Trouble in the UK hotel sector

Understanding the key forces of supply and demand within a competitive environment is essential, if one aspires to obtain and sustain competitive advantage. Unfortunately, the growth in the UK hotel sector has not been matched by the provision or detailed analysis of information sources. Typically supply‐side statistics are usually limited to room stock, whereas demand‐side statistics are usually confined to occupancy percentages. This results in only a limited interpretation and identification of changing supply and demand patterns in the UK hotel sector. Offers a novel approach which provides greater insight than traditional supply and demand statistics. The proposed framework is used to disseminate supply and demand data for the seven‐year period 1989 to 1995. The analysis suggests that the future for some hotel independents appears rather bleak.