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Hotels - UK - October 2013

INTRODUCTION
Definition
Abbreviations
EXECUTIVE SUMMARY
The market
Short break habit driving growth in hotel stays
Figure 1: Volume forecast of hotel/motel/guesthouse trips, 2008-18
Regions outperform capital in 2013 (for once)
Figure 2: UK hotels, occupancy, average room rate and RevPAR percentage change year on year, year to date January-August 2013
Market factors
Disappointing first half of 2013 for domestic travel
Figure 3: Volume, value and average spend on domestic holidays (GB), 2007-12
Inbound on upward curve
Figure 4: Inbound visits to the UK, by reason for trip, 2007-12
Currency rates continue to boost UK tourism
Figure 5: Annual exchange rates for Sterling versus the euro and US Dollar, 2007-13
Supplyside expansion
Companies, brands and innovation
Branded budget sector growing
Figure 6: Top ten UK hotel groups by number of hotels, 2013
Pods, hubs and Millennials
Shangri-La comes to Shard
The consumer
Six in 10 adults stay in UK hotels
Figure 7: Reasons for hotel stays in the last 12 months, July 2013
Most guests stay one or two nights per year
Figure 8: Frequency of hotel visits in the past 12 months, July 2013
Direct online booking accounts for over half of stays
Figure 9: How last hotel stay was booked, July 2013
Photos, online review are key research activities
Figure 10: Research activities prior to booking last hotel stay, July 2013
Customer service reputation is critical
Figure 11: Factors looked for in choosing a hotel, July 2013
High-tech hotels
Half of guests would pay more for a better experience
Figure 12: Attitudes towards hotels, July 2013
What we think
ISSUES IN THE MARKET
What is the Olympic legacy for UK hoteliers?
How significant is mobile booking for hoteliers?
How important is technological innovation for hotels?
How important is online peer-to-peer influence in choosing a hotel?
TREND APPLICATION
Trend: The Unfairer Sex
Trend: The Real Thing
Mintel’s Futures: Human
MARKET DRIVERS
Key points
Domestic holiday market still buoyant
Figure 13: Volume, value and average spend on domestic holidays (GB), 2007-12
Short breaks have driven growth
Figure 14: Short breaks vs mid-length holidays vs long holidays in Great Britain, by volume, 2007-12
Business volumes still up and down
Figure 15: Volume, value and average expenditure on domestic business travel (GB), 2007-12
Accommodation accounts for 37% of overnight domestic tourism spend
Figure 16: Expenditure on domestic tourism (GB), by category of spend (£m), 2008-12
Figure 17: Expenditure on domestic tourism (GB), by category of spend (% share), 2008-12
Short break rise has benefited hotel sector
Figure 18: Number of domestic* trips (all travel purposes), by accommodation used, 2007-12
Figure 19: Total number of nights spent on domestic* trips (all travel purposes), by accommodation used, 2007-12
Figure 20: Expenditure* on domestic** trips (all travel purposes), by accommodation used, 2007-12
Leisure inbound remains strong, business on upward curve…
Figure 21: Inbound visits to the UK, by reason for trip, 2007-12
Figure 22: Expenditure on inbound visits to the UK, by reason for trip, 2007-12
…but inbound hotel stays have been flat over five-year period
Figure 23: Number of inbound trips, by accommodation used, 2007-12
Figure 24: Number of inbound nights, by accommodation used, 2007-12
Inbound expenditure by accommodation used:
Figure 25: Expenditure on inbound trips, by accommodation used, 2007-12
London/Edinburgh among most expensive cities in Europe…
Figure 26: Hotel price comparison across the 40 most popular European cities, August 2008-August 2013
…but provincial UK hoteliers can trumpet value for money
Figure 27: Hotel price comparison across the 12 most popular UK cities, May-August 2013
London occupancy high but RevPAR trails rival gateway cities
Figure 28: Room occupancy and RevPAR of hotels in TRI selected key destinations, 2012
OFT OTA investigation reaches conclusion
UK economic growth restored but households remain squeezed
Figure 29: UK GDP growth, Q1 2008-Q2 2013
Hotel market retains currency advantage
Figure 30: Annual exchange rates for Sterling, 2008-13
Growth at both ends of population
Figure 31: Trends in the age structure of the UK population, 2008-18
WHO'S INNOVATING?
Key points
Low-frills, high-tech
Bedding down
Football legends open hotel
EPIC stuff
Why pay for Wi-Fi?
E-Check
Thinking outside of the box
Who’s Outovating?
