The hospitality and tourism landscape has transformed dramatically over the past decade. From boutique hotels to global chains, local tour operators to online travel giants—all compete fiercely for travellers’ attention and loyalty. But this competition isn’t just about bottom lines and occupancy rates; it shapes the very soul of travel experiences and cultural authenticity across the globe, particularly in heritage-rich destinations like the UK and Ireland.
For travellers seeking genuine cultural encounters rather than manufactured experiences, understanding these competitive dynamics helps make more informed choices. For businesses in the sector, especially the small, independent establishments that offer authentic local flavour, finding distinctive ways to stand out amidst global competition has never been more vital.
Here at ConnollyCove, we’ve explored how competition drives both innovation and challenges in the tourism sector, with a particular eye on preserving the authentic cultural experiences that make travel truly transformative.
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Industry Expert Insights: Anton Fedun on Hospitality Competition
Anton Fedun, Managing Director of the Ampersand Hotel and the Vintry and Mercer Hotel, has offered industry-leading insights on navigating competition in hospitality and tourism as these sectors continue to expand and grow more competitive.
Fedun couldn’t stress enough how much guests appreciate something niche, truly unique and different. According to the Managing Director, tourists aren’t just after a hotel bed: with prices rising and tourism growing, people are after an experience, not just a place to stay.
The hospitality expert also highlights the importance of having the right staff, a major factor in improving the quality of an individual’s stay. Making sure they are correctly trained, up-to-standard, pleasant and well presented only maximises the quality of a traveller’s stay.
Fedun suggests that the success of his hotels is based upon the fact that they cater for more than just the general UK business traveller. In the restaurant, they offer a wide variety of cuisines, including Indian cuisine and Chinese. This adds to customer satisfaction and improves the quality of their stay.
“We’ve found that modern travellers are increasingly searching for hotels with character and authentic local connections. Creating spaces that tell the story of a place—whether through design, cuisine, or staff knowledge—has become essential to competing in today’s market.” – Anton Fedun, Managing Director of the Ampersand Hotel.
Fedun stressed the importance of providing ‘the whole package’ to travellers. From the moment they arrive at the hotel, the exterior needs to impress, right through to the lobby, the corridors and then on to the room itself which should be more than just a bed and four walls, but a relaxing haven that is different from other hotels and unique in style and presentation.
The hotel itself must also strive to be different. Fedun says the success of his hotels are due to the ‘secret’ basement bar and the rooftop terrace where guests will come back for the experience of the bar and to take in the city views.
He went on to discuss the competition which continues to grow with the rise of niche market hotels and the rise in popularity of the boutique hotel. Hotels nowadays must compete via online travel agents where more and more people will book indirectly via websites like Booking.com and Hotel Trivago.
Hotels must pay a commission to these websites for the boost in publicity. With hotels growing in popularity and posting last minute deals, it is difficult for a hotel to compete in the hospitality industry as it moves online.
Fedun expressed ways in which a hotel can become more popular via environmental impact and decor. Nowadays, the importance of having a small environmental impact is of the utmost importance to many people of the world, including travellers.
Having an environmentally friendly experience within a place to stay is definitely an area where hotels and businesses within the hospitality industry can increase their popularity. Also, the use of real plants in lobbies, corridors and hotel restaurants creates a more positive and welcoming area for a traveller to stay in and helps the establishment’s environmental impact.
Not only the hotel itself but also its facilities have to compete. A prime example of this is hotel restaurants, where a person does not need to be a guest at the hotel to eat there. However, when there are so many restaurants and eateries available elsewhere, it can be hard for hotels to keep their guests eating in them, never mind bringing in external customers.
That’s why Fedun stresses the need for niche. If somewhere provides a more exclusive experience, people will return, and more importantly, they will advertise to other travellers and potential customers.
All in all, Fedun stresses the importance of keeping up to date with what the modern traveller requires, how to compete with rival hotels and promotion online. It is vital now to keep standards at a high and to provide an experience that is more than just a bed and four walls.
Understanding the Arena: Modern Competitive Forces in Tourism
The competitive landscape in hospitality and tourism has evolved significantly beyond the traditional factors of price, location, and service quality. Today’s businesses must navigate a complex web of forces that shape how they position themselves and attract their ideal guests.
