Factors That Will Determine the Demand for Hotels in the Uk
FACTORS THAT WILL DETERMINE THE DEMAND FOR HOTELS IN THE UK
Hotels play a big role in the hospitality industry, they provide not only a place to stay and eat for travellers but also a good quality of service which is sometimes compromised by some hotels due to other factors. As the number of traveller increases every year, thus the demand for accommodation increases. We will be looking on the Microeconomic Environment of hotels in United Kingdom and determine different factors that affect consumer demands.
The UK is one of the top destinations in the world. According to NSO (Office for National Statistics), the number of visits by overseas residents to the UK decreased by nearly a million from 32.8 million in 2007 to 31.9 million in 2008, a fall of 2.7%. One main reason that has been the effect of the worldwide economic recession. However, over the 28-period to 2008, domestic business demand into hotels grew from 23 million room nights to 44 million, an average annual growth rate of 2.4% reinforcing its position as the largest source of demand into British hotels. Domestic leisure demand grew from 13 million room nights to 18 million, an average annual growth of 1.1%. Foreign demand continued its growth by an average of 1.4% per year to reach 45 million room nights.
A demand for hotel services generates activity in a number of industries and ancillary concerns. Its implication is that the economic effect of the demand for hotel services are not confined to the hotel industry itself but are spread throughout the economy. The effects of the demand for hotel products can be related directly to the industry, secondary units such as suppliers or secondary activities such as spending generated income for domestic products. (Sheela, A.) Theory of Demand
If we would like to know how the price of a hotel room affects a traveller’s decision to stay in a hotel, we need to take a look at the Theory of Demand which will indeed help us to explain this. In
Hotels play a big role in the hospitality industry, they provide not only a place to stay and eat for travellers but also a good quality of service which is sometimes compromised by some hotels due to other factors. As the number of traveller increases every year, thus the demand for accommodation increases. We will be looking on the Microeconomic Environment of hotels in United Kingdom and determine different factors that affect consumer demands.
The UK is one of the top destinations in the world. According to NSO (Office for National Statistics), the number of visits by overseas residents to the UK decreased by nearly a million from 32.8 million in 2007 to 31.9 million in 2008, a fall of 2.7%. One main reason that has been the effect of the worldwide economic recession. However, over the 28-period to 2008, domestic business demand into hotels grew from 23 million room nights to 44 million, an average annual growth rate of 2.4% reinforcing its position as the largest source of demand into British hotels. Domestic leisure demand grew from 13 million room nights to 18 million, an average annual growth of 1.1%. Foreign demand continued its growth by an average of 1.4% per year to reach 45 million room nights.
A demand for hotel services generates activity in a number of industries and ancillary concerns. Its implication is that the economic effect of the demand for hotel services are not confined to the hotel industry itself but are spread throughout the economy. The effects of the demand for hotel products can be related directly to the industry, secondary units such as suppliers or secondary activities such as spending generated income for domestic products. (Sheela, A.) Theory of Demand
If we would like to know how the price of a hotel room affects a traveller’s decision to stay in a hotel, we need to take a look at the Theory of Demand which will indeed help us to explain this. In
References: Textbooks: Sloman, J. (2008). Economic and the Business Environment. 2nd ed. Essex, England: Pearson Education Limited. p23-57. Slatterry, P. (2009). The Economic Ascent of the Hotel Business. Oxford: Goodfellow Publishers Limited. p.173-190. Clarke, A. and Chen W. (2007). International Hospitality Management. Oxford: Butterworth-Heinemann. p.203-236. Sheela, A. (2002). Economics of Hotel Management. New Delhi: New Age International Ltd., Publisher. p.13. Websites: Directgov. (2010). Travel Trends - A report on the International Passenger Survey. Available: http://www.statistics.gov.uk/statbase/Product.asp?vlnk=1391. Last accessed 25 June 2010. Internet Center for Management and Business Administration, Inc. (2010). Economics-Price Elasticity of Demand. Available: http://www.quickmba.com/econ/micro/elas/ped.shtml. Last accessed 25 June 2010. InterContinental Hotels Group PLC. (2010). The IHG 2008 Corporate Responsibility Report. Available: http://www.ihgplc.com/files/pdf/2008_cr_report.pdf. Last accessed 26 June 2010.