© Kantar TNS 2017

Scottish Accommodation Occupancy Survey Annual Report 2016

© Kantar TNS 2017 2

Contents

1. What is the Scottish Accommodation Occupancy Survey? 03

2. Hotels 08

3. Guest Houses and B&Bs 15

4. Self-catering 21

5. Caravan & camping parks 28

6. Hostels 33

7. Appendices

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1. What is the Scottish Accommodation Occupancy Survey?

© Kantar TNS 2017

Survey introduction

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The most up-to-date and detailed source of information for monitoring the performance of the tourism industry in Scotland.

Information is collected and analysed, with results available within several weeks of the end of each month. This report presents the key themes coming from the 2016 data for the five main accommodation sectors* (shown below). Detailed data tables are available as an appendix to this report.

*Where available, comparative figures from previous years are also presented throughout the report. Separate sector specific reports are also available. Throughout the reports the following abbreviations have been used: SE = Scottish Enterprise area,

HIE = Highlands and Islands Enterprise area, MBSE = Moray, Badenoch and Strathspey Enterprise area, ALLFV = Argyll, Loch Lomond and Forth Valley area

Hotels Guest Houses and B&Bs

Caravan & camping parks

Self-catering Hostels

© Kantar TNS 2017

Methodology

Self-catering Lets Number of nights let Tariff Party size

Caravan/ Camping Parks Number of pitches Pitches let Tariff per pitch

Hostels Arrivals (UK/ Overseas) Guests (UK/ Overseas) Additional beds used (if any)

At the start of each month in 2016, operators received a form. On the form, the information requested varied by sector, as follows:

5

Completed forms were returned to TNS Travel and Tourism for analysis at the end of the month. Data for the whole of 2016 was re-run following the end of the year to include any forms returned after the monthly analysis was complete.

The figures reported are based on the annual re-run and therefore may vary from those initially produced in the monthly summaries.

Serviced Arrivals Guests (including business) Rooms occupied Additional beds and rooms used (if any)

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The benefits of participation

Comprehensive and up-to-date information on the demand for accommodation in Scotland Accommodation

demand

Key performance indicator

Comprehensive Up-to-date Information provided is treated in the strictest confidence, with data only publicly available in aggregate form. The identity of participants is strictly confidential

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Participants received monthly reports with a record of their own occupancy rates, those of similar businesses in their area and in Scotland as a whole

The monthly reports are an invaluable business tool, for example, in business planning, loan/grant applications etc. Participation comes at no cost – all materials and results are provided free of charge

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Occupancy levels by sector

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Consistent with 2015 and across all sectors, Hotels had the highest occupancy rates with 54% bed occupancy and 71% room occupancy

Guest House and B&Bs had a 42% room occupancy rate and a 36% bed occupancy rate

For Self-catering properties, unit occupancy stayed at 48% in 2016

Pitch occupancy increased for Caravan & Camping Parks to 44% in 2016

Hostels grew with 57% bed occupancy and overseas occupancy to 24%

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2. Hotels

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Bed and room occupancy have seen a steady increase since 2002 During the summer months, both bed and room occupancy rates were higher, with room occupancy around 84% between June and September, and reaching a peak of 87% in August Hotels with tariffs of £40+ continued to grow in bed occupancy, and room occupancy increased for hotels with £40-£59.99 tariffs Similar to 2015, room occupancy for hotels in cities/ large towns was 77% Seaside hotels had the most growth between 2015 and 2016, with bed occupancy rising from 52% to 56%

Hotels in brief

9

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Occupancy rates remain consistent

Both bed and room occupancy rates at the overall level have remained largely consistent between 2015 and 2016. Small increases are present in bed occupancy rates.

2014 2015 2016

Bed occupancy (annual averages) 5 2 % 5 2 % 5 4 %

Percentage point change

+1 NO CHANGE

2014 2015 2016

Room occupancy (annual averages) 7 0 % 7 1 % 7 1 %

Percentage point change

+2 +1

Jan Feb Mar Apr May Jun Jul Au g Sep Oct Nov Dec

The summer months of 2016 saw the highest levels of room occupancy at around 84%. Monthly analysis of occupancy levels shows the greatest increase from 2015, for both room and bed occupancy, in November and December.

