20
Destination UK Driving growth in the UK hospitality and leisure sector

Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

  • Upload
    others

  • View
    1

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

Destination UKDriving growth in the UK hospitality and leisure sector

Page 2: Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

3 ExecutiveSummary

5 Achangingtourismlandscape

10 Exploringvisitors’spendingpatterns

12 Onesizefitsall?

13 Overcomingbarrierstobooking

14 Theexperienceeconomy

15 Strategiesforsuccess

16 CaseStudies ParkHolidays

GordonRamsayGroup

18 Keytakeaways

19 Interactivemap

Contents

AboutthisresearchTheresearchisbasedonabespokesurveyofBritishandinternationalholidaymakersfromOpinium.

Thetotalsamplesizeforthedomesticmarketwas2,010UKadults(aged18+)whoholidayintheUK.Thefieldworkwasundertakenbetween20Februaryand2March2017.

Theinternationalsurveywasbasedononlineinterviewswith1,004USadults,1,003Germanadults,1,001Frenchadults,1,003Russianadults,502SaudiArabianadults,1,004Australianadults,1,004RepublicofIrelandadultsand1,002Chineseadults(aged18+)whohavetravelledinternationallyinthelastfiveyears.Thefieldworkwasundertakenfrom22Februaryto9March2017.

2of20

Page 3: Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

Theincreasedconvenienceandvalueformoneyareprovingastrongdrawforthedomesticmarketandcreatingopportunitiesforhospitalityandleisureproviderstoconnectwithaudiencesmorelikelytovisitagaininthefuture.

Meanwhile,thedecreasedvalueofsterling,bettervalueformoneycomparedwithpreviousyearsandpopularityofshowssuchasGameofThronesandTheCrownhasmadetheUKanincreasinglyattractivedestinationforoverseastravellers.

Executive summaryThisreportisbasedonsurveyresultsandexclusiveinsightsfromholidaymakersacrosstheglobe,exploringchangingvisitorpreferencesandhighlightingtheUK’smostpopularholidaydestinationsandthebiggestopportunitiesforBritishtourismandleisureproviders.

Anattractiveholidaydestination

2017issettobeanotherrecord-breakingyearfortheUK’shospitalityandleisuresector,withbothdomestictouristexpenditureandinternationalvisitornumberssettogrow.

Indeed,thegrowthofthestaycationmeansthatdemandfromdomesticvisitorsisontherise,withmorethanathirdofBritishadultschoosingtoholidayclosertohomethisyearthroughpersonalpreferenceratherthanlimitationsaroundcost.Britishholidaymakersalsoappeartohaveincreasedbudgetsfortheirdomestictrips,with30%planningtospendmoreonleisureactivitiesthaninpreviousyears.AlmosthalfofrespondentsthinkthatleisureexperiencesintheUKhaveimprovedinthepastfiveyears.

MorethanonethirdofBritishadultsarechoosingtoholidayclosertohomethisyear.

Morethan60%ofover7,000internationalholidaymakerssurveyedsaidtheyweremoreinterestedinvisitingtheUKthantheywereayearago.Almostallrespondents(97%)wereinterestedinvisitingtheUKnow,orinthefuture.

But,whiletheimpactofBrexithas,atleasttemporarily,boostedtheUK’sinternationalappealduetotheweakerpound,thethreeinfiveholidaymakerswhoaremorelikelytovisittodaythan12monthsagocitedarangeofreasonsfortheiranswer.Providers’investmentinadvertisinghasnotgoneunnoticed,with29%notingthisincreasedvisibility,while30%simplyhavemoremoneyavailabletospendonholidays.ExploringBritain’suniqueculture,historyandlandmarksprovedthemostpopularexperienceforinternationalvisitors,whilethosefromSaudiArabiaweremostlikelytovisitinordertoshopintheUK’smanyandvariedretailers.

3of20

Page 4: Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

Londonremainsthemostpopulardestinationforinternationaltravellers.67%ofoverseasvisitorschosethecapitalastheirfirst-choicedestination,andrecentfiguresshowthatarecord18.6millionovernightvisitstoLondonweremadein2015,withthenumberexpectedtoincreaseyearonyear.1

Thereis,however,alsoastrongpullamongtheinternationalmarkettoScotlandandWales,demonstratingopportunitiesforprovidersallacrosstheUKtocapturetheimaginationofinternationalaudiences.ThemostpopulardestinationsfordomesticvisitorsareCornwallandScotland,followedbytheLakeDistrict,Wales,YorkshireandLondon.

Areasofspending

Oursurveyhasshownthataccommodation,eatingoutandshoppingaretheareasthatbothdomesticandinternationalvisitorsarethemostlikelytospendtheirbudgeton.Withanaveragebudgetof£952fortheirholidaysintheUK,Britishvisitorsspend£309onaccommodationand£152onbuyingfoodanddrinkformealsoutoratthehotel/accommodation(comparedto£104forthosebuyingfoodanddrinkforself-cateringaccommodation).

Overseasvisitorsplantospendanaverageof£3,443fortheirholidayin2017,includingflights,accommodation,food,drinksandallactivities.TheAsianmarketisparticularlylucrative,withvisitorsfromChinaspendingmorethan£5,000onaveragefortheirholidays.AsforAmericanguests,allrespondentsexpressedapreferenceforstayinginafive-starorluxuryhotel.

EnjoyingBritain’sdiverserangeofbars,restaurantsandcafesisanimportantexperienceforinternationalguests,withinboundtouristsspendinganaverageof£340duringtheirstayonmealsoutorattheirhotel.And,whiletheaveragefigureforthedomesticmarketismoremodest,UKholiday-makersaremorelikelytobestayingonlyforshortbreaks,comparedtothelongerstaysofinternationalcustomers.

Auniqueexperience?

VisitorsfrombothacrosstheUKandfurtherafieldareexpectingmorefromtheirholidays,withoneofthekeyemergingtrendsshowingademandforexperience-ledbreaksthatallowgueststoescapeeverydaystressandspendtimewithfriendsandfamily.Asmanyas44%ofBritishvisitorsaremorelikelytochooseahotelwithanemphasisonfood,andthegrowingfocusonindustrypartnershipscanopennewdoorsforprovidersinenticingtheirguestswithhigh-quality,freshandlocallysourcedproduce.

