Leisure Media Issue 3 2009 - Leisure Opportunities

PHOTO: WWW.BRITAINONVIEW.COM59 per cent of Britishconsumers say they’reavoiding the pub, insteadpreferring to spendlarge sums of money ondrinking at homeon alcohol. Today, the average Britishhousehold spends £30 per week on alcohol,amounting to as much as a bottle ofwine per night per household.In 2008, consumers in the UK spent£28.8bn on entertainment – spending hasgrown 48 per cent in last decade and hasbeen relatively slow in the past couple ofyears. However, it seems evenings outare the first to suffer when it comes to cutbacks - spending on nights out declinedeight per cent in 2008 and has grown byonly 12 per cent in the last decade. Theeating out market in the UK was valued at£31.1bn in 2008 and the average UK consumerspends £10 per week on eatingoutside of the home. Spending has risen55 per cent, faster than in-home foodexpenditure. Indeed, in 2008, for every£1 spent on food, 50p was channelledthrough restaurant and takeaway establishments.Although this is unchanged on2007, it compares with 44p in the poundin 1998. Mintel research shows that whilethe economic climate is forcing consumersto cut back on eating out, the fastfood market is unlikely to suffer.TRENDS IN TRAVELThe holiday market as a whole also looksset to be impacted. British Lifestylesreveals that the next 12 months may seethe traditional mid-market family holidaystruggle. Thirty-five per cent of consumersreport that the current economicclimate has prevented them from bookinga main holiday, despite the fact that sucha break has increasingly become seen asa right rather than a privilege throughoutthe recent era of cheap, easily accessibleoverseas travel. In 2008, consumersspent just under £60bn on holidays andtravel, representing an average householdspend of £2,259 per year. Our love of newhorizons has seen spending increase 61per cent over the past decade, as Britsincreasingly focused on what they did,rather than what they owned.FIGURE 2HOLIDAY & TRAVEL SALES VALUE, BY SUB-SECTOR, 2008Breaks abroad 1–3 nights – 3%UK short breaks – 3%Coach & bus travel – 4%Rail travel – 9%UK long breaks – 14%Airlines – 29%SOURCE: MINTEL MARKET SIZE DATABASEAnd while the travel bug has prompteda major expansion of overseas holidaysat the expense of UK ones, thistrend could be reversed as the economicclimate encourages Brits to seek experiencescloser to home or cut back onadditional weekends away. As Brits lookfor domestic holiday options, holidaycentres in UK are enjoying a revival – thistype of holiday accounts for an increasingproportion of UK domestic holidaybusiness, and currently stands at 16 percent. The holiday centre market in the UKis estimated to have been worth £1.3bnwith 6.4 million visitors in 2008.In addition, the recession hasn’t spelleddisaster for all areas of overseas holidayspend. All-inclusive holidays have buckedthe overall trend, with the fact that costsare included in one prepaid price provingpopular as consumers look to controlcosts. Mintel estimates all-inclusive productsaccount for 20 to 25 per cent of allBreaks abroad 4+ nights (long) – 38%package holidays sold in the UK. Overallhowever, packages have been decreasingin popularity – in 2001, 54 per cent ofholiday spending was on inclusive packages,falling to 45 per cent by 2008.Bearing all this in mind, the impact forbusinesses is considerable. With a significantthree in ten adults cutting back ontheir spending mainly through fear of howthe recession might affect them, the challengefor manufacturers and retailers is toovercome this fear and make consumersfeel safe about spending again. Even ifsomeone hasn’t been personally affectedby the recession, knowing others whohave been can shake a person’s confidence.In these difficult times, it’s evidentconsumers are changing their spendingbehaviour and adapting, whether ornot it’s necessary. It seems as a nationwe’re thinking ahead, and for those whohaven’t been personally affected by therecession, preparation is key. ●ISSUE 3 2009 © cybertrek 2009Read Leisure Management online leisuremanagement.co.uk/digital 35