UK independent hotels ‘feeling the pinch’

As many as 2,500 UK independent hotels fear they are at risk of being driven out of business by big brand chains, according to a new survey.

Almost half of all independents (48 per cent) report they are competing with a hotel chain in their area.

And more than a quarter say are feeling the pinch – 26 per cent have suffered a drop in bookings at the hands of their larger rivals. 

The survey, commissioned by internet hotel booking site Hotel Reservation Service (HRS.com), reveals that nearly half (47 per cent) of those questioned believe chains are pricing them out of the market while draining local communities and adding nothing to the visitor experience.

A further seven per cent said they have been threatened by a new chain hotel opening in competition to them in the last two years.

But more than 92 per cent of respondents felt their guests get a better experience by staying at a local independent hotel.

And few respondents felt that customers chose budget hotel chains over independents on criteria other than price, with hotel experience and value to the individual sinking low on the priority list.

Only one in ten suggested that quality of service played any role in decision-making, equal in impact to having a brand name known by consumers.

Only six per cent felt they were losing out on grounds of better facilities for their guests. Only one per cent thought it was down to star rating.

The independent hoteliers surveyed also criticised local rivals for failing to invest in, or engage with, their communities.

Nearly two-thirds (62 per cent) believe that the chain in their locality makes at best a minor contribution as an employer or trainer of local people, while 69 per cent say their local chain at best makes a minor contribution as a purchaser of local produce or services.

The chains fair no better on adding to local architecture or as protectors of the local environment, scoring 72 and 76 per cent respectively.

HRS.com commercial director Grant Appleton said: “The market is changing and, if UK businesses and consumers want to continue to exercise choice in the long-term, it is time that they started to protect the Great British Hotel from the gradual encroachment of the chain hotels.

“If it were pubs under threat from bigger chains or local grocery stores from large high-street supermarkets to this degree, there would be uproar.”

He added: “The power of some of the booking agents out there to influence customers is concerning.

“We’re urging business and leisure travellers to consider all factors when choosing a hotel – rather than just price – to create a level playing field for the independent British hoteliers that are so important to our heritage and economy.”

by Phil Davies