Booked up: The weak pound has propelled demand, supporting continued revenue growth

The Hotels industry has performed well over the past five years. Favourable conditions are in part thanks to international tourism campaigns and the popularity of British-made films encouraging international and domestic tourists to travel in the United Kingdom. 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 2018-19. As a result, revenue is projected to grow by 1.8% in the current year. IBISWorld expects industry revenue to rise at a compound annual rate of 3% over the five years through 2018-19 to reach £19.8 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 digital revolution is changing the industry, with OTAs now dominating online bookings
  • The proliferation of online travel agents has changed the way in which the industry operates
  • Larger chains are anticipated to expand while the number of small operators is expected to fall
  • Industry Report - Industry Investment Chapter

    The industry is highly reliant on both labour and capital inputs. Since this is a service-oriented industry, hotels depend on customer service and satisfaction. The quality and level of service provided plays a large role in the number of customers that hotel operators attract and retain. In addition, operators require a large capital base to establish and operate a hotel, particularly for buildings, equipment and other assets. Regular capital investments are also required in order to update the interior hotels and maintain a good star rating to attract customers. Investing in trained and experienced staff with excellent customer service skills and investing in capital are both important in the industry...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..

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    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
  • International visitors
  • Luxury and budget
  • Operating online
  • Competition and conference
  • Chart: Revenue Growth

  • Industry Outlook
  • Business travel
  • Competitive pressures
  • Freedom of movement
  • 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
  • Domestic consumers
  • International 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 competitionExternal 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 paid 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 offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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.

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