Hotel Twitter
MARKET SIZE AND FORECAST
Key points
Domestic market has driven four years of growth…
Figure 32: Total volume of trips and nights staying in hotels, 2008-18
Figure 33: Volume of trips and nights staying in hotels, by domestic and inbound visits, 2008-13
…but inbound likely engine of growth in 2013
Figure 34: UK hotels, occupancy percentage point change year on year, February-August 2013
Figure 35: UK hotels, occupancy, average room rate and RevPAR percentage change year on year, year to date January-August 2013
Forecast
Figure 36: Volume forecast of hotel/motel/guesthouse trips, 2008-18
Figure 37: Volume forecast of hotel/motel/guesthouse nights, 2008-18
Forecast methodology
SEGMENT PERFORMANCE
Key points
UK full-service
Figure 38: Performance indicators for UK full-service hotels, 2010-12
London full-service
Figure 39: Performance indicators for London full-service hotels, 2010-12
England full-service
Figure 40: Performance indicators for England (excluding London) full-service hotels, 2010-12
Wales full-service
Figure 41: Performance indicators for Wales full-service hotels, 2010-12
Scotland full-service
Figure 42: Performance indicators for Scotland full-service hotels, 2010-12
F&B share higher in regions
Figure 43: UK hotel revenue breakdown, 2012
Budget boom unstoppable
Figure 44: Estimated occupancy rate, average room rate and room RevPAR for UK budget hotels, 2011 and 2012
MARKET SUPPLY AND SHARE
Key points
Chains versus independent
Big two dominate market
Figure 45: Top 20 UK hotel groups, by number of hotels, 2009-13
New additions in 2012
In the pipeline
COMPANIES AND PRODUCTS
Whitbread (Premier Inn)
Figure 46: Key financials for Whitbread Plc*, 2012 and 2013
Travelodge
InterContinental Hotels Group
Figure 47: InterContinental Hotels Group hotels – Europe, Asia, Middle East and Africa, August 2013
Figure 48: InterContinental Hotels Group – Europe, Asia, Middle East and Africa, rooms, by ownership structure, 2012
Figure 49: Key financial information, InterContinental Hotels Group – Europe, Asia, Middle East and Africa segment, 2011 and 2012
Best Western GB
Accor
Figure 50: Key financial information, Accor, 2011 and 2012
Hilton Worldwide
Wyndham Worldwide
Figure 51: Key financial information, Wyndham Worldwide, 2011 and 2012
De Vere Group
Marriott International
Figure 52: Key financial information, Marriott International, 2011 and 2012
BRAND RESEARCH
Brand map
Figure 53: Attitudes towards and usage of brands in the hotel sector, June 2013
Correspondence analysis
Brand attitudes
Figure 54: Attitudes, by hotel brand, June 2013
Brand personality
Figure 55: Hotel brand personality – macro image, June 2013
Figure 56: Hotel brand personality – micro image, June 2013
Brand experience
Figure 57: Hotel brand usage, June 2013
Figure 58: Satisfaction with various hotel brands, June 2013
Figure 59: Consideration of hotel brands, June 2013
Figure 60: Consumer perceptions of current hotel brand performance, June 2013
Brand index
Figure 61: Hotel brand index, June 2013
Target group analysis
Figure 62: Target groups, June 2013
Figure 63: Hotel brand usage, by target groups, June 2013
Group One – Conformists
Group Two – Simply the Best
Group Three – Shelf Stalkers
Group Four – Habitual Shoppers
Group Five – Individualists
CHANNELS TO MARKET
Key points
Over half book directly online
Figure 64: How last hotel stay was booked, July 2013
One in eight online bookers use a mobile
Figure 65: How last hotel stay was booked online, July 2013
HOTEL STAYS
Key points
Over half of adults stay in hotels
Figure 66: Reasons for hotel stays in the last 12 months, August 2008-July 2013
Male business bias persists
FREQUENCY OF HOTEL STAYS
Key points
Who are the regulars?
Figure 67: Frequency of hotel visits in the past 12 months, July 2013
RESEARCHING A HOTEL
Key points
Seeing is believing
Figure 68: Research activities prior to booking last hotel stay, July 2013
Discount-driven
Brand weakness
FACTORS INFLUENCING HOTEL CHOICE
Key points
Differentiating factors
Figure 69: Factors looked for in choosing a hotel, July 2013
Back to basics
Greening the brand
Survival of the fittest
Tech hotels
Keeping up to date
Hotel quirky
Loyalty decline
Video viewers are a key group
Customer review versus ratings
ATTITUDES TOWARDS HOTELS
Key points
Figure 70: Attitudes towards hotels, July 2013
It’s the destination, stupid
Functionality versus experience
Branded versus independent
Value-for-money concerns persist
APPENDIX – MARKET SIZE AND FORECAST
Figure 71: Volume forecast of hotel/motel/guesthouse trips, 2008-18
Figure 72: Volume forecast of hotel/motel/guesthouse nights, 2008-18
APPENDIX – BRAND RESEARCH
Figure 73: Brand usage, June 2013
Figure 74: Brand commitment, June 2013
Figure 75: Brand momentum, June 2013
Figure 76: Brand diversity, June 2013
Figure 77: Brand satisfaction, June 2013
Figure 78: Brand attitude, June 2013
Figure 79: Brand image – macro image, June 2013
Figure 80: Brand image – micro image, June 2013
Figure 81: Profile of target groups, by demographics, June 2013
Figure 82: Psychographic segmentation, by target groups, June 2013
Figure 83: Brand index, June 2013