ThegrowthofnewserviceproviderssuchasAirbnbandhigh-endholidayrentalsitessuchasOnefinestayisasignificantconsiderationfortheUKhospitalityandleisuresector.And,whilefewerthanoneintenofUKrespondentsplantouseAirbnbfortheirholidaythisyear,itisessentialforhospitalityspecialiststobeawareoftheincreasingimpactofsuchcompetitors.Internationalvisitorsarecomparativelymorelikelytouseapeer-to-peerrentalprovidersuchasAirbnbwhenbookingholidays.Muchcanbegained,however,fromtappingintovisitors’appetitefornew,high-qualityandhighlypersonalisedholidayexperiences.

Thetechnologychallenge

Introducingnewtechnologycanbedauntingforbusinesses,butthegrowingdemandforservicessuchasonlinehotelroomselectionandsmartphonecheck-inillustratesanincreasinglytech-savvyaudienceandcanprovideopportunitiesforproviderstostreamlinetheircustomerexperience.

1OfficeforNationalStatistics,TravelTrendsReport2015.

FeaturesandmotivationsthatareimportantinleisuretimeforUKholidaymakers

Escapism/distraction

82%

Timewithfamily/children

80%Education/interest/learning

58%Timewithfriends

66%

Healthandfitness

48%

MikeSaulHeadofHospitalityandLeisureBarclays

4of20

Page 5: Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

MainreasonsforspendingmoretimeintheUKonholidaythanpreviousyears

Increasingnumbersofdomesticvisitorsaregeneratinglevelsofdemandnotseenoverrecentyears,creatingopportunitiesforleisureandtourismproviderstoofferaccesstothebestBritishfood,heritageandexperiencesinordertocaptureacornerofthisgrowingmarket.

Thenewfaceofthestaycation

Resultsfromourrecentsurveyofmorethan2,000UKholidaymakersshowedthat54%ofadultswhoopttoholidayintheUKdosoasaresultoftheirownchoice,whilealsotakingintoaccountpracticalitiessuchastimeandcost.35%,however,citenobarrierstothemtakingholidaysoverseasbutsimplychoosetoremainintheUK.

ThisishugelypositiveforBritishproviders,demonstratingthatholidayingintheUKisnotsimplyagrudgepurchasebythoseunabletoaffordanoverseasholidaybutadecisionbasedonthequality,value,andconvenienceofholidayingclosertohome.

HolidayinginBritainhasanumberofperksfordomesticvisitors.HalfofthosewhochosetospendmoreoftheirleisuretimeintheUKbelieveditwassignificantlymoreconvenientintermsoftravel,foodandlanguagethantravellingoverseas.ValueformoneyisalsoanimportantconsiderationforBritishstaycationers.Forthosewhobasetheirlocationchoiceoncost,almosttwofifths(39%)believethattheUKoffersbettervalueformoneyasadestination.

A changing tourism landscapeTheUK–longrenownedforitsappealinglandscapes,citiesofcultureandengaginghistory–hasalwaysheldastrongappealforinternationalvisitors,butitisitsplaceintheheartsofitsdomestictouriststhatisundergoingarevival.

Thehospitalityandleisuresectoris,however,sensitivetochange,andsimplefactorssuchasfuelpricecanhaveasignificantimpactonspendwithinthesector,particularlyforshortbreaksand,notably,inmoreremotelocations.

34% 15% 34% 28% 40% 32% 43%

23% 42% 20% 24% 25% 23% 18%

15% 12% 17% 13% 10% 16% 17%

12% 6% 19% 11% 6% 10% 11%

32% 24% 34% 42% 33% 24% 26%

14% 27% 24% 15% 11% 9% 4%

Choice–IwouldliketospendmoretimeintheUK

IenjoyedarecentUKholidayandsoamkeentoreplicatethis

TherearemoreholidayactivitiesintheUKthantherewereinthepast

Thelevelofservicewithinthehospitalitysectorhasimproved

Cost–HolidaysintheUKarenowmoreaffordable

Time–IhavelesstimethanIhavehadpreviouslytoholidayabroad

Average Age18-24

Age25-34

Age35-44

Age45-54

Age55-64

Age65+

5of20

Page 6: Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

Citybreakorcountryretreat?

Whenitcomestoholidaytypes,domesticvisitorsareenjoyingbothculture-filledcitybreaksandescapingtothecountryside.Theresultsofoursurveyrevealedthat40%ofpeopleplanningaUK-basedholidaythisyearareorganisingacitybreak,while37%wouldprefertovisitandstayinarurallocation.

ThesouthwestofEnglandisthemostpopularregionfordomesticholidaymakers,with30%planningavisittherecomparedto22%whohopetospendtimeinScotlandand20%whoseholidayplansincludeatriptoWales.Whenexploringspecificlocations,ScotlandandCornwallwereatthetopofthevisitordestinationlist,followedbytheLakeDistrict,Wales,YorkshireandLondon.

Thiscontrastswithfindingsamonginternationalholidaymakers,themajorityofwhom(67%)choseLondonastheplacetheywouldmostliketovisit.

Thegrowingpopularityofholidayparksisalsoenticingvisitors,particularlyinthedomesticmarket,tomoreruralandcoastallocations.Thisisespeciallyapparentforlongerbreaks,wherecostconsiderationssuchasfuelpricesareoffsetbylengthofstay.SouthernandcoastalholidayparksareprovingpopularforvisitorsintouringvehiclesfrommainlandEurope,whooftenchoosesuchaccommodationasafirst-nightstopfromwhichtocontinueexploringtheUK.

Whilehotelsremainoneofthetopaccommodationoptionsforvisitors,theflexibilityandchoiceofferedbyholidaycottagesandself-cateringapartmentsareattractinggrowingnumbersoftravellers.Thenumberofdomesticholidaystakeninarentalpropertyincreasedby20%from2009–2014,2andtheriseofproviderssuchasAirbnblookstoensurethistrendcontinuesoverthecomingyears.

HowBritishholidaymakerscharacteriseUKholidays?

Holidaydestinationsrankedbyregion–internationalvisitors(Top5)

Specificplaces %

London 67%

Scotland 44%

Wales 29%

NorthernIreland 24%

YorkshireandHumberside 17%

Holidaydestinationsrankedbyregion–UKvisitors(Top5)

Regions %

SouthWest 30%

Scotland 22%

Wales 20%

YorkshireandHumberside 20%

London 18%

2MintelGroupLtd,Holidayrentalproperty–UKReport,2014.

Notsure

Mainholiday

Mainholidayandshort

breaks

Shortbreak(s)inadditionto

maininternationalholidays

7%21% 21% 51%

6of20

Page 7: Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

Theperfectescape

Britonsareleadingincreasinglybusylives,oftenjugglingthecompetingandgrowingdemandsofworkandfamilylife.Asaresult,manyviewtheirholidayswithintheUKasachancetoescapethepressuresofdailylifeandspendqualitytimewithlovedones.

