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Hotels - UK - November 2008

ISSUES IN THE MARKET
Key issues
Definitions
Abbreviations
INSIGHTS AND OPPORTUNITIES
Food for thought
Out and about
Personalisation for business
MARKET IN BRIEF
Market growth slows
Hotel industry begins to feel economic gloom…
…but budget sector finds silver lining
Short but sweet
Capital gains
Greenies, discounters and fashionistas
Premium potential and golden oldies
Family favourites and the lure of good food
Going private and looking to 2012
FAST FORWARD TRENDS
 TREND 1: FRESH TRAVEL
What’s it about?
What’s it mean?
What’s next?
 TREND 2: THAT'S (HOME) ENTERTAINMENT!
What’s it about?
What’s it mean?
What’s next?
INTERNAL MARKET ENVIRONMENT
Key points
Domestic doldrums…
Figure 1: Domestic holidays, 2003-13
…boosted by holiday spend
Figure 2: Domestic holidays expenditure, 2003-13
Short support
Figure 3: Volume and value of domestic city/short break market, 2002-08
Cautious corporate climate
Figure 4: Business travel market size by volume, 2001-08
Businesses go budget
Figure 5: Business travel market size by expenditure, 2001-08
The inbound effect
Figure 6: Inbound visitors to the uk by reason for trip, 2002-07
Private equity ownership – is it a positive trend?
A sporting chance
Construction boom despite gloom
BROADER MARKET ENVIRONMENT
Key points
Consumer confidence crashes
Figure 7: GfK NOP consumer confidence index, July 2007-June 2008
Recession rumours abound…
Figure 8: Trends in personal disposable income and consumer expenditure, 2003-13
…and hoteliers feel the pinch
ABC all the way
Figure 9: Forecast adult population trends, by socio-economic group, 2003-13
The silver surfers and golden oldies
Figure 10: Forecast adult population trends, by lifestage, 2003-13
Shop and stay
Figure 11: Trends in the age structure of the UK population, by gender, 2003-13
Who’s in the house?
Figure 12: UK household sizes, 2003-13
Get connected and book it!
Figure 13: British internet penetration at home/work/place of study or elsewhere, by gender, age, socio-economic group, region and working status, 2003-08
Holiday – priority number one
Figure 14: Top 10 UK spending priorities for year ahead, January 2005, 2007, 2008
Euro go zone
Figure 15: Sterling exchange rates, 2005-08
COMPETITIVE CONTEXT
Key points
UK holds top spot in terms of occupancy rates
Figure 16: Occupancy % of hotel rooms in EU countries, 2007
French fancy
Figure 17: Performance indicators of hotels in key European destinations, 2007
Low cost flights falter
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Green dream
Budget buddies
In fashion
Book a room and get covered
Overseas trends – coming this way?
Utilising the local workforce
MARKET SIZE AND FORECAST
Key points
Figure 18: The hotel market, by revenue, 2003-13
Room rate and RevPAR increase ahead of occupancy
Figure 19: Performance indicators for UK hotels, 2002-07
Factors used in the forecast
SEGMENT PERFORMANCE
Key points
Business buoys up the market
Figure 20: Hotel market mix analysis for UK, London, England, Scotland and Wales by stays, 2007
London-centric performance
Figure 21: Hotel performance indicators for UK, London, England, Scotland and Wales, 2007
Stays at home more popular
Figure 22: Last 12 months, stays at hotels – domestic and abroad, 2008
Multiple stay UK
Figure 23: Last 12 months, number of stays at hotels – domestic and abroad, 2008
How many stays?
Figure 24: Average number of hotel stays, holiday and/or business, 2008
Figure 25: Frequency of stay abroad and in Britain over the past 12 months, holiday and/or business, 2008
Business stays at home
Figure 26: Frequency of hotel stay on business – domestic and abroad
Major budget chains reign
Figure 27: Budget hotels, stays last/last but one holiday, 2008
Full or half board most popular
Figure 28: Type of holiday accommodation used for last UK holiday, 2008
Budget boosts stays
Figure 29: Type of holiday accommodation used for last UK holiday, 2004-08
Holiday trends
Figure 30: Hotel visitors holiday trends, 2003-08
September, the new August
Lets go…now!
Cheap flights and internet rule
Location vacation
MARKET SHARE
Key points
Figure 31: Top ten hotel operating companies in the UK (number of hotels), 2003, 2006 and 2008
Figure 32: Top ten hotel operating companies in the UK (number of rooms), 2003, 2006 and 2008
COMPANIES AND PRODUCTS
Key points
Accor
Figure 33: Accor brands in the UK, 2008
Britannia Hotels
De Vere Group
Figure 34: De vere group brands in the UK, 2008
Hilton Hotels Corporation
InterContinental Hotels Group plc (IHG)
Figure 35: Intercontinental brands in the UK, 30 June 2008
Marriott
Figure 36: Marriott brands in the UK, 2008
MacDonald Hotels & Resorts
Ramada Jarvis
Shearings Holiday
Thistle Hotels
Travelodge
Whitbread plc
 OTHER CORPORATE GROUPS
Carlson Companies
Malmaison/Hotel Du Vin
Starwood Hotels & Resorts
Other budget hotel operators
Figure 37: Selection of other budget hotel brands in the UK, 2008
 FRANCHISERS AND MARKETING CONSORTIA
Best Western
Choice Hotels UK
QMH
Other large marketing consortia
BRAND ELEMENTS
 BRAND MAP
Figure 38: Attitudes and usage of hotel brands, August 2008
 TRAVELODGE
What the brand is trying to achieve
What the consumer thinks
Figure 39: Attitudes towards the Travelodge brand, August 2008
 HILTON
What the brand is trying to achieve.
