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Holiday accommodation providers rely significantly on domestic tourists, with demand for holiday spending driven by consumer confidence and disposable income levels. Companies have faced significant volatility due to swings in tourism numbers, including the plunge caused by the COVID-19 pandemic, followed by a strong recovery in domestic travel. Revenue is expected to soar at a compound annual rate of 11% over the five years through 2025-26 to £4.1 billion, despite a forecast dip of 0.3% in 2025-26. The growth rate has been skewed and inflated by the significantly low base-year value in 2020-21 amid the COVID-19-driven collapse in tourism. Revenue bounced back once COVID-19 restrictions were lifted, with revenue surging over the two years through 2022-23 amid a significant boost from the staycation trend. However, revenue growth had been held back since late 2022-23 by the cost-of-living crisis tightening consumers' purse strings. Significant consumer demand for holidays and soaring inflation encouraged holiday accommodation providers to hike prices, boosting revenue from bookings but also putting some price-sensitive consumers off from staying at industry accommodation. A slowdown in staycations and prolonged financial challenges have weakened revenue over the three years through 2025-26. The emergence of online travel agents has made it easier for independent accommodation providers to compete with larger companies, enticing newcomers into the industry. However, the enduring popularity of online private short-term rentals, like Airbnb, is stealing away guests. Intensifying competition has put pressure on prices, and, alongside severe inflationary pressures, has weighed on the industry’s average profit margin, which is estimated at 14.3% in 2025-26.
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IBISWorld's research coverage on the Holiday Accommodation industry in the United Kingdom includes market sizing, forecasting, data and analysis from 2016-2031. The most recent publication was released January 2026.
The Holiday Accommodation industry in the United Kingdom operates under the SIC industry code I55.200. Businesses in this industry provide accommodation for short-stay visitors in lodging houses, hostels, rental cottages and holiday centres or villages. Very minimal complementary services are provided. The industry doesn't include serviced apartments or the provision of accommodation for more permanent use. It also excludes campgrounds and caravan parks. Related terms covered in the Holiday Accommodation industry in the United Kingdom include holiday village, staycation and online travel agent (ota).
Products and services covered in Holiday Accommodation industry in the United Kingdom include Self-catered cottages and chalets , Hostels and guesthouses and Holiday villages.
Companies covered in the Holiday Accommodation industry in the United Kingdom include Center Parcs (Holdings 1) Ltd, Park Holidays UK Ltd and Haven Leisure Ltd.
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Holiday Accommodation industry in the United Kingdom.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Holiday Accommodation industry in the United Kingdom.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Holiday Accommodation industry in the United Kingdom.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Holiday Accommodation industry in the United Kingdom. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
The Companies chapter covers Key Takeaways, Market Share and Companies in the Holiday Accommodation industry in the United Kingdom. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Holiday Accommodation industry in the United Kingdom. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Holiday Accommodation industry in the United Kingdom. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Holiday Accommodation industry in the United Kingdom.
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The market size of the Holiday Accommodation industry in the United Kingdom is £4.1bn in 2026.
There are 8,039 businesses in the Holiday Accommodation industry in the United Kingdom, which has grown at a CAGR of 9.4 % between 2021 and 2026.
The Holiday Accommodation industry in the United Kingdom is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
The Holiday Accommodation industry in the United Kingdom is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
The market size of the Holiday Accommodation industry in the United Kingdom has been growing at a CAGR of 11.0 % between 2021 and 2026.
Over the next five years, the Holiday Accommodation industry in the United Kingdom is expected to grow.
The biggest companies operating in the Holiday Accommodation industry in the United Kingdom are Center Parcs (Holdings 1) Ltd, Park Holidays UK Ltd and Haven Leisure Ltd
Self-catered cottages and chalets and Holiday villages are part of the Holiday Accommodation industry in the United Kingdom.
The company holding the most market share in the Holiday Accommodation industry in the United Kingdom is Center Parcs (Holdings 1) Ltd.
The level of competition is high and increasing in the Holiday Accommodation industry in the United Kingdom.