No vacancies: Revenue has grown over the past five years as the weak pound supported demand

The Hotels industry has performed well over the past five years. While the outcome of the EU referendum in 2016 has created a degree of uncertainty over the future of the industry, the weak value of the pound has made the United Kingdom an affordable destination for international tourists. Weak consumer confidence has also led to a rise in domestic tourism in recent years. A growing number of families are forgoing overseas holidays, instead favouring staycations, which has benefited domestic hotel occupancy rates. Industry revenue is forecast to grow at a compound annual rate of 3.4% over the five years through 2018-19, including a forecast 2% rise in the current year, to reach £20.1 billion.The digital revolution is transforming the way the industry more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • The weak pound has made Britain cheaper for foreign tourists, propelling demand
  • The use of dynamic pricing algorithms has helped to increase occupancy rates over the past five years
  • Industry operators will continue to contend with OTAs in driving traffic to their websites
  • Industry Report - Industry SWOT Analysis Chapter

    The industry is in the mature stage of its life cycle. Despite indications that it is a growth industry, the industry's relatively stable product offering ensures that it is a mature industry. During the 10 years through 2023-24, industry value added is expected to grow at a compound annual rate of 3%, while GDP is expected to grow at a compound annual rate of 1.7% over the same period, indicating that hotels will account for a growing share of the economy.Demand for hotels is expected to be boosted by rising international arrivals as tourists from across the globe are drawn to the United Kingdom for its history, culture, sporting and entertainment events and shopping opportunities. Lon...purchase to read more.

    Additional Insights for the Hotels Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hotels Industry are

  • Having a loyal customer base
  • Being part of a group buying, promotion and marketing scheme
  • Access to multiskilled and flexible workforce
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Consumer confidence index in the Hotels industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Hotels Industry?

    The industry includes hotels that provide accommodation to UK residents and international guests. These establishments also have other facilities, including restaurants, recreational areas, conference rooms and convention centres, and offer laundry services and parking.

    Industry Products
  • Luxury hotels
  • Upscale hotels
  • Midscale hotels
  • Economy hotels
  • Industry Activities
  • Providing accommodation
  • Hosting meetings, conferences and events
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Consumer confidence index
  • International tourist numbers
  • Total domestic tourism
  • Business confidence index

  • Current Performance
  • Tourism boost
  • Operating online
  • Marginal growth
  • Chart: Revenue Growth

  • Industry Outlook
  • Competitive pressures
  • EU effects
  • Table: Hotels Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hotels Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Scheduled Passenger Air Transport
  • Travel Agencies
  • Tour Operators
  • Consumers

  • Key Selling Industries
  • Alcoholic Beverage Wholesaling
  • Dairy Product, Egg & Edible Oil Wholesaling
  • Fruit & Vegetable Wholesaling
  • Furniture, Carpet & Lighting Wholesaling
  • Household Appliance & Television Wholesaling
  • Meat Wholesaling

  • Products & Services
  • Economy hotels
  • Midscale hotels
  • Upscale hotels
  • Luxury hotels
  • Chart: Hotels Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • International consumers
  • Domestic consumers
  • Chart: Major Market Segmentation for the Hotels Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationRent and utilitiesOther expenses
  • Chart: Cost Structure Benchmarking – Sector vs Hotels

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hotels Industry

  • Industry Globalization
    Whitbread plc, InterContinental Hotels Group plc,
  • Table: Whitbread plc - financial performance
  • Table: InterContinental Hotels Group plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hotels Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hotels Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Average Daily Rate (Adr)
  • Average rental income per occupied room in a given time period.
  • Online Travel Agent (Ota)
  • An online reseller that packages room deals on behalf of hotels and sells them to consumers.
  • Revpar
  • Revenue per available room.
  • Sharing Economy
  • Peer-to-peer services that allow owners to rent out something they are not using, such as a car, house or bicycle, to a stranger.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hotels market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hotels:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hotels market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hotels, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Would you like to speak to an IBISWorld representative?