Stay ahead of the curve and future-proof your business with Mintel’s UK Hotel Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest UK hotel market research, trends and consumer behaviours affecting your business. Get a 360° view of the hotel industry, including market size, share and forecasted growth to help you align your business strategy with the needs of your audience.
Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.
Topics Analysed in this Report
- How the increased cost of living will impact the recovery of the UK hotel market.
- Usage of hotels versus other accommodation types in the UK.
- Consumers’ intentions to stay in UK hotels, by purpose and type of hotel.
- Decisive factors when choosing a hotel and desired hotel features.
- Consumer perceptions of leading hotel brands versus Airbnb.
UK Hotel Market: Current Outlook
The value of the UK hotels market is expected to reach record highs, while volume is expected to grow but will remain below pre-pandemic levels. Challenges include inflationary pressures, a slower recovery in business travel and increased competition from holiday rental properties.
- UK hotel market size: Mintel forecasts that volume of guests staying in UK hotels will reach £74.4 million in 2028.
Hotel Industry UK Market Statistics: Challenges and Opportunities
Reimaging hotels as a haven for wellbeing
Increased competition with holiday rental properties will require hotels to give distinctive reasons to stay in hotels. One area with great potential is a greater focus on guests’ wellbeing so they feel more relaxed during and rejuvenated after their stay.
- UK hotel market statistics: 34% of hotel guests say that hotel rooms designed to enhance sleep quality are important when staying in UK hotels.
Offer everyone an opportunity to upgrade
Brands in the UK hotel market should give guests the ability to customise where and what they want to upgrade. Giving more control over room location is a must, while other popular options that guests are willing to pay for include the late check-out and in-room spa and wellness facilities.
- UK hotel market opportunity: 44% of hotel guests think the room location is important and over a third are willing to pay for this.
Purchase our UK Hotel Market Report to receive a five-year forecast, consumer behaviour analysis, and recommendations for market opportunities. Readers of this report may also be interested in our UK Holiday Planning and Booking Process Market Report 2023.
Brands Featured in the Full Report
Michelin, Accor, Hilton, Raffles Hotels, Premier Inn, Travelodge, Airbnb, Holiday Inn, Best Western, Marriott.
Expert Insights from a Mintel Analyst
This report, written by Marloes De Vries, a leading research analyst, delivers in-depth commentary and analysis to highlight trends in the UK hotels market and add expert context to the numbers.
Hotels can become more appealing by positioning themselves as a haven for wellbeing, leaving guests feeling more relaxed during and rejuvenated after their stay.
Marloes De Vries
Travel Analyst
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Executive Summary
- Opportunities for the UK hotel market
- Market dynamics and outlook
- What consumers want and why
- Graph 1: use of main forms of overnight accommodation in the UK in the past 12 months, 2018-23
- Graph 2: [no title]
- Graph 3: [no title]
- Graph 4: intentions to stay in a UK hotel in the next 12 months, by type of hotel, 2022-23
- Graph 5: purpose of UK hotel stays in the next 12 months, 2022 vs 2023
- Graph 6: most important factors when choosing a hotel in the UK, 2023
- Graph 7: important features when staying in hotels in the UK, 2023
- Innovation and marketing
- Graph 8: share of UK adults who used the brand in the past year, 2019-23
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Market Dynamics
- Market size
- Graph 9: volume of UK hotel/motel/guesthouse stays (domestic and inbound), 2017-23
- Graph 10: value of UK hotel/motel/guesthouse stays (domestic and inbound), 2017-23
- Market forecast
- Market share
- Macro-economic factors
- Graph 11: cost-of-living issues affecting consumers over the last two months, 2023
- Graph 12: the financial wellbeing index, 2016-23
- Graph 13: the financial confidence index, 2016-23
- Social, environmental and legal factors
- Holiday bookings and booking intentions
- Graph 14: holiday bookings in the last three months, 2018/19-2022/23
- Graph 15: plans to book a holiday in the next three months, 2018/19-2022/23
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What Consumers Want and Why
- Use of hotels versus other accommodation
- Graph 16: use of overnight accommodation in the UK in the past 12 months, 2023
- Graph 17: use of main forms of overnight accommodation in the UK in the past 12 months, 2018-23
- Graph 18: use of hotels in the UK in the past 12 months, 2018-23
- Graph 19: demographic profile of UK adults, by type of accommodation used in the past 12 months, 2023
- Booking method
- Graph 20: online booking methods used for last hotel stay in the UK, 2023
- Graph 21: offline booking methods used for last hotel stay in the UK, 2023
- Future intentions to stay in hotels
- Graph 22: intentions to stay in a UK hotel in the next 12 months, by type of hotel, 2022-23
- Graph 23: purpose of UK hotel stays in the next 12 months, 2022 vs 2023
- Graph 24: expected changes in spend on hotel stays in the UK over the next 12 months compared to the last 12 months, by type of hotel, 2023
- Decisive factors when choosing a hotel
- Graph 25: most important factors when choosing a hotel in the UK, 2023
- Graph 26: most important factors when choosing a hotel in the UK, by age, 2023
- Graph 27: most important factors when choosing a hotel in the UK, by type of hotel, 2023
- Desired hotel features
- Graph 28: important features when staying in hotels in the UK, 2023
- Graph 29: important features when staying in hotels in the UK, by age, 2023
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Innovation And Marketing Trends
- Launch activity and innovation
- Advertising and marketing activity
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Brand Research
- Graph 30: share of UK adults who used the brand in the past year, 2019-23
- Graph 31: association with offering good value, among those who have heard of the brand, 2019 vs 2023
- Graph 32: association with being responsive, among those who have heard of the brand, 2023
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Appendix
- Supplementary data
- Market forecast data and methodology
- Report scope and definitions
- Methodology
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