Competitive Strategies in the Budget Hotel Sector

The budget hotel sector in the United Kingdom was established in 1985 and is now experiencing accelerated growth. If this sector simulates some of the developments that have occurred in the US and French budget/economy hotel sectors, then traditionally‐minded operators in the country will have to reconsider some of their original long‐term strategies. The growth and success of the US and French budget/economy hotel are reviewed, and parallels with the emerging growth and success of the UK budget hotel are drawn. In summary the authors consider that the concept of service quality will provide the best foundation for successful strategies in the next decade.