The tourism, leisure and events sector is having to adapt quickly in response to changing consumer demands, the current economic outlook and the regulatory framework. How businesses take on these challenges will in many cases be the difference between success and failure. Here are our top seven themes for this year.

1. There will continue to be good demand for domestic holidays as the cost and environmental impact of overseas travel encourages holidaymakers to stay at home. Value for money will be vital and is likely to be the primary influence on leisure spend. Self-catering options will perform well, allowing people to get away while controlling costs. Flexible payment terms may be required to encourage bookings.
2. The recent trend of booking holidays at short notice will continue this year as a more flexible working structure enables people to blend holidays with workations and advantage can be taken of last-minute discounted bookings or cancellations.
3. Operators are not insulated from rising costs but careful consideration is required as to how much of these can be passed on to consumers. Energy provision is challenging both in terms of its running costs and its source. Increasingly, consumers consider sustainability in their decision-making process, and leisure and tourism attractions need to establish a strategy for both reducing consumption and transitioning towards renewable sources.
4. The wedding venue market is becoming extremely competitive in some locations and there is a need to review product and strategy, even for established venues. Rustic and outdoor space will continue to be in high demand as more couples look to create a more low key feel to their day. Midweek weddings will continue to rise in popularity and according to Bridebook less than half (43 per cent) now plan to marry on a Saturday, when costs and lead times are at their highest.
5. Continued strong demand for outdoor attractions and family days out provide an opportunity (and in some cases a need) for traditional visitor attractions such as historic houses to make sure what they offer appeals to the widest audience possible to increase footfall, secondary spend and help build repeat visits. Those that have adapted to changing visitor preferences and pivoted to offer new experiences will be in a stronger position.
6. Increasing legislation and control will be felt. This is particularly the case in Scotland which is being impacted by short-term let licences, the upcoming deposit return scheme, and there’s also a potential tourist tax (transient levy) adding to the economic pressures operators are already facing.
7. More consumers are looking to book their days out in advance and online. Attractions need to develop this functionality to retain (and build) footfall, and some have moved to online, advance bookings only. Utilising technology to the full, from apps for car parking to digital guides, should be considered. However, it will be important for businesses to manage transitions carefully to avoid disappointing some existing customers while attracting new ones.

Further information

Contact Simon Foster or Adam Davies

Savills Rural