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Description

Description

“There is relatively little new product development in the mid-market tier where brands tend to be weaker and less differentiated, and risk being squeezed between the more dynamic economy and upscale sectors. However, demand for mid-market hotels remains strong and many consumers are willing to pay ‘a bit extra’ for an enhanced level of experience.”

– John Worthington, Senior Analyst

This report examines the following issues:

  • Engaging the Airbnb generation
  • Luxury/budget polarisation amongst Millennial travellers
  • Mix-and-match guests
  • Personalisation is the key to loyalty
  • Embracing wellness trends

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Covered in this Report
      • Executive Summary

          • The market
            • Record highs in 2017, but slight dip expected in 2018
              • 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
                  • Figure 3: Top 10 hotels in the UK, by site numbers, October 2018
                • The consumer
                  • Consumer demand has dipped…
                    • Figure 4: Use of hotels in the past 12 months, August 2014-September 2018
                  • …but frequent guests have increased
                    • Figure 5: Number of hotel stays in the past 12 months, September 2018
                  • 62% of guests go budget
                    • Figure 6: Types of hotel stayed in during the past 12 months, September 2016-September 2018
                  • OTAs assert control
                    • 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
                    • 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
                    • Figure 9: Attitudes towards hotels, September 2018
                  • Hotels preferred to Airbnb
                    • Figure 10: Attitudes towards hotels versus Airbnb, September 2018
                  • What we think
                  • Issues and Insights

                    • 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

                                                  • 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

                                                            • Inbound visitor surge takes hotel stays to new high in 2017
                                                              • 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
                                                              • 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
                                                                • 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

                                                              • Economic growth sluggish but wages begin to rise
                                                                • 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
                                                                • Figure 17: Domestic tourism market (GB) (all tourism), 2013-17
                                                              • Staycation record
                                                                • Figure 18: Domestic tourism, by trip volume and purpose, 2013-17
                                                              • Inbound slump likely to be felt most in London after record growth
                                                                • Figure 19: Total inbound tourism markets (all tourism), 2013-17
                                                                • Figure 20: Inbound tourism, by trip volume and purpose, 2013-17
                                                              • Emerging opportunities
                                                                • Figure 21: Top 10 inbound source markets, by volume*, 2013-17
                                                                • Figure 22: Top 10 inbound source markets, by value*, 2013-17
                                                              • Currency matters
                                                                • Figure 23: Spot exchange rate, Pound Sterling versus euro and US Dollar, June 2016-October 2018
                                                            • Companies and Brands – What You Need to Know

                                                              • 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

                                                                            • Over 800,000 hotel rooms in 2018
                                                                              • Branded chain share is growing
                                                                                • Premier Inn
                                                                                  • Travelodge
                                                                                    • InterContinental Hotels Group
                                                                                      • Accor
                                                                                        • Figure 24: Top 10 hotels in the UK, by site numbers, October 2018
                                                                                      • Best Western
                                                                                        • Hilton
                                                                                          • Marriott
                                                                                            • Wyndham
                                                                                            • Brand Research

                                                                                                • Brand map
                                                                                                  • Figure 25: Attitudes towards and usage of selected brands, August 2018
                                                                                                • Key brand metrics
                                                                                                  • Figure 26: Key metrics for selected brands, August 2018
                                                                                                • Brand attitudes: Trust is high for Premier Inn and Holiday Inn
                                                                                                  • Figure 27: Attitudes, by brand, August 2018
                                                                                                • Brand personality: Hilton and Marriott seen as most exclusive
                                                                                                  • Figure 28: Brand personality – Macro image, August 2018
                                                                                                • Travelodge seen as basic/functional
                                                                                                  • Figure 29: Brand personality – Micro image, August 2018
                                                                                                • Brand analysis
                                                                                                  • Premier Inn
                                                                                                    • Figure 30: User profile of Premier Inn, August 2018
                                                                                                  • Travelodge
                                                                                                    • Figure 31: User profile of Travelodge, August 2018
                                                                                                  • Hilton
                                                                                                    • Figure 32: User profile of Hilton, August 2018
                                                                                                  • Marriott
                                                                                                    • Figure 33: User profile of Marriott, August 2018
                                                                                                  • Holiday Inn
                                                                                                    • Figure 34: User profile of Holiday Inn, August 2018
                                                                                                  • Best Western
                                                                                                    • Figure 35: User profile of Best Western, August 2018
                                                                                                  • Airbnb
                                                                                                    • Figure 36: User profile of Airbnb, August 2018
                                                                                                • Launch Activity and Innovation

