Experience-led businesses contribute £134bn to UK economy, and are expected to grow by an average of 2.6% by 2027.
Cccording to research from Barclays and the Centre for Economics and Business, companies that have made changes to provide more memorable consumer experiences report a 15% average increase in revenue.
Data shows that UK consumers expect to spend an average of £3,322 on events, experiences and holidays between June and September, with Pride Month, the Paris 2024 Olympics and Glastonbury Festival expected to have the greatest commercial impact.
Between now and 2027, it is projected that the UK’s Experience Economy, which employs an estimated three million people will grow by an average of 2.6% to reach an estimated contribution of £146bn.
Much of this growth is fuelled by rising consumer appetite for experiences. Nine in 10 hospitality, leisure and retail businesses believe that consumer demand for memorable experiences is growing faster than demand for physical products, and a similar proportion have observed that consumers still prioritise spending on memorable experiences even when money is tight.
The most common strategies to capitalise on this behavioural shift are investing in staff training (31%) increasing physical presence at event venues to engage directly with attendees (29%), and launching new products that provide customers with memorable experiences (27%).
In the hospitality and leisure sector, 41% are expanding the options for customers to personalise their experience to make the service more memorable, for example partnering with other local businesses to allow guests to build a personalised itinerary based on their interests. A similar proportion are hosting themed events and special nights to attract customers looking for unique experiences.
Additionally, 93% of hospitality, leisure and retail business leaders expect that the sporting and cultural events coming up over the next few months will have a positive impact on their business.
They predict that sports events (37%), food and drink events (36%) and holidays and tourism (36%) will provide the most significant increase this summer, citing Pride Month (36%), the Paris 2024 Olympics (35%) and Glastonbury Festival (34%) as the individual events that their business will benefit from the most.
Rich Robinson, Head of Hospitality and Leisure at Barclays, commented: “Brits are increasingly swapping shopping bags for shared moments, and experiences now make a heavyweight contribution to the UK economy as a whole. This trend is set to gather momentum as consumers look to splash out this summer on holidays, live entertainment and sports events, with retail, hospitality and leisure businesses ready to capitalise on this commercial opportunity.
“Yet as experiences become even more central in consumers’ lives, their expectations are set to soar even higher. To stay ahead of the curve, retailers, hospitality and leisure businesses will need to continue to innovate, ensuring their products and offerings are not just a one-hit wonder but are special enough to keep crowds coming back for more.”
Kate Nicholls, Chief Executive at UKHospitality, added: “This research clearly shows the significant consumer demand for experiences that only hospitality venues can offer. Our sector is unique in being able to play host to some of the most special moments in people’s lives, and as a sector we are passionate about making that as memorable as possible.
“It’s no surprise that superstars like Taylor Swift and Beyonce and major sporting events like the Euros bring people out in their droves. We are rightly optimistic that the summer of sport and music will translate to a significant boost to hospitality.”
