The pressure is on for hotel operators in Cornwall according to new data which shows that the number of holiday lets has significantly overtaken hotel operators in the last ten years, reflecting the changing priorities of travellers seeking experience-led accommodation.
According to the latest ONS figures analysed by Property Management Software (PMS) specialist RMS Cloud, Cornwall saw a 78% rise in the number of holiday let businesses, growing from 250 in 2013 to 445 in 2023.
This forms part of a nationwide picture, where the UK saw a 90.7% increase in the number of short-term rental (STR) businesses, growing from 3,780 in 2013 to 7,219 in 2023 (or 3,430 new businesses)
In contrast, the number of hotel operators in Cornwall reduced by 21%, falling from 320 in 2013 to 250 in 2023 – a decrease of 70 – while the number of hotel businesses across the UK grew by only 5.6% (from 12,385 to 13,080 during the same period).
As staycations surge, travellers overwhelmingly chose environmentally friendly, experiential travel in accommodation that offered more space, privacy, and practical amenities.
On a national scale, of the 382 UK local authorities, Cornwall was one of 260 that saw an increase in short-term rental (STR) businesses, averaging 13.2 new businesses per region. In contrast, only 154 local authorities experienced growth in the hotel sector, with an average of just 4.6 new hotel operators per region.
Additionally, UK campsites have seen a notable 35% rise from 2,495 in 2013 to 3,375 in 2023 (an increase of 880). Cornwall was slightly above this national average, with 37% more campsite businesses in 2023 compared with 2013.
Davinder Gill, business development executive at RMS Cloud, said: “The hospitality industry has been keeping a keen eye on the growing momentum of short term rental businesses over the last decade, but many will be surprised at how significant the disparity of growth is when compared to hotels.
“In Cornwall, we’ve not only seen the growth in the number of holiday lets and campgrounds, but we’ve actually seen the number of hotel operators decrease, with guests voting with their feet as their travel priorities shift.
“While this is fantastic news for the STR and campground sectors, the pressure is now on for hotel operators in Cornwall, to find a way of catering to today’s travellers who are seeking more authentic experiences. Whether that’s offering a more personalised, contactless service, or leaning towards the aparthotel approach to give guests more of a ‘home from home’ experience, hotels will be urgently looking to gain more of the market share.”
