Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Hotels - UK - October 2013

“Hotels increasingly live and die by online customer review and those who succeed will need a high-definition, bang-up-to-date offering: price-led, quirky/trendy, luxury or celebrity-endorsed glamour/glitz. Peer-to-peer rental alternatives like Airbnb are a growing and potentially major threat in many cities both in the UK and worldwide. Hotels without a clear and distinct offering will find it increasingly tough and risk becoming mired in mid-table mediocrity.”

– John Worthington, Senior Analyst

Some questions answered in this report include:

  • What is the Olympic legacy for UK hoteliers?
  • How significant is mobile booking for hoteliers?
  • How important is technological innovation for hotels?
  • How important is online peer-to-peer influence in choosing a hotel?

Despite economic pressures, the number of UK hotel stays rose by 3% in 2012 with a further 2-3% growth expected for 2013. Increased demand for domestic short breaks, inbound leisure trips boosted by the long-term weakness of the Pound and a strong London market have been plus factors, although business travel has yet to fully recover.

The market is also seeing a steady growth in room supply and the rising penetration of branded chains in what has, historically, been an industry with a large number of independently owned properties. Meanwhile, the internet is opening up a new world of peer-to-peer rental alternatives competing in many of the urban locations in which hotels have enjoyed supremacy.

This report analyses market trends, size and growth, looks at leading hotel groups and current innovation, and includes Mintel’s exclusive research investigating consumer perceptions of leading hotel brands, hotel usage and frequency of stay, important factors in choosing a hotel and attitudes. 

Definition

This report examines hotels in the UK used by consumers for leisure, business and visiting friends and relatives (VFR) purposes.
An adult, for the purposes of Mintel’s research, is anyone aged 16 or over.
Data on the size and segmentation of the market are for Great Britain rather than the United Kingdom (ie Northern Ireland is not included).

The standard travel and tourism definitions used in the terminology of this report are as follows:

Tourism is any travel, which involves an overnight stay away from home.
A holiday is a subjectively defined form of tourism, as defined by the tourist in response to surveys such as the IPS (International Passenger Survey). A holiday can be distinguished from other leisure travel such as visits to friends and relatives (VFR) or shopping trips.
A long holiday is a holiday of four nights or more away from home; a short break is a holiday that involves one to three nights away from home.
Short-haul refers to air holidays within Europe, dominated by flights to Mediterranean resorts but including the Canaries, which are treated as a part of the Spanish market. Long-haul, therefore, refers to holidays outside Europe.
An inclusive tour, or package holiday, is defined as the simultaneous sale of at least two elements of a holiday to the traveller: fares on public transport (eg flights) and commercial accommodation (eg hotel or self-catering apartment). Other elements, such as meals or excursions, are not essential to the definition of an inclusive tour. The term ‘all-inclusive’ is used to describe a special type of resort holiday in which food, drink, excursions and other services are provided as part of the total holiday cost.
An independent holiday is one in which the traveller organises and books transport and accommodation from separate sources (eg a Channel ferry crossing and a caravan site in France).
Seat- or flight-only is a type of independent holiday, and the terms are used to denote holidays in which travellers only purchase a return fare and thereafter book their own accommodation, car hire etc.

In addition to quantitative consumer research, Mintel also conducted an online discussion group among a demographically mixed group of around 15 consumers.
This discussion group was asynchronous (ie not run in real time), functioning like a blog or bulletin board, with questions remaining posted for a pre-determined period of time. This method allows participants to respond reflectively, at their leisure, or to log off to think about any issues raised and return later to respond. Participants were recruited from GMI’s online consumer panel.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Introduction

      • Definition
        • Abbreviations
        • Executive Summary

            • The market
              • Short break habit driving growth in hotel stays
                • Figure 1: Volume forecast of hotel/motel/guesthouse trips, 2008-18
              • Regions outperform capital in 2013 (for once)
                • Figure 2: UK hotels, occupancy, average room rate and RevPAR percentage change year on year, year to date January-August 2013
              • Market factors
                • Disappointing first half of 2013 for domestic travel
                  • Figure 3: Volume, value and average spend on domestic holidays (GB), 2007-12
                • Inbound on upward curve
                  • Figure 4: Inbound visits to the UK, by reason for trip, 2007-12
                • Currency rates continue to boost UK tourism
                  • Figure 5: Annual exchange rates for Sterling versus the euro and US Dollar, 2007-13
                • Supplyside expansion
                  • Companies, brands and innovation
                    • Branded budget sector growing
                      • Figure 6: Top ten UK hotel groups by number of hotels, 2013
                    • Pods, hubs and Millennials
                      • Shangri-La comes to Shard
                        • The consumer
                          • Six in 10 adults stay in UK hotels
                            • Figure 7: Reasons for hotel stays in the last 12 months, July 2013
                          • Most guests stay one or two nights per year
                            • Figure 8: Frequency of hotel visits in the past 12 months, July 2013
                          • Direct online booking accounts for over half of stays
                            • Figure 9: How last hotel stay was booked, July 2013
                          • Photos, online review are key research activities
                            • Figure 10: Research activities prior to booking last hotel stay, July 2013
                          • Customer service reputation is critical
                            • Figure 11: Factors looked for in choosing a hotel, July 2013
                          • High-tech hotels
                            • Half of guests would pay more for a better experience
                              • Figure 12: Attitudes towards hotels, July 2013
                            • What we think
                            • Issues in the Market

