HOSPITALITY % of likely holidaymakers, 2025
Cruise 4% Camping/
caravan 1%
Airbnb-style homestay 6%
B&B 3%
Self-catering villa/apartment 8%
Hotel 2/3-star 16%
Other/don’t know 9%
FIGURE 67: ACCOMMODATION FOR NEXT OVERSEAS HOLIDAY Likely accommodation, by age
%
2.3m 2.2m
Hotel 4/5-star- plus 53%
10 20 30 40 50 60
0 59% 55% 58% 54% 45%
25% 20% 9% 3% 16-24 4-5-star hotel 10% 3% 25-34 20% 5% 8% 35-44 2-3-star hotel/B&B Homestay 18% 10% 5% 45-54 Self-catering Source: Service Science/Kantar, January 2025 Base: 925 UK adults planning an overseas holiday
explaining: “A lot of hotels tailor their food and beverage (F&B) proposition not to hotel guests but to those around the hotel now, because in a city location you have more people around a hotel than in it. If you attract local residents or office workers, your F&B outlets look fuller, there is a better buzz in the hotel and that tends to attract more people.” Major hospitality groups have also
moved into offering all-inclusive hotels as leisure travellers’ demand for all- inclusive accommodation has risen. Jiwnani said: “The all-inclusive
segment is becoming increasingly popular and more mainstream. Part of the reason is it’s becoming more premium. Consumers not only increasingly want a premium experience but also want to know what they’re going to spend on holiday. That is driven by pressures on disposable income but consumers are still prioritising travel.”
‘THERE NEEDS TO BE THE RIGHT BALANCE’
There are increasing efforts to make hospitality more sustainable and reduce the sector’s CO2 emissions, not least by the World Sustainable Hospitality Alliance. Jiwnani insisted: “Sustainability is
important, and consumers are increasingly aware of it. We can expect more regulatory
pressures, and consumer awareness is going to drive a lot of brands and investors to focus on sustainability. But businesses and investors are focused on areas of sustainability that will drive value.” She argued: “There needs to be the right
balance between what hotels do in terms of environmental, social and governance (ESG) policy and being able to deliver what guests want. Consumer perception is important. Even small steps towards becoming more sustainable go a long way when it comes to guest perception. Not having an ESG certificate or green credential could impact how much an asset is worth in the medium term because it’s becoming increasingly important. Depending on the type of investor and whether they look at longer hold periods, there is a chance of regulation coming in that may mean being struck with penalties or high costs to adapt a business if an asset is non-compliant. “But I don’t see things changing
FOUR and five-star hotels are again the prime accommodation choice of prospective holidaymakers (Figure 67)
quickly. A number of respondents in our European Hotel Industry Investment Survey put sustainability and climate change lower in their list of priorities, although there was a slight increase in those expecting an increased regulatory burden. The bulk of respondents saw non- compliance with a sustainability agenda as a high risk, but not in the short term.”
5% 55+ 16% 11%
Travel Weekly Insight Report 2025 47
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