According to the Hotelier Confidence Index, a new feature of TripAdvisor's annual TripBarometer, hoteliers in the UK scored 4.05 (on a five point scale with five being the highest) when it came to profitability and 3.42 when asked if they had a positive outlook for the year ahead.
However, confidence within the sector isn't restricted to the UK with 73 per cent of the 10,261 accommodation owners across the world questioned for the report stating they felt optimistic about their profitability for the year ahead, 6 per cent more than in 2013.
According to the report, 48 per cent of British hoteliers are also planning to raise their room rates (compared to 50 per cent globally) with 45 per cent of them doing so because they have recently completed renovations on their properties. There are also plans to invest more in online reputation management for 60 per cent of those surveyed.
TripAdvisor for Business president Marc Charron said rising room rates was a sign that the sector was returning to health.
“This year’s TripBarometer reveals a rising confidence in the global hotel sector, with one in two hoteliers raising room rates and a significant growth in optimism worldwide," he said, “Increasing repeat business, driving more direct bookings, and encouraging online traveller reviews will be key themes for the hotel sector this year.”
Hoteliers may be right to feel positive as research carried out in tandem with 44,000 travellers worldwide (3,375 of them from the UK) found that 40 per cent were looking to increase their travel budget this year.
The average British household holiday budget is set to rise to £5,500, an 8 per cent rise on last year with almost half of them (49 per cent) planning to holiday at home, although 38 per cent are looking to use the money for a long haul trip with Australia and New Zealand the most popular destinations.
Yet, while a significant proportion of Brits wish to escape to New Zealand, the locals there are actually dreaming of the reverse trip – with four in 10 (40 per cent) of New Zealanders naming the UK their dream holiday destination.
“The TripBarometer report paints a positive picture for travel this year, with travellers twice as likely to be increasing their holiday budgets than cutting their spending,” said Barbara Messing, CMO, TripAdvisor. “Across the board, people want to take more international trips and Australia, Italy and the US continue to be the destinations topping travellers’ wish lists.”