Domestic holidays are continuing to appeal to cost-conscious consumers with bookings in the January peak outstripping foreign trips, new research suggests.
The study by BVA BDRC found that 80% of leisure guests had already booked a domestic stay, or were highly likely to, with city breaks the most popular choice.
Cost pressures being felt by consumers were also a factor, with value for money driving booking decisions, according to the hotel guest survey conducted by the research firm.
The domestic leisure market has dominated the sector during the pandemic, with an average of 3.8 leisure trips taken over the past two years, against 1.3 domestic business trips. Beach and resort breaks were popular, as overseas alternatives were unavailable.
BVA BDRC director James Bland said: “Consumers are becoming more comfortable with the idea of booking an international holiday, but while we are seeing those green shoots for outbound travel, nearly twice as many adults booked a UK holiday during January – the highest incidence since the start of tracking.
“Comfort with the idea of staying in hotels and other types of paid-for accommodation jumped significantly as Omicron-driven fears receded and the accommodation sector is closing in on the pre-pandemic norm in terms of consumer comfort levels.
“What remains to be seen is whether this recovery will endure, or whether it is one final hurrah before the cost-of-living crisis starts to bite.
“As we saw from our survey, value is a driver for consumers and there are further factors heading towards us, including the energy price cap increase and possible economic repercussions of Putin’s war on Ukraine.”
The study found that confidence was growing, with 47% of consumers happy to book a domestic trip to be taken in a few months and 32% to go now.
Having had a good experience in the past was behind many bookings.
As travellers have become more comfortable with staying in hotels, they have also started to return to cities.
Looking at future intent for the next 12 months, 47% were planning a city break, while 34% wanted to visit a local area or attraction and 32% were aiming to visit friends or relatives.
Bland added: “Many in the sector felt that, once international travel had become more certain, consumers would revert to old patterns and return to their search for summer sun.
“Instead we can see that the domestic market has outlasted the pandemic and, with the added influence of concerns over price and the impact of travel on climate change, may remain buoyant.
“To continue to attract guests, hotels must appreciate that they no longer have a captive market, but must compete, if not on the weather, then value and experience, as consumers look to make the most of their time and money.”
Jane Pendlebury, chief executive of the Hospitality Professionals Association (Hospa), said: “The pandemic drove a rise in domestic holidays caused by necessity – we needed a break but we couldn’t leave the country.
“In the event we rediscovered what we knew before the growth of budget airlines, which was that the UK is full of wonderful destinations with hotels, restaurants and pubs which offer unique and welcoming experiences.
“Many guests have realised that the UK is not a second-choice destination, but somewhere to explore and be inspired by.”
Kevin Edwards, business development director at customer experience technology specialists Alliants, said: “Experience is one of the drivers behind booking, in this case experiences which people have had in the past.
“This is clear proof that, if you want to create those lifelong connections with guests, which will see them return as well as recommend your hotel to friends and family, then you need to focus on experience.
“The hotel sector had become convinced that memorable experiences can only be delivered by a vast team, but the pandemic has persuaded a growing number of hotels that technology can be used intelligently to both free team members to give better service and, with messaging, help create those important bonds.
“This becomes even more relevant when you see that guests are conscious of value: no-one wants to pay for swarms of staff hovering round reception.”