Hotel Brands Versus the DIY Hotelier
By David Greenwell Sales Director, Shortridge Laundry | June 04, 2017
The hospitality industry continues to flourish and in addition to contributing billions to Britain's GDP, it provides jobs for a huge amount of workers across the UK. To put that into perspective, in 2014, it was estimated that hospitality was responsible for a massive contribution of around £143 billion - this is 10% of the UK's entire GDP. And as for employment, figures suggest that the industry is directly employing 4.7 million workers and indirectly employing 775,000 people. If the industry continues to grow, it's expected that as will the GDP contributions and of course, more jobs and opportunities will be available to workers.
The industry not only contributes towards GDP, but for every £1 million it directly contributes, there is £1.5 million that is absorbed by other sectors of the UK economy. It's clear that business is booming for hospitality but where does the hotel industry come into this? Are they experiencing the same success?
The hotel industry lies firmly between the hospitality industry and the tourism industry. The hotel market is also responsible for a large percentage of Britain's current overall GDP. In fact, it makes GDP contributions to the two sub-sectors it lies between within the UK: hospitality and tourism.
And the industry seems to be on the rise - between 2014 and 2016, hotels witnessed a revenue growth per available room of 10.4% in 2014. From this, it was forecasted for further growth by 6.3% by 2015 and then 4.2% in 2016. It's clear that the hotel industry is set to experience a year on year steady growth. But are there are bumps in the road ahead for the traditional hotel brands?
Despite forecasts suggesting continuous growth, it seems new technologies could stand in the way of the industry's growth. With mobile apps such as Airbnb and Hostelworld on the rise, the hotel industry has some serious competition. As the younger generation and regular tourists opt for cheaper accommodation, it becomes apparent that consumers are more inclined to rent a 'shared space' to save themselves money on their travels. It seems future growth prospects for the traditional hotel spaces' could be on the line.
Whilst at this point, the traditional hotel industry could face some potential competitive challenges, Shortridge, who specialise in hotel linen hire, look at the challenges the hotel industry are set to face in the near future and how the industry could actually utilise these smart technologies to get their foot in the digital game. The question posed is could digital technology benefit the tradition hotel industry in the future?
The Hotel Business Review articles are free to read on a weekly basis, but you must purchase a subscription to access
our library archives. We have more than 5000 best practice articles on hotel management and operations, so our
knowledge bank is an excellent investment! Subscribe today and access the articles in our archives.