Holiday & Other Short-Stay Accommodation in the UK Industry Market Research Report Now Updated by IBISWorld

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Demand for short-stay, self-contained and informal accommodation, such as hostels and cabins, has been popular within the United Kingdom for many years. The flexibility, value and at-home feel that these types of accommodation provide attracts both domestic and international holiday travellers, and some business travellers. Nevertheless, the industry's performance has been hampered over the past five years, with some significant fluctuations from year-to-year due to the recession and weaker domestic demand. Over the five years through 2012-13, industry revenue is expected to decline by an annualised 1.3% to total £2.08 billion, which included large annual fluctuations. However, industry revenue has been climbing since 2009-10 after the industry reached a new bottom, and as economic conditions slowly improved. In the current year, revenue is forecast to surge by 17.3% as accommodation demand across the sector increases strongly due to the 2012 London Olympics. In the five years through 2017-18, industry revenue is expected to increase at a marginal rate as the economy slowly recovers, resulting in greater tourist numbers. Also, additional major sporting events being hosted throughout the United Kingdom, such as the Glasgow Commonwealth Games in 2014, and the England World Cup in 2015, will contribute to future industry growth. For these reasons, industry research firm IBISWorld has updated its report on the Holiday & Other Short-Stay Accommodation industry.

IBISWorld Market Research

IBISWorld Market Research

The recession hit this industry hard in previous years, with a strong recovery in domestic tourist numbers driving growth since 2010-11

Demand for short-stay, self-contained and informal accommodation, such as hostels and cabins, has been popular within the United Kingdom for many years. The flexibility, value and at-home feel that these types of accommodation provide attracts both domestic and international holiday travellers, and some business travellers. According to IBISWorld industry analyst Alen Allday, “the Holiday & Other Short-Stay Accommodation industry's performance has been hampered over the past five years, with some significant fluctuations from year-to-year due to the recession and weaker domestic demand”.
The financial crisis and subsequent austerity measures have hindered both business travel and domestic travel by Britons and, to a large degree, international tourists entering the United Kingdom. The declines in business and consumer sentiment, profit and disposable income have adversely affected the travel demand and budgets of these important market segments. Allday adds, “the problem was further exacerbated by fierce price-based competition from hotels and motels as they sought to protect both their market share and revenue”.
Over the five years through 2012-13, industry revenue is expected to decline by an annualised 1.3% to total £2.08 billion, which included large annual fluctuations. However, industry revenue has been climbing since 2009-10 after the industry reached a new bottom, and as economic conditions slowly improved. In the current year, revenue is forecast to surge by 17.3% as accommodation demand across the sector increases strongly due to the 2012 London Olympics. In the five years through 2017-18, industry revenue is expected to increase at a marginal rate as the economy slowly recovers, resulting in greater tourist numbers. Also, additional major sporting events being hosted throughout the United Kingdom, such as the Glasgow Commonwealth Games in 2014, and the England World Cup in 2015, will contribute to future industry growth.
The Holiday & Other Short-Stay Accommodation industry has a low level of market share concentration with the four largest firms in the industry estimated to account for around 31% for around industry revenue in 2012-13. Many self-catering properties are in private or investor hands, with lettings outsourced to specialist letting agencies. The only major company is Center Parcs.
For more information on the Holiday & Other Short-Stay Accommodation industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

Companies in this industry provide self-contained or self-catering accommodation for short-stay visitors. This accommodation may be in a holiday chalet, cottage, flat, unit, apartment, lodge or cabin and is usually fully furnished. These may be within holiday centres and holiday villages, as well as youth hostels, mountain refuges, guest houses, farmhouses and inns.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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