The British budget hotel market has grown three times as quickly as the overall UK hotel market over the past four years, according to a recent report by market researcher MINTEL.
The UK’s budget hotel market increased by 38 percent between 2002 and 2006, to reach £1bn for the first time – compared with an overall industry growth of just 12 percent over the same period.
MINTEL forecasts a similar growth pattern over then next five years, driven by the 2012 Olympics in London.
MINTEL senior travel analyst Richard Cope says the growth is due to a greater acceptance of low cost holidays and the public’s desire for short breaks.
“The Brit’s desire for taking several short breaks a year, independent booking and paying for guaranteed basics has seen budget hotels surge in popularity,” Cope says.
“The phenomenal growth of low cost air travel has spawned a generation of cost conscious but frequent travellers and the UK budget hotel market has benefited greatly,” he adds.
By staff writer