Recovery for UK tourism

It’s no surprise that hospitality and tourism in the UK have taken one of the biggest hits in recent years, with the Covid pandemic thwarting travel plans for millions. However, after three years of disruption, VisitBritain predicts that the spending will increase to £32.5bn this year, improving on UK travel-spend for the first time since 2019. The organisation has also predicted a 5% increase in spending from inbound tourism compared to 2023.

Adding to this positive outlook for UK hoteliers, a Confused.com survey found that 57% of UK travellers have chosen or considered a staycation since the cost-of-living crisis began, rather than venturing abroad, again contributing to the growing UK room occupancy rates.

Business travel

The UK is reported to have the fourth highest spend on business travel in the world and this market has seen the most significant improvements this year, with the World Travel & Tourism Council projecting a 6.2% increase, compared to pre-pandemic levels. As in-person meetings and working from the office slowly become the norm again, corporate travel is set to ramp up even further.

What’s more, according to the latest Savills report, there has historically been ‘a close correlation between UK GDP, CFO confidence and regional hotel RevPAR’, meaning the projected economic growth in the UK will have an especially positive impact on corporate travel markets.

Hoteliers can anticipate this growth in business travel by ensuring their technology is up to scratch to maximise potential revenue.

Zonal’s booking software can help hoteliers manage meeting spaces, oversee F&B arrangements and coordinate group room bookings for corporate events. Hoteliers can ensure all bills are processed under a single guest or company, resulting in a slicker experience for businesses looking for excellent customer service.

The boom of ‘bleisure’ travel is set to be a top trend in 2025, with 74% of Brits travelling for business and leisure in one trip. This means that guests are looking for high-quality amenities to help them relax and unwind outside of their working hours. Hoteliers can upsell their spa, restaurant, gym and other facilities through effective and targeted communications using our marketing suite to further maximise profits.

Generation travel

Also leading the charge on the tourism revival is the Baby-Boomer generation. A 2024 report has found that leisure budgets have grown by 9% this year, primarily fuelled by over 50s, who also spend more on average per trip. In fact, Baby-Boomers make up a whooping 80% of all luxury travel and 99% take at least one leisure trip per year.

Hoteliers can capitalise on this with the use of ultra-personalised marketing, offers and packages aimed at the 50-60+ market and retirees. Remember, statistically, this age group are most likely to leave reviews and rely on other guests’ feedback to inform their decisions, so excellent service and guest experience is paramount. Encourage happy customers to leave reviews and book repeat stays with all-important personalised follow-up marketing communications.

Event-led travel

Taylor Swift’s Eras tour boosted London hotel bookings by a huge 173% this year and with Oasis set to pay 19 dates across the UK and Ireland next summer, some cities are already looking at over 73% occupancy for that period.

Yes, it’s clear that the return of huge music events post-covid will have a brilliant knock-on effect on the hotel industry.

With guests travelling from across the globe, it’s essential that hoteliers have easy-to-use booking software in place and full visibility on OTAs. Zonal’s PMS will ensure guests can book rooms easily and quickly for their music events and hoteliers are able to adjust rates based on these periods of high demand to maximise profits.

What’s more, Zonal’s PMS enables guests to upgrade their experience before arrival or at optimum points throughout their stay, with perfectly timed product and service alerts, discounts and offers. By offering guests personalised upsells, tailored to their preferences, hoteliers can boost their RevPAR by as much as 30%.

In summary

As the UK slowly edges its way towards financial recovery in 2025, investment in hotels is expected to grow and demand for travel is expected to strengthen even further. With the right technology in place, hotels can be ready for this period of expected growth and feel benefits of a more positive outlook for the hospitality industry.