Budget Hotels - UK - September 2007

Table of Contents

• Issues in the MarketMain issues
• Definition
• Abbreviations
• Market in Brief
• Budget boom
• New kids on the block
• City limits
• The big two
• Extended offer
• Wash and go
• Polarisation, acquisition and invention
• Internal Market Environment
• Key points:
• Domestic doldrums...
  • Figure 1: Domestic holidays and expenditure, 2001-06
• ...booming business travellers
  • Figure 2: Business travel market size, by volume, 2001-07
• Incoming visitors provide potential
  • Figure 3: Inbound visits to the UK, by reason for trip, 2001-05
• Hotel nation
  • Figure 4: Adults who have stayed in a hotel in Britain in the last 12 months, 2002-06
• The long and short
  • Figure 5: Frequency of staying in hotels in Britain in the last 12 months, 2006
• Rates increase ahead of occupancy
  • Figure 6: Key UK hotel market statistics, 2001-06
• Log on, check in
  • Figure 7: Internet penetration, by gender, socio-economic group and age, 2002-06
• Motorways and redefining rail
  • Figure 8: Road traffic statistics, 1995-2005
• Capitalising on car nation
  • Figure 9: Proportion of households who own cars, 1992-2004/05
• The green room
• Broader Market Environment
• Key points:
• Buoyant economy boosts budget sector
  • Figure 10: Trends in personal disposable income and consumer expenditure, 2002-12
• Key age groups expand
  • Figure 11: Trends in the age structure of the UK population, by gender, 2002-12
• Easy as ABC
  • Figure 12: Forecast adult population trends, by socio-economic group, 2002-12
• Third agers -- good for growth
  • Figure 13: Forecast adult population trends, by lifestage, 2002-12
• Pleasure principle
  • Figure 14: UK spending priorities, January 2007
• Competitive Context
• Key points:
• Total UK hotel market
  • Figure 15: The total hotel market, by revenue, 2001-06
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Size and Forecast
• Key points:
  • Figure 16: The branded budget hotel market, by value, 2002-12
• Present market
• Mintel foresight
• Factors used in the forecast
• Segment Performance
• Key points:
• Number of branded budget hotels
  • Figure 17: The number of branded budget hotels, 2001-07
• Number of budget hotel rooms
  • Figure 18: The number of branded budget hotels, 2001-07
• Average room occupancy
  • Figure 19: Average room occupancy in budget hotels, 2005-07
• Average room rate
  • Figure 20: Average room rate in budget hotels, 2005-07
• RevPAR
  • Figure 21: Average RevPAR (revenue per available room) in budget hotels, 2005-07
• Market Share
• Key points:
• The key players
  • Figure 22: UK budget hotel operators, 2007
• Companies and Products
• Key points:
• Premier Travel Inn (Whitbread plc)
  • Figure 23: Premier Travel Inn, financial performance, 2006/07
• Travelodge
• Holiday Inn Express (InterContinental Hotel Group)
• Ibis, Etap, Formule 1 (Accor Hotels)
• Jurys Inn (Quinlan Private)
• Innkeeper' s Lodge (Mitchells & Butlers plc)
• Days Inn (Cendant Corporation)
• Comfort Inn and Sleep Inn (The Real Hotel Company)
• Campanile (Louvre Hotels)
• Who Uses Budget Hotels?
• Key points:
  • Figure 39: Budget hotel users, by gender, age, socio-economic group, marital status, lifestage, presence of children, working status, household income, tenure, region, ACORN category, media usage, supermarket usage, household size, car usage and detailed lifestage groups, June 2007
• Influential Factors When Choosing a Hotel
• Key points:
  • Figure 40: Factors influencing choice of budget hotel, June 2007
• A working model
• Demographics of choice
  • Figure 41: Factors influencing choice of budget hotel, by gender, age, socio-economic group, marital status, working status, presence of children, household income, tenure, detailed lifestage groups, region, ACORN category, media usage, household size, car usage, commercial TV viewing, TV reception and supermarket usage, June 2007
• The price of a good night' s sleep
• In the city
• The Old Country