Samantha Ward, Managing Director in Travel, Hospitality and Leisure at Alvarez & Marsal, said:
“Today’s data from the ONS shows inflation in the hotel and restaurant sectors remained the same as October, staying at 7.6% in November. This comes as somewhat of a surprise given abating inflation across the wider economy, which fell to 3.9% in November, down from 4.6% in October.
Despite the continued period of high prices, consumer appetite seems to have held up. Our research shows that nearly half of Brits had increased their holiday budgets compared to before Covid-19, despite having used up most of their excess pandemic savings. Enjoyment of leisure time continues to rank among consumers’ top priorities, and they’re willing to cut back elsewhere to spend in hospitality and leisure venues.
As we move into 2024, price growth is expected to curtail, which may prompt central banks to loosen monetary policy following a sustained period of high interest rates. Whilst this will come as welcome news for the hospitality industry, businesses must be mindful that rates remain elevated relative to years gone by, and the legacy of higher rates continues to impact consumer spending power, the cost of debt servicing and ultimately the future viability of many operating in the industry.”
In case of interest, please find report here and key findings below:
- 46 per cent of Europeans have increased their travel budgets compared to pre-pandemic
- 30 per cent say they are holidaying closer to home while 19 per cent are going on fewer, but longer, trips in reaction to climate change
- 38 per cent are reconsidering future holiday making habits as a result of the wildfires in the Mediterranean
Contact: Sam Dynevor, email@example.com
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