The United Kingdom’s hotel market is one of contrasts, ranging from renowned 5-star and luxury hotels to major national budget brands. The upper and luxury segments are most prominent in London, although they are not limited to the capital city, where high tourist traffic and economic wealth provide a greater market for deluxe and first-class hotels. Meanwhile, limited service hotel chains, such as Premier Inn and Travelodge, can be found in cities across the country. As of the fourth quarter of 2022, a survey revealed that the
was Premier Inn, with 68 percent of respondents stating they had a positive opinion of the brand. Premier Inn, established by Whitbread in 1987, was also the
. In 2022, the
amounted to 16.42 billion British pounds, up from 11.28 billion the previous year.
Hotel industry landscape in the UK
When looking at the
average hotel prices per night in selected large cities in the UK, Brighton & Hove recorded the highest average price at 133 British pounds as of April 2022. In contrast, Aberdeen had the lowest average cost per night in the ranking at 54 British pounds, and the nation’s capital city, London, had an average hotel cost per night of 110 British pounds. Smaller cities tended to have slightly higher average prices per night in 2022. For example, St Ives had the highest
average price per night of selected small cities in the UK at 205 British pounds.
One of the key performance indicators of the hotel industry, alongside the average daily rate (ADR) and revenue per available room RevPAR), is the occupancy rate. As of September 2022, the
monthly occupancy rate in the UK was 81 percent. This figure shows an increase when compared to the same month in the previous two years.
What is the future of the UK hotel industry?
In April 2020, the
year-over-year monthly change in the number of hotel bookings in the UK plummeted by 95 percent. The abrupt change in hotel bookings was due to the impact of the
coronavirus (COVID-19) pandemic on tourism and the hotel industry worldwide. As of September 2022, the monthly change in the number of hotel bookings across the country was slowly trending upwards but still far from reaching pre-pandemic levels. By contrast, the
year-over-year monthly change in the number of online hotel searches in the UK rebounded shortly after the start of the pandemic. By August 2020, the monthly change in the number of online hotel searches matched those of February 2020. In conjunction with an increasing trend toward online user behavior, the future of the UK’s hotel industry may also include an increasing trend toward environmental awareness. In 2022, the share of
UK travelers considering eco-friendly hotels grew over the past two years to 37 percent.
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