The expansion of budget hotel chains and the emergence of travellers with high standards but tight budgets, are forcing the old-fashioned, low-grade guest house out of business. More than 1,500 B&Bs with fewer than three stars have closed in England since 2007, a cut of more than a third. In Scotland, one- and two-star B&Bs are down by 63 per cent, while the number of budget hotels is up 80 per cent. A third of guesthouses and B&Bs in the UK report having fewer guests in last month's school half-term than in 2010.

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