Why are UK hotel prices rising in 2025?

UK hotels face labour shortages and rising energy costs, with GOPPAR down 9.1% YTD. These costs are passed to consumers through higher room rates.

Are No-Fly cruises cheaper than hotel holidays?

For UK families, No-Fly cruises departing from Southampton eliminate expensive flights and offer fixed all-inclusive pricing, often providing better value than hotel holidays abroad.

What is London hotel RevPAR in 2025?

London hotel RevPAR has declined by 2.4% according to STR data, reflecting challenges in the UK hospitality sector.

UK Travel Industry Report 2025: Hotels vs. Cruises

A comparative analysis of the British market facing inflation, labor shortages, and changing consumer behaviors.

Report ID: UK-25-11 • Date: Dec 05, 2025

1. Executive Summary: The Cost of Recovery

The UK tourism market is navigating a turbulent recovery. Hotels, particularly in London, face declining RevPAR (-2.4%) and rising operational costs. Cruises, offering "No-Fly" options from Southampton, are becoming a hedge against expensive airfares and hotel inflation.

🏨 UK HOTEL SECTOR

Market Cap: £6.6B Transactions (Record)

London Trend: -2.4% RevPAR (Struggling)

Profitability: -9.1% GOPPAR YTD

Key Challenge: Labor & Energy Costs

Consumer Pain: Rising prices, lower service

⛴️ UK CRUISE SECTOR

Key Hubs: Southampton, Liverpool

Growth Driver: "No-Fly" Cruises

Key Challenge: Port Congestion & Safety

Consumer Benefit: Fixed Budget (All-Inclusive)

Outlook: Steady Growth

2. Consumer Risk Analysis

⚠️ Inflation Alert: With UK inflation forecast at 3.1%, hotel prices are rising faster than service quality. Consumers are paying more for less.

Issue Category	UK Hotels	Cruises (ex-UK)	Impact on Wallet
Labor Shortage	High (Service cuts, slower check-in)	Moderate (Staffed globally)	Hotels cut amenities to save costs.
Energy Surcharge	Often hidden in room rate	Included in ticket	Hotels pass energy costs to guests.
Logistics Cost	Trains/Flights expensive	Zero (No-Fly options)	Cruises from UK save on travel.

3. TCO Analysis (Total Cost of Ownership)

For a British family, a "No-Fly Cruise" to the Norwegian Fjords or Mediterranean eliminates the cost and stress of airports (Heathrow/Gatwick), which suffer from delays and strikes.

Hotel Holiday (Spain): Flights + Transfers + Hotel + Dining = High Variance Cost.
Cruise (ex-Southampton): Taxi to Port + Full Board Ticket = Fixed Low Cost.

💡 Analyst Recommendation

To mitigate inflation risks, we advise UK travelers to lock in holiday costs early via all-inclusive cruise packages departing from UK ports.

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Tool provided by research partner: Metropolis Cruise.

Advertiser Disclosure: This report is published by GTAI (Global Travel Analytics Institute). Data sources include STR, VisitBritain, and CLIA. We may earn commissions from partner links (Metropolis Cruise), which helps fund our independent research.