US Visitor Slowdown
American visitors have long been one of the UK’s most valuable inbound markets, but numbers have slowed in 2025. A weaker dollar means trips to the UK feel more expensive, which is hitting hotel and accommodation revenues, especially in London.
In 2024, US travellers contributed an estimated £7bn to the UK economy. They made up 15% of all international overnight stays and typically spent more and stayed longer than other visitors. However, recent figures show arrivals have softened, partly due to currency shifts, new US tariffs under President Trump, and stronger competition from European destinations that are becoming easier to reach.
This is having a knock-on effect on pricing. From mid-July to mid-August, average room rates rose slightly in pounds (up 1.4%), but when converted into dollars, the increase was nearly 6%—making stays feel much pricier for American guests. In London, average rates were £201 in August, down slightly year-on-year in pounds but up 4% in dollar terms.
For smaller accommodation providers, this trend highlights the importance of flexibility. With American guests facing tighter budgets, discounting may not always be the answer—but clear value, personalised experiences, and targeted marketing could help capture bookings.
Industry analysts warn the rest of 2025 may be tougher, with consumer price sensitivity becoming more evident worldwide. Smaller operators may need to watch exchange rate trends closely and adapt quickly—whether by promoting shoulder-season offers, attracting alternative markets, or maximising spend from domestic travellers.
Hospitality near Breaking Point
The UK’s hospitality sector is bearing the brunt of the nation’s job losses, with new figures showing over 89,000 roles gone since October. According to UKHospitality, restaurants, pubs, bars, and hotels have accounted for 53% of all redundancies since the last budget.
Kate Nicholls, chair of UKHospitality, described the trend as “staggering,” warning that as many as 100,000 jobs could be lost by the next budget cycle. The pain is evident on the ground: a third of businesses have cut opening hours, one in eight are closing sites, and six in ten are reducing staff numbers.
At the heart of the issue, industry leaders say, are tax hikes announced in Chancellor Rachel Reeves’ Autumn Budget. Higher business rates and VAT are discouraging investment and limiting recruitment. While the Treasury points to extended business rates relief and lower licensing costs for outdoor dining as evidence of support, sector leaders argue these measures don’t go far enough.
The losses hit hardest in part-time and flexible roles—the very jobs that underpin the industry’s ability to scale operations to meet demand. For hoteliers, this shrinking workforce threatens service quality and long-term viability.
The message from UKHospitality is clear: urgent action is needed to relieve cost pressures and prevent closures on the scale seen during Covid. Without intervention, more venues will shut their doors, putting further strain on an industry central to the UK’s economy, communities, and tourism.
Summer Staff Shortfall Hits Hospitality Sector Hard
Small accommodation providers may feel the pinch this summer, as job postings across the hospitality sector have dropped by 25%, according to the Recruitment and Employment Confederation (REC). In real terms, that’s 22,369 fewer job ads than last year.
UKHospitality reports that 84,000 jobs have been lost since changes to employer National Insurance Contributions (NICs) were introduced in the 2024 Budget. The usual seasonal boost in temporary roles has also slowed significantly.
“This is normally a busy hiring period,” said UKHospitality chief executive Allen Simpson. “Summer jobs help young people gain vital work experience and keep the sector moving—whether it’s scooping ice cream, serving pub lunches, or welcoming guests. But with costs rising, businesses simply aren’t hiring.”
Neil Carberry, Recruitment and Employment Confederation chief executive, warned that this drop in hiring is more than a staffing issue. “A shortfall of 22,000 roles at peak season signals deeper problems. It puts pressure on businesses and limits the summer experience for customers.”
Both leaders are calling on the government to ease the burden in the upcoming Autumn Budget. Their message: avoid new taxes, review business rates, and support hospitality as a key driver of the UK economy.
For small accommodation providers, the challenge is clear—prepare for a busy season with fewer hands on deck.
Every Penny of Commission You Pay OTA’s is Too Much!!
On line Travel Agents (OTAs) have positioned themselves as unavoidable gatekeepers, controlling the flow of customers while charging commissions that drain operators. Hoteliers are forced to play by rules designed not to promote quality or guest experience, but to keep properties dependent on the platform.
This is why tools like Distant Booker matter. They put data back in the hands of owners and managers. By analysing client behaviour directly, hotels can craft offers, highlight unique strengths, and attract potential guests on their own websites. The goal: give browsers clear, compelling reasons to book directly—without surrendering up to 20% of revenue to an intermediary.