                                                                                                  • 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

                                                                                                                    • 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

                                                                                                                                  • Independent hotels dwindling but demand remains stable
                                                                                                                                    • Figure 37: Use of hotels in the past 12 months, August 2014-September 2018
                                                                                                                                  • Hotel usage still far outstrips rental property
                                                                                                                                    • Figure 38: Use of all tourist accommodation in the past 12 months, September 2018
                                                                                                                                  • Men are more frequent guests than women
                                                                                                                                    • Figure 39: Number of hotel stays in the past 12 months, September 2018
                                                                                                                                  • Frequency of stay has increased
                                                                                                                                    • Figure 40: Number of hotel stays in the past 12 months, September 2016 and September 2018
                                                                                                                                  • ‘Mix-and-match’ hotel guests
                                                                                                                                    • 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
                                                                                                                                        • Figure 42: Purpose of last hotel stay, September 2018
                                                                                                                                    • Hotel Booking

                                                                                                                                      • Hotels grow more reliant on third-party bookings
                                                                                                                                          • Figure 43: Booking methods used for last hotel stay, September 2015 and September 2018
                                                                                                                                          • Figure 44: Overall channels to market used for last hotel stay, September 2015 and September 2018
                                                                                                                                      • Hotels – Potential Attractions

                                                                                                                                          • Going beyond price
                                                                                                                                            • Foodie hotels
                                                                                                                                              • Figure 45: Factors that can attract hotel guests, September 2018
                                                                                                                                            • Getting personal
                                                                                                                                              • 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

                                                                                                                                                          • 61% of adults think it’s worth paying extra for a better experience
                                                                                                                                                            • Hotel experience especially important to women and empty nesters
                                                                                                                                                              • Figure 47: Attitudes towards hotels, September 2018
                                                                                                                                                            • Special-occasion luxury
                                                                                                                                                              • Hybrid Millennials
                                                                                                                                                                • Urban minimalism
                                                                                                                                                                • Hotel Attitudes – Hotels versus Airbnb

                                                                                                                                                                  • Hotels retain traditional advantages over Airbnb
                                                                                                                                                                    • 25% of adults see Airbnb as better value
                                                                                                                                                                        • Figure 48: Attitudes towards hotels versus Airbnb, September 2018
                                                                                                                                                                      • Millennials show strong recognition of Airbnb strengths
                                                                                                                                                                        • Figure 49: Attitudes towards hotels versus Airbnb, Millennials versus others, September 2018
                                                                                                                                                                        • Figure 50: Attitudes towards hotels versus Airbnb, hotel guests versus rental property guests, September 2018
                                                                                                                                                                      • Young urban professionals are most likely to prefer Airbnb
                                                                                                                                                                        • Figure 51: Hotels – CHAID – Tree output, September 2018
                                                                                                                                                                      • Engaging the Airbnb generation
                                                                                                                                                                      • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                                          • Abbreviations
                                                                                                                                                                            • Consumer research methodology
                                                                                                                                                                              • CHAID methodology
                                                                                                                                                                              • Appendix – Market Size and Forecast

                                                                                                                                                                                  • 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

                                                                                                                                                                                About the report

                                                                                                                                                                                This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                                                                                                                                                                • The Consumer

                                                                                                                                                                                  What They Want. Why They Want It.

                                                                                                                                                                                • The Competitors

                                                                                                                                                                                  Who’s Winning. How To Stay Ahead.

                                                                                                                                                                                • The Market

                                                                                                                                                                                  Size, Segments, Shares And Forecasts: How It All Adds Up.

                                                                                                                                                                                • The Innovations

                                                                                                                                                                                  New Ideas. New Products. New Potential.

                                                                                                                                                                                • The Opportunities

                                                                                                                                                                                  Where The White Space Is. How To Make It Yours.

                                                                                                                                                                                • The Trends

                                                                                                                                                                                  What’s Shaping Demand – Today And Tomorrow.

                                                                                                                                                                                Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

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