Here’s the word from Gallagher on the possibility of a staycation summer;
New research from one of the leading global insurance broker and risk management firms, Gallagher, and research partner Opinium has revealed that the UK hospitality and leisure sector is expected to enjoy a bumper summer season as Brits plan to stay local for their annual break amid ongoing travel disruption and take advantage of the upcoming football World Cup.
Boom in staycations due to overseas travel disruption
A quarter (26%) of UK adults say that disruption and uncertainty around overseas travel has influenced their holiday plans for this year, rising to over a third (35%) of under-35s. Their spend will provide financial support for the UK travel sector as those who intend to holiday within the UK this year estimate that they will spend an average of £625 doing so – adding up to a £9.1 billion benefit for the sector.This includes £275 on accommodation, £144 on restaurants, £112 on activities and trips and £94 in pubs or bars.
FIFA World Cup to kick off hospitality and leisure boom
With the men’s football World Cup starting in just a few weeks’ time on 11 June and running until 19 July, the hospitality industry needs to prepare for a busy month as over 15 million UK adults say they plan to watch at least one game in a pub or bar, rising to nearly half (48%) of under-35s. One in eight (12%) UK adults expect to watch multiple games in hospitality venues, including nearly one in seven (15%) men keen to experience most or all of the whole tournament in pubs, bars, or other sites.
Those who expect to watch at least one match in a hospitality venue estimate they will spend an additional £58.80 in pubs and bars more compared to a typical summer. This spend alone equates to a £917 million boom for these venues. The spend increases to £67 amongst under-35s and £67 amongst men. Nearly one in five (17%) expect to spend £100 or more over their usual social budget due to the World Cup.
Over the course of the entire summer, UK adults expect to spend an average of £103 in restaurants, totalling £5.7 billion. Brits also estimate they will spend an average of £76 in pubs or bars over this period, with one in five (21%) expecting to spend over £100 each, equating to £2.5 billion.
Dominic Roe, Managing Director, Hospitality & Leisure at Gallagher, said: “The hospitality and leisure sector will welcome this boost in summer trading having been under significant strain as a result of rising costs, including the increased national minimum wage and national insurance contributions, as well as consumer confidence dropping to its lowest level for two years, let alone the longer term damage inflicted during the pandemic.
“Pubs have been hit particularly hard, with an average of one closing every day across England and Wales last year, and two per day this year. Hopefully this summer will give venues the investment they need in this vital sector to the British economy and high street.
“The introduction of the Great British Summer Savings scheme should help set the sector up for a stronger summer. The temporary VAT relief, running from 25 June to 1 September, is expected to improve footfall across venues such as restaurants, theatres and soft play centres, while also supporting the staycation boom by drawing families to attractions like theme parks. For a sector that has faced sustained pressure, it offers a welcome lift, like the first warm spell after a long winter.
“While increased spending is a positive sign, it also brings greater operational risk. Higher footfall increases the likelihood of slips and trips, disorderly behaviour and accidental damage, while placing additional pressure on staff and health and safety procedures. It is vital that venues review the protection they have in place and ensure they are adequately prepared for this very busy period.”
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