Mintel’s hotel market research finds that the UK Hotel market remains under pressure from higher operational costs. To adapt, hotels need to focus on efficiency gains, such as accelerating AI projects, as well as increasing the supply of apartment-style hotels to encourage longer stays, and offering more add-ons in booking systems to increase revenue.
The number of hotel stays is expected to have increased this year, largely driven by a continued recovery in inbound tourism. Nevertheless, the volume is expected to end below 2019 levels in 2024. With over half of hotel guests expressing interest in glamping at a hotel’s site, hotels are well-positioned to expand their presence in this growing industry. Interest is particularly strong among younger and more affluent demographics.
Mintel’s consumer research found that guests are most willing to pay extra for room selection, so providing more choices in rooms and amenities will increase appeal. Catering to larger groups with options like family rooms and adjoining or interconnected rooms is crucial, as space and suitability for larger groups is a competitive advantage of holiday rentals. There are also plenty opportunities to offer experiences on-site and in the local area.
This report was written by Marloes De Vries, Travel Analyst at Mintel. Marloes is a research analyst at Mintel, focusing on the travel sector. She previously worked as a researcher for the British and Dutch tourist boards, after having been a project leader in the field of tourism and leisure at a leading market research agency in Amsterdam. Marloes holds a degree in Tourism Management.
Effective ways for hotels to increase revenue are expanding the number of room selection options and offering experiences on-site and in the local area.
Marloes De Vries
Travel Analyst
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