Despite High Demand, Thousands of Hotel Rooms Go Empty in the UK This Christmas – How to Maximize Revenue

Published on November 21, 2025

While Christmas lights and festive markets are lighting up cities across the UK, hotels are facing a paradoxical challenge: as demand for holiday accommodation surges, a significant number of rooms remain empty, costing the UK visitor economy over £820,000 a week. According to a new analysis from GuestReady, despite the festive season being one of the most lucrative for UK hotels, many still fail to capitalize on the influx of travelers, especially during midweek stays.

In cities such as London, Edinburgh, and York, high weekend rates are soaring to record levels, but midweek occupancy remains stubbornly low, leaving hotels with significant unmet revenue. For hotels across the UK, from large cities to smaller holiday destinations, this missed opportunity during the busiest season is a growing concern. With holidaymakers flocking to the UK for Christmas events, this trend needs to be addressed to maximize both short-term and long-term revenue in the hospitality industry.

A Growing Paradox in UK’s Hospitality Industry

While Christmas markets and seasonal events like Hogmanay in Edinburgh and Christmas shopping in London drive large crowds, hotels are finding it difficult to fill all rooms, particularly midweek. For example, London sees weekend room rates rise by 141% compared to January, with rates peaking at an average of £376 per night. However, despite the increase in demand for weekend stays, many hotels experience a 20-30% decrease in midweek occupancy, especially on Tuesdays and Wednesdays. This gap in booking patterns leaves rooms sitting empty, resulting in significant financial losses.

In other cities such as Oxford, Manchester, and Bristol, the loss of revenue is just as evident, with each city losing between £26,000 and £29,000 weekly. Smaller destinations like Cambridge and Plymouth are similarly impacted, losing upwards of £20,000 per week in untapped potential. For tourism in these areas, where businesses heavily rely on the festive period to boost revenue, this represents a significant missed opportunity for both local businesses and regional economies.

The Importance of Midweek Bookings and Dynamic Pricing

As the UK moves toward a more dynamic pricing model, it is becoming increasingly important for hotel operators to adjust their pricing based on demand. Many hotels are still operating under outdated systems that set fixed prices across the entire week, regardless of whether it’s a busy weekend or a quiet midweek day. This system results in unfilled rooms during midweek when the demand for accommodation is low.

By implementing dynamic pricing, hotels can use real-time data to adjust room rates accordingly. This could mean raising prices during high-demand periods like weekends or major events, while offering discounts or more competitive rates during quieter periods like midweek. GuestReady emphasizes that real-time adjustments can help ensure rooms are filled at the highest possible rate, maximizing revenue across the entire week.

How to Maximize Christmas Season Profits: Four Strategies for Hotels

To tackle this festive-season gap, GuestReady has outlined several practical strategies that UK hotels can implement to boost revenue during the holiday season:

1. Implement Dynamic Pricing

Hotels should use data-driven pricing tools to optimize rates, ensuring they’re competitive yet profitable. Adjusting rates for weekends and midweek stays can help fill rooms and prevent empty beds during slow periods.

2. Target Local and Domestic Travelers

In addition to attracting international tourists, hotels can increase occupancy by targeting domestic travelers. Offering staycation deals, short-break packages, and shopping-focused offers can help capture local visitors who are looking to enjoy Christmas events or holiday markets.

3. Create Memorable Seasonal Experiences

Hotels can enhance their holiday offerings by adding festive touches such as mulled wine, holiday decorations, and special menus. Themed events and exclusive access to Christmas markets can create memorable experiences that make tourists feel like they are enjoying something unique and festive.

4. Partner with Local Events and Festivals

Collaborating with local Christmas markets or winter festivals can provide hotels with more visibility and attract tourists looking to book accommodation near these events. Offering packages that include event tickets or local tours can increase the overall value of the booking.

The Broader Impact on Business Travel and Tourism

The UK hospitality industry is facing an important crossroads as it tries to balance demand fluctuations during the Christmas season. While tourists flock to cities like London and Edinburgh for festivals and shopping, business travelers also rely on the holiday period to attend conferences, corporate meetings, and other events. The challenge for hotels is to cater to both groups effectively, ensuring a steady flow of business and leisure visitors.

Hotels that are proactive in adjusting their pricing strategies and offering flexible packages will likely see better business performance over the holiday period. Midweek bookings should be optimized to ensure that empty rooms aren’t costing businesses significant losses.

Quick Tips for Tourists During the Christmas Season in the UK

1. Book Early for Christmas Markets:
   If you plan to visit one of the UK’s popular Christmas markets, book your accommodation early. Hotels in popular cities like Brussels and Edinburgh often fill up fast during peak times.
2. Look for Staycation Deals:
   If you’re a domestic traveler, look for staycation offers in cities like York, Manchester, and Bristol. These cities often have special deals on accommodation during the winter months.
3. Consider Shorter Stays:
   For those looking to avoid the weekend crowds, consider midweek stays. Many hotels offer discounted rates for midweek travelers, which could help reduce your overall travel costs.
4. Book Hotels Near Christmas Events:
   Check for hotel packages that include tickets or exclusive access to local events or Christmas markets. Booking near key attractions will help you make the most of your trip.

Key Points to Remember

• UK hotel vacancies are causing a loss of £820,000 a week despite high demand during the Christmas season.
• Weekend room rates are surging, but midweek stays remain under-booked, leading to untapped revenue.
• Dynamic pricing and targeting local travelers are key strategies for maximizing occupancy.
• Hotels in key cities like London, Edinburgh, and Manchester are particularly affected by midweek booking gaps.
• Proactive planning and holiday-themed experiences are essential for hotels to boost revenue and improve the visitor experience.

Final Thoughts for Travelers

The festive season brings a wave of excitement to UK cities, but the hospitality sector faces a growing challenge with empty hotel rooms during midweek stays. As holiday markets and festivals draw tourists, hotels must adapt their strategies to ensure they capitalize on both weekend surges and midweek opportunities. By booking early, exploring staycation options, and taking advantage of dynamic pricing models, travelers can enjoy a smooth and cost-effective holiday experience. Hotels that implement these strategies will help ensure higher occupancy and better revenue during the crucial holiday season, making the most of Christmas travel in the UK.

Disclaimer: The Attached Image in This Article is AI Generated