2

1

-1 -1 -2

1

2015-2016 (percentage point change)

Bed occupancy Room occupancy

10

+2 +2

NO CHANGE

1

2

-2

3

3

3

3

3

4

5

3

2

-2

-1

1 1 1

4

1 1

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Consistent with the trends, room and bed occupancy are greater for the more expensive rooms than the lower tariff rooms

Levels of occupancy increase in line with tariff band

£40-£49.99

£50-£59.99

£60+

£40-£49.99

£50-£59.99

£60+ -1

Bed occupancy Room occupancy

2015 2015 2016 2016

11

39 40

56 58

51 52

68 70

55 56

74 73

+1

+1

+1

-3 £30-£39.99

37 34

Tariff Percentage point change

-3 £30-£39.99 53

47

Tariff Percentage point change

-6

+2

+2

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Increased occupancy for Seaside hotels

Bed and room occupancy rates for Seaside hotels in 2016 are at the highest levels recorded

Small town Seaside Country/ village

City/ large town Mainland Island

Bed occupancy 2015 42% 52% 51% 5 6 % 2016 42% 56% 52% 5 7 %

Room occupancy 2015 61% 66% 63% 7 7 % 2016 63% 67% 63% 7 7 %

2016 Bed occupancy

5 4 % 56%

2016 Room occupancy

7 7 % 66% Room occupancy rates are higher for Mainland hotels than for Island hotels

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© Kantar TNS 2017

Area profiles

Bed occ % Room occ%

Aberdeen & Grampian 39 63

Angus & City of 45 64 Dundee

Perthshire 52 68

Fife 55 64

ALLFV* 61 69

Edinburgh & Lothian 65 82

Glasgow & Clyde Area 53 78

Ayrshire & Arran 53 67

Scottish Borders 43 59

Dumfries & Galloway 40 53

Highlands 54 69

Western Isles 48 62

Largest percentage point (2015-2016)

increases for:

Highlands Western Isles

Bed occupancy

Room occupancy

*Argyll, Loch Lomond & Forth Valley

13

+5 Dumfries & Galloway Highlands +5

+5

+5

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74

83

83

71

69

71

67

67

73

79

77

68

indictates percentage point change from 2013-2016

Continued growing levels of confidence

Business confidence has continued to increase for all months over the last four years

Jan Feb March July August Sept Oct Nov Dec April May June very / quite confident for next 12 months %

+30

+5 +5

+24 +14

+8

+16 +7

+11 +8

+8

+2

Please note that not all establishments provide this information

2016

97

14

83 83

88 88

78

95 92

89 94

96

92

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3. Guest Houses and B&Bs

15

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Guest-houses and B&Bs summary

Both bed and room occupancy rates have decreased since 2015 The summer months of 2016 were the busiest months of the year for GH and B&Bs, with bed and room occupancy rates peaking between May to September Properties charging £50-£59.99 per night have seen a decline in bed occupancy rates from 64% in 2015, to 34% in 2016 In comparison to 2010- 2015 where Seaside GH & B&Bs had the highest occupancy rates, the results from 2016 indicate that highest rates are now in Small towns

16

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Consistent seasonal variations in bed occupancy

The 2016 annual average bed occupancy rate was lower compared to the two previous years

2014 2016

3 8 % 3 6 %

Bed occupancy was the highest in the summer, with the months outside the traditional summer season having lower rates, consistent with previous trends

April % September %

October % May %

27 52

31 46

2015

4 0 %

+19 -21

17

Bed occupancy

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Size and tariff

Tariff Bed occupancy has seen an increase in the £20-£29.99 tariff. The biggest decrease is for £50-£59.99

2014 2015 2016

£20-£29.99 27 30 34

£30-£39.99 35 34 33

£40-£49.99 44 45 42

£50-£59.99 53 64 34 +

£60+ 46 41 32

Size of establishment Figures for bed occupancy of both smaller and larger establishments have seen a decrease

Bed occupancy (%) Percentage

point change

2014-2016 Bed occupancy (%)

18

+7

-2

-2

-19

-14

1

3 4 %

4 3 %

3 1 %

4 4 %

3 1 %

4 4 %

4 4 %

3 1 % 3 7 %

4 8 %

3 7 % 3 9 %

3 1 %

2013 2014

2015 2016

1-3 rooms 4-10 rooms

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Small towns increase in GH / B&B occupancy

Bed occupancy rates have increased in small towns by 6% Bed occupancy

City / large t o w n Small t o w n Seaside Countrys ide / vil lage

3 4 %

4 1 %

2015 2016

3 3 %

19

4 1 %

3 6 %

4 0 %

3 4 %

3 3 %

3 6 %

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Jan Feb March April May August Sept Oct Nov Dec June July 2016 (very / quite confident % )

Mixed levels of confidence in 2016

-11 -10 -15

-15 -6 8 -27

-8 9

64 51 79 69

Levels of business confidence have remained similar to previous patterns, with variation throughout the year. Confidence was higher at the start and end of the year however, dipping in the summer Indicates percentage point change from 2015

20

74

2 -6

-4

64 59 54 76 66

60

78

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4. Self-catering

21

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Self-catering summary

Unit occupancy has stayed consistent in the self-catering sector between 2015 and 2016 (at 48%) As would be expected, occupancy levels were highest in the summer months, peaking at 8 1 % in August. January, December and November were the quietest months for the sector Properties in cities/ large towns continued to have the highest occupancy rates compared with 2015 Non-graded properties grew in unit occupancy

