Budget
Hotels - UK
Consumer Attitudes
Towards Budget Hotels in UK
Key points
●
A number of attitudinal
responses indicate that price has continued to grow as a priority.
●
In contrast, the number of
people that would rather pay for a better-quality hotel has fallen.
●
Budget hotels continue to
be seen primarily as a short-stay option.
“Still thinking about budget hotels, which, if
any, of these do you agree with?”
FIGURE 38: Attitudes towards budget hotels, 2007 and 2009
|
|
June 2007
|
April 2009
|
% point change 2007-09
|
|
Base – 2008: Adults aged 16+ who have stayed in
a budget hotel/2009: internet users aged 16+
|
1,101
|
2,001
|
|
|
|
%
|
%
|
|
|
They are economical because you pay per room
not per person
|
39
|
43
|
+4
|
|
I tend to use them just for one night for a
specific occasion (eg sports event, wedding)
|
32
|
35
|
+3
|
|
They provide a consistent standard/you know
what you're going to get
|
24
|
35
|
+11
|
|
They are OK if it’s just for one night
|
32
|
35
|
+3
|
|
I am more likely to use them as money gets
tighter
|
-
|
34
|
-
|
|
I just want a clean room with a shower when I
stay in a hotel
|
43
|
32
|
-11
|
|
They are more for business travellers than
leisure users
|
29
|
26
|
-3
|
|
They have no character/individuality
|
9
|
22
|
+13
|
|
They aren’t particularly cheap
|
16
|
20
|
+4
|
|
I tend to use them to break up a journey
|
20
|
19
|
-1
|
|
They are a good option for a multiple-night
stay
|
-
|
13
|
-
|
|
I’d like to see more of them in out of town
locations
|
8
|
12
|
+4
|
|
I tend not to choose them
|
-
|
12
|
-
|
|
I’d rather pay for a better quality hotel
|
14
|
10
|
-4
|
|
None of these
|
2
|
4
|
+2
|
|
Don’t know
|
1
|
6
|
+5
|
SOURCE: 2008: GfK NOP/Mintel 2009: GMI/Mintel
Price priority increases
●
As indicated in the previous section, the
importance of price has increased to consumers between June 2007 and April 2009
period – hardly surprising, given the prevalent economic conditions.
●
Not only do more respondents believe budget
hotels are economical because they now pay per room, not per person, but the
percentage that express a preference for a better – more expensive – option has
fallen.
●
In addition, the new statement – “I am more
likely to use them as money gets tighter” – finds agreement with over one third
of respondents.
Key Analysis: This indicates that trading down is
occurring in the hotels market. This is further evidenced by the fact that the
percentage agreeing that budget hotels “have no character/ individuality” and
“they provide a consistent standard/you know what you're going to get” have
both increased by more than 10 percentage points – indicating a greater
familiarity with such hotels.
However, a number of consumers are not prepared
to give up all creature comforts in the name of bargain hunting – with those
agreeing that they just want a clean room with a shower when staying in a hotel
falling to one third, from over four in ten in June 2007.
“Budget hotels do offer good value for money and
I would use them for short trips.”
-45-54-year-old ABC1 female
“I think budget hotels do offer value for money
in comparison to B&Bs and better quality hotels.”
-25-34-year-old ABC1 female
“They are value for money if you're looking for a
short stay, onestop option.”
-35-44-year-old ABC1 female
“You can quite often get good deals on the budget
hotels so in that instance, yes, they offer value for money.
-45-54-year-old ABC1 female
“When I want a one-night stay I don't really mind
where I stay as long as it is clean and has all the basic amenities.”
-25-34-year-old ABC1 female
“We stayed in a Premier Inn last month and found
it very basic but ideal for what we were doing that weekend when we went to
Edinburgh for the rugby as a bit of a crash pad.”
-25-34-year-old ABC1 male
The short-break barrier
●
Since June 2007, the percentage of respondents
that believe that budget hotels are ok just for one night and tend to use them
for a one-night, specific occasion, has increased slightly in both cases to
between three and four in ten of the total.
●
Conversely just over one- in- ten call them a
good option for a multiple-night stay (a phrase which of course can include
two-night stays).
“I think if I was staying for more than one night
I would rather stay in self-catered accommodation. There is a lack of space in
budget hotels.”