                                • What is the Olympic legacy for UK hoteliers?
                                  • How significant is mobile booking for hoteliers?
                                    • How important is technological innovation for hotels?
                                      • How important is online peer-to-peer influence in choosing a hotel?
                                      • Trend Application

                                          • Trend: The Unfairer Sex
                                            • Trend: The Real Thing
                                              • Mintel’s Futures: Human
                                              • Market Drivers

                                                • Key points
                                                  • Domestic holiday market still buoyant
                                                    • Figure 13: Volume, value and average spend on domestic holidays (GB), 2007-12
                                                  • Short breaks have driven growth
                                                    • Figure 14: Short breaks vs mid-length holidays vs long holidays in Great Britain, by volume, 2007-12
                                                  • Business volumes still up and down
                                                    • Figure 15: Volume, value and average expenditure on domestic business travel (GB), 2007-12
                                                  • Accommodation accounts for 37% of overnight domestic tourism spend
                                                    • Figure 16: Expenditure on domestic tourism (GB), by category of spend (£m), 2008-12
                                                    • Figure 17: Expenditure on domestic tourism (GB), by category of spend (% share), 2008-12
                                                  • Short break rise has benefited hotel sector
                                                    • Figure 18: Number of domestic* trips (all travel purposes), by accommodation used, 2007-12
                                                    • Figure 19: Total number of nights spent on domestic* trips (all travel purposes), by accommodation used, 2007-12
                                                    • Figure 20: Expenditure* on domestic** trips (all travel purposes), by accommodation used, 2007-12
                                                  • Leisure inbound remains strong, business on upward curve…
                                                    • Figure 21: Inbound visits to the UK, by reason for trip, 2007-12
                                                    • Figure 22: Expenditure on inbound visits to the UK, by reason for trip, 2007-12
                                                  • …but inbound hotel stays have been flat over five-year period
                                                    • Figure 23: Number of inbound trips, by accommodation used, 2007-12
                                                    • Figure 24: Number of inbound nights, by accommodation used, 2007-12
                                                  • Inbound expenditure by accommodation used:
                                                    • Figure 25: Expenditure on inbound trips, by accommodation used, 2007-12
                                                  • London/Edinburgh among most expensive cities in Europe…
                                                    • Figure 26: Hotel price comparison across the 40 most popular European cities, August 2008-August 2013
                                                  • …but provincial UK hoteliers can trumpet value for money
                                                    • Figure 27: Hotel price comparison across the 12 most popular UK cities, May-August 2013
                                                  • London occupancy high but RevPAR trails rival gateway cities
                                                    • Figure 28: Room occupancy and RevPAR of hotels in TRI selected key destinations, 2012
                                                  • OFT OTA investigation reaches conclusion
                                                    • UK economic growth restored but households remain squeezed
                                                      • Figure 29: UK GDP growth, Q1 2008-Q2 2013
                                                    • Hotel market retains currency advantage
                                                      • Figure 30: Annual exchange rates for Sterling, 2008-13
                                                    • Growth at both ends of population
                                                      • Figure 31: Trends in the age structure of the UK population, 2008-18
                                                  • Who's Innovating?

