UK hospitality industry growth analysis for 2019

a man opening door in hotel room

The UK hospitality industry is, at its core, an industry that caters to guests’ needs in order to achieve a return on investment for its shareholders. This industry includes several kinds of facilities: hotels, restaurants or any recreational facility. Most of these buildings provide an intangible product: a welcoming environment. It’s an industry that is growing at a rapid pace, with increased demand for their services everywhere. The UK hospitality sector reached a value of more than 100 billion Euros in 2018, with expectations of continued growth in 2019. Despite the consequences of Brexit and staff shortages, the number of hosting and food services facilities has grown nearly 20% in the last five years. Today they provide more than 330,000 employment opportunities.

uk hospitality industry graph
Source: aryxe /hotel-industry-uk

Project management works are reshaping this industry by identifying the main services every facility should provide, whether that is comfort, entertainment, experience, identity or protection. The main objective of project management planning in the hospitality space is to decide the project’s use, the type and quality of construction and to create a long-term scheduled maintenance plan. In most cases, constructing a recreational resort or hotel isn’t a simple project. It consists of complex layers of tasks that accumulate to form the final building. That’s why construction firms are starting to orient themselves towards using advanced programs and defect tracking software in their projects.

One example is the Quartier Belvedere Central project in Austria, where the contractor chose to work with PlanRadar to deliver this composite project. The building is a mixed-use development with 6 different uses including hotels and recreational spaces. The software had a noticeable impact on minimising the project costs and eliminating any delays. We think that the future of the hospitality construction sector lies in the hands of the technology market. This is a core reason why you should implement a construction management software that enhances your future projects.

Key factors for a perfectly-serviced recreational facility

a man relax in swimming pool in sunrise, on rooftop in the city

The main objectives of the hospitality industry are three-fold. The first objective is to make guests feel personally welcomed. This requires a friendly manner from staff members and a pleasant atmosphere in the facility. Second, is to ensure that all the facility’s services work for guests. A client in this industry expects to find everything clean and working. A facility, therefore, needs a continuous maintenance and monitoring plan. Finally, facilities need to achieve this level of quality within their budget so that they can be profitable.

The UK hospitality industry is a diverse sector of work. When you establish a hotel or restaurant the target audience is rarely a specific gender, colour, socioeconomic class or nationality. As someone doing business in this sector, you have to understand that the hospitality industry reaches every corner of the globe. To have a lucrative facility with a good reputation, you need to maintain an international level of quality.

If we take a closer look at the main factors that influence the hospitality sector, we will find out that this complex industry covers a wide range of services, jobs, locations and activities. Moreover, each specific branch has its unique influencing factors. However, in general, those working in this industry need to focus on two kinds of factors, internal and external. The key issues are as follows:

Internal factors:
  •  Management of the facility: does the management team balance the needs of guests with their financial targets?
  •  Staff: are all team members properly qualified and motivated to give the highest quality of service?
  •  Location and accessibility: have you chosen your location well? Is the facility accessible, and are there ways that you can improve accessibility?
  •  Type of services provided: are you providing the services that guests expect? Are you responding to new trends appearing in your sector?
External factors:
  •  Environmental factors: is your building’s location, including local climate and weather patterns, beneficial for its use? Is its use seasonal?
  •  Technological factors: how can you use technology to give guests the best experience?
  •  Social factors: what are the demographics of the local area? Will the facility be used by local people or does it rely on travellers from overseas?
  •  Economic factors: what is the average salary for workers in your sector? How much does building work or maintenance work cost in the local area? How will this also impact your budget?
  •  Political factors: how do local people feel about your facility? Will it get the backing of local or higher levels of government? Is government funding available for the kind of facility you’re planning to build?

 

These questions show that constructing recreational facilities is a complicated process with multiple elements to consider before you even begin planning. Margins are often tight, so construction work needs to be seamless, with no overrun on either timelines or budget. To manage this operation, you need to adopt new technological tools to help you to perform your tasks smoothly. Stay up to date with the most recent trends so you can ensure your success in this sector.

Top 3 trends for designing an impeccable hotel

All construction industry sectors are trying to keep up with new trends to attract clients and remain current. Arguably this trend-spotting is even more important for those building hotels and recreational facilities. They have to make sure that by the time their facility opens, they haven’t picked a trend that’s already out of style.

Here are the top three trends that we’re seeing in hotels and recreation construction facilities:

Sustainability

Many different industries are going green, either through necessity or as a strategic choice. In many ways, it has become an essential response, protecting our planet from future natural disasters. Aside from the main objective of saving the environment, more guests are looking for ways to enjoy a certain kind of luxury while being eco-friendly. That often comes with a minimalist aesthetic and an expectation that the facility will also use sustainable products.

For guests to have a green experience, facilities have to differentiate themselves from traditional hotels. One response to this has been the hotel industry being open about how they have improved water and energy conservation. Hotels also frequently install specially designed heating and ventilation systems (HVAC systems) that are controlled by advanced sensors, saving energy. And, of course, all food and hygiene products offered to guests should be locally-sourced and organic.

More than just a hotel

The mixed-use trend is getting more and more popular. Today, hotels are often accompanied by entertainment venues, shops, residential units and even office spaces. This also moves away from traditional hotels towards the sensation that a whole city is present in the same place. Whatever guests want or need, they can find right on their doorstep. They might not even have to leave the hotel for entertainment, wellness treatments or shopping. This concept also connects hotels with larger businesses and can increase the avenues for investment in the project.

Going back to history

Renovating a historic building to use it as a hotel creates a bridge between the past and future. You can now mix new, modern designs, especially when designing interiors while preserving the authentic facade and style of a historic building’s exterior. Instead of turning these old facilities into museums and cultural centres, they can be given a new lease of life. These buildings can be uniquely designed to provide a one of a kind experience for guests. Whether you want to modernise the facility or play up to its historic past and public nostalgia, it’s a unique marketing pitch that is sure to encourage guests.

UK hospitality industry: what comes next?

Overall, this analysis of the UK hospitality industry promises a bright future for the whole sector. With extra attention paid to the factors most likely to create success and the rise of new technology that’s designed to help keep projects on budget, there’s plenty of space for new entries to the market. Here at PlanRadar, we’re excited to see what comes next!

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