Whenaskedaboutthefeaturesthatareimportantinleisuretime,82%ofrespondentsratedescapism/distractionasanimportantmotivator,closelyfollowedbytheopportunitytospendtimewithfamily(80%).Thesewerefollowedbythechancetospendtimewithfriends(66%),theopportunitytopursueaninterestortakepartinsomethingeducational(58%),andhealthandfitnessactivities(48%).

Thesefindingshighlightanimportantfactorforleisureprovidersaroundwhatvisitorsarelookingforwhenbookingaholiday,andprovideanopportunityfortourismbusinessestotailortheirofferingtoensureguestshavetheopportunitytofullyescapethehecticpaceofeverydaylife.

Thereisalsoahighdemandforexperience-ledbreaksthatallowfamiliestospendqualitytimetogetherwhileexploringnewplaces,learningnewskills,playingsportsorenjoyingsomerelaxation.Holidayparksarealreadygeareduptoprovideall-inclusiveexperiencestothetraditionalfamilymarket,buttheyalsocaterforthosevisitorswhosimplywantabasefromwhichtheycanexplore.

theUS,Germany,France,Russia,SaudiArabia,Australia,RepublicofIreland,andChinaareinterestedinvisitingtheUKormaybeinterestedinthefuture.

EveryChinesevisitorsurveyedwasenthusiasticaboutvisitingtheUK.WhilevisitorsfromRussiadisplayedtheleastinterest,thisfigurestillsatat93%forthosewhomaybeinterestedintakingaholidayintheUK.Morethan60%ofrespondentsweremoreinterestedinvisitingtheUKthantheywere12monthsago,echoingthefindingsamongdomesticvisitors.

ThevalueformoneyofferedintheUKisanimportantconsiderationforoverseasguests.Ofallinternationalrespondents,31%saidtheyweremoreinterestedinvisitingtheUKthantheywereayearago,citingthemainreasonasbettervalueformoneyduetothefallinvalueofthepound.

Whiletheseexperiencesaregenerallyall-inclusiveatholidayparks,othertourismandleisureprovidersmaybenefitfromexploringwaystoincorporateappropriateexperiencesoractivitiesintoconvenientproductpackagesinordertoupselltovisitors.

Theinternationalattraction

RevenuegeneratedbyinternationalvisitorstotheUKisatanall-timehigh,withtheannualspendfor2016totalling£22.16bn.3Thisgrowthlookssettocontinue,withvisitorspendfor2017forecasttoincreaseto£24.1bn.4

Indeed,theUnitedKingdomcontinuestogarnerfavourableopinionasaholidaydestinationamonginternationaltravellers.Ourrecentsurveyofthousandsoftravellersacrosstheworldfoundthat97%ofholidaymakersfrom

82%ofrespondentsratedescapism/distractionasanimportantmotivatorfortheirholidaysinUK.

3VisitBritainInboundVisitorStatistics,2016.4VisitBritain2017InboundTouristForecast.

65%

28%

5%

2%

51%

36%

10%

3%

49%

38%

10%

3%

43%

33%

17%

7%

51%

29%

14%

6%

53%

38%

6%

3%

50%

44%

5%

1%

69%

29%

2%

0%

Veryinterested–IfIcould,Iwouldgotheretomorrow

Slightlyinterested–InterestedinavisittotheUK,butnotaprioritydestination

Notveryinterested–I’mnotinterestedrightnow,butthatmaychange

Notatallinterested–IhavenointerestintraveltotheUK

UnitedStates Germany France Russia SaudiArabia Australia Ireland China

7of20

HowinterestedwouldyousayyouareinvisitingtheUnitedKingdom?

Page 8: Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

IfyouweretopickahotelintheUK,howimportantwouldthefollowingoffersbe?(Internationalvisitors)

Afurther30%saidthemainreasontheyhadbecomemoreinterestedintheUKasaholidaydestinationwasduetohavingmoredisposableincomeavailablefortravel.

ThesefindingsshowtheattractionofamorefavourableexchangerateforinternationalvisitorsfollowingtheUnitedKingdom’svotetoleavetheEuropeanUnion.

TheyarealsotentativelyoptimisticforhospitalityandleisureproviderspreviouslyuncertainastohowtheBrexitvotewouldimpactvisitornumbers,andprovideanopportunityfortourismbusinessestotapintomoresubstantialvisitorbudgets.Oftheproviderssurveyed,38%believethatthepeopleoftheUKwillbemorewelcomingtotouristsfollowingtheUK’sdeparturefromtheEuropeanUnion.

Capitalisingonculture

TheUK’suniquelandscapes,historyandworld-renownedlandmarkscontinuetoappealtooverseastravellers,with51%ofinternationalvisitorssayingthemainreasontheywouldvisitisforthecultureofthefamouslandmarks.Asmanyas44%ofvisitorswantedtolearnmoreaboutthecountry’shistoryandvisitthenumerousmuseums,while41%areparticularlyinterestedinthenaturallandscape.

Oftherespondentssurveyed,Chinesevisitorswouldspendthemost(£715)onculturalactivities.Whenconsideredalongsideanincreasedfocusonvisitorexperience,tourismandleisureprovidershaveanopportunitytodrawontheirculturalandgeographicalconnectionsinordertoprovideamorecomprehensivecustomerexperience.

Greatexpectations

Internationalanddomesticvisitors–aswellasthevariousdemographicswithinthosegroups–canhaveverydifferentrequirementswhenbookingholidays.Amonginternationalvisitors,94%listedvalueformoneyasthemostimportantfactorwhenselectingahotelintheUK,while83%saiditwasimportantfortheiraccommodationtobeclosetopublictransport.Asmanyas82%ofoverseasvisitorsplacedhighimportanceontheprovisionoffreehigh-speedinternet.

Oftheinternationalguests,American,RussianandFrenchvisitorsalsoputanemphasisonahotel’sproximitytoculturallocations,while90%ofUSvisitorssaidproximitytocafes,barsandrestaurantswasanimportantconsiderationwhenselectingahotel.

30%

Overallvalueformoney

94%

Proximitytopublictransport

83% 82%

High-speedfreeinternet/WiFi

Proximitytoculturallocations

80%

Proximitytorestaurants,cafesandbars

77%

Shuttleservicetopublic

transportsite

73%

Proximitytoshopping

locations

68%

Aqualityrestaurantavailableforall

mealtimes

66% 66% 65%60% 59%

Aqualityrestaurant

availableforbreakfastonly

Staffspeakmylanguage

All-inclusiveservices

Hotelfacilities Experiencesorganisedbyhotel

49%

Hotelshoppingfacilities

38%

Myreligiousbeliefswillbe

respectedandfullyaccommodated

Babysitting/childcare/childentertainment

37%

8of20

Page 9: Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

ThiswasfollowedbyvisitorsfromtheRepublicofIreland,85%ofwhomwantedtheirchosenaccommodationtobeclosetoagoodselectionofbarsandrestaurants.

