2022
9
UK Hotels Market Report 2022
2022-12-21T03:15:23+00:00
OX1147931
2195
158831
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Report
en_GB
“As hotel prices will likely rise as a result of soaring inflation, hotels will need to up their game to improve satisfaction levels in areas beyond customer service. Investments to…

UK Hotels Market Report 2022

£ 2,195 (Excl.Tax)

Description

Unlock the potential of the UK Hotel Market with our comprehensive report. Our analysis examines consumer attitudes towards hotels in the UK, frequency of use and the impact of the cost of living crisis on the UK hotel market. You’ll gain invaluable insight into the UK hotel market size, as well as market projections, segmentation, and the latest trends. 

UK Hotels Market Overview

The domestic tourism market continued to lead the UK hotel market’s recovery in 2022, and the easing of restrictions in the UK early in the year led to a rapid rise in international visitors. However, the UK hotel market’s full recovery potential was impacted by staff shortages which led to cancellations and put some consumers off travelling internationally. Alongside this, consumer confidence has been impacted as a result of soaring inflation and increased pressure on household finances.

UK Hotels Market Trends and Consumer Behaviours

Consumer confidence remains at a relatively low level as the financial pressures many people are facing look unlikely to ease in the short term. The income squeeze will make consumers rethink what value means to them. More travellers will look for ways to mitigate the impact of rising prices and stick to a budget when travelling. Brands in the UK hotel market should look for ways to provide consumers with more booking flexibility and control over their options.

Meanwhile, consumers on higher incomes, who have not been as heavily impacted by inflation or those who have built up savings during the pandemic still have funds available for big-ticket holiday spending. The luxury travel market is set to benefit from consumers who are willing to pay a premium price for relaxation and new and unique experiences.

Hotel industry UK market statistics

  • UK hotel market size: Mintel estimates that the volume of guests staying in UK hotels recovered to 53.8 million in 2022, with the UK hotel market size reaching £16.1 billion.
  • UK hotel market consumer behaviours: 55% of UK adults have stayed in a hotel in the UK during the last 12 months.
  • UK hotel market opportunity: 38% of UK consumers plan to stay in a mid-market hotel in the next 12 months.
  • UK hotel market challenge: 50% of UK travellers agree that they intend on taking fewer breaks over the next 12 months in order to save money.

Uncover Future Opportunities in the UK Hotels Market

In the longer term, as hotel prices will likely rise as a result of soaring inflation, the UK hotel market will need to up their game to improve satisfaction levels in areas beyond customer service. This includes investing in the quality of food, drinks, and room facilities as well as offering flexible booking calendars, payment options, and free activities in the surrounding areas. Additionally, hotels should highlight their available additional facilities or activities such as swimming pools or games in order to attract more guests and promote competitive advantages that help them control costs.

To discover more about the UK Hotels Market Report 2022, read our UK Luxury Travel Market Report 2022, or take a look at our other Holidays and Travel Market Research.

Quickly Understand

  • How the rising cost of living will impact the recovery of the UK hotel market.
  • Usage of hotels versus other accommodation in the UK.
  • Consumers’ intentions to stay in UK hotels, by purpose and type of hotel.
  • Expected ways to reduce spending on UK hotel market vs opportunities to sell upgrades.
  • Key drivers of guest satisfaction levels.
  • Consumer perceptions of leading hotel brands versus Airbnb.
  • Explores the UK hotels market size and share.

Leading Hotel Brands in the UK

Premier Inn, Travelodge, InterContinental Hotels Group, Best Western, Accor, Hilton, Marriott International, Wyndham Hotel Group, Britannia, Virgin Hotels, Whitbread, Mandarin Oriental Hotel Group, Four Seasons.

Expert Analysis from a Specialist in the Travel Sector

This report, written by Marloes De Vries, a leading analyst in the travel sector, delivers in-depth commentary and analysis to highlight current trends in the UK hotel market and add expert context to the numbers.

As hotel prices will likely rise as a result of soaring inflation, hotels will need to up their game to improve satisfaction levels in areas beyond customer service. Investments to improve the quality of food and drink and room facilities will pay off as these elements have a relatively high impact on the guest experience.”

Marloes De Vries

Marloes de Vries
Associate Director – Travel

 

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for the UK hotel market
      • Figure 1: Category outlook, 2022-27
    • The market
    • Relaxation of restrictions finally allowed the release of pent-up demand
    • A rise in the average cost per stay should see market value recover at a faster pace
      • Figure 2: Total volume forecast of hotel/motel/guesthouse trips (domestic and inbound), 2017-27
      • Figure 3: Total value forecast of hotel/motel/guesthouse trips (domestic and inbound), 2017-27
    • Consumer confidence remains at a relatively low level
    • Cost-of-living crisis affecting middle- and higher-income households too
    • Companies and brands
    • Brands continue to tap into demand for extended stays and apartment-style accommodations
    • Hotels are expanding their ethical practices
    • Airbnb’s usage levels exceed pre-pandemic levels
    • The consumer
    • Usage of independent hotels has declined slightly on pre-pandemic levels
      • Figure 4: Usage of overnight accommodation in the UK in the past 12 months, 2018-22
    • Holiday rental properties have significantly increased their customer base
      • Figure 5: Usage of hotels, rental properties and other accommodation in the past 12 months, 2018-22
    • Demand continues to be dominated by budget and mid-market hotels
      • Figure 6: Intentions to stay in a UK hotel in the next 12 months, by type of hotel, 2022
    • Investments may see hotels increase their share in the extended-stay segment
      • Figure 7: Purpose of UK hotel stays in the next 12 months, 2022
    • Brits set to cut back on hotel stays in the UK
      • Figure 8: Expected changes in spend on hotel stays in the UK, by demographics, 2022
    • Taking fewer trips is the most popular way to reduce spend on UK hotel stays
      • Figure 9: Expected ways to reduce spend on hotel stays in the UK, 2022
    • Luxury segment more likely to benefit from lockdown savings
      • Figure 10: Products and services hotel guests would pay more for, by type of hotel, 2022
    • Allowing staff quality time for guest interaction will enhance the guest experience
      • Figure 11: Key drivers of overall satisfaction with hotel used most recently, 2022
    • Guests’ expectations regarding hotels’ ethical behaviour will likely increase
  3. Issues and Insights

    • Hotel guests will remain heavily focused on value
    • Budget
    • Premium
    • Convenience
    • Quality
  4. Market Size and Performance

    • The inbound segment was hit hard in 2021…
    • …but relaxation of restrictions finally allowed the release of pent-up demand
      • Figure 12: Total volume and value of UK hotel/motel/guesthouse stays, domestic vs inbound, 2016-22
  5. Market Forecast

      • Figure 13: Category outlook, 2022-27
    • A rise in the average cost per stay should see market value recover at a faster pace
      • Figure 14: Total volume forecast of hotel/motel/guesthouse trips (domestic and inbound), 2017-27
      • Figure 15: Total value forecast of hotel/motel/guesthouse trips (domestic and inbound), 2017-27
    • Learnings from the last income squeeze
    • Forecast methodology
  6. Market Drivers

    • Consumer confidence remains at a relatively low level
      • Figure 16: The Financial Confidence Index, 2009-22
    • Cost-of-living crisis affecting middle- and higher-income households too
    • Over a fifth of consumers have noticed higher prices for holidays
      • Figure 17: Issues faced in the last two months, 2022
    • Holiday bookings were slightly below pre-COVID-19 levels in November 2022
      • Figure 18: Holiday bookings in the last three months, 2016/17-2021/22
    • Holiday booking intentions are also slightly below pre-pandemic levels
      • Figure 19: Plans to book a holiday in the next three months, 2016/17-2021/22
    • Alternative ways of meeting are the biggest barrier to the recovery of business travel
  7. Market Share

    • Premier Inn increases growth target in response to declined hotel supply
      • Figure 20: Leading hotel operators in the UK, by estimated UK site numbers, 2022
    • Brands continue to tap into demand for extended stays and apartment-style accommodations
    • Travelodge plans to roll out new budget-luxe design across its UK hotels…
    • …while Marriott acquires a brand in the midscale segment
    • Hotel groups have improved loyalty programmes
    • Accor plans organisational restructuring
  8. Launch Activity and Innovation

    • Hotels are expanding their ethical practices
    • Travelodge launches new sustainability plan
    • Whitbread started constructing its first all-electric Premier Inn hotel in South West England
    • Whitbread joins the global Hidden Disabilities Sunflower network
    • Hotels continue to tap into high demand for holiday homes
    • Mandarin Oriental Hotel Group launches branded exclusive homes
    • The Tawny Hotel offers private residences with the amenities of a hotel on its estate
    • A selection of brands entering the UK hotel market
    • B&B Hotels plans to open 100 hotels in the UK by 2030
    • Virgin Hotels opens its first two European properties in Scotland
    • Luxury hotel brands expand into the yachting space
    • Four Seasons launches luxury cruise line
    • Ritz-Carlton Yacht Collection sets sail
  9. Brand Research