The Digital Revolution: OTAs and Review Culture
The shift to digital booking platforms has fundamentally altered competitive dynamics in the tourism sector. Online Travel Agencies (OTAs) like Booking.com, Expedia, and Airbnb now dominate the market, offering vast choice but demanding significant commissions from hospitality providers.
For small, independent hotels and guesthouses across the UK and Ireland, this presents a particular challenge:
- Commission rates typically range from 15-25%, directly impacting profit margins
- Visibility on these platforms often depends on complex algorithms and paid placements
- Direct booking strategies become crucial for financial sustainability
- Review management has become a critical competitive skill
“The digital marketplace has completely transformed how our industry competes,” says Ciaran Connolly, Founder of ConnollyCove. “While it’s created challenges for smaller operators, it’s also opened opportunities for authentic businesses to reach visitors who specifically seek out genuine local experiences rather than standardised offerings.”
The Rise of Experience Economy
Today’s travellers, particularly those visiting culturally rich destinations like Ireland and the UK, increasingly value memorable experiences over material comforts:
- Experiential offerings have become key differentiators
- Businesses that connect guests with local culture gain a competitive advantage
- Story-driven hospitality resonates with modern travellers
- Authenticity has become a prized commodity
This shift presents particular opportunities for businesses willing to showcase genuine local culture, traditions, and experiences, moving beyond the generic offerings that dominated tourism in previous decades.
Sustainability as a Competitive Edge
Environmental consciousness has emerged as a significant factor in travel decisions, with implications for competitive positioning:
- Eco-friendly practices attract environmentally conscious travellers
- Sustainability can create cost savings while adding value
- Authenticity in environmental claims is essential (greenwashing is quickly spotted)
- Local sourcing creates both environmental and cultural authenticity
For hotels and tourism businesses in scenic areas of Ireland, Scotland, Wales and England, sustainability practices often align naturally with highlighting natural beauty and cultural heritage, creating a virtuous circle of competitive advantage.
The UK & Ireland Spotlight: Unique Competitive Landscapes
The hospitality and tourism sectors in the UK and Ireland face distinctive competitive challenges and opportunities shaped by their rich cultural heritage, geographic diversity, and evolving traveller preferences.
Post-Brexit Realities for UK Tourism
Brexit has created a new competitive landscape for UK tourism businesses:
- Staffing challenges in hospitality due to changing labour mobility
- New opportunities to highlight distinctly British experiences
- Pricing advantages for international visitors due to currency fluctuations
- Complex regulatory changes affecting cross-border tourism with Ireland
Tourism businesses that have adapted quickly to these changes have found competitive advantages, particularly those emphasising authentic local experiences that can’t be found elsewhere.
Ireland’s Cultural Advantage
Ireland’s tourism sector has leveraged its cultural heritage as a powerful competitive differentiator:
- Irish diaspora connections create a global market of cultural tourists
- Stories, myths, and traditions offer unique experiential opportunities
- Music, literature, and food traditions provide authentic engagement
- Small-scale, locally-owned businesses often excel at delivering genuine experiences
“In Ireland, we’ve seen how small, authentic businesses can compete successfully by offering experiences that large chains simply cannot replicate,” notes Ciaran Connolly. A family-run B&B that serves traditional Irish breakfast with locally sourced ingredients and shares stories about the area creates memories that travellers treasure far more than a standard hotel stay.
Rural vs Urban Tourism Competition
The competitive dynamics differ dramatically between rural and urban settings:
- Rural businesses compete on uniqueness, peace, and natural beauty
- Urban establishments must differentiate in more crowded marketplaces
- Seasonal challenges create different competitive pressures
- Transportation access shapes competitive advantage differently
In places like rural Ireland or the Scottish Highlands, businesses that effectively communicate their remote charm while ensuring comfort and accessibility gain a competitive edge. Meanwhile, urban establishments in Dublin, Belfast, Edinburgh or London must find unique selling points amidst numerous alternatives.
Winning Strategies for Authentic Hospitality & Tourism Businesses
For businesses seeking to thrive in today’s competitive landscape while maintaining cultural authenticity, several strategies have proven particularly effective:
Beyond Price Wars: Competing on Unforgettable Experiences
Successful authentic businesses focus on value creation rather than price competition:
- Curated local experiences that can’t be found elsewhere
- Staff who serve as cultural ambassadors with local knowledge
- Partnerships with local artisans, food producers, and activity providers
- Personalisation that responds to individual traveller interests
Small operations like family-run guesthouses in the Cotswolds or boutique hotels in Dublin can compete effectively by creating experiences that large chains cannot easily replicate, from introducing guests to local craftspeople to offering authentic cooking classes.