APPENDIX – HOTEL STAYS
Figure 84: Most popular hotel visits in the past 12 months, by demographics, July 2013
Figure 85: Next most popular hotel visits in the past 12 months, by demographics, July 2013
Figure 86: Other hotel visits in the past 12 months, by demographics, July 2013
Figure 87: Other hotel visits in the past 12 months, by demographics, July 2013 (continued)
APPENDIX – FREQUENCY OF HOTEL STAYS
Figure 88: Frequency of hotel visits in the past 12 months, by most popular hotel visits in the past 12 months, July 2013
Figure 89: Frequency of hotel visits in the past 12 months, by next most popular hotel visits in the past 12 months, July 2013
Figure 90: Frequency of hotel visits in the past 12 months, by other hotel visits in the past 12 months, July 2013
Figure 91: Most popular frequency of hotel visits in the past 12 months, by demographics, July 2013
APPENDIX – RESEARCHING A HOTEL
Figure 92: Research activities prior to booking last hotel stay, by most popular hotel visits in the past 12 months, July 2013
Figure 93: Research activities prior to booking last hotel stay, by next most popular hotel visits in the past 12 months, July 2013
Figure 94: Research activities prior to booking last hotel stay, by other hotel visits in the past 12 months, July 2013
Figure 95: Research activities prior to booking last hotel stay, by frequency of hotel visits in the past 12 months, July 2013
Figure 96: Most popular research activities prior to booking last hotel stay, by demographics, July 2013
Figure 97: Next most popular research activities prior to booking last hotel stay, by demographics, July 2013
APPENDIX – HOTEL BOOKING
Figure 98: How last hotel stay was booked, by most popular hotel visits in the past 12 months, July 2013
Figure 99: How last hotel stay was booked, by next most popular hotel visits in the past 12 months, July 2013
Figure 100: How last hotel stay was booked, by other hotel visits in the past 12 months, July 2013
Figure 101: How last hotel stay was booked, by frequency of hotel visits in the past 12 months, July 2013
Figure 102: How last hotel stay was booked, by most popular research activities prior to booking last hotel stay, July 2013
Figure 103: How last hotel stay was booked, by next most popular research activities prior to booking last hotel stay, July 2013
APPENDIX – ONLINE HOTEL BOOKING DEVICES
Figure 104: How last hotel stay was booked online, by most popular hotel visits in the past 12 months, July 2013
Figure 105: How last hotel stay was booked online, by next most popular hotel visits in the past 12 months, July 2013
Figure 106: How last hotel stay was booked online, by frequency of hotel visits in the past 12 months, July 2013
Figure 107: How last hotel stay was booked online, by demographics, July 2013
APPENDIX – FACTORS INFLUENCING HOTEL CHOICE
Figure 108: Factors looked for in choosing a hotel, by most popular hotel visits in the past 12 months, July 2013
Figure 109: Factors looked for in choosing a hotel, by next most popular hotel visits in the past 12 months, July 2013
Figure 110: Factors looked for in choosing a hotel, by other hotel visits in the past 12 months, July 2013
Figure 111: Factors looked for in choosing a hotel, by frequency of hotel visits in the past 12 months, July 2013
Figure 112: Factors looked for in choosing a hotel, by most popular research activities prior to booking last hotel stay, July 2013
Figure 113: Factors looked for in choosing a hotel, by next most popular research activities prior to booking last hotel stay, July 2013
Figure 114: Factors looked for in choosing a hotel, by how last hotel stay was booked, July 2013
Figure 115: Factors rated as ‘very important’ in choosing a hotel, by demographics, July 2013
Figure 116: Factors rated as ‘very important’ in choosing a hotel, by demographics, July 2013 (continued)
Figure 117: Factors rated as ‘very important’ in choosing a hotel, by demographics, July 2013 (continued)
Figure 118: Factors rated as ‘very important’ in choosing a hotel, by demographics, July 2013 (continued)
APPENDIX – ATTITUDES TOWARDS HOTELS
Figure 119: Agreement with attitudes towards hotels, by most popular hotel visits in the past 12 months, July 2013
Figure 120: Agreement with attitudes towards hotels, by next most popular hotel visits in the past 12 months, July 2013
Figure 121: Agreement with attitudes towards hotels, by other hotel visits in the past 12 months, July 2013
Figure 122: Agreement with attitudes towards hotels, by most popular research activities prior to booking last hotel stay, July 2013
Figure 123: Agreement with attitudes towards hotels, by next most popular research activities prior to booking last hotel stay, July 2013
Figure 124: Agreement with attitudes towards hotels, by how last hotel stay was booked, July 2013
Figure 125: Agreement with attitudes towards hotels, by demographics, July 2013
Figure 126: Further agreement with attitudes towards hotels, by demographics, July 2013
Figure 127: Further agreement with attitudes towards hotels, by demographics, July 2013 (continued)

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