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UK Short-Term Rental Sector Grows 16 Times Faster Than Hotels

The UK’s short-term rental (STR) sector has outpaced traditional hotels over the past decade, growing 16 times faster as travelers increasingly prioritize experience-led accommodations. A recent analysis of Office for National Statistics (ONS) data by RMS Cloud, a property management software, reveals a significant surge in STR businesses, reflecting a shift in traveler preferences toward personalized and environmentally sustainable stays.

According to the latest ONS figures, the STR sector saw a 90.7% increase in the number of businesses, rising from 3,780 in 2013 to 7,219 in 2023. This growth, equating to an addition of 3,430 new STR businesses, far exceeds the hotel industry’s 5.6% growth during the same period. The number of hotel businesses increased modestly from 12,385 to 13,080, adding just 695 new operators.

The demand for STRs is driven by a preference for accommodations that offer more space, privacy, and practical amenities. As staycations continue to surge—particularly with a third of Brits expected to holiday domestically this year, according to the Travelodge 2024 Travel Trend Report—travelers are opting for more immersive and flexible lodging options that provide a “home away from home” experience.

An analysis across 382 UK local authorities reveals that 260 regions experienced growth in the STR sector, with an average of 13.2 new businesses per area. In contrast, only 154 local authorities saw an increase in hotel businesses, with a much lower average of 4.6 new hotel operators per region.

Additionally, campgrounds in the UK have shown notable growth, with a 35% rise in new sites over the last decade. The number of campgrounds expanded from 2,495 in 2013 to 3,375 in 2023, adding 880 new sites, further supporting the trend toward alternative accommodations that cater to experiential and eco-friendly travel preferences.

According to an article published by Travolution, Zen Valli, managing director at RMS Cloud, commented: “It’s well known within the hospitality industry that STR businesses have been gaining momentum over the last few years, but many will be surprised at how significant that disparity is when compared to hotels. While this is fantastic news for the STR and campground sectors, the pressure is now on hotels to find a way of catering to the shifting demands of today’s travelers who are seeking more authentic experiences.”

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Hi, you might find this article from Modern Campground interesting: UK Short-Term Rental Sector Grows 16 Times Faster Than Hotels! This is the link: https://moderncampground.com/europe/united-kingdom/uk-short-term-rental-sector-grows-16-times-faster-than-hotels/