Tourism and big-ticket events drive hotel stays

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 outperform 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 kicks 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.

AFH accounts for over a third of the total UK food and drink market, now worth £102.3bn – up 2.5% in the year to April.

Industry forecast

The IGD forecast projects a CAGR of 4.8% from 2025 to 2030 to reach £123.3bn, driven primarily by inflation and steady population growth. However, in real terms, market value is not expected to recover to pre-pandemic levels within the forecast period, highlighting the continued economic pressures facing both consumers and operators.

Nicola Knight, head of AFH at IGD, comments: “We listened to what the industry needed and built a flexible, client-centric solution that does the heavy lifting of insight and reflects the full AFH market. Our AFH data models have been developed over time to fill the gaps left by the absence of consolidated industry data, offering a credible and consistent view of market size.”

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