                                                    • Key points
                                                      • Low-frills, high-tech
                                                        • Bedding down
                                                          • Football legends open hotel
                                                            • EPIC stuff
                                                              • Why pay for Wi-Fi?
                                                                • E-Check
                                                                  • Thinking outside of the box
                                                                    • Who’s Outovating?
                                                                      • Hotel Twitter
                                                                      • Market Size and Forecast

                                                                        • Key points
                                                                          • Domestic market has driven four years of growth…
                                                                            • Figure 32: Total volume of trips and nights staying in hotels, 2008-18
                                                                            • Figure 33: Volume of trips and nights staying in hotels, by domestic and inbound visits, 2008-13
                                                                          • …but inbound likely engine of growth in 2013
                                                                            • Figure 34: UK hotels, occupancy percentage point change year on year, February-August 2013
                                                                            • Figure 35: UK hotels, occupancy, average room rate and RevPAR percentage change year on year, year to date January-August 2013
                                                                          • Forecast
                                                                            • Figure 36: Volume forecast of hotel/motel/guesthouse trips, 2008-18
                                                                            • Figure 37: Volume forecast of hotel/motel/guesthouse nights, 2008-18
                                                                          • Forecast methodology
                                                                          • Segment Performance

                                                                            • Key points
                                                                              • UK full-service
                                                                                • Figure 38: Performance indicators for UK full-service hotels, 2010-12
                                                                              • London full-service
                                                                                • Figure 39: Performance indicators for London full-service hotels, 2010-12
                                                                              • England full-service
                                                                                • Figure 40: Performance indicators for England (excluding London) full-service hotels, 2010-12
                                                                              • Wales full-service
                                                                                • Figure 41: Performance indicators for Wales full-service hotels, 2010-12
                                                                              • Scotland full-service
                                                                                • Figure 42: Performance indicators for Scotland full-service hotels, 2010-12
                                                                              • F&B share higher in regions
                                                                                • Figure 43: UK hotel revenue breakdown, 2012
                                                                              • Budget boom unstoppable
                                                                                • Figure 44: Estimated occupancy rate, average room rate and room RevPAR for UK budget hotels, 2011 and 2012
                                                                            • Market Supply and Share

                                                                              • Key points
                                                                                • Chains versus independent
                                                                                  • Big two dominate market
                                                                                    • Figure 45: Top 20 UK hotel groups, by number of hotels, 2009-13
                                                                                  • New additions in 2012
                                                                                    • In the pipeline
                                                                                    • Companies and Products

                                                                                        • Whitbread (Premier Inn)
                                                                                          • Figure 46: Key financials for Whitbread Plc*, 2012 and 2013
                                                                                        • Travelodge
                                                                                          • InterContinental Hotels Group
                                                                                              • Figure 47: InterContinental Hotels Group hotels – Europe, Asia, Middle East and Africa, August 2013
                                                                                              • Figure 48: InterContinental Hotels Group – Europe, Asia, Middle East and Africa, rooms, by ownership structure, 2012
                                                                                              • Figure 49: Key financial information, InterContinental Hotels Group – Europe, Asia, Middle East and Africa segment, 2011 and 2012
                                                                                            • Best Western GB
                                                                                              • Accor
                                                                                                  • Figure 50: Key financial information, Accor, 2011 and 2012
                                                                                                • Hilton Worldwide
                                                                                                  • Wyndham Worldwide
                                                                                                      • Figure 51: Key financial information, Wyndham Worldwide, 2011 and 2012
                                                                                                    • De Vere Group
                                                                                                      • Marriott International
                                                                                                        • Figure 52: Key financial information, Marriott International, 2011 and 2012
                                                                                                    • Brand Research

                                                                                                      • Brand map
                                                                                                          • Figure 53: Attitudes towards and usage of brands in the hotel sector, June 2013
                                                                                                        • Correspondence analysis
                                                                                                          • Brand attitudes
                                                                                                            • Figure 54: Attitudes, by hotel brand, June 2013
                                                                                                          • Brand personality
                                                                                                            • Figure 55: Hotel brand personality – macro image, June 2013
                                                                                                            • Figure 56: Hotel brand personality – micro image, June 2013
                                                                                                          • Brand experience
                                                                                                            • Figure 57: Hotel brand usage, June 2013
                                                                                                            • Figure 58: Satisfaction with various hotel brands, June 2013
                                                                                                            • Figure 59: Consideration of hotel brands, June 2013
                                                                                                            • Figure 60: Consumer perceptions of current hotel brand performance, June 2013
                                                                                                          • Brand index
                                                                                                            • Figure 61: Hotel brand index, June 2013
                                                                                                          • Target group analysis
                                                                                                            • Figure 62: Target groups, June 2013
                                                                                                            • Figure 63: Hotel brand usage, by target groups, June 2013
                                                                                                          • Group One – Conformists
                                                                                                            • Group Two – Simply the Best
                                                                                                              • Group Three – Shelf Stalkers
                                                                                                                • Group Four – Habitual Shoppers
                                                                                                                  • Group Five – Individualists
                                                                                                                  • Channels to Market