Furthermore,someinternationalvisitorsalsoplaceahighimportanceontheoptionofchoosingfoodfromtheirhomecountryduringtheirstay.ThisismostprevalentamongguestsfromChina(77%)andSaudiArabia(62%),comparedto46%onaverage.

Cateringforadiverse,multiculturalaudienceisoneofthekeychallengesforBritishtourismproviders,butonewhichcanalsopresentnewandexcitingopportunitiestoattractvisitorsfromnewmarkets.

Creatinganenvironmentthatpromotesrespectandaccommodationforvariousreligiousrequirementscanopenthedoorstomoreinternationalguests,particularlyfromterritoriessuchasSaudiArabiaandtheUS.Takenalongsidethesizeablebudgetsthesemarketssetasideforholidays,itisvitalforproviderstoregularlyreviewtheirapproachto,andconsiderationfor,multiplereligionsandcultures.

Thetechnologytightrope

Whenexploringtheuseoftechnologyinthevisitorexperience,thesurveyresultsfoundthat66%ofdomesticvisitorswouldbemorelikelytochooseonehoteloveranotheriftheywereofferedtheopportunitytoselecttheirroomlocationpriortoarrival.Thiswasmoreimportantforinternationalvisitors,73%ofwhomwantedthechancetopre-selectroomlocation,withthefigurebeingevenhigherforChineseandRussianholidaymakers(85%and80%respectively).

Indeed,theappropriateuseoftechnologyintourismbusinessescanworkwelltostreamlinevisitorexperienceandminimiseunnecessaryadministration.Asanexample,

halfofinternationalvisitorsconfirmedaninterestincheckingintotheiraccommodationviasmartphoneandthereforeavoidingthefrontdesk.ThiswasparticularlynotableamongguestsfromChina(82%),SaudiArabia(74%)andtheUS(67%).

Providersshould,however,beawarethattechnologycanprovedivisiveamongcustomers.Theoptiontocheckinviasmartphone,forexample,issignificantlylessappealingtoguestsfromAustralia(38%),France(36%)andGermany(31%)andmayreducetheopportunitytobuildrelationshipswithgueststhroughface-to-facecommunication.

Recognisingloyalty

WiththeUK’shospitalitysectorboomingandthousandsofbars,restaurants,hotels,spas,entertainmentvenuesandleisureproviderstochoosefrom,internationalvisitorshaveawealthofchoiceattheirfingertips.Buildingrelationshipsandmaintainingadialoguewithcustomersisthereforecrucialinencouragingrepeatbusinessandgainingvaluablefeedbackonvisitors’experiences.

Oftheinternationalvisitorssurveyed,57%selectedmembershipofarewardsorloyaltyprogrammeasanimportantfactorinchoosingtheirhotel,comparedto44%amongdomesticvisitors.Oftheoverseasmarket,AmericanandRussianvisitorsinparticularweremoreattractedtohotelswithloyaltyprogrammes,with73%and61%respectivelycitingitasanimportantfactorwhenchoosingtheiraccommodation.

Additionally,fourin10UKvisitorssaidtheywouldbemorelikelytochooseonehoteloveranotheriftheproviderrememberedtheguest’spreviouspreferences,while32%wouldfavourahotelwherestaffknewtheguestsbyname.Thissignificantleantowardsproviderswhoofferthepersonaltouchtoguestsisnotableinanerawheretheuseoftechnologythatreducesguestandhotelstaffcontactisseeminglyontherise.Thevalueofrepeatbusinesscanregularlybeseenbytourismprovidersacrossthecountry.ParkHolidays,whichfeaturesasacasestudyinthisreport,estimatesthataround45%ofitscustomershavevisitedmorethanonceoverthepreviousthreeyears.

GordonRamsayGroup,whichruns31restaurantsglobally,investslargeamountsofresourcesandtimeintodevelopingnewCustomerRelationshipManagement(CRM)initiatives.Thecompanyaimstoengagecustomersonaone-to-onebasisandencouragerepeatbusinessacrossthegroup.

BOOKNOW

9of20

Page 10: Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

Exploring visitors’ spending patternsFordomesticvisitors,accommodationaccountsforthelargestproportionoftheholidaybudget,withvisitorsestimatinganaveragespendof£309onhotels,bedandbreakfastsoralternativeaccommodation.

Thefigureishighestamongrespondentsaged55-64yearsold,whospendanaverageof£369pertriponaccommodation,whilethoseaged18-24spend£211–thelowestspendinthiscategory.

Eatingoutoratthehotel,orbuyingfoodanddrinkforself-cateredaccommodation,isthenextbiggestspend,withrespondentsestimatingoutgoingsintheseareasof£152and£104respectively.Whenbrokendowntoexploreregionaldifferences,visitorsfromScotlandspendthemostonmealsforeatingoutorattheirhotel.

TheUK’sbigspenders

Shoppingremainsapopularactivityfordomestictourists.Visitorsspendanaverageof£121onshoppingduringtheirtripswithintheUK,withthisfigurerisingto£134amongmen.Theaverageshoppingspendforwomenisbelowaverage,at£109.Shoppingbudgetsaremostgenerousforholidaymakersinthe35-44agebracket,whospendanaverageof£144.

Menreportedspendingmoreacrossthemajorityofleisureandhospitalitycategories,includingvisitingthecinemaandthetheatre(£57comparedto£36amongwomen),watchingprofessionalsport(£61v£27),visitingathemepark(£50v£37)andusingahealthcluborgym(£36v£22).

Youngergenerationsreportedahigherspendonholidayparksandthemeparks,withfamilieswithchildrenaged4-6yearsoldspendingmorethan£200onvisitingholidayparks.ThemeparksareparticularlypopularwithrespondentsfromtheNorthEastofEngland,whilepeoplefromtheMidlandsspentthelowestamountinthiscategory.Youngpeoplearealsoincreasinglyexperience-driven,withthoseintheloweragecategoriesspendingthemostonhealthclubs,andmorethanhalfspendingmoreonexperiencesthanduringthepreviousyear.

