THE pressure is on for hotel operators in Devon as new data shows that the number of holiday lets has significantly overtaken hotel operators in the last ten years, reflecting the changing priorities of travellers seeking experience-led accommodation.
North Devon, South Hams and Torridge had the largest rise, with 35 new short-term rental businesses opening in each of these areas since 2013.
This forms part of a nationwide picture, where the UK saw a 90.7% increase in the number of short-term rental (STR) businesses, growing from 3,780 in 2013 to 7,219 in 2023 (or 3,430 new businesses)
In contrast, the number of hotel operators in the region decreased by 10%, falling from 460 in 2013 to 410 in 2023.
Areas including Torbay, Exeter, South Hams and Teignbridge saw the biggest decline.
Nationally, the number of hotel businesses across the UK grew by only 5.6% over the same period from 12,385 to 13,080 (a rise of695new hotel operators).
As staycations surge – with a third of Brits predicted to holiday in the UK this year according to Travelodge’s 2024 Travel Trend Report - travellers overwhelmingly chose environmentally friendly, experiential travel in accommodation that offered more space, privacy, and practical amenities.
On a national scale, of the 382 UK local authorities, Devon was one of 260 that saw an increase in short-term rental (STR) businesses, averaging 13.2 new businesses per region.
In contrast, only 154 local authorities experienced growth in the hotel sector, with an average of just 4.6 new hotel operators per region.
Additionally, UK campgrounds have seen a notable 35% rise in new sites from 2,495 in 2013 to 3,375 in 2023(an increase of 880).
Devon was slightly below the national average, with 24% more campground businesses in 2023 compared with 2013 (an increase of 30).
West Devon saw the largest increase with the number of campground operators doubling from 10 in 2013 to 20 in 2023.
RMS Cloud - a Property Management Software specialist, used by customers in hotels, STRs and campgrounds - is ideally placed to comment on these figures, working across each of the hospitality verticals globally.
Davinder Gill, business development executive at RMS Cloud, said: ‘The hospitality industry has been keeping a keen eye on the growing momentum of short term rental businesses over the last decade, but many will be surprised at how significant the disparity of growth is when compared to hotels.
‘In Devon, we’ve not only seen the growth in the number of holiday lets and campgrounds, but we’ve actually seen the number of hotel operators decrease, with guests voting with their feet as their travel priorities shift.
‘While this is fantastic news for the STR and campground sectors, the pressure is now on for hotel operators in Cornwall, to find a way of catering to today’s travellers who are seeking more authentic experiences.
‘Whether that’s offering a more personalised, contactless service, or leaning towards the aparthotel approach to give guests more of a ‘home from home’ experience, hotels will be urgently looking to gain more of the market share.’