                                                                                                                    • Key points
                                                                                                                      • Over half book directly online
                                                                                                                        • Figure 64: How last hotel stay was booked, July 2013
                                                                                                                      • One in eight online bookers use a mobile
                                                                                                                        • Figure 65: How last hotel stay was booked online, July 2013
                                                                                                                    • Hotel Stays

                                                                                                                      • Key points
                                                                                                                        • Over half of adults stay in hotels
                                                                                                                          • Figure 66: Reasons for hotel stays in the last 12 months, August 2008-July 2013
                                                                                                                        • Male business bias persists
                                                                                                                        • Frequency of Hotel Stays

                                                                                                                          • Key points
                                                                                                                            • Who are the regulars?
                                                                                                                              • Figure 67: Frequency of hotel visits in the past 12 months, July 2013
                                                                                                                          • Researching a Hotel

                                                                                                                            • Key points
                                                                                                                              • Seeing is believing
                                                                                                                                • Figure 68: Research activities prior to booking last hotel stay, July 2013
                                                                                                                              • Discount-driven
                                                                                                                                • Brand weakness
                                                                                                                                • Factors Influencing Hotel Choice

                                                                                                                                  • Key points
                                                                                                                                    • Differentiating factors
                                                                                                                                      • Figure 69: Factors looked for in choosing a hotel, July 2013
                                                                                                                                    • Back to basics
                                                                                                                                      • Greening the brand
                                                                                                                                        • Survival of the fittest
                                                                                                                                          • Tech hotels
                                                                                                                                            • Keeping up to date
                                                                                                                                              • Hotel quirky
                                                                                                                                                • Loyalty decline
                                                                                                                                                  • Video viewers are a key group
                                                                                                                                                    • Customer review versus ratings
                                                                                                                                                    • Attitudes Towards Hotels

                                                                                                                                                      • Key points
                                                                                                                                                          • Figure 70: Attitudes towards hotels, July 2013
                                                                                                                                                        • It’s the destination, stupid
                                                                                                                                                          • Functionality versus experience
                                                                                                                                                            • Branded versus independent
                                                                                                                                                              • Value-for-money concerns persist
                                                                                                                                                              • Appendix – Market Size and Forecast

                                                                                                                                                                  • Figure 71: Volume forecast of hotel/motel/guesthouse trips, 2008-18
                                                                                                                                                                  • Figure 72: Volume forecast of hotel/motel/guesthouse nights, 2008-18
                                                                                                                                                              • Appendix – Brand Research

                                                                                                                                                                  • Figure 73: Brand usage, June 2013
                                                                                                                                                                  • Figure 74: Brand commitment, June 2013
                                                                                                                                                                  • Figure 75: Brand momentum, June 2013
                                                                                                                                                                  • Figure 76: Brand diversity, June 2013
                                                                                                                                                                  • Figure 77: Brand satisfaction, June 2013
                                                                                                                                                                  • Figure 78: Brand attitude, June 2013
                                                                                                                                                                  • Figure 79: Brand image – macro image, June 2013
                                                                                                                                                                  • Figure 80: Brand image – micro image, June 2013
                                                                                                                                                                  • Figure 81: Profile of target groups, by demographics, June 2013
                                                                                                                                                                  • Figure 82: Psychographic segmentation, by target groups, June 2013
                                                                                                                                                                  • Figure 83: Brand index, June 2013
                                                                                                                                                              • Appendix – Hotel Stays

                                                                                                                                                                  • Figure 84: Most popular hotel visits in the past 12 months, by demographics, July 2013
                                                                                                                                                                  • Figure 85: Next most popular hotel visits in the past 12 months, by demographics, July 2013
                                                                                                                                                                  • Figure 86: Other hotel visits in the past 12 months, by demographics, July 2013
                                                                                                                                                                  • Figure 87: Other hotel visits in the past 12 months, by demographics, July 2013 (continued)
                                                                                                                                                              • Appendix – Frequency of Hotel Stays

                                                                                                                                                                  • Figure 88: Frequency of hotel visits in the past 12 months, by most popular hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 89: Frequency of hotel visits in the past 12 months, by next most popular hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 90: Frequency of hotel visits in the past 12 months, by other hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 91: Most popular frequency of hotel visits in the past 12 months, by demographics, July 2013
                                                                                                                                                              • Appendix – Researching A Hotel

                                                                                                                                                                  • Figure 92: Research activities prior to booking last hotel stay, by most popular hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 93: Research activities prior to booking last hotel stay, by next most popular hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 94: Research activities prior to booking last hotel stay, by other hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 95: Research activities prior to booking last hotel stay, by frequency of hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 96: Most popular research activities prior to booking last hotel stay, by demographics, July 2013
                                                                                                                                                                  • Figure 97: Next most popular research activities prior to booking last hotel stay, by demographics, July 2013
                                                                                                                                                              • Appendix – Hotel Booking