Internationalbudgets

Spendingbyinternationaltouristsforthepastyearhasbeengrowingsteadily,hitting£22.35bnbytheendof2016.5

Indeed,internationalvisitorssetasidesizeablebudgetsforholidays.Oursurveyresultsshowthatoverseastouristsestimatetheiroveralltravelbudgetfortheirplannedholidaysin2017tobe£3,443,whichincludesflights,accommodation,food,drinkandallactivities.

Oftherespondentssurveyed,thoseinChinahadthebiggestholidaybudget,estimatingtheywouldspendaround£5,424ontheirholidaysthisyear.VisitorsfromtheRepublicofIreland,comparatively,hadthemostmodestholidaybudget,estimatinganaveragespendof£2,086.

5VisitBritainMonthlyInboundUpdateJanuary2017.

Howdodomesticvisitorsspendtheirbudget?

HowdointernationalvisitorsspendtheirUKholidaybudget?

£667

Accommodation

£450

Eatingout

£339

Shopping

Accommodation

£309

Eatingout

£152

Shopping

£121

Holidayparks

£72

10of20

Page 11: Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

Visitorswithmorespendonexperiencesthisyear,comparedwithpreviousyears

Age18-24 Age25-34 Age35-44 Age45-54 Age55-64 Age65+

52%

39%34%

22% 25% 24%

Whenitcomestothespendingpatternsofinternational

visitors,hotelsandaccommodationarewheretourists

spendthemost,withoursurveyresultsshowingthe

averagespendonaccommodationtobe£667.Americans

wouldspendthemostonhotelsandaccommodation–

£972comparedtoa£890spendbyAustralians–andbe

themostlikelyofalltheinternationalvisitorstostayin

afive-starorluxuryhotel(24%).

Inforapenny

Asidefromaccommodation,internationalvisitorsspend

thelargestamountoftheirholidaybudgets–£453–

onshopping,particularlyforclothingandaccessories.

Overseastravellerswouldexpecttospendanaverageof

£282onclothingandaccessorieswhenvisitingtheUK.

Retailershopingtocaptureasliceoftheinternational

marketcouldseestrongresultsbyfocusingonBritish

productsthatofferoriginalityandexclusivityto

overseasshoppers.

AmericanandChinesevisitorsarethemostlikelytoshopforclothingandaccessories,spending£591and£361respectively.Germantravellers,meanwhile,spendonly£171inthiscategory–thesmallestamountofthosesurveyed.

AtasteforBritish

Food,drinkandeatingoutalsoremainalucrativemarketwhenitcomestotheoverseastraveller,withtheaveragevisitorbudgeting£339onbuyingfoodanddrinkformealsoutorattheirhotel/accommodation.

Thisishigherthantheamountspentbydomesticvisitors,whoestimatedaspendof£152oneatingoutormealsatthehotel(or£104forthosebuyingfoodanddrinkforself-cateringaccommodation).

Estimatedoveralltravelbudgetforholidaysthisyear However,suchfiguresmustbeconsideredalongsidethelengthofvisitorstays,asinternationalcustomersaremorelikelytostayforlonger,whileUKholidaymakersoftenoptforshortbreaks.AmongBritishvisitors,51%considertheirholidaysintheUKasshortbreaks,comparedtojust21%whoarelikelytostayintheUKfortheirmainholiday.Australianvisitors,bycomparison,arelikelytostayforanaverageof14days,andAmericanvisitorsforeightdays.

Whenspecificallyconsideringspendingmoney,forinternationalvisitors,foodcomesjustbehindclothingandaccessoriesastheshoppingcategorytheyaremostlikelytospendmoneyon.Theaverageinternationalvisitorwouldbudget£281–excludingmoneyallocatedformealsout–forfoodduringtheirstay.

Country Mean(£)

China 5424.87

US 5230.41

Australia 4247.81

SaudiArabia 2836.51

Germany 2650.86

France 2469.32

Russia 2175.66

Ireland 2086.11

11of20

Page 12: Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

One size fits all?Tourismandleisureprovidersarebeingcontinuallychallengedbyconflictingdemographicpreferences.And,asthegenerationalgapwidens,itismoreimportantthaneverthatbusinessesunderstandtheircustomerinordertotailortheirmostattractiveofferingtotheappropriatemarket.

Preferenceonalternativeservices

Oursurveyresultsfoundyoungerhotelcustomerstobesignificantlymoreinterestedintechnologythanolderguests.Inthe18-24demographic,51%saidtheyweremorelikelytochooseonehoteloveranotherifitofferedcheck-infacilitiesviasmartphone,comparedtoonly27%onaverage.Similarly,44%of18-24yearoldswouldbeinterestedinhotelsthatenabledthemtocontroltheirroomsviaasmartphoneapp,comparedtoanaverageofonly17%acrossallagegroups.

Otherfactors,suchastheavailabilityofchildcare,canalsorevealdifferentpreferencesamongguests.Onethird(33%)of25-34yearoldswouldbemorelikelytofavourahotelwithbabysittingservices.However,thisdroppedto25%among35-44yearoldsand15%onaverage.Indeed,theprovisionofsuchservicescouldactasadeterrentforolderguests,whomaypreferaquiet,adult-onlyhotel,andrequiresdelicatemanagementonthepartofprovidersingettingthebalancerightforguests.

Such‘Marmite’options–whichseemtoattractasmanynewguestsastheydeter–alsoincludeopportunitiestomeetotherguests(18%comparedto20%)andfunctionalitytocontrolhotelroomsbytheguest’ssmartphone(17%comparedto15%).

Preferenceforsmartphonecheck-in(UKvisitors) Theuseoffacialrecognitiontechnologyisalsoanareaonwhichrespondentsaredivided,with17%ofBritishrespondentssayingitwouldattractthemtoaparticularaccommodationprovider,while16%saiditwouldputthemoff.

And,whiletheremightbeagrowingdemandforgreaterchoiceofalcoholincertainentertainmentandleisurevenues,theissueoftheavailabilityofalcoholinlocationssuchascinemasandbowlingvenuessplittheopinionofrespondents.Justunderaquarter(23%)ofBritishvisitorsdeemedtheavailabilityofalcoholincinemasasanattractiveproposition,comparedto26%ofrespondentswhowouldbedeterredbyit.Thisisparticularlymorepopularwithyoungpeople(48%ofthoseaged18-24)–andwithpeoplefromLondon(36%).

Comparatively,22%ofdomesticvisitorswereenthusiasticabouttheavailabilityofalcoholinbowlingvenues,whilethesamenumberwasopposedtoit.Suchfindingsmay,however,beexplainedbythetypeofvenueandclientele,andcouldvarybetweensmaller,boutique-stylelocationsandlargerchains.

