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Hotels & Holiday Accommodation in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Krasimir Dinev Krasimir Dinev London, United Kingdom Last Updated: July 2025 SIC UK-I551

Revenue

£202.8bn

2025-26

£208.7bn

Past 5-Year Growth

Profit

£XX.Xbn

Employees

3m

Businesses

416k

Wages

£XX.Xbn

Hotels & Holiday Accommodation in the UK industry analysis

Hotels and short-term accommodation providers in Europe enjoy strong demand due to the continent’s well-developed tourism sector and significant number of holiday destinations that cater to various consumer needs. European residents often holiday domestically or go on trips to other European countries due to how quick and easy it is to travel to them. Rising domestic and international tourism has fuelled accommodation demand across the continent, though companies have faced strong competition from short-term lets. Revenue is slated to inch downward at a compound annual rate of 0.1% over the five years through 2025 to €202.8 billion, including an expected 0.2% drop in 2025.

Trends and Insights

  • European citizens prioritise local and regional holidays. Despite recent economic challenges, most EU residents are choosing domestic or nearby destinations for their getaways, sustaining hotel and holiday accommodation revenue.
  • Increasingly value-conscious consumers support economy hotels. Subdued consumer confidence and squeezed consumer finances have boosted demand for budget hotels and other low-cost short-term holiday accommodation like hostels and vacation homes.
  • Branded chains expand at the expense of independent businesses. Larger hotel companies, like Accor, Marriot and Hilton, boast significant brand recognition, which helps to attract guests and drive up their market share.
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Top Questions Answered in this Report

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What is the market size of the Hotels & Holiday Accommodation industry in the United Kingdom in 2025?

The market size of the Hotels & Holiday Accommodation industry in the United Kingdom is £202.8bn in 2025.

How many businesses are there in the Hotels & Holiday Accommodation industry in the United Kingdom in 2025?

There are 416k businesses in the Hotels & Holiday Accommodation industry in the United Kingdom, which has grown at a CAGR of 3.7 % between 2020 and 2025.

Has the Hotels & Holiday Accommodation industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Hotels & Holiday Accommodation industry in the United Kingdom has been growing at a CAGR of 1.0 % between 2020 and 2025.

What is the forecast growth of the Hotels & Holiday Accommodation industry in the United Kingdom over the next 5 years?

Over the next five years, the Hotels & Holiday Accommodation industry in the United Kingdom is expected to grow.

What does the Hotels & Holiday Accommodation industry in the United Kingdom include?

Economy hotels and Midscale hotels are part of the Hotels & Holiday Accommodation industry in the United Kingdom.

How competitive is the Hotels & Holiday Accommodation industry in the United Kingdom?

The level of competition is high and increasing in the Hotels & Holiday Accommodation industry in the United Kingdom.

Everything you need in one report

  • Reliable market estimates from 2015-2030
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
  • Online membership platform with PDF, Word, Excel and PPT exports

Table of Contents

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Hotels and holiday accommodation providers must adhere to various regulations. Health and safety rules and laws on serving food and beverages contribute to a moderate level of regulation.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Hotels & Holiday Accommodation in the UK industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Elevated costs weigh on profit. Despite rising tourism and strong occupancy rates, hotels and holiday accommodation providers face heightened costs like wages, rent and purchases. Fierce competition and price-sensitive guests limit their ability to hike prices too much.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Hotels & Holiday Accommodation in the UK industry?


Key Ratios

Data tables
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)
  • Revenue per Employee (2015-2030)
  • Wages/Revenue (2015-2030)
  • Employees per Establishment (2015-2030)
  • Average Wage (2015-2030)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and bottom five countries listed for each:

  • Revenue Growth (2025)
  • Business Growth (2025)
  • Job Growth (2025)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2025)
  • Imports/Demand (2025)
  • Exports/Revenue (2025)
  • Revenue per Employee (2025)
  • Wages/Revenue (2025)
  • Employees per Establishment (2025)
  • Average Wage (2025)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Methodology

Where does IBISWorld source its data?

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