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Hotels - UK - November 2015

OVERVIEW
What you need to know
Scope of the report
EXECUTIVE SUMMARY
The market
Domestic market growing after a poor 2014
Figure 1: Forecast of total inbound and domestic hotel/motel/guesthouse trips, 2015-20
Figure 2: Forecast of total inbound and domestic hotel/motel/guesthouse nights, 2015-20
The consumer
Airbnb growing but penetration still very much in its infancy
Figure 3: Accommodation types used to stay in the UK, September 2015
Gamify the booking process to engage the consumer on Brand.com
Figure 4: How last hotel was booked, September 2015
Current holiday data can facilitate an ‘always-on’ concierge service via mobile
Figure 5: Attitudes towards sharing data with hotels, September 2015
Strong demand among guests for wireless charging
Figure 6: Most popular technologies/services in UK hotels, September 2015
Holidaymakers unfazed by negative press for hotel review sites
Figure 7: Attitudes towards hotels, September 2015
What we think
ISSUES AND INSIGHTS
How open are consumers to Airbnb-style accommodation?
The facts
The implications
How to drive more direct bookings?
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Domestic market growing after a poor 2014
Inbound trips continue to grow
Total trip volume for hotels/motels/guesthouses expected to grow
Strong Pound may limit spending and heighten price sensitivity
London in seventh place on the Post Office City Cost Barometer
MARKET SIZE AND FORECAST
Steady growth predicted over the next five years
Figure 8: UK hotel market*, by trips and nights, 2010-20
Domestic hotel market growing after a poor 2014
Inbound trips remain stable
Figure 9: Volume of trips and nights staying in UK hotels/motels/guesthouses, by domestic and inbound visits, 2010-15
Forecast
Figure 10: Forecast of total inbound and domestic hotel/motel/guesthouse trips, 2015-20
Figure 11: Forecast of total inbound and domestic hotel/motel/guesthouse nights, 2015-20
SEGMENT PERFORMANCE
London hotels dominate KPIs across the UK
Figure 12: Full-service hotel performance indicators, by region, 2014
Scope to improve food and beverage offerings in London hotels
Figure 13: Revenue breakdown, by region, 2014
2014 sees improved growth for London across all metrics
Figure 14: London full-service hotel performance indicators, 2013 and 2014
Regional England shows strong performance in total revenue per available room
Figure 15: England (excluding London) full-service hotel performance indicators, 2013 and 2014
Scotland sees strongest growth in occupancy rate and average daily rate
Figure 16: Scotland full-service hotel performance indicators, 2013 and 2014
Wales sees strongest growth in TRevPAR
Figure 17: Wales full-service hotel performance indicators, 2013 and 2014
MARKET DRIVERS
Total domestic tourism market set to surprise with growth in 2015
Figure 18: Domestic tourism market (UK) (all tourism), 2010-15
Total inbound market remains strong
Figure 19: Total inbound tourism markets (all tourism), 2010-15
Figure 20: Combined domestic and inbound tourism markets (all tourism), 2010-15
Consumer finances improving, but may encourage domestic travellers to venture abroad
Strong Pound may limit spending and heighten price sensitivity
Figure 21: Post Office City Costs Barometer, 2015
Hotel and OTA partnerships; regulators keeping a close eye
KEY PLAYERS – WHAT YOU NEED TO KNOW
Budget brands dominate
Premier Inn is the UK’s most popular hotel
The Hilton brand is seen as the most exclusive hotel
Marriott ranks just behind Hilton for perceived levels of consistent high quality
Holiday Inn enjoys high awareness but has relatively low usage compared to Premier Inn and Travelodge
Radisson brand awareness is the lowest of the hotels listed
Travelodge has high awareness and usage among UK consumers
Best Western must appeal to younger consumers
MARKET SHARE
Budget brands dominate
Figure 22: Top hotels in the UK, by room and site numbers, ranked by rooms, 2014
LAUNCH ACTIVITY AND INNOVATION
Virgin streamlines the hotel experience with its new app
TripAdvisor’s Instant Booking tool takes off
Cliq Orange develops image and video content analysis for hotels
Socialising in hotels facilitated via mobile apps
Marriott trials Virtual Reality headsets
HOTEL BRAND RESEARCH
Brand map
Figure 23: Attitudes towards and usage of selected hotel brands, August 2015
Key brand metrics
Figure 24: Key metrics for selected hotel brands, August 2015
Brand attitudes: Travelodge and Premier Inn seen to offer good value, Radisson, Marriott and Hilton win on quality
