The growth of the budget hotel market in the UK looks set to escalate in the new year and could provide an opportunity for travel agents, say hotel experts.
The Real Hotel Company launched ‘no-frills chic’ brand purplehotels last week, with plans to unveil nine hotels under the brand by the end of January. Travelodge and Premier Inn have also announced extensive expansion plans.
Hotel consultant Melvin Gold said travel agents must be aware of this significant trend. “The budget hotel sector is going to be the major driver of the industry over the next 20 years.
“This could be an opportunity for travel agents booking add-ons to traditional packages, as many of the hotels will be located near airports. They can also be used as stopover on multi-centre holidays.”
The advent of Hilton’s new budget brands Hilton Garden Inn and Hampton by Hilton next year will also make a big impact on the market, he said.
Hilton UK president Simon Vincent said the sector held significant potential for growth. “There is a great opportunity to create and own the mid-scale market in the UK, as there is no dominant international player.
“High quality hotels in this sector are lacking and with Hilton’s plans to grow the Hilton Garden Inn brand we will be filling a gap in the current market.”
However, the growth in branded budget hotels could push out independent hotels from the market, said Gold.
“Smaller hotels will come under intense pressure, especially those who haven’t invested in their property. Chances are these will be bought out by large companies.”