awareness about the benefits of booking directly
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- Figure 6: Booking methods used for last hotel stay, September 2019
- Importance of food and drink in hotels underestimated
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- Figure 7: Key drivers of overall satisfaction with hotel used most recently, September 2019
- Customer service has the highest impact on guest satisfaction
- High potential to tempt hotel guests to eat in the hotel
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- Figure 8: Interest in various hotel services, September 2019
- What we think
Issues and Insights
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- Hotel restaurants fail to impress
- The facts
- The implications
- Technology – how to cater for both tech-addicts and tech-avoiders
- The facts
- The implications
The Market – What You Need to Know
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- Volume of UK hotel stays expected to marginally increase in 2019
- Value will dip in 2019 after which it will continue to grow moderately year-on-year
- Growth of hotel stays mostly driven by rise in inbound holiday visits
- Significant increase in room supply in the next five years
- Retaining staff increasingly important amid shortage in human resources
Market Size and Forecast
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- Volume of UK hotel stays expected to marginally increase in 2019
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- Figure 9: Total volume and value of UK hotel/motel/guesthouse stays, 2014-24
- Value will dip in 2019 after which it will continue to grow moderately year-on-year
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- Figure 10: Total volume forecast of hotel/motel/guesthouse stays (domestic and inbound), 2014-24
- Figure 11: Total value forecast of hotel/motel/guesthouse stays (domestic and inbound), 2014-24
- Forecast methodology
Market Segmentation
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- Volume of hotel nights forecast to decline in 2019
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- Figure 12: Total volume and nights of domestic trips in a hotel/motel/guesthouse in Great Britain taken by British residents and volume and nights of inbound trips in a hotel/guest house in the UK, 2014-19
- Growth of hotel stays mostly driven by rise in inbound holiday visits
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- Figure 13: Volume of domestic trips in a hotel/motel/guesthouse in Great Britain taken by British residents and volume of inbound trips in a hotel/guest house in the UK, by purpose, 2016-18
- Strong capacity is expected to impact performance metrics
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- Figure 14: UK hotels forecast, 2018-20
Market Drivers
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- High demand for staycations amid Brexit uncertainties in 2019
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- Figure 15: Volume of total domestic, outbound and inbound trips, Jan-Jul 2018 versus Jan-Jul 2019
- Significant increase in room supply in the next five years
- Retaining staff increasingly important amid shortage in human resources
Companies and Brands – What You Need to Know
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- OYO enters top 10 hotels in the UK by site numbers
- Hilton London Bankside Hotel launches vegan suite
- Alibaba aims to inspire the travel industry by opening the ‘hotel of the future’ in China
- Red Carnation Hotel Collection prioritises reducing plastic and food waste
- Virgin Hotels highlights accessibility features in some of its hotels
Market Share
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- OYO Hotels & Homes enters top 10 hotels in the UK by site numbers
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- Figure 16: Top 10 hotel operators in the UK, by UK site numbers, 2019
- Premier Inn launches upgraded rooms and expands further into the UK and Germany
- Marriott International expands into home rental market
- Hilton London Bankside Hotel launches vegan suite
Launch Activity and Innovation
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- Technological innovations in the hotel industry
- Eccleston Square Hotel offers tech services to enhance the visitor experience
- Alibaba aims to inspire the travel industry by opening the ‘hotel of the future’ in China
- Working towards a more sustainable travel industry
- Red Carnation Hotel Collection prioritises reducing plastic and food waste
- Bankside Hotel in London offers vending machines rather than mini-bars
- Campaigns and innovations to engage with the experiential traveller
- Booking.com launches Live Curious campaign in the UK
- Hard Rock Hotel opens first location in the UK
- Making travelling more accessible and inclusive
- Virgin Hotels highlights accessibility features in some of its hotels
- Sightseeing map including accessibility features made available in Tokyo
Brand Research
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- Brand map
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- Figure 17: Attitudes towards and usage of selected brands, November 2019
- Key brand metrics
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- Figure 18: Key metrics for selected brands, November 2019
- Brand attitudes: Premier Inn and Travelodge most closely associated with offering good value
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- Figure 19: Attitudes, by brand, November 2019
- Brand personality: Airbnb most distinctive brand but not always in a positive way
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- Figure 20: Brand personality – Macro image, November 2019
- Hilton most closely associated with stylish and special, but also overpriced
