Viewpoint: Strong domestic brands are revitalising UK stays

Even though global travel restrictions have been lifted, the strength of the UK market still makes it a first choice for many, says Ben Harper

The news stories of hundreds of flights being cancelled every day and thousands of travellers being forced to miss much-wanted and needed holidays has been upsetting for all of us to watch. Global travel means that families and friends can stay in touch, businesses can grow and we can all be inspired by the exotic.

The UK domestic market has been a growing source of inspiration itself in recent years and is now much better equipped to deliver on the need for exceptional, high-quality breaks than at any point in the past. It has put innovation and lifestyle at the forefront of its offering, moving forwards after years of being the stuff of jokes; of comments about sand-filled sandwiches, saucy postcards and knobbly knees competitions.

 

“My feeling is that the shorter stay leisure break is our opportunity”

Guests are more demanding than they ever have been; they are more educated about what they are looking for in a stay and harking back to this long-dead past or just being average are not options. I’ve been lucky enough to work with imaginative and groundbreaking teams during my career, and for the past four years I have been the group managing director at Watergate Bay hotel, Another Place and Beach Retreats. These three brands illustrate the trends we are seeing across the sector: growth and scaleability supported by growing interest in the domestic leisure market – particularly the mass-affluent market.

What we and others are offering – lifestyle products offering active holidays in iconic locations – is here to stay and, I think, there is plenty of scope to grow. Our own sales rose outside of the effects of the pandemic.

Stay and play

One of the long-term drivers to stay in the UK has been a consideration of the impact our travel plans have on the planet. Making considered choices around air travel is a part of this and we are working to improve our own impact by applying for B Corp status. My feeling is that the shorter-stay leisure break is our opportunity – more spontaneous, less planning. People will always want to travel further afield, but when they do, they will make it count, such as with fewer, longer, more exotic overseas trips.

Guests want something that is an extension of their lifestyle but often more aspirational. There is a dearth of leisure-focused brands with an eye to the top end of the market. Guests want an experience, to create memories in a community and we have found that, if you deliver this, they will return over and over again.

The past two years have seen unprecedented demand across the domestic market, which meant some short-term profits for anyone with a spare bed, but some issues around over supply and quality. Our self-catering platform, Beach Retreats, serves to emphasise the importance of having a trusted brand and well-managed, well-located self catering properties, and we are anticipating that any supply issues will fall away once travel has normalised.

We have also seen high demand at Watergate Bay and Another Place and have recently opened Outside: a collection of new rooms and spaces at Another Place the Lake. These include a modern treehouse with floor-to-ceiling views of the lake, six oak shepherd huts with stargazing roofs, and three family huts with bunk rooms.

The resurgence in UK holidays hasn’t gone unnoticed by investors and we’ve seen huge appetite from private equity groups in particular. Bourne Leisure was bought by Blackstone, and Center Parcs could raise up to £4b when it sells, while the recent investment by KSL in the Pig Group was an indication of the demand for something unique and exceptional in the English countryside.

All these buyers have a long-term view of the sector and are looking for quality operations with a strong brand they can build platforms on, or which can integrate into and enhance an existing platform.

That we are seeing such enthusiasm around each deal shows how few brands there are to cater to the modern traveller. The market in this country has not kept pace with the needs of guests or investors and there is an inconsistent landscape in the UK, without enough supply or enough brands to serve them both.

We are confident that the years ahead will see people thinking that bit more local when they think about their next break.

Ben Harper is group managing director at Watergate Bay hotel, Beach Retreats and Another Place