22

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4 8 %

Unit occupancy levels remain the same

Annual unit occupancy levels stayed the same as 2015

4 6 %

4 8 %

2014

2015

2016 2 5 %

3 4 %

5 0 % 5 3 %

6 3 %

7 5 % 8 1 %

6 3 % 5 8 %

2 9 % 2 6 %

Similar to 2015, unit occupancy rates for July and August were higher compared to any other months. Rates in these months are also considerably higher than in 2012

Unit occupancy rate Unit occupancy rates 2016

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

indictates percentage point change 2012-2016

23

3 4 % +6

+6 +9

+6 +4

+1

+9 +12

+5 +14

+2 +1

© Kantar TNS 2017

Continued increases for cities and large towns

Increases in unit occupancy were recorded for cities and large towns

City / large town Small town Seaside Country / village

2015 2016 2015 2016 2015 2016 2015 2016

6 4 % 6 5 % +1

5 5 % 4 9 % -6

4 4 % 4 1 % -3

4 9 % 4 9 %

indictates percentage point change from 2014

Unit occupancy

24

NO CHANGE

© Kantar TNS 2017

Independent-let occupancy increases

Annual average unit occupancy rates for agent-let properties have decreased slightly from 2015. Independently-let properties have however increased in unit occupancy

Unit occupancy (%)

Independently Agent-let

2013 2014 2015 2016 2013 2014 2015 2016

47 46 51 50 43 47 45 47

25

© Kantar TNS 2017

Non-graded properties see increases in unit occupancy

Not graded properties continued to see a steady increase in unit occupancy rates. All graded unit occupancy has decreased from 2015 but, are still higher compared to levels in 2011-2014.

Unit occupancy

All Graded

2014 4 8 % 2015 5 2 % 2016 5 0 %

Not graded

2014 4 2 % 2015 4 3 % 2016 4 4 % - 2

Percentage point change from 2015

+1 Percentage point change from 2015

26

© Kantar TNS 2017

Mixed levels of confidence across the year

Business confidence during 2016 was mixed, with higher than 2015 results observed throughout July and August but, decreasing levels in the majority of the other months indicates percentage point change in 2015

Jan Feb March April May August Sept Oct Nov Dec June July 2016 (very / quite confident % )

80 -8 -4

-4

-9 -2

+1 +3

-4

-6

-3

27

68

67

72

67

69 72

72

77

68

76

-10 NO

CHANGE

79

© Kantar TNS 2017

5. Caravan & camping parks

28

© Kantar TNS 2017

Parks summary

The seasonal average for parks, based on data from April to October, shows pitch occupancy has increased between 2015 and 2016 (from 41% to 44%)

Consistent with the trends, occupancy levels peaked during the summer months of June, July and August

Larger sites, with 100-199 pitches, had a higher pitch occupancy rate than smaller sized sites

Highlands & Islands saw the most pitch growth from 2015 to 2016

29

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Pitch occupancy increases from 2015

By month: Analysed monthly, pitch occupancy has seen a steady increase compared to 2015, with the largest percentage point changes being in the summer months

Pitch occupancy

30

2015 2016 April 28% 2 5 % -3

May 39% 4 1 % +2

June 46% 5 0 % +4

July 49% 5 5 % +6

August 55% 6 2 % +7

September 42% 4 4 % +2

October 25% 2 5 %

Seasonal-average 41% 4 4 % +3

Percentage point change

NO CHANGE

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Pitch occupancy increased for all pitch sizes in 2016

Pitch occupancy grew for all sizes in 2016

Larger sites 1-49 pitches

50-99 pitches

2014 2015 2016

4 4 % 3 9 % 4 3 %

100-199 pitches

2014 2015 2016

4 7 % 4 7 % 4 8 %

1-49 pitches

2014 2015 2016

3 1 % 3 5 % 3 8 %

Pitch occupancy

31

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Regional growth

Pitch occupancy grew the most in the Highlands & Islands

indictates percentage point change from 2015-2016

2015 percentage

2016 percentage

Tayside

43% 41%

South of Scotland

48% 54%

Edinburgh & East Central

36% 38%

Pitch occupancy Highlands & Islands

38% 45% +7

32

+2

-2

+6

© Kantar TNS 2017

6. Hostels

33

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Hostels summary

Hostels experienced growth in bed occupancy, from 52% in 2015, to 57% in 2016 Data from overseas visitors indicates an increase in occupancy from 23% in 2015, to 24% in 2016

34

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Growing hostel occupancy

2016 saw the highest level of annual average bed occupancy

57 2016 2012 2013 2014 2015

Overseas bed occupancy has continued to show an increase

Annual average bed occupancy rates (%) Overseas growth

45

50

52

40

*Please note that due to the relatively small sample size, results should be treated with a degree of caution

+17

+5 +12

+7

indicates percentage point change from 2016 occupancy rate

Increase of 1 percentage point from 2015

2014 2 0 % 2 0 1 5 2 3 %

2 0 1 6 2 4 %

35