Are we nearing the end of the cost of living crisis?

It might not feel that way, given the brutal high-street prices we face today because of the rampant of inflation of recent years.

But one survey has offered some evidence that consumers are feeling a little better about things.

Occupancy of luxury hotels in Scotland increased to 83.8% August from 79.5% in the same month last year, compared with a rise to 76.1% from 72% on a UK-wide basis, according to the RSM Hotels Tracker: Focus on Asset Classes. Mid-market hotels in Scotland also saw a rise in occupancy, to 87.8% in August from 86.5% in the corresponding month last year.

However, there was a reverse in fortunes in the budget hotels sector, which saw occupancy fall to 88.1% from 89.2% on the same comparison.

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The report authors suggest the findings point to consumers having a little more money in their pockets, with UK budget hotels also seeing a fall in occupancy, to 79.8% from 83.4%.

RSM notes that the rising demand for stays in luxury hotels in Scotland sparked a rise in average room rates in the year to August, to £393.35 from £385.33. Room rates also rose in Scottish mid-market hotels, to £164.69 from £149.11, and in budget hotels, although the rise was less pronounced in the latter, to £140.59 from £140.38.

“Despite some market uncertainty in the run up to next week’s Autumn Budget, Scotland’s luxury and mid-market hotels performed strongly in August, with occupancy edging above the rest of the UK,” said Stuart McCallum, partner and head of consumer markets in Scotland at RSM UK.

“The fall in occupancy of budget hotels in Scotland and across the UK also paints a picture of changing consumer spending and more disposable income amidst easing cost-of-living pressures. Consumers are now more focused on high-end, quality experiences, rather than cutting costs.

“In Scotland, the rise in demand for premium experiences is welcome news for luxury and mid-market hotels including Apex Hotels and Crieff Hydro Resort, with consumers interested in the food and drinks offerings as part of their stay.

“We’ve already seen this successfully implemented at The Balmoral, which offers a deluxe whisky bar, alongside Gleneagles’ Michelin dining and sporting experiences. Cromlix House is also developing a reputation for luxury and excellence with Kim and Andy Murray now able to devote more time to further enhancing the luxury experience. Edinburgh has become a key player in the luxury hotel market, boosted by the heavy footfall in August during the Edinburgh Fringe Festival.”

Mr McCallum added: “After a strong summer, it’s crucial for Scottish hotels to build on this momentum and focus on long-term strategy. With government support to enhance connectivity and forge stronger local partnerships, hoteliers can prepare for the added footfall during Christmas and New Year. As such, ensuring UK and international tourists receive a premium and friendly experience will be key to maintaining Scotland’s success moving into 2025.”