What the consumer thinks
Figure 40: Attitudes towards the Hilton brand, August 2008
 IBIS
What the brand is trying to achieve
What the consumer thinks
Figure 41: Attitudes towards the Ibis brand, August 2008
 PREMIER INN
What the brand is trying to achieve
What the consumer thinks
Figure 42: Attitudes towards the Premier Inn brand, August 2008
 THISTLE
What the brand is trying to achieve
What the consumer thinks
Figure 43: Attitudes towards the Thistle brand, August 2008
 BRAND QUALITIES OF BUDGET HOTEL BRANDS
Travelodge, Premier Inn, and Holiday Inn are seen as most reliable
Figure 44: Personalities of various hotel brands, August 2008
 EXPERIENCE OF HOTEL BRANDS
Travelodge is most popular
Figure 45: Consumer usage of various hotel brands, August 2008
 BRAND INTENTIONS FOR HOTEL BRANDS
Thistle has plenty of potential
Figure 46: Consideration of various hotel brands, August 2008
 BRAND MOMENTUM FOR HOTEL BRANDS
Most well-known brands judged favourably
Figure 47: Momentum of various hotel brands, August 2008
 BRAND MOTIVATION FOR HOTEL BRANDS
Business stays are a matter of convenience
Figure 48: Motivation for choosing various hotel brands, August 2008
 BRAND SATISFACTION FOR HOTEL BRANDS
Marriott shows most overall satisfaction.
Figure 49: Satisfaction with various hotel brands, August 2008
 BRAND COMMITMENT TO HOTEL BRANDS
Hotels struggle for exclusive loyalty
Figure 50: Commitment to various hotel brands, August 2008
 ROUND UP
HOTEL STAYS
Key points
Figure 51: Stays in UK hotels in past 12 months, August 2008
Wealthy stays
Shall we stop… but for how long?
It’s a family affair
City slickers…
…and a sporting chance
HOTEL FACILITIES
Key points
Figure 52: Hotel facilities worth paying for, August 2008
Young guns will pay
Pool pulls the ladies
Flexibility and food
Figure 53: Which type of visitor (holiday, family-related, business stay or other) is willing to pay for facilities? August 2008
ATTITUDES TOWARD HOTELS
Key points
Figure 54: Attitudes towards UK hotels, August 2008
Women book it
Budget youth
HOTEL ASSOCIATIONS
Key points
Figure 55: Most popular associations with hotels by order of preference
A treat or a sleep?
REASON FOR STAY
Key points
Figure 56: Reason for staying in a hotel in the UK in the last 12 months, August 2008
Short breaks for all
Figure 57: Reason for hotel stay by type of visitor in the last 12 months, August 2008
HOTELS TARGETING OPPORTUNITIES
Key points
Figure 58: Hotel associations preference, august 2008
Figure 59: Segmentation on basis of attitudes towards hotels, August 2008
Super Positive (29% of adults aged 16+ or 14.7 million adults)
Positive (22% of adults aged 16+ or 11.2 million adults)
Neutrals (20% of adults aged 16+ or 10.2 million adults)
Negative (14% of adults aged 16+ or 7.1 million adults)
Very Negative (6% of adults aged 16+ or 3.0 million adults)
Not Bothered (9% of adults aged 16+ or 4.5 million adults)
APPENDIX – HOTEL STAYS
Figure 60: Most popular type of stay in UK hotels in past 12 months by detailed demographics, August 2008
Figure 61: Popular types of stay in UK hotels in past 12 months by detailed demographics, August 2008
Figure 62: Least popular types of stay in UK hotels in past 12 months, by demographics August 2008
APPENDIX – HOTEL FACILITIES
Figure 63: Most popular hotel facilities willing to pay for by detailed demographics, August 2008
Figure 64: Least popular hotel facilities willing to pay for by detailed demographics, August 2008
APPENDIX – ATTITUDES TOWARD HOTELS
Figure 65: Most popular attitudes towards hotels by detailed demographics, August 2008
Figure 66: Least popular attitudes towards hotels by detailed demographics, August 2008
APPENDIX – REASONS FOR STAY
Figure 67: Reasons for stay by type of visitor, august 2008
APPENDIX – HOTEL TARGETING OPPORTUNITIES
Figure 68: Hotel associations by target groups, August 2008
Figure 69: Detailed demographics of target groups, august 2008
Figure 70: Type of stay by target group, August 2008
Figure 71: Facilities willing to pay a premium for by target group, August 2008
Figure 72: Attitudes toward hotels by target group, August 2008

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