    • Brand map
      • Figure 21: Attitudes towards and usage of selected brands, 2022
    • Key brand metrics
      • Figure 22: Key metrics for selected brands, 2022
    • Brand attitudes: Innovation is Airbnb’s core strength but trust issues remain
      • Figure 23: Attitudes, by brand, 2022
    • Brand personality: Premier Inn, Travelodge and Holiday Inn are closely associated with being accessible
      • Figure 24: Brand personality – Macro image, 2022
    • Hilton and Marriott are often associated with being stylish and special, but also overpriced
      • Figure 25: Brand personality – Micro image, 2022
    • Brand analysis
    • Premier Inn
    • Travelodge
    • Holiday Inn
    • Best Western
    • Hilton
    • Marriott
      • Figure 26: Satisfaction of brands operating in the UK hotels market, 2022
    • Airbnb
      • Figure 27: Usage of brands operating in the UK hotels market, 2019-22
    • Demographic profile of users
      • Figure 28: Demographic profile of those who used the brand in the last 12 months, 2022
  10. Hotel Usage

    • Usage of independent hotels has declined slightly on pre-pandemic levels
      • Figure 29: Usage of overnight accommodation in the UK in the past 12 months, 2018-22
    • Holiday rental properties have significantly increased their customer base
      • Figure 30: Usage of hotels, rental properties and other accommodation in the past 12 months, 2018-22
    • Over-65s remain less keen on using holiday rental properties
      • Figure 31: Usage of hotels vs rental properties in the past 12 months, by age, 2019 vs 2022
  11. Future Intentions by Type of Hotel

    • Demand continues to be dominated by budget and mid-market hotels
      • Figure 32: Intentions to stay in a UK hotel in the next 12 months, by type of hotel, 2022
    • Luxury segment more likely to benefit from lockdown savings
      • Figure 33: Demographic profile of potential UK hotel guests, by type of hotel, 2022
  12. Future Intentions by Purpose

    • Investments may see hotels increase their share in the extended-stay segment
    • Services aimed at improving business travellers’ wellbeing will appeal
      • Figure 34: Purpose of UK hotel stays in the next 12 months, 2022
  13. Changes to Budget

    • About a third of hotel guests expect to spend less on hotel breaks in the UK while a fifth plan to spend more
      • Figure 35: Expected changes in spend on hotel stays in the UK, 2022
    • Families with younger children and less affluent guests are more likely to cut back
    • Over-65s are less likely to cut back on UK hotel breaks
      • Figure 36: Expected changes in spend on hotel stays in the UK, by demographics, 2022
  14. Saving versus Upgrading

    • Taking fewer trips is the most popular way to reduce spend on UK hotel stays
      • Figure 37: Expected ways to reduce spend on hotel stays in the UK, 2022
    • All-around virtual tours of accommodation have great potential to promote upgrades
    • Unique accommodation will help to attract more visitors
      • Figure 38: Products and services hotel guests would pay more for, by type of hotel, 2022
  15. Satisfaction Levels

    • Allowing staff quality time for guest interaction will enhance the guest experience
    • Food and drink, room facilities and price have a high impact on satisfaction levels too
      • Figure 39: Key drivers of overall satisfaction with hotel used most recently, 2022
    • Guests’ expectations regarding hotels’ ethical behaviour will likely increase
      • Figure 40: Overall satisfaction with hotel used most recently – Key driver output, 2022
  16. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
    • Key driver analysis
      • Figure 41: Overall satisfaction with hotels – Key driver output, 2022
      • Figure 42: Satisfaction with hotels, 2022
  17. Appendix – Forecast Methodology

    • Volume forecast and prediction intervals for hotel/motel/guesthouse trips
      • Figure 43: Lower bound, central and upper bound forecast for volume of hotel/motel/guesthouse trips (domestic and inbound), 2022-27
    • Value forecast and prediction intervals for hotel/motel/guesthouse trips
      • Figure 44: Lower bound, central and upper bound forecast for value of hotel/motel/guesthouse trips (domestic and inbound), 2022-27
    • Value forecast and prediction intervals for hotel/motel/guesthouse trips at constant prices
      • Figure 45: Value of hotel/motel/guesthouse trips (domestic and inbound) at 2022 prices, 2022-27
    • Market drivers and assumptions
    • Forecast methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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