Preferenceforhotelwithsmartphone

check-infacilities

CHECK-IN

51%18-24

45%25-34

11%65+

17%55-64

21%45-54

36%35-44

12of20

Page 13: Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

Overcoming barriers to bookingAmongallthefactorsinternationaltravellersmustconsiderwhenbookingaholidaytotheUK,Britain’svisaprocesscanbeoneofthebiggestobstacles.

VisitorsfromSaudiArabiawerethemostlikelytobedeterredbytheUK’svisaprocess(38%),comparedto34%ofRussianvisitorsand31%ofpotentialholidaymakersfromChina.AsBrexitnecessitatesmorestringentbordercontrolsforEUnationals,providersneedtobeawarethatinternationalguestsmaybesensitivetothepotentialfortighterprocessesandlongerwaitslikelytostemfromincreasedpressureonBorderForce.

And,althoughairtravelhasreducedinpriceinrecentyears,thecostoflonghaulflightsandaccommodationwerecitedasadditionalbarrierstovisitorsfromChina,SaudiArabia,AustraliaandRussia.AdeclineinpersonalfinanceisalsoakeyreasonforholdingoffoninternationaltraveltotheUK.

Onlineandonthemove

Thelastdecadehasseenasignificantriseinthenumberofdomesticvisitorsbookingtheirholidaysonline,withthefigurerisingfrom32%in2007to76%in2017.Ofvisitorsbookingonline,thenumberusingasmartphoneortablethasdoubledfrom3%to6%and5%to13%respectively,highlightingarequirementinthemarketforastrongdigitalpresenceandmobile-friendlywebsites.ThemostpopularbookingmethodforinternationalvisitorsisthroughintermediarywebsitessuchasExpedia,with52%optingtobookthroughsuchasite,comparedto22%whowouldbookthroughatravelagent.Amongoverseastravellers,20%wouldbookdirectlywiththeproviderintheUK.

Thepopularityofholidaywebsitescanprovechallengingforprovidershopingtoconnectwithpotentialcustomersdirectly,butoftengivesvisitorsreassurancethattheyaregettingthebestpriceavailable.Suchwebsitescanalsoenableproviderstotapintomarketsthattheymaynothavepreviouslytargetedthroughmarketingoradvertising.Nearlytwothirds(61%)ofUKholidaymakersnowsaytheyarelikelytobookatripdirectlywiththeprovider,upfrom47%in2007and55%in2013.

Howarevisitorsbookingtheirholidays?

Whileonlinebookingisontherise,providersmustbeconsiderateofasignificantnumberofvisitorswhostillprefertobookoverthephoneorinperson,particularlyamonginternationalcustomers.VisitorsfromtheUSmadetwiceasmanyholidaybookingsbyphone(8%)thantheaverageacrossalltherespondents(4%),highlightingacontinuingdemandforthehumantouchthroughoutthebookingprocess.

Intermediaries Travelagents Bookingdirect

22%

3%

52%

23%

20%

61%UKresidents

Internationalholidaymakers

13of20

Page 14: Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

The experience economyEmergingtrendsinthehospitalityandleisuresector,whichareapparentacrossbothBritishandinternationalmarkets,includethegrowingpopularityofhotelswithanemphasisonfoodandcuratedexperiences.

Amongdomesticvisitors,44%agreedthatanaccommodationproviderwithanemphasisonfoodwouldmakethempreferableoverothers,raisingthequestionofwhetherpartneringwithhigh-qualityrestaurantscouldimprovetheoverallcustomerexperienceforguests.

OthertrendsthatUKholidaymakersdisplayedinterestinincludecuratedvisitsandexperiences(33%),hotelswithanemphasisoncustomerexperiencessuchasicehotelsorglamping(31%)andimmersivecinemaexperiences(27%).But,whiledomestictouristsareincreasinglyattractedtoprovidersofferingunique,high-qualityexperiences,theyarenotnecessarilyenthusiasticaboutorganisedopportunitiestosocialisewithothervisitors.

Thesociablesector

Exploringtheinternationaldatainmoredetail,visitorsfromtheUSarethemostsociable,with61%sayingtheywouldbeinterestedinopportunitiestomeetotherguestscomparedto38%onaverage.

GuestsfromAustraliaandRepublicofIreland,however,aremorelikelytobedeterredbysocialactivities,makingitimportantforproviderstounderstandtheircustomerneedsandstriketherightbalancebetweenorganisedactivitiesandspaceforgueststocreatetheirownexperiences.Splittingresultsbydemographic,thereisaclearleantowardsorganisedsocialactivitiesbyyoungergenerations.

Ahomefromhome?

AmongcompetitorstappingintothisshifttowardsexperientialvisitsisAirbnb,whichenablesgueststobookauthenticexperienceswithlocalhosts.Airbnbisprovidingincreasingcompetitionformoretraditionalhospitalityandleisureproviders.OfBritishholidaymakers,20%wouldconsiderAirbnbalongsideotheroptions,and21%wouldconsiderusingtheservicealthoughfeltitunlikelytheywouldbooktheirholidaysthroughit.Itis,however,importanttoexercisecautionwhenassessingtheimpactofexperiential,‘home-from-home’accommodationproviders,particularlyforthedomesticmarket.Just7%ofUKvisitorsinthisreportplantouseAirbnbfortheirholidaythisyear,and24%ofdomestictouristssaythattheyhaveneverheardoftheprovider.

Theinternationaltourismaudience,bycontrast,iswitnessingasignificantgrowthinholidaysbookedviaAirbnb,with66%ofoverseastravellerssayingtheywouldconsiderusingtheserviceiftherewasappropriateaccommodationavailable.ThisisparticularlyprevalentamongChinesevisitors,and90%wouldconsiderusingaservicesuchasAirbnb,followedby78%ofAmericans.

Thegrowinginfluenceofexperientialproviders,whilecreatingchallengesfortraditionalhospitalityandleisureproviders,canalsoraiseawarenessofthegrowingdemandfortailored,highlypersonalisedexperiencesacrossthesector.

Typesofopportunitiestomeetothers

US Germany France Russia SaudiArabia Australia Ireland China

Organisedlightexerciseandsport 7% 5% 4% 3% 21% 3% 3% 9%

Drinkseveningsandcocktailmaking 15% 20% 11% 14% 0% 17% 18% 10%

Largecommunaltablesformealtimes 8% 8% 9% 6% 10% 6% 4% 13%

Citytoursandvisitswithotherhotelguests 27% 22% 24% 33% 15% 22% 15% 9%

Co-workingspaceatthebarorpoolside 7% 5% 6% 2% 4% 5% 3% 7%

Socialareassuchascinemas,gamesrooms,clubrooms

14% 7% 9% 4% 14% 9% 9% 15%

14of20

Page 15: Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

Adaptablecustomerexperience

Theriseofonlineandmobilebookingcontinuesapace,withoverthreequarters(76%)ofconsumerswillingtobookonline.