-45-54-year-old
ABC1 female
"Only ever use them for max. two nights,
again if we were staying longer then we need comfort and better food and
service.”
-25-34-year-old
ABC1 male
“[I] would only want to stay there for one night
especially if I was on my own as it isn't the kind of atmosphere that you'd
want to spend two at.”
-16-24-year-old
ABC1 male
“They seem good for a stopover or if you are
attending an event and need an overnight stay but for a proper 7/14 night
holiday you need more room and more luxury. You are going on holiday to rest so
want the best available.”
-35-44-year-old
ABC1 female
“Good for short breaks of 23 nights but any
longer than this I would rather pay more and stay somewhere a bit more
luxurious to enhance the holiday experience. Also I would not stay in budget
accommodation if it were a special occasion (anniversary, birthday etc.)”
-25-34-year-old
ABC1 female
“I would stick to a one-night stop over, no more.
When on holiday I want to feel special and not just one of many.”
-35-44-year-old
C2DE female
“Would only use them where I required nothing
more than a place to sleep.”
-45-54-year-old
ABC1 female
“I agree, I do think of them as fulfilling the
basic requirement of providing sleep.”
-35-44-year-old
C2DE female
“I really only stay in budget hotels for one
night – anything longer and I would start to miss my home and all the things
I’m used to, I definitely prefer luxury.”
-25-34-year-old
ABC1 female
Key Analysis: Budget hotels are in an interesting
position here – respondents disregard them as options as the length of their
break increases, and for many, one night is the longest they will use them for.
However, any increase in facilities will up prices, something that respondents
do not want.
So perhaps, if there are chains that want to
encourage longer stays, the airlines can provide inspiration. A top-floor with
higher-spec rooms and better facilities (even perhaps a separate check-in and
staff) could be attractive in those hotels that are well-located to take
advantage of tourism. And offering upgrades to those in basic rooms during
their stay could increase revenue generation.
Who thinks what
●
The pay-per-room model appeals more as the age
groups are moved through; over half of those aged 55+ believe that this makes
budget hotels economical.
●
Socio-economically, it is the ABs (primarily) and
the C1s that are most likely to agree with this opinion – here reflecting their
higher usage of budget hotels.
●
By household income level, a higher proportion of
the £25,000-49,999 earners like the pay-per-room model than any other wage band
– reflecting the fact that top earners (£50,000 or over) can afford to be a
little less concerned over value for money.
●
Over four in ten ABs agree that they use budget
hotels for one night for a specific occasion (eg sports event, wedding), with
these consumers the most able financially to ‘go away’ to such an event (of all
with household incomes of £50,000 or more, four in ten do so).
●
At the negative end of the scale, it is Londoners
who are most likely to say they’d rather pay for a better hotel and that they
tend not to choose the budget options.
●
Both opinions alter little across the
socio-economic groups, but are strongest among top-earning households (members
of which are, of course, most likely to be able to afford alternatives).
“The concept of a budget hotel is fine. They
certainly have a place in the market for a one-night stop in convenient
locations. As long as they are clean, comfortable and tidy then they are
fulfilling their purpose.”
-45-54-year-old
ABC1 female
“I think budget hotels are necessary and I would
be sad if they disappeared. I would rather not have to stay in one but if I was
short of money and needed to stay somewhere I would use a budget hotel.”
-45-54-year-old
ABC1 female
“I think they fill a need for lots of people who
need short stay breaks and they also allow people on smaller budgets to get
away.”
-25-34-year-old
ABC1 male
“Overall I dislike budget hotels however they
should stay around as sometimes you have to make sacrifices in comfort etc
especially for people short of money.”
-16-24-year-old
ABC1 male
“[I] like budget hotels as they provide
opportunities for people on a lower budget to have a holiday/break.”
-25-34-year-old
ABC1 female
“[I] guess they are needed, my partner uses them
when away for work, he doesn’t have a choice but they are usually reasonably
near local amenities.”
-35-44-year-old
C2DE female
“Overall I like budget hotels as they fill a
definite need which is a room for a night.”
-25-34-year-old
ABC1 female
If you want Dissertations on Budget Hotels in UK, than Contact Mahasagar Publications.
