Inbound tourism and big-ticket events drive hotel stays
10 July 2025Mid-tier accommodation under pressure as domestic consumers rein in spending
The accommodation sector will see slow and steady growth as inbound tourism continues to rise, according to the latest insights from IGD’s new Away From Home (AFH) service.
However, growth will be polarised as large budget brands and high-end hotels perform better than mid-tier options.
Elsewhere, IGD’s insights suggest large-scale events and concerts will continue to drive domestic stays in UK cities, while full-serve experience-led hotels will appeal to younger travellers.
IGD’s insights suggest key opportunities for operators include embracing technology to automate processes and drive efficiencies, while suppliers should work with hoteliers to develop special menus linked to major events.
These insights are part of IGD’s new AFH proposition, which kicked off with the launch of the AFH five-year market forecast for 2025-2030. The new service has been developed in recognition of the need for a whole-market viewpoint of the AFH sector and marks a significant milestone for IGD as its first new insight product for 15 years.
To find out more visit www.IGD.com
To view the sector report, click here
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IGD brings together stakeholders from across the food system, fostering action across on critical challenges across a broad cross section of forums. Through evidence-based insights, credible research, and thought leadership, IGD guides businesses to make informed decisions that not only benefit their operations but also contribute to the collective good of society. As a charity with a long-standing commitment to the food and grocery industry, IGD does not advocate for any single commercial interest but works towards fostering alignment on shared goals that can have a positive, lasting impact on both the industry and the communities it serves. Its neutrality and impartiality are key to its role in facilitating collaboration, whether through policy development or addressing emerging risks and opportunities. By staying connected to the changing dynamics of the world, IGD ensures that the food system remains robust and sustainable, creating tangible benefits for businesses, consumers and society.