Barclays has reported that the Hospitality and Leisure (H&L) sector is experiencing growth due to increased footfall from workers returning to offices. According to Barclays Business Prosperity research, 41% of H&L businesses have observed a rise in after-work visitors, while 35% noted busier weekday lunchtimes.
The study also highlights a 37% increase in "bleisure" activities, where business is mixed with leisure, contributing to spending growth. Despite challenges like energy costs and taxes, the sector has outperformed other non-essential categories since April 2021.
Rich Robinson, Head of Hospitality & Leisure at Barclays, stated: “Hospitality and Leisure businesses are benefitting from increased footfall as more workers return to the office which, combined with the rise of the experience economy, is contributing to optimism for future growth prospects.”
The trend towards prioritizing experiences over material goods continues. One in four UK consumers plans to spend more on events this summer compared to last year. This shift is supported by data showing a 17.3% increase in entertainment spending since January 2020.
To capitalize on these trends, 83% of H&L businesses are investing in consumer experiences through technology and competitive socializing. Nearly half report revenue increases from these investments.
Despite positive outlooks, challenges remain with energy costs affecting 34%, tax costs another 34%, and tariff increases concerning 30%. To counter these pressures, some businesses are offering promotions or expanding distribution channels.
Barclays offers its £22bn Business Prosperity Fund for lending and refinancing projects aimed at supporting business growth among its clients.
For more information about Barclays' initiatives or their latest thought leadership report ‘Playing to win: creating memorable experiences’, visit their website.