The UK budget hotel sector is set to treble by 2027, growing up to ten times faster than the rest of the hotel industry, according to a report by Melvin Gold Consulting.
The report, commissioned by Travelodge, says there are 729,000 rooms in the UK, with the budget sector accounting for 85,665, or 12 percent of the market.
The budget sector is expected to grow by 225,400 rooms, representing 26.3 percent of the market, by 2027.
Travelodge CEO Grant Hearn says the budget sector is the “engine room” of the hotel market and its phenomenal growth reflects consumers’ desire for the no-frills approach.
“Budget hotels are successfully taking the hotel industry into the mass market like Primark, Tesco and Ryanair have managed to do in their sectors,” Hearn says.
“The UK consumer is not compromising on value and inconsistent standards of their stay.
“This is driving the unbranded tatty hotels and guest houses out of the market.
“The budget sector is weaving hotels into everybody’s daily life, making staying away more accessible than ever.”
by staff writer