Storytelling & Brand Narrative
In an age of digital noise, businesses with compelling stories stand out:
- Authentic local narratives connect with travellers seeking meaning
- Historical connections create competitive differentiation
- Personal stories humanise hospitality businesses
- Consistent storytelling across all touchpoints reinforces brand identity
A hotel housed in a historic building in Edinburgh, for instance, can build its competitive identity around the stories of that building and its surroundings, creating an emotional connection that generic accommodations cannot match.
Digital Strategy for Independent Operators
Even the most authentic businesses need an effective digital presence to compete:
- Direct booking channels reduce OTA dependence
- Targeted social media showcasing authentic experiences
- Email marketing to nurture relationships with past guests
- Strategic use of OTAs balanced with direct marketing
“Digital tools are essential, but they should showcase rather than replace authenticity,” says Ciaran Connolly. “We’ve seen the most successful tourism businesses use technology to amplify their authentic voices rather than trying to compete with global chains on their terms.”
Hyper-Local Sourcing & Community Integration
Businesses deeply connected to their communities gain competitive advantages:
- Local food sourcing creates distinctive dining experiences
- Community partnerships build resilience and differentiation
- Local knowledge becomes a valuable competitive asset
- Authentic connections create word-of-mouth marketing
From Belfast city centre hotels partnering with local food producers to tour operators in the West of Ireland collaborating with traditional musicians, businesses that embrace locality create experiences that global competitors cannot easily replicate.
The Traveller’s Role: How Your Choices Shape the Tourism Landscape
As travellers, our choices directly influence which businesses thrive and what kind of tourism develops:
- Booking directly with locally-owned businesses supports authentic experiences
- Looking beyond the first page of OTA listings often reveals hidden gems
- Reading between the lines in reviews helps identify truly authentic options
- Valuing and paying for quality preserves cultural authenticity
When we choose to stay at a family-run inn in the Lake District rather than a chain hotel, or book a local guide in Dublin instead of a mass-market tour, we’re helping to preserve the authentic character that makes these destinations special.
FAQs: Competition in Hospitality and Tourism
How can small tourism businesses in the UK compete with larger online travel agencies?
Small UK tourism businesses can compete by developing strong direct booking channels, creating unique experiences that OTAs can’t package, cultivating direct relationships with guests, and using OTAs strategically rather than dependently. Emphasising local connections and authentic experiences provides a competitive advantage that large platforms can’t easily replicate.
What’s the biggest competitive challenge facing Irish hospitality today?
Irish hospitality faces several interconnected competitive challenges: balancing authentic experiences with modern traveller expectations, managing staffing shortages in rural areas, navigating the digital marketplace cost-effectively, and maintaining price competitiveness while investing in quality and sustainability. However, Ireland’s strong cultural identity and warm hospitality tradition provide competitive advantages in the global tourism market.
As a traveller, how can I identify truly authentic experiences amidst marketing hype?
Look for businesses with deep local connections, read reviews focusing on cultural authenticity rather than just amenities, seek recommendations from locals rather than just popular listings, and look for specific details about local sourcing, family ownership, or community involvement. Businesses that speak with authentic voices about their specific place and traditions typically offer more genuine experiences than those using generic travel marketing language.
Conclusion: Balancing Competition and Authenticity in Tomorrow’s Tourism
The competitive landscape in hospitality and tourism will continue evolving, but certain principles remain constant: travellers seek meaningful connections, authentic experiences create lasting impressions, and businesses deeply rooted in their places and cultures have unique competitive advantages.
For businesses, the key lies not in trying to compete with global giants on their terms, but in leveraging their authentic differences as competitive strengths. For travellers, making conscious choices about where to stay, eat, and explore directly shapes the kind of tourism industry that will thrive.
What we’ve observed across Ireland, the UK and beyond is that competition actually enhances authenticity when businesses compete on being genuinely themselves rather than trying to be all things to all people,” reflects Ciaran Connolly. “The most successful tourism businesses we encounter are those that celebrate what makes them uniquely connected to their place and culture.”
By supporting businesses that champion authentic experiences and cultural integrity, we can ensure that competition in hospitality and tourism drives innovation while preserving the genuine soul of travel.