                                                                                                                                                                  • Figure 98: How last hotel stay was booked, by most popular hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 99: How last hotel stay was booked, by next most popular hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 100: How last hotel stay was booked, by other hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 101: How last hotel stay was booked, by frequency of hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 102: How last hotel stay was booked, by most popular research activities prior to booking last hotel stay, July 2013
                                                                                                                                                                  • Figure 103: How last hotel stay was booked, by next most popular research activities prior to booking last hotel stay, July 2013
                                                                                                                                                              • Appendix – Online Hotel Booking Devices

                                                                                                                                                                  • Figure 104: How last hotel stay was booked online, by most popular hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 105: How last hotel stay was booked online, by next most popular hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 106: How last hotel stay was booked online, by frequency of hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 107: How last hotel stay was booked online, by demographics, July 2013
                                                                                                                                                              • Appendix – Factors Influencing Hotel Choice

                                                                                                                                                                  • Figure 108: Factors looked for in choosing a hotel, by most popular hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 109: Factors looked for in choosing a hotel, by next most popular hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 110: Factors looked for in choosing a hotel, by other hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 111: Factors looked for in choosing a hotel, by frequency of hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 112: Factors looked for in choosing a hotel, by most popular research activities prior to booking last hotel stay, July 2013
                                                                                                                                                                  • Figure 113: Factors looked for in choosing a hotel, by next most popular research activities prior to booking last hotel stay, July 2013
                                                                                                                                                                  • Figure 114: Factors looked for in choosing a hotel, by how last hotel stay was booked, July 2013
                                                                                                                                                                  • Figure 115: Factors rated as ‘very important’ in choosing a hotel, by demographics, July 2013
                                                                                                                                                                  • Figure 116: Factors rated as ‘very important’ in choosing a hotel, by demographics, July 2013 (continued)
                                                                                                                                                                  • Figure 117: Factors rated as ‘very important’ in choosing a hotel, by demographics, July 2013 (continued)
                                                                                                                                                                  • Figure 118: Factors rated as ‘very important’ in choosing a hotel, by demographics, July 2013 (continued)
                                                                                                                                                              • Appendix – Attitudes Towards Hotels

                                                                                                                                                                  • Figure 119: Agreement with attitudes towards hotels, by most popular hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 120: Agreement with attitudes towards hotels, by next most popular hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 121: Agreement with attitudes towards hotels, by other hotel visits in the past 12 months, July 2013
                                                                                                                                                                  • Figure 122: Agreement with attitudes towards hotels, by most popular research activities prior to booking last hotel stay, July 2013
                                                                                                                                                                  • Figure 123: Agreement with attitudes towards hotels, by next most popular research activities prior to booking last hotel stay, July 2013
                                                                                                                                                                  • Figure 124: Agreement with attitudes towards hotels, by how last hotel stay was booked, July 2013
                                                                                                                                                                  • Figure 125: Agreement with attitudes towards hotels, by demographics, July 2013
                                                                                                                                                                  • Figure 126: Further agreement with attitudes towards hotels, by demographics, July 2013
                                                                                                                                                                  • Figure 127: Further agreement with attitudes towards hotels, by demographics, July 2013 (continued)

                                                                                                                                                              Companies Covered

                                                                                                                                                              • Accor
                                                                                                                                                              • Best Western International Inc.
                                                                                                                                                              • Blackstone Group (The)
                                                                                                                                                              • Brewers Fayre
                                                                                                                                                              • Costa
                                                                                                                                                              • De Vere Group PLC
                                                                                                                                                              • DoubleTree Hotels
                                                                                                                                                              • Dubai International Capital
                                                                                                                                                              • Goldman Sachs Group, Inc., The
                                                                                                                                                              • HBOS plc (Halifax Bank of Scotland)
                                                                                                                                                              • Hilton Group plc
                                                                                                                                                              • IKEA
                                                                                                                                                              • InterContinental Hotels Group PLC
                                                                                                                                                              • Marriott International, Inc.
                                                                                                                                                              • Novotel
                                                                                                                                                              • Planet Hollywood
                                                                                                                                                              • Pullman Holidays Ltd
                                                                                                                                                              • The Ritz-Carlton Hotel Company, L.L.C.
                                                                                                                                                              • Travelodge
                                                                                                                                                              • Whitbread PLC
                                                                                                                                                              • Wyndham Worldwide Corporation

                                                                                                                                                              Hotels - UK - October 2013

                                                                                                                                                              US $2,583.33 (Excl.Tax)