What is a Staycation?
The English dictionary defines the word ‘staycation’ as, “A holiday spent in one’s home country rather than abroad, or one spent at home and involving day trips to local attractions.”
The term staycation came about because an increasing number of Brits are favouring staying within the UK instead of flying abroad. Although overseas holidays are still a popular option, there has definitely been a shift in the holiday and tourism industry within the UK.
Changing Tourism In The UK
Hospitality company, Travelodge conducted their annual survey in April and found that more than half of Britons are planning to stay in the UK for their holiday. Travelodge spokesperson, Shakila Ahmed stated in a news article, “Our annual holiday index confirms that we have become a staycation nation. More Britons than ever are exploring what makes Great Britain so great.”
The UK is a beautiful destination, with many different cities for a variety of holiday-goers, from the seaside towns of Cornwall and Devon to the urban cities of London and Manchester. In a year the UK will get around 3.6 million visitors and was named the world’s 6th biggest tourist destination in 2015. Therefore, it’s no wonder why the British are happy to ditch the annual family holiday abroad for a refreshing getaway closer to home in the stunning British Isles.
How Staycations Are Affecting The UK Hotel Sector
The idyllic location isn’t the only factor for the change in British tourism. While our country is an attractive tourist spot, the changing economy does play a role in this trend. As plane fares, hotels, and foreign currency become more expensive, Brits are showing more interest in the staycation.
Leisure and hospitality has changed in recent years due to the changing taste in holidays. Vacationers in the UK who choose to stay in the country have contributed to the growth of budget hotels and hotels in regional locations, where there are a range of activities and entertainment. As well as benefiting regional hotels, London has also seen some increase in staycations.
The weaker pound also seems to have encouraged staycations, suggests PwC. In addition to this, the growth of the hotel sector has also been suggested to be due to the diversification of the sector. The rise in budget hotels have played a role in growth of occupancy rates, again accommodating change during tighter times.
More hotels are also being built and refurbished in the regional areas, where staycations are increasing in popularity. As mentioned before, seaside towns are seeing more visitors from across the UK, which means that the modest increase in tourism needs to be met by a higher supply of hotels, positively affecting the hotel and construction sectors.
Opportunities For Hotel Sector Investment
Hotel investments are a great opportunity for those who want to invest in commercial properties, but don’t have the time to manage it themselves. The advantage of a hotel investment is that they provide an assured income, with a fully-managed service by a professional management company, eliminating the possible risks that could arise from an investor with no hotel management experience.
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