UK Short-Term Rental
UK Short-Term Rental Sector Outpaces Hotels, Growing 16 Times Faster Amid Shifting Travel Priorities
The UK’s short-term rental (STR) sector has seen explosive growth, expanding 16 times faster than traditional hotels over the past decade, underscoring a shift in traveler priorities. Analysis by Property Management Software provider RMS Cloud shows that STR businesses have surged by 90.7% since 2013, rising from 3,780 to 7,219 in number, while the hotel sector has grown by just 5.6%, increasing from 12,385 to 13,080.
This trend aligns with the rise in staycations, as a third of Brits plan UK-based holidays, favouring environmentally friendly accommodations that offer more space, privacy, and home-like amenities. STR growth has been widespread, with 260 of the UK’s 382 local authorities seeing an average of 13.2 new businesses per area. In contrast, only 154 regions experienced hotel growth, averaging 4.6 new establishments per area.
Campgrounds have also capitalised on these shifting preferences, with a 35% increase in new sites since 2013.
Zen Valli, managing director at RMS Cloud, highlighted the significant competitive gap, noting that hotels are under increasing pressure to adapt. To stay relevant, hotels may need to reimagine their offerings, embracing more personalised, homely experiences such as apart-hotels with kitchens and lounges, or adopting contactless services to meet the expectations of today’s experience-driven travelers.
