New research from accommodation specialist Stay in a Pub has shown what an important income source pub accommodation can be.
The study was undertaken by CGA by NIQ, part of the NIQ global information services company, and supported by Visit England and Visit Britain.
The research found the following:
- 60% of consumers who took part in the research claimed that the main reason to stay in a pub is that it represents good value for money.
- 59% of those who have not stayed in a pub before said they would consider it if they knew where to look.
- 60% of those who have stayed in a pub in the last 24 months say that they prefer a pub stay versus other types of accommodation for the same spend and location, compared to 53% in 2019.
- 90% said that the pub’s own website positively influenced their decision to book, although 51% ultimately book through a third party.
- 94% said that customer reviews have a role to play in their decision-making process, compared to just 50% in 2019.
- 79% said that official ratings and accreditations are also important, but only 31% of surveyed operators have them.
- 59% of operators said that they are expecting growth in accommodation revenue, and 62% are planning room refurbishments in the next 12 months.
Paul Nunny, founder of Stay in a Pub, said: “The purpose of the research was to further understand the UK stay market, inform the sector, and drive ongoing strategic development.
“When asked the main reason for choosing to stay in a pub, 60% of consumers claimed that value for money was the reason, 47% said the character of the buildings, and 44% the atmosphere. In the 2019 Pub Accommodation Report, 90% of consumers said that they would choose pub accommodation over alternatives because they thought it was cheaper.”
Jenn Knott, senior consumer research manager at CGA by NIQ, said: “Wider CGA research confirms that consumers don’t equate value for money as the ‘cheap’ option, but something that is high quality and worth the cost, indicating that investment in accommodation quality has led to a shift in consumer perception.
“The 2023 research found that 59% of people who haven’t stayed in a pub said they are likely to do so in the future, but many said they don’t know where to look.”
Sophie Braybrooke, chief executive of Stay in a Pub, said: “This demonstrates the need for sites like Stay in a Pub that exist to support the sector and champion pub stays. Promoting the reasons to stay in a pub through consumer brand and search marketing campaigns drives quality traffic to our website and therefore to the pubs listed.
“These referrals, an average of 50,000 per month — are potential customers who are specifically looking to stay in a pub — supporting direct book and customer acquisition strategies.
“The research also showed that 60% of people who have stayed in a pub in the last 24 months say that they would prefer a pub stay versus other types of accommodation for the same spend and location.”
Sophie added: “Once people try it, they see the benefits of staying in a pub and are very likely to visit again.”
The 2023 research went on to find that online presence is essential for pubs, with 37% of consumers using search engines to research their next UK stay, 32% online travel agents, and 19% online review sites.
However, 67% of operators use social media to promote their pubs but only 4% of consumers say that they use this channel to seek out accommodation, indicating that Facebook, Instagram, TikTok, and other social platforms might be good for brand awareness and engagement, but not necessarily a direct route to market.
Pubs’ own websites are undoubtedly the most important asset during the research and consideration stage of a customer journey, with 67% of consumers checking this out ahead of booking, and 90% saying that this influenced their decision to book. The CGA findings highlight the importance of making sure websites are their shop window, with up-to-date and comprehensive information, good imagery, and a clear call to action.
Customer reviews are hugely influential, with 94% of consumers saying that comments and reviews have a role to play in their decision-making process, compared to just 50% in 2019. Ninety-two per cent of operators confirm that they are important to their business.
Seventy-nine per cent of consumers said that official star ratings or accreditations are also significant when choosing a place to stay. However, the research found that 69% of operators do not have any current official star ratings or accreditations. CGA by NIQ suggests that pubs should consider gaining official ratings to reassure customers and stand out compared to other accommodation types and competitors.
And finally, trade research on sentiment showed that operators are optimistic about future accommodation revenue potential, with 59% saying that they were expecting growth in the future. Sixty-two per cent of operators are planning to complete refurbishments in the next 12 months, and 69% have done so in the last 24 months.
However, 76% stated that they will not be increasing the number of bedrooms in the next 12 months, suggesting that pubs are focusing on enhancement over expansion, and emphasising the focus on quality within the sector.
CGA by NIQ spoke to two groups: more than 3,500 people who had stayed in a pub at least once in their lives, and 177 licensees and operators of pubs with accommodation across the UK. Stay in a Pub previously conducted a pub accommodation report in 2019 and, where possible, this past research has been consulted to highlight where there has been a distinct change in perception, behaviour or focus.
Paul Nunny said: “At a time when the hospitality sector is feeling the pain in so many areas, the pub accommodation market is demonstrating that investment in quality and consumer experience has changed consumer perceptions of
staying in a pub and buoyed this important third income stream.”
