Industry Summary & Key Insights

Industry Summary & Key Insights

The Tourism Accommodation Industry analysis presents data and key statistics from a wide range of industry sources including the International Passenger Survey, Great Britain Tourism Survey, Mintel and IbisWorld and combines this with analysis of the sector in Wales.

The focus on the Tourism Accommodation Industry in Wales provides a comprehensive assessment of the sector in addition to critical industry benchmarking data, including occupancy levels & cost analysis.  Providing insight, commentary on emerging trends and identifying a range of key considerations and recommendations, the report provides a unique opportunity for hotel owners and managers to view all this data in one place and to understand the implications for their business.

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The wider tourism industry in the UK is growing and is a major contributor to the economies of each of the nations.  Inbound tourism has shown long term positive growth over the last decade, and the expectations are that this will continue in the medium term, with international visitors driving growth of the sector for the UK with a 23% increase in visits to 2019. London remains the key destination for inbound UK tourism, highlighting a significant challenge for the wider regions and nations to attract these high value visitors.

In contrast, the domestic tourism market has contracted over the last 3 years and is expected to remain largely static over the next 5 years in terms of volume.  Although domestic visitors account for more than 3 times as many trips as inbound tourists, they generate broadly the same level of spend, highlighting international visitors as particularly important drivers of value growth for the industry.

Contrary to the GB figures, Wales has posted slight increases in the number of domestic visits, and has also recorded increasing lengths of stay and average spend by visitors.

  • The primary reason for visiting Wales by both international and domestic visitors is for holidays
  • the number of visits peak during the traditional April – September period
  • At other times of the year, visits to friends and relatives and business trips account for greater proportions of stay opening up opportunities for providers to cater their services more heavily towards these visitors

The hotel sector accounts for just under 10% of all available bedspaces in Wales.  Predominantly comprising small establishments, the sector’s key strength lies in being able to offer friendly, genuine and personalised services to customers.   By exceeding customer expectations, hotels will develop genuine loyalty among their customers that encourages repeat visits and, importantly, peer recommendations.

A range of trends are shaping the industry; from technology to personalisation, the hotel sector is rapidly changing and it is essential that businesses keep up to date with these developments in order to remain visible to customers and competitive.

The rise of the sharing economy poses a growing threat to the sector in Wales, particularly to those hotels that are unable to respond to changing consumer needs.  But there are numerous opportunities for hotels to counter these emerging threats by creating genuine and personalised experiences that cater to individual’s needs.  Working collaboratively with other providers across local areas and regions will improve the overall appeal of the area, attracting new customers and extending the season beyond traditional holiday periods to improve the overall profitability and sustainability of the business.

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