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Hotels in the UK: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Hotels Market Research Report | SIC I55.100 | Mar 2017

Suite success: High demand from foreign tourists is expected to support revenue expansion

IBISWorld’s Hotels market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

Report Snapshot
Market Share of Companies
InterContinental Hotels Group plc InterContinental Hotels Group plc market share
Whitbread plc Whitbread plc market share
Industry Statistics & Market Size
Annual Growth 12-17
Annual Growth 17-22
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Industry Threats & Opportunities
  • The digital revolution has resulted in onlinetravel agents dominating online bookings
  • Midscale firms have struggled with poor demand, although budget hotels have performed well
  • Short-term rental sites are likely to face increasing regulation, which may relieve pricing pressure
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Industry Analysis & Industry Trends

The Hotels industry has performed well over the past five years. Since 2011-12, conditions have been favourable, in part thanks to major events like the London Olympics and Rugby World Cup encouraging international and domestic tourists to travel in the United Kingdom. This has lifted demand for hotel accommodation, supporting industry operators. Continuing global economic growth, the weak pound and the enduring popularity of London as a tourist and business destination are expected to stimulate demand for hotels in 2016-17. As a result, revenue is estimated to grow by 4.4% in the current year. IBISWorld expects industry revenue to rise at a compound annual rate of 3.8% over the five years through 2016-17 to reach £18.3 billion... purchase to read more

Industry Report - Industry Key Buyers Chapter

IBISWorld estimates that the three largest players in the Hotels industry control approximately 13.3% of the market in 2016-17. Due to InterContinental Hotels Group's (IHG) change in business model in recent years, with revenue from franchise operations not being included, IHG does not count as one of the largest four players. No single player exists with the scale to dominate the market. However, Premier Inn, the largest operator in the industry, has some influence on the prices and services offered by budget branded hotels. Overall, the industry has a low level of concentration and is highly fragmented. This is likely to remain a feature of the industry in future years, although branded budget chains are set to continue expanding their market share.

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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... purchase to read more


    Industry ProductsRelated Reports

    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 hotelsUpscale hotelsMidscale hotelsEconomy hotels
    Industry Activities
    Providing accommodationHosting meetings, conferences and events

    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Consumer confidence index
  • International tourist numbers
  • Total domestic tourism
  • Business confidence index
  • Current Performance
  • Events and

    domestic holidays

  • Luxury and budget
  • Digital developments
  • Service charge
  • Chart: Revenue Growth
  • Industry Outlook
  • Business visitors
  • Competitive pressures
  • Travel barriers
  • Table: Hotels Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hotels Industry Lifecycle vs The Economy
  • Products & Markets
    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
  • Domestic consumers
  • International consumers
  • Chart: Major Market Segmentation for the Hotels Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Rent and utilities
  • Other 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
    Major Companies
    Whitbread plc
    InterContinental Hotels Group plc
  • Table: Whitbread plc - financial performance
  • Table: InterContinental Hotels Group plc - financial performance
  • Operating Conditions
    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
    Key Statistics
  • Table: Industry Data for the Hotels Industry
  • Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Jargon & Glossary
    Average Daily Rate (Adr)
  • Average rental income per paid occupied room in a given time period.
  • Online Travel Agents (Ota)
  • Online resellers that package room deals on behalf of hotels and sell 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.

  • Why Buy this Report?
    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 of 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.

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