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- Figure 21: Brand personality – Micro image, November 2019
- Brand analysis
- Premier Inn
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- Figure 22: User profile of Premier Inn, November 2019
- Travelodge
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- Figure 23: User profile of Travelodge, November 2019
- Hilton
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- Figure 24: User profile of Hilton, November 2019
- Marriott
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- Figure 25: User profile of Marriott, November 2019
- Holiday Inn
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- Figure 26: User profile of Holiday Inn, November 2019
- Best Western
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- Figure 27: User profile of Best Western, November 2019
- Airbnb
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- Figure 28: User profile of Airbnb, November 2019
The Consumer – What You Need to Know
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- Chains remain twice as popular as independents
- 16-34s more likely to research hotels on their smartphone and via smart speakers
- Families in cities most interested in using voice search to find hotels
- Hotels still challenged to raise awareness about the benefits of booking directly
- Importance of food and drink in hotels underestimated
- Customer service has the highest impact on guest satisfaction
- Over-55s hold on to traditional services
Hotel Stays
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- Chains remain twice as popular as independents
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- Figure 29: Use of tourist accommodation in the past 12 months, September 2018 and September 2019
- Over half of UK’s adult population stayed in a UK hotel in 2019
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- Figure 30: Use of hotels, rental properties and other accommodation in the past 12 months, September 2018 and September 2019
Purpose of Stay
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- Vast majority of domestic hotel stays are leisure trips
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- Figure 31: Purpose of last hotel stay, September 2019
Online Search Behaviour
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- 16-34s more likely to research hotels on their smartphone and via smart speakers
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- Figure 32: Online research methods used for last hotel stay, September 2019
- Reviews matter to the vast majority of hotel guests
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- Figure 33: Attitudes towards research channels and methods, September 2019
- Six in 10 hotel guests aged 16-34 turn to a hotel’s social media account
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- Figure 34: Attitudes towards research channels and methods, by age, September 2019
- Families in cities most interested in using voice search to find hotel stays
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- Figure 35: Attitudes towards using voice control for hotel search, CHAID analysis, September 2019
- Chain hotels and hotel booking platforms do not feature highly in ‘sustainable’ search results
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- Figure 36: Ease of finding eco-friendly hotels, September 2019
Booking Method
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- Hotels still challenged to raise awareness about the benefits of booking directly
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- Figure 37: Booking methods used for last hotel stay, September 2019
- Almost three quarters of hotel guests booked online
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- Figure 38: Booking methods used for last hotel stay, by age, September 2019
Satisfaction
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- Importance of food and drink in hotels underestimated
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- Figure 39: Key drivers of overall satisfaction with hotel used most recently, September 2019
- Customer service has the highest impact on guest satisfaction
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- Figure 40: Overall satisfaction with hotel used most recently - key driver output, September 2019
Interest in Hotel Services
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- High potential to tempt hotel guests to eat in the hotel
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- Figure 41: Interest in various hotel services, September 2019
- Over-55s hold on to traditional services
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- Figure 42: Interest in various hotel services, by age, September 2019
- High potential to target those who book an early-morning flight
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- CHAID analysis methodology
- Key driver analysis
- Methodology
- Interpretation of results
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- Figure 43: Overall satisfaction with hotel used most recently - key driver output, September 2019
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- Figure 44: Satisfaction with hotel used most recently, September 2019
Appendix – Market Size and Forecast
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- Volume of UK hotel/motel/guesthouse stays
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- Figure 45: Total volume forecast of hotel/motel/guesthouse stays (domestic and inbound), 2019-24
- Value of UK hotel/motel/guesthouse stays
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- Figure 46: Total value forecast of hotel/motel/guesthouse stays (domestic and inbound), 2019-24
- Forecast methodology
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