Hoteliers have warned that the last-minute rush by UK holidaymakers to swap trips abroad for “staycations” is not translating into profits as hospitality costs continue to climb. Revenue per available room rose 4.6 per cent in June, the fastest year-on-year growth since last September, according to Co Star. This growth was driven by coastal and rural markets and event-driven tourism.

However, the rise in domestic travel has not been sufficient to offset rising costs such as larger payrolls, maintenance, and energy bills. For example, payroll costs at Grupo 44 rose by about £280,000 over two years due to minimum wage and National Insurance increases.

Fears are also growing regarding new visitor levies. Operators warn that plans to impose a "tourism tax" on overnight stays could undermine the growing popularity of domestic travel. As one director noted, the goal has shifted from profit to simply breaking even.