Webinar | UK Travel sentiment & hotel brands that win: Key takeaways from the discussion

Hosted by Pierre Ricord, Head of Consultancy - Hotels at Christie & Co, the webinar featured insight from panellists Matt Costin, Head of Travel, Hospitality & Leisure, and James Bland, Commercial Director - Travel, Hospitality & Leisure, at Ipsos, who unpacked the forces shaping travel intent and demand, the outlook for 2026, and some of the branding strategies setting hotel groups apart in the 21st century.

Watch the webinar recording or read a summary of the key takeaways below.

1. Consumer sentiment is improving, but remains fragile

The session was opened by Matt Costin, who gave an overview of the UK’s economic and consumer mood. While confidence dipped to an all‑time low in April 2025, sentiment is gradually recovering - however, this rebound comes from a low base.

Ipsos’ latest data from their Domestic Sentiment Tracker and Economic Optimism Index indicates that:

• Nearly two‑thirds of consumers still expect the UK economy to worsen over the next 12 months
• Only 12% expect improvement, giving a net optimism score of –54
• After two months of improving sentiment (Dec–Jan), February saw a setback, with more consumers believing “the worst is still to come”

This fragility is also reflected in business confidence, which has plateaued since late 2025 and remains highly regionalised, with London and the Midlands outperforming other areas.

What does this mean for hotels?

Demand is unlikely to drop sharply, but the market will continue to be characterised by caution, short lead times, and selective spending, therefore hoteliers will need to work harder to secure early commitment.

2. Cost of living remains the biggest barrier to travel

In their Domestic Sentiment Tracker, Ipsos asked consumers what is most likely to prevent them from travelling in the next six months. Two themes dominated:

• Cost of living pressures
• The uncertainty of British weather

More than half of UK consumers cited cost‑related concerns as a barrier. And, although the proportion intending to reduce travel has eased since the autumn, concerns about personal finances remain significant.

The positive news? After a steep dip in late 2025, fewer consumers now expect to cut day trips and overnight stays, and intentions have slowly improved for six consecutive months.

However, intentions still aren’t translating into firm commitments, and only 64% of consumers planning a UK trip in March say they are “very committed,” compared with 80% for overseas travel.

What does this mean for hotels?

Conversion is the battleground. Travel desire exists, but spend‑sensitive consumers need reassurance - value, clarity, and certainty - to turn interest into bookings.

3. Domestic travel sees a slight uplift, with cities gaining ground

The UK is seeing a modest shift from international to domestic travel for the months ahead, which is certainly helpful for UK hoteliers, though not transformative. Importantly, Ipsos’ data revealed that:

• 14% of consumers remain undecided about where to travel - creating an opportunity for targeted marketing
• Domestic trip intentions are flat year‑on‑year for most periods, but stable is welcome in the current climate
• Travellers remain hesitant to commit too far in advance, reaffirming the short‑lead trend

A standout trend is the resurgence of cities, especially London:

• London continues to gain share as a planned destination for both near‑term and spring/summer trips
• City breaks overall show a six‑point uplift versus this time last year

So, why are cities proving a popular choice? This could be partly because of weather risk - urban destinations offer more indoor activities and flexibility - and partly because of dining, food, and drink, which now the number one planned activity for April-to-June trips.

What does this mean for hotels?

Highlighting food and drink experiences, local restaurant partnerships, and city‑based itineraries, as well as messaging that reinforces convenience, culture, and weather‑proof activities, is likely to resonate with customers.

4. People want rest, connection, and “time well spent”

Ipsos report that, when asked what motivates travel, UK consumers cited:

• Time with family or a partner
• A desire to ‘get away from it all’ and rest

These emotional drivers have grown stronger in recent months. Meanwhile, interest in “connecting with nature,” “fun and excitement,” and “spending time with friends” – which are still important - rank lower.

What does this mean for hotels?

The rise of rest‑driven, connection‑driven travel suggests guests are seeking:

• Comfort
• Simplicity
• Low‑stress planning
• Stays that feel restorative

This creates a compelling opportunity for all tiers, from economy to upscale.

5. The hotel brands that win: consistency, clarity, and brand architecture

James Bland then delivered the second session, discussing examples of hotel branding success stories of the past 25 years in the UK, and the strategies behind growing brand awareness.

Three stand‑out strategies emerged:

The power of consistency – for example, Premier Inn

James discussed Premier Inn’s rise to become one of the UK’s most recognisable hotel brands, overtaking competitors in both spontaneous awareness and top‑of‑mind recall. This is as a result of consistency of:

• Product
• Experience
• Distribution
• Messaging (including their long-running advertising campaigns)

Across generations, Premier Inn enjoys broad appeal and high trust - an enviable position built on decades of uniformity and investment.

Clever segmentation – for example, Accor’s Ibis portfolio

James explored how Accor successfully transformed its economy offering by creating the Ibis triplet: Ibis, Ibis Styles, and Ibis Budget. This strategic architecture:

• Creates clear differentiation
• Caters to distinct needs within the economy tier
• Protects brand equity by directing travellers to the right product
• Helps minimise generational awareness decline by appealing to varied tastes

Ibis Styles, in particular, stands out as a more “evolutionary” option, carving out its own distinct identity.

Brand endorsement done right – for example, Hilton’s “By Hilton”

James discussed how Hilton has enhanced the equity of its sub‑brands, such as Tru, Motto, and Canopy, through the disciplined use of the “By Hilton” endorsement.

Even in markets where these brands have no physical footprint, awareness is surprisingly strong thanks to the parent brand’s credibility. This architecture delivers:

• Instant trust
• A baseline expectation of service
• Greater pricing power
• Faster brand scaling

Summary

From the data and examples presented, several themes emerge:

• Growth in 2026 is likely to be modest, not exponential - but stable
• Consumers will travel, but they are more likely to be selective and cautious
• Brands that communicate clearly, consistently and credibly will perform best
• The battle for bookings is increasingly about conversion, not just awareness
• Cities and food‑led experiences are top performers in attracting consumers
• The pace of change, particularly with the impact of AI on search, planning and travel booking, will accelerate rapidly

The webinar closed with an audience Q&A, which covered the following topics: