B&bs and Other Short-term Accommodation

Payment Behaviour Analysis: The B&Bs and other short-term accommodation Sector

As a senior business analyst positioned to analyse the financial currents within the UK market, I have conducted a detailed review of the payment practices characterising the B&Bs and other short-term accommodation sector. This study draws upon a comprehensive dataset of 89 companies, providing a statistically significant sample to gauge the financial health and liquidity flows of the industry. The data reveals a distinct pattern of payment behaviour that leans towards a moderate delay beyond standard 30-day terms. The central tendency of the dataset is remarkably consistent; the average payment time stands at 36.2 days, virtually aligned with the median of 37 days. This proximity between the mean and median suggests a relatively symmetrical distribution of data, though the standard deviation of 15 days indicates that whilst there is a strong central cluster, variability remains a factor that suppliers must consider when forecasting cash flow.

When we organise the data into specific time horizons, the prevailing operational standard becomes evident. The sector does not appear to favour rapid settlement as a standard practice, given that the 31-45 day 'Moderate' bracket constitutes the majority, accounting for 46 companies or 51.7% of the sample. Conversely, the 'Fast' category (0-30 days) comprises 27 companies (30.3%). This distribution highlights a structural reality within the B&Bs and other short-term accommodation sector: whilst nearly a third of the companies manage to settle their accounts promptly, the standard operating procedure for more than half of the entities involved is to stretch payments slightly beyond the traditional month-end cut-off. Furthermore, the interquartile range of 13 days—spanning from the 25th percentile at 30 days to the 75th percentile at 43 days—reinforces the view that the majority of transactions are settled within a predictable, albeit slightly delayed, window.

However, stakeholders must realise that credit risk remains a tangible concern. The performance breakdown indicates that late payments affect 32.4% of the sample, a figure that warrants caution. Amongst the 89 companies reviewed, there are notable extremes that skew the risk profile. We observe a stark contrast between the top performers and the laggards; nine companies boast an impressive payment speed of under 20 days, with the fastest payer settling in just a single day. On the other end of the spectrum, there is a critical outlier taking 106 days to settle accounts. Although only one company falls into the 'Critical' 90+ days category (1.1%) and two into the 'Very Slow' 61-90 days category (2.2%), these outliers represent significant liquidity traps for unsuspecting vendors. It is vital for suppliers to specialise their credit control procedures to identify these slow payers early, rather than treating the sector as a monolith.

Geographically, the commercial activity is heavily concentrated in the South. London acts as the undisputed centre of this sector, housing 30 of the analysed companies, followed by the South East with 14. This combined concentration suggests that nearly half of the sector's payment performance is driven by entities headquartered in these key economic hubs. In summary, whilst the B&Bs and other short-term accommodation sector generally maintains a respectable median payment time of 37 days, the prevalence of moderate delays and the existence of a 32.4% late payment rate necessitates robust credit management. Suppliers are advised to monitor the specific payment culture of their partners, particularly amongst those falling outside the dominant London and South East clusters, to mitigate the risks associated with the minority of slow payers.