Figure 25: Attitudes, by hotel brand, August 2015
Brand personality: Travelodge and Best Western suffering due to boring, tired, and unappealing perceptions
Figure 26: Brand personality – Macro image, August 2015
Marriott considered stylish and trendy, Premier Inn is seen as friendly, honest and welcoming
Figure 27: Brand personality – Micro image, August 2015
Brand analysis
The Premier Inn brand comes out on top
Figure 28: User profile of Premier Inn, August 2015
Hilton is the highest rated full-service offering
Figure 29: User profile of Hilton, August 2015
Marriott is considered to be slightly more functional than its high-end rivals
Figure 30: User profile of Marriott, August 2015
Holiday Inn has high awareness levels but lower usage rates compared to its rivals
Figure 31: User profile of Holiday Inn, August 2015
Radisson users rate the experience highly, but the brand suffers from low awareness
Figure 32: User profile of Radisson, August 2015
Travelodge is functional but perceptions indicate it is in need of a boost
Figure 33: User profile of Travelodge, August 2015
Best Western needs to engage younger consumers who see it as tired and boring
Figure 34: User profile of Best Western, August 2015
THE CONSUMER – WHAT YOU NEED TO KNOW
Airbnb growing but penetration still very much in its infancy
Third party booking channels catching up with direct bookings
Hotels should use gamification to encourage direct bookings
Current holiday data can facilitate an ‘always-on’ concierge service via mobile
Holidaymakers unfazed by negative press for hotel review sites Over the past year, there have been concerns over transparency surrounding hotel reviews on popular travel websites such as TripAdvisor and Yelp. In December 2014, TripAdvisor was fined €500,000 by Italy’s competition authority over reviews it deemed to be misleading.
Young affluent men most likely to use Airbnb-style services
A trend for reduced spending among business travellers emerging?
Business travellers can be key influentials for concierge style apps
ACCOMMODATION TYPE AND PURPOSE OF VISIT
Airbnb growing but penetration still very much in its infancy
Figure 35: Accommodation types used to stay in the UK, August 2014 to September 2015
A trend for reduced spending among business travellers emerging?
Figure 36: Purpose of stay in UK accommodation, September 2015
ATTITUDES TOWARDS SPENDING ON HOTELS
Under-45s more open to spending despite being avid price comparers
Hotels could engage guests by facilitating external activities
Figure 37: Attitudes towards spending in hotels, September 2015
HOTEL BOOKING PROCESS
Establishing a relationship to secure direct bookings
Consumers able to book via Google Maps
The billboard effect: benefits of OTAs may be on the wane
Figure 38: How last hotel was booked, September 2015
ATTITUDES TOWARDS SHARING DATA WITH HOTELS
Guests open to sharing basic personal data and current holiday data
Current holiday data can facilitate an ‘always-on’ concierge service via mobile
A three-part approach; reach out at different stages of a guest’s stay
Guests need to be encouraged to share their location data
Figure 39: Attitudes towards sharing data with hotels, September 2015
TECHNOLOGY IN HOTELS
Older generations favour more traditional properties
Figure 40: Attitudes towards style of hotel, September 2015
Traditional hotels can modernise to attract a broader demographic
Strong demand among guests for wireless charging
Business travellers can be key influencers for concierge-style apps
Figure 41: Technologies/services hotel visitors would find most useful in UK hotels, September 2015
ATTITUDES TOWARDS HOTELS
Holidaymakers unfazed by negative press for hotel review sites
The guest as PR mouthpiece
Airbnb has ambitious growth predictions but most consumers still prefer traditional hotels
Young parents open to non-traditional accommodation and day stays
Figure 42: Attitudes towards hotels, September 2015
Methodology
Young parents open to non-traditional accommodation and day stays
Figure 43: Target groups based on attitudes towards hotels in the UK – CHAID – Tree output, August 2015
Figure 44: Target groups based on attitudes towards hotels in the UK – CHAID – Table output, August 2015
APPENDIX – DATA SOURCES, ABBREVIATIONS, AND SUPPORTING INFORMATION
Abbreviations
Definitions
Forecast methodology
Figure 45: Best- and worst-case forecast for the number of hotel trips in the UK market, 2015-20
Figure 46: Best- and worst-case forecast for the number of hotel nights in the UK market, 2015-20
Brand research
Brand map

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