The Covid-19 pandemic has had many negative effects on businesses, but one industry that has benefited enormously from the pandemic is the UK holiday accommodation market. New research from construction company The Cumberland shows a huge boost to the UK holiday market.
What the study shows
New research from The Cumberland reveals that 86% of vacation accommodation owners say they invested in their business during the pandemic. In addition, 94% of vacation accommodation owners say they have made a positive and lasting change.
The positive outlook for the UK holiday market comes even as the government has announced plans to ease overseas travel rules. Although it is now easier for Britons to go abroad than at the height of the pandemic, research suggests that British holidaymakers are still cautious, with 84% having decided to spend their holidays in the UK this summer.
What are British holidaymakers looking for?
As for Brits who choose to go on vacation, the survey also revealed what type of accommodation they preferred. The most popular types of accommodation were hotels (38%) and cabins (32%), followed by bed and breakfasts (24%).
Even though the UK is getting back to normal somewhat, Covid-19 compliance and cleanliness still matter a lot to stay seekers. According to the survey, 69% of respondents say they are prepared to pay more for hotels, guesthouses and vacation rentals that offer these additional services: 38% of respondents said they would pay more for a property with a Covid-19 deep cleaning service, while 31% would pay more for a property with clear instructions on its Covid-19 directions. Plus, in a possible nod to the pet boom, 16% of Britons say they would pay more if their housing was dog friendly.
According to research from The Cumberland, it appears that accommodation owners listen to what vacationers want. The survey of 233 UK accommodation owners / managers also highlights that 80% of holiday accommodation owners surveyed said they spent money to comply with Covid-19 guidelines, while 71% improved their property or services.
When it comes to destinations, 17% of those surveyed chose Cornwall as their preferred UK vacation spot, while the Lake District and Devon are also popular at 14%. The other popular regions were Scotland (13%), Wales (11%) and East Anglia (9%).
Scott McKerracher, Commercial Manager at The Cumberland, comments: “It is very clear from our consumer research that a UK holiday is by far the top choice for UK consumers this summer and it appears that many UK accommodation owners have decided to invest. in their businesses not only in the short term, but also to bring about positive and lasting change. This can only bode well for the industry going forward, as consumer confidence rises to match. “
How do accommodation owners / managers finance their business?
Regarding the financing of companies during the Covid-19 pandemic, 52% of the respondents financed their investment in their company from savings / equity contribution; 41% from a business loan; 26% of insurance; 21% on external equity; 17% CBILS or BBLS loans and 15% remortgage. An additional 75% said they would definitely consider using the government’s payback loan program.
How do UK consumers book their holidays?
When it comes to UK holidaymakers’ booking patterns, 36% of those surveyed say they would book a UK holiday between less than a month in advance and three months in advance, while only 6 % said they plan to book 10-12 months in advance. Of those polled, 26% said they would not consider booking a vacation in the UK under the current circumstances of Covid.
56% of those polled cited concerns about cancellations due to the impact of new strains of the virus as their biggest concern for the 2021 summer season, while 31% of accommodation owners said they were concerned by “double” vacations of customers and then cancel with them at the last minute.