However,15%ofvisitorsstillprefertobookinpersonorbytelephone–risingto24%ofconsumersover65.

Whileitisobviouslyvitaltodevelopuser-friendlyandstreamlinedonlinebookingforconsumers,itisimportant

nottooverlooktraditionalbookingmethods,suchasface-to-faceandtelephonebooking.

Strategies for success

BeproudoftheUK

Thecountryretainsitsstrongattractionasaholidaydestinationwithrenownedhistoryandculture,toboth

domesticandinternationaltravellers.ThepoliticalturmoilhashadlittleimpactontraveltotheUK.Theindustryshould

beproudof,andleverage,thecountry’sculturalassetstoattractandretainvisitors.

Onesizedoesn’tfitall

Differentdemographicgroupshavediverserequirementsandpreferenceswhenitcomestoholidaysandleisureexperiences.

Forexample,someofferings,suchasmobilecheck-in,mayonlyappealtocertaingroupsofpeople.Hospitalityandleisure

providersneedtodeveloparangeofproductsandservicestomatchdifferentexpectations.

Connectlocally

Oursurveyshowsthatonethird(30%)ofholidaymakersexpecttospendmoreonleisureactivitiesthisyearthaninprioryears.Shoppingaccountsforthethird-largestproportionofspending

afterhotel,foodanddrinkspend.

Leisureoperatorsshouldconnectwithlocalprovidersandretailerstodeveloppackagesofofferingsthatofferwider

andricherchoices.

Totakeadvantageofincreasingdomesticandinboundtourism,businessesmightconsiderthefollowing:

Caterforinternationaltastes

Overseasholidaymakerscanhavedifferentsocialandreligiousrequirementsfromdomestictravellers.Having

servicesrecognisingtheseneeds,suchasfreeshuttlebusestoairports,couldhelpoperatorsstandoutfromthe

competition.Startwithsimpleofferings,suchasfreeWifi.

Actdecisivelyonfeedback

Feedbacktakesmanyforms,fromfacetofacetoonline,andithasbecomeincreasinglyimportantforbusinessesto

understandandreacttoit,andpromptly.

Arobuststrategyfortrackingandrespondingtofeedbackwillultimatelyenhancetheguestexperienceandhelpimprovethe

possibilityofrepeatvisits,aswellasreferralsandrecommendationsofyourbusinesstootherconsumers.Theskillistoidentifywhat

themostappropriatetypeoffeedbackisandtothenhaveaneffectiveprocesstomanageandrespondtoit.

15of20

Page 16: Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

Case study: Park Holidays ParkHolidaysistappingintoagrowingtrendamongstBritishholidaymakersofchoosingtostayalittleclosertohome.

AgrowingnumberofholidaymakersarechoosingtoholidayintheUK.WhilepreviouslyalotofdemandforBritish-basedfamilyholidayswasprice-led,thedemandisincreasinglyquality-led.TonyClish,CommercialDirectorofParkHolidays,saystheresultisthatthecompanyhasbeenabletoinvestinhigh-qualityholidayhomeswithbetterheating,insulation,kitchensandbathrooms,makingtheirsamoreappealingproductandencouragingmorerepeatbusiness.

Welcomeback

Withmanyvisitorsoptingtoreturn,thecompanynowputsalotofemphasisonencouraginggueststocomeback,providingopportunitiestorebookthesameholidayatthesamepricefor12months’timebeforetheyleave.Theyalsoofferrepeatcustomersthechancetoownaholidayhomewithintheparkgrounds,alongwithasubletserviceforthemonthstheywouldn’tneedtouseit,thereforeencouragingmoreregularvisitsandgeneratingincreasedincome.

Goingthedistance

WhileBritishtourismcompaniesareenjoyingincreasedvisitsfromdomestictravellers,additionalfactorssuchasthelengthofvisitorstayandfuelpricescanaffectvisitornumbers.Whereasholidaymakersarehappytotravelforthreeorfourhoursforbreakscomprisingofoneortwoweeks,Tonyhasfoundthatguestswillrarelydriveformorethanoneortwohoursforashortbreak.Asaresult,themaingrowthinshortbreakshasbeengreatestclosetothelargeconurbations,suchasinEssex,SuffolkandKent.

Fuelpricescanalsohaveanotableimpactonbusiness.Whenfuelpriceswerehigh,consumerschosetoholidayclosertohomeandvisitornumbersdeclinedinremoteareas.

Knowyourniche

WithUK-basedtourismprovidersfacinganongoingbattleagainstholidaymakerschoosingtoholidayabroad,thekey,saysTony,istofindanicheinwhichyoucanbuildareputationsothatpeopleclearlyunderstandwhatyouoffer.

Itisalsoimportanttoadapttochangingdemandsinordertomaximiseyourvisitornumbers.WhileParkHolidaysisparticularlysuitedtothefamilymarket,therequirementoutsideschoolholidaysismoreaboutprovidingabaseforvisitorsholidayingwithoutchildren.Asaresult,thosetimeswillseelessofafocusonkids’entertainmentandmoreadult-orientedeventssuchaslivemusicorbingo.

Capturingthecontinentals

Asrecentresultshaveshown,manyoverseasvisitorsarechoosingtostayintheUK’slargecities–London,EdinburghandCambridgebeingamongstthemostpopular–andprovidingachallengeforprovidersbasedincoastalareassuchasHastings,GreatYarmouthandTorquay.

Themainbusinessfromoverseastravellers,saysTony,isfrompeoplecominginonferriestoDoverfromthe‘low’EuropeancountriessuchasTheNetherlands,Belgium,NorthernFranceandNorthernGermanyintouringcaravans.SuchcustomersoftenusenearbyparkssuchasKentastheirfirstnightstopoverand,whileitisnotabigmarket,thecompanyishappytobeinvolvedinbringingoverseasvisitorsintotheUK.

Thekeyistofindanicheinwhichyoucanbuildareputationsothatpeopleclearlyunderstandwhatyouoffer.

TonyClishCommercialDirector,ParkHolidaysUKLtd

16of20

Page 17: Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

Case Study: Gordon Ramsay Group TheGordonRamsayGrouphasthestructureinplacetohelpitsUKrestaurantsmaximiselucrativeopportunitiesfromtheinboundmarket.

