A large majority of UK consumers – 81% – are planning to stay in a UK hotel in 2023, raising the prospect of a boom year for domestic hospitality.
The latest GO Technology report from hospitality tech provider Zonal and insight firm CGA by NielsenIQ, based on a survey of more than 2000 UK consumers, found that nearly half – 44% – of consumers plan to avoid hotel stays overseas due to cost-of-living increases.
A further 39% said they’d be ‘staycationing’ simply because they would prefer to travel within the UK rather than abroad this year, up 12% from 2022.
For consumers choosing to holiday in the UK, it appears that the frequency of their stays will increase, with just under a third – 28% – planning to stay at a domestic hotel more than once this year. With more consumers planning to holiday at home in 2023, Zonal said that hoteliers now have a ‘significant opportunity’ to attract more guests and boost profitability.
Commenting on these findings, Stewart Moss, managing director of High Level Software, part of the Zonal family, said: “Despite consumers facing increasing cost-of-living pressures, it’s welcome news to the hotel and wider hospitality industry that Brits still want to holiday in the UK this year.
“Whether it’s a long weekend or a short break, it’s clear that consumers don’t want to miss out on their precious holiday time. And although hotels across the country might already feel prepared for another staycation boom as a continued result of the pandemic and cost-of-living crisis, it’s important they don’t rest on their laurels.
“Developing a real understanding of what consumers want – from offering a selection of amenities, to seamless booking experiences – and capitalising on these insights, will not only help hoteliers prepare for an increase in guests but establish an advantage and attract spend, something which is key in a competitive market.”
Speaking for CGA by NielsenIQ, Karl Chessell added: “It’s been a challenging three years for hospitality in the UK, but the staycation boom has been a rare upside. Hotels have responded well to the surge in demand, and the quality and variety of accommodation on offer has never been higher.
“Our research shows how guests are satisfied and engaged, but that there are great opportunities to grow sales again this year—especially through the smart use of tech. Engagement and responsiveness across websites, social media and review and booking platforms can attract even more visitors, while in-hotel and in-room innovations can help retain them.
“As ever, brands that stay closely attuned to guests’ needs and respond nimbly will have the best chance of success in 2023 and beyond.”
