Travel and Hotel Forecast 2022- PwC Research
19 October 2021
Almost two-thirds of people stated they expect to book either the same number of holidays or more in 2022 than in pre-pandemic years according to new PwC Research*.
Our research suggests there are three things for hoteliers and hospitality businesses to keep in mind.
1. Booking ahead is back and consumers want value for money
Just over 3 in 4 UK consumers stated that they plan to go on holiday next year, whether that be in the UK or further afield. Among those planning an overseas break, the majority are planning to book their trip at least 6 months in advance. In good news for hotels, of those who would typically have stayed in a hotel pre-pandemic, 79% would plan to do so again in 2022.
With booking ahead back, consumers are looking for good deals and value for money- 36% agree that a hotel can offer better value for money than other types of accommodation, but 64% also agree it’s a luxury element of a holiday. Getting the balance of value and experience will be key for hoteliers to secure a strong pipeline of bookings.
2. The UK holiday boom is set to continue, with consumers looking for different types of accommodation in the UK
More than one third are still planning to explore UK hotspots in 2022 such as Cornwall, the Lake District and Edinburgh. Prior to the COVID-19 pandemic, almost two thirds would have opted for a hotel stay on their UK breaks, but this looks set to decrease as only 41% expect a hotel to be their first choice next year. Hotels in the UK are perceived to offer less value for money, among those planning to stay in the UK next year, 29% agree a hotel offers value for money, this compares to 41% for those planning to book a holiday in Europe.
Keeping UK hotel pricing competitive as international travel grows will be key to keeping the tourism trade flourishing within UK hotspots.
3. Business travellers are on the road once again, but this time they can work anywhere
Our research suggests business travellers expect to be on the move again in the next year. Just under a third of UK workers surveyed are in a job that could require an overnight stay. Of those requiring overnight stays, two thirds expect the amount of overnight stays required to be the same, if not more.
However, the hotel industry faces greater competition than before for a share of business travellers. 86% of business travellers typically would have stayed in a hotel prior to the pandemic, but 43% of these business travellers would now consider alternative accommodation. Less than a fifth strongly agree that a hotel is better equipped for business travel than other types of accommodation.
Therefore promoting the business benefits of hotels, such as good locations, meeting venues and fast internet connections will be key to inspiring business travellers to keep hotels as their first choice.
To read more about the future for hotels, the PwC Hotels Forecast 2021-2022 is available for download here.
*PwC Research conducts a weekly online survey ‘QuantiBus’ with 1,000 UK consumers. Questions submitted on Thursday and results available on Tuesday. Fieldwork took place 26th August - 1st September 2021.