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MINTEL research shows rapid growth of UK budget hotel sector
The value of the UK budget hotel market increased by 38% between 2002 and 2006 to reach £1 billion for the first time, according to latest research from MINTEL.
The growth is three times that of the overall UK hotel market (worth £11.2 billion), which increased by just 12% over the same four year period.
“The Brits’ desire for taking several short breaks a year, independent booking and paying for guaranteed basics has seen budget hotels surge in popularity,” said Richard Cope, senior travel analyst at MINTEL.
“Boutique and lifestyle budget hotels such as The Big Sleep, the Hoxton Hotel and base2stay have raised the game by providing an affordable but luxurious alternative to their more traditional cousins.
“In the same vein, the new capsule hotels in prime locations by brands such as Yotel and nitenite offer high-spec, cutting edge design but in smaller living spaces. Both have also helped boost the budget hotel market.”
MINTEL forecasts a further 38% growth for budget hotels over the next five years, with the market set to hit the £1.5 billion mark by 2012.
This will be largely driven by the 2012 Olympic Games in London.
In the UK, 54% of the population has stayed in a budget hotel, and this rises to 76% amongst these wealthier AB travellers.
“Brits bought into low cost airlines and now it is the turn of the budget hotel,” added Cope.
“The phenomenal growth of low cost air travel has spawned a generation of cost conscious but frequent travellers, and the UK budget hotel market has benefited greatly. Why pay more for a hotel room when you only plan to sleep in it for seven or so hours?”
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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