The industry has lived too long under this imposed “commission tax.” With the right tools, hotels can take back control, build loyalty, and keep the value of their work where it belongs—within their own business.
One Simple Step That Makes Guests Value Your Offers More
In hospitality, we often think the smoother the redemption process, the better. But research (Zhang et al., 2025) shows adding a tiny, symbolic step can actually boost redemption rates — even for offers as large as £200 hotel nights.
This “token effort” might be as simple as:
- Entering a promo code
- Answering one short question
Why It Works for Hotels
Self-Responsibility – Guests feel they’ve earned the deal, making it feel more legitimate and exclusive.
Behavioural Return on Time Investment – A small effort for a big saving makes guests feel clever and rewarded.
How to Apply It
Pseudo-Loading – Add a “Calculating Your Best Rate…” animation before showing the discount. This signals value.
Hold to Unlock – Ask mobile users to press and hold to activate a “Secret Rate.” Research shows more tactile actions increase desirability (Liu et al., 2023).
Promo Codes Over Instant Discounts – Instead of auto-applying 15% off, email a code. Guests using a code focus on savings, while instant discounts make them focus on cost (Jia et al., 2024).
The Key: Keep Effort Minimal
A small task boosts engagement. Too much work, however, backfires by lowering the perceived payoff. The effort should feel symbolic, not burdensome.
Takeaway: In your next promotion, give guests a tiny “unlock” moment before revealing their special rate. It can enhance the sense of reward, increase perceived value, and ultimately drive more bookings — without adding real friction to the guest journey.
Turn Local Attractions into Bookings
Here’s How to Stand Out and Get More Guests Booking Direct
Let’s be honest—running a hotel or guesthouse today is tough. With so many choices online, great rooms and good prices just aren’t enough anymore. Guests want more than a bed. They want a story, a memory, something to write home about. That’s where your local attractions come in.
Whether you’re near a castle, coastline, food market, or music festival—you’re sitting on a goldmine. But here’s the thing: if you only mention these in a “Things to Do” tab or bury them in small print, you’re missing a big trick.
Instead, make local experiences part of your offer. Talk about them on your homepage, in your emails, on social media. Show how staying with you puts guests in the perfect spot to explore. Be the friendly expert who knows the best places to eat, hidden spots to visit, and when to catch that weekend market.
Start small. Ask guests what brought them to town. Where are they going today? Use those answers to build a few simple packages—maybe an early check-in before a local event, or a weekend itinerary with your favorite coffee shop and walking trail.
And most importantly—tell the story. Share photos, write short blogs, highlight unique things guests can only do if they stay with you.
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UKHospitality's Headline Story was .....
Annual cost increases totalling billions of pounds came into effect in April, disproportionately hitting the hospitality industry.
- Hospitality businesses face an additional £1.9 billion in wage costs
- £1 billion of employer National Insurance Contributions
- £500m in business rates, as a result of relief being lowered from 75% to 40%.
Should You Theme Some Bedrooms?
In today’s experience-driven travel market, small hotel owners are always looking for ways to stand out. One growing trend is theming bedrooms. But does it actually work?
A Memorable Stay That Sells
Themed rooms—whether inspired by local history, literature, pop culture or fantasy—can transform a night’s stay into a memorable story. According to a 2023 report by Booking.com, 70% of millennials and Gen Z travellers (aged 18 to 44) prefer unique accommodations over traditional hotels. Airbnb has capitalised on this by promoting distinct, characterful listings—something small hotels can emulate on their own terms.
Social Media: Free Marketing
Themed rooms naturally perform well on platforms like Instagram and TikTok. A 2022 Expedia Group study found 39% of travellers had chosen a hotel based on how photogenic it looked online. Hotels with standout design often benefit from guest-generated photos, helping attract new bookings without extra marketing spend.
Higher Rates, More Bookings
It’s not just visibility—themed rooms can boost profits. A report from the Independent Hotel Show found some themed boutique hotels charge 15–25% higher nightly rates without reducing occupancy. One London B&B saw a 30% increase in bookings after converting two of six rooms into themed suites, with improved reviews to match.
Smart Implementation Is Key
Theming works best when tastefully done. Start small, invest in good design, and leave some rooms unthemed for guests who prefer classic comfort.
Conclusion: When thoughtfully executed, themed rooms offer a real opportunity to attract attention, justify higher rates, and enhance guest experience.
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