London hotel bookings slide as international tourism falters

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Source: thecaterer.com, 3rd June 2026

London hotel bookings have declined for the fifth consecutive month, but bookings outside the capital rose as more Brits opted for staycations amid ongoing geopolitical tensions


Hotel booking across London fell in April for the fifth consecutive month, registering declines amongst multiple metrics on a year-on-year basis according to data compiled by Hotstats and analysed by RSM UK.

 

RSM UK’s head of hotels Chris Tate said “uncertainty stemming from the conflict in the Middle East” alongside increased airfare costs had stymied international tourism and disincentivised Brits from travelling overseas.

 

Occupancy levels across London fell 1.5% year-on-year to 77.4%, while revenue per available room (revpar) slipped from £157.68 to £156.60.

 

Outside of London, bookings were more resilient as Brits opted to stay closer to home during Easter half-terms and bank holidays. UK hotel occupancy edged up 0.5% to 76.2% year-on-year, while revpar rose from £104.36 to £106.88.


A rise in staycations is likely to continue through 2026. Research from RSM UK found that approximately a third of UK consumers had changed travels plan due to uncertainty stemming from conflict in Iran – either by cancelling or postponing international travel, or changing destinations.

 

In addition, over a quarter (27%) of consumers are not planning to take a holiday over the next 12 months – up from 19% before the start of the war in Iran.

 

“Given current geopolitical tensions, consumers are favouring last minute bookings rather than planning in advance,” said Tate.

 

“So, provided the hot weather continues over the summer, UK staycations may be the preferred holiday option for many. While it’s encouraging to see an uplift in domestic demand, this alone is unlikely to offset the loss of overseas visitors.”


RSM UK’s chief economist Thomas Pugh added: “Consumer confidence has held up slightly better than we thought it would so far and households are entering the shock with a high savings ratio, which means there is scope to offset the hit to real incomes on spending by saving less. However, the longer the crisis goes on for, the more likely it is that consumers start paring back discretionary spending.

 

“Fortunately, we think that hotels will still hold up well during the crucial summer months. Inflation is unlikely to peak until Q4, and we estimate that it takes roughly nine months for a rise in jet fuel to materially push up airfares as most airlines hedge against oil prices and tickets are usually booked well in advance.”




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