Hoteliers notice signs of consumers saving money

27-Jul-2011 - Last updated on 26-Apr-2021 at 20:07 GMT

Smaller businesses have not performed as well as bigger hotels this summer

Hotel and B&B owners around the UK have said that summer business this year has been broadly positive, although they have noted definite signs of consumers saving money.

A VisitEngland survey of over 500 accommodation owners and managers found that the majority of respondents were ‘quite’ or ‘very’ satisfied with their performance from May to July this year.

However, VisitEngland said there are still signs of a fragile consumer environment, and urged the hotel industry to work together to encourage tourism.

Boosting tourism

The group’s latest Business Confidence Monitor found that 40 per cent of operators reported that their visitors are spending less this year.

In addition, 28 per cent reported that the length of stay has decreased, compared to only 13 per cent who say it has increased.

“The year has started well and confidence is strong for the summer – however we know that the general public are increasingly worried about their finances and this will inevitably have an effect on the overall success of the sector this year,” said VisitEngland’s chief executive James Berresford.

“VisitEngland is working hard to promote domestic tourism, and it’s vital that the industry continues to pull together to encourage and inspire domestic visitors to holiday at home, whilst ensuring they receive the best possible customer service and excellent value for money.”

Offline disadvantage

In general, the survey found that 69 per cent of accommodation businesses said they have had the same or more visitors this summer compared to last summer, while 74 per cent said bookings since May have better than or the same as normal.

However, almost 60 per cent have reported an increase in last minute bookings, which could again be linked to tighter consumer spending with people reluctant to make holiday plans in advance. This trend, predicts VisitEngland, is like to continue.

Another finding from the latest survey was that smaller businesses, such as B&Bs or self-catering establishments, did not perform as well as the larger businesses, such as hotels.

According to VisitEngland, this could be partly due to the ability of larger businesses to use the internet to promote discounts and take bookings.