Toengageexistingcustomers–andtargetnewdemographics–companiesmustgetcreativeinprovidingmarket-appropriateinitiativesandexperiences,saysStuartGillies,ChiefExecutiveOfficeroftheGordonRamsayGroup(GRG).Andwhilesomeregionalmarketsretaintheirdistincttastes,theinternationalaudienceisbecominglessinternationalthanitusedtobe.

It’sasmallworld

AsaresultofincreasedmobilitybetweenBritainandtheEuropeanandAsiancapitals,theGrouphaskeptthemenuandstyleofitsBreadStreetKitchenconceptverysimilarinLondon,HongKong,SingaporeandDubai.Thatstyleofofferinghasbecomerelativelyglobal,offeringaninstantlyrecognisableproducttothecapital’sinternationalvisitors.

Today,however,themarketissuchthatcustomersmightwantathreeMichelinstarexperienceonedayandacoupleofstartersinthemoreinformalBreadStreetKitchenthenext.It’shugelyimportant,therefore,forproviderstoconsiderthattheirguestsmightnotallbedifferentperse,butthateachindividualguesthasadifferentsetofneedsonanygivenday.

Allowingindividualrestaurantstooperateindependentlyandstandaloneasseparateconceptswithinacollectionofotherprovidersiskey,saysStuart.TheGroupworkscloselywithitspartnersaroundtheworldtoattractnewcustomersandshowcasetherangeofdifferentconceptsanddiningexperiencesonoffer.

Partnershipsoftrust

TheGordonRamsayGrouphaslongunderstoodthebenefitsofpartneringwiththerighttourismprovider.

TheGroupaimstoestablishandnurturestrongrelationshipswithcustomers.Thisbeginswiththeveryfirsttimeacustomerhearsabouttherestaurant,andcontinuesthroughtotheirfirstdiningexperienceandsubsequentvisits.TheGroup’spartnersarecriticalinenablingittoprovideaconsistent,highqualityserviceinternationally,whileensuringthateachrestaurantstillprovidesauniqueexperienceandstrengthenscustomerrelationshipsthrougheveryinteraction.

Thecustomerrequirementforaseamlessexperiencebetweenhotelsandtherestaurantswithinthemmakesitessentialforpartnerstoshareavisioninordertodeliveranauthenticandqualityexperience.StuartdrawsontheofferinginCaesar’sPalaceasanexample,wheretheGordonRamsayPubandGrillhasusedBritishfavouritesasauniquesellingpointandexpandedtoincludeatakeawayfishandchipbarthatnowservesaround1,000customersaday.

Pleasecomeagain

Whenpromotingyourproduct,thereissimplynosubstituteforgivingpeopleafantastic,value-for-moneyexperience,stressesStuart.ButgettingcustomersinthedooristhefirststepinbuildingtrustedrelationshipsandencouragingrepeatbusinessacrosstheGroup’sotherrestaurants.

Airportandtourist-focusedcollateralcanbeveryeffectiveindrawinginboundvisitorstoGRGsitesneartopopularLondonlandmarksinthefirstinstance.TheGroupestimatesthataround30%ofguestsrepeattheirdiningexperienceyearonyear.With31restaurantsinternationally,theGroupworkshardtomakesureitremainsontheradaroftheincreasinglymobileglobalaudience,whowanttocontinuetheirculinaryjourneyastheytraveltheworld.

StuartGilliesCEO,GordonRamsayGroup

17of20

Page 18: Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

Key Takeaways• TheincreasedconvenienceandvalueformoneyofholidayingintheUKaredrivingariseinthenumber

ofstaycationsforBritons,withmorethanoneinthreeexpectingtospendmoretimeonholidayintheUKthisyear

• Shortbreaksarethemaintypesofholidayfordomesticvisitors,while21%plantohavetheirmainholidayinBritain

• TheUKhasasignificantappealforinternationaltravellers.Internationalvisitorsspendanaverageof£3,443ontheirholidaystotheUK.VisitorsfromChinaandtheUShavethelargestbudgetfortheirholiday

• Whilethereisatrendfordomesticholidaymakersbookingdirectlywithproviders,overhalfofinternationaltravellersstillpreferusingintermediariessuchasExpedia

• Youngergenerationsarewillingtospendmoreonexperienceandactivities,whilepeopleaged55+spendthemostonaccommodationandeatingout

• Malevisitorsspendmorethanfemalesacrossthemajorityofhospitalityandleisurecategories,includingshopping,watchingprofessionalsport,visitingcinemasortheatres,usinghealthclubs,visitingthemeparksandplayingsportssuchasgolf

• Britishtourismprovidersneedtoconsidermultipleandchanginginternationaltravellers’preferences,suchasfreeWiFi,transportationandreligiousorculturalrequirements

• Theuseofappropriatetechnologycanattractvisitorsandstreamlinecustomerexperience,butmustbebalancedwiththe‘Marmiteeffect’ofsomefeatures,whichcandeterasmanycustomersastheyattract.

TofindoutmoreabouthowBarclayscansupportyourbusiness,pleasecall08000154242*orvisitbarclayscorporate.com

*Callsto0800numbersarefreefromUKlandlinesandpersonalmobiles,otherwisecallchargesmayapply.Tomaintainaqualityservicewemaymonitororrecordphonecalls.

18of20

Page 19: Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

Interactive map

19of20

Wantmoreregionalinsights?

Clickonasectiontodownloadtheregionalreport

SouthEast

London

East

Midlands

Wales

SouthWest

Scotland

NorthEast

NorthWest

NorthernIreland

Page 20: Tourism Report 2017 - Barclays Corporate · 2020-03-14 · self-catering accommodation). Overseas visitors plan to spend an average of £3,443 for their holiday in 2017, including

The views expressed in this report are the views of third parties, and do not necessarily reflect the views of Barclays Bank PLC nor should they be taken as statements of policy or intent of Barclays Bank PLC. Barclays Bank PLC takes no responsibility for the veracity of information contained in third-party narrative and no warranties or undertakings of any kind, whether expressed or implied, regarding the accuracy or completeness of the information given. Barclays Bank PLC takes no liability for the impact of any decisions made based on information contained and views expressed in any third-party guides or articles.

Barclays is a trading name of Barclays Bank PLC and its subsidiaries. Barclays Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register No. 122702). Registered in England. Registered number is 1026167 with registered office at 1 Churchill Place, London E14 5HP.

Amended July 2017. BD05905.

barclayscorporate.com

20 of 20