Industry News Premier Hospitality

Hospitality and leisure expected to contribute an additional £3.5bn to UK economy this year following sharp rebound

Aspire Executive Lounges, Swissport's global airport hospitality brand, has joined the British Institute of Hospitality, the world’s leading and award-winning membership body for hospitality professionals. Aspire Executive Lounges becomes the first business partner from the airport lounge hospitality sector to join the Institute of Hospitality. Aspire Executive Lounges, the fast-growing Swiss brand in the airport hospitality business, has joined the British Institute of Hospitality (IoH), the world’s leading membership body for professionals working and studying in the hospitality leisure and tourism industry. Aspire Executive Lounges is the first business from the airport lounge sector to become a member of IoH. The collaboration will foster an exchange of expertise and insights: IoH will benefit from Aspire's expertise in airport hospitality, while Aspire, by sharing its wealth of experience with IoH members, can extend its professional network to the hotel and catering sectors and hospitality management schools. “Our vision for Aspire Executive Lounges is clear and simple: We want to deliver a guest experience that is similar to what our guests are used to from their preferred hotels, meeting the needs and exceeding the expectations of today’s travelers,” says David Collyer, Global Vice President of Executive Lounges at Swissport International AG. “We strive to deliver an unparalleled experience and set a benchmark that transcends our industry, redefining excellence across the hospitality sector. The Institute of Hospitality is a great network to exchange insights and experiences, and to learn from others in the hospitality sector, which will help us bring our vision to life.” Robert Richardson, CEO of the Institute of Hospitality: “Our aspiration at the Institute of Hospitality has been to develop and grow our membership, the number of countries we operate in, and the number of hospitality sectors represented within our organization. With that in mind, it is a natural partnership for us to welcome Aspire into our family, and to learn from their teams, who serve travelers with passion and dedication. As two organizations with similar values, we look forward to collaborating in promoting high levels of excellence within our profession.” With over 30 years of experience, Aspire Executive Lounges is Europe’s largest brand in the airport lounges sector. In 2023, Swissport welcomed more than five million customers worldwide at over 69 lounges in 20 countries. The airport hospitality brand recently opened new lounges at Toronto City Airport in Canada, and Helsinki-Vantaa Airport in Finland. Aspire Executive Lounges recently created a new lounge concept in partnership with the airline alliance oneworld. The first oneworld branded lounge was launched at Incheon Airport in Seoul, Korea, in December 2023. Aspire Executive Lounges is owned by Swissport International AG, the global leader in aviation services, serving airlines at 286 airports in 44 countries across 6 continents
Written by Amy
  • New Barclays Corporate Banking research shows 94% of hospitality and leisure operators are confident about growth this year following a post-lockdown surge in trade
  • The sector’s contribution to GDP will be £3.5bn higher between April and December than it was in 2019
  • A boom in staycation tourism could add up to £9.2bn to the nation’s coffers next year
  • Businesses report an increase in healthy and sustainable product sales, as well as those which come with strong safety and hygiene standards

New research* by Barclays Corporate Banking reveals that the hospitality and leisure industry is thriving again and could contribute £3.5bn more to the nation’s GDP this year than in 2019.

In a new thought leadership report published today, Leisure Rediscovered, Barclays’ data shows that the vast majority of hospitality and leisure businesses (94%) are confident about their growth prospects for this year following a post-lockdown surge in trade.  Based on projected sales figures for the period from April to December 2021, when the hospitality sector has largely been open again, this equates to £3.5bn more in Gross Value Added (GVA) than in the equivalent period in 2019.

The research reveals new patterns in the way people are accessing hospitality and leisure services and changing consumer habits. For example, although restrictions on foreign travel have eased substantially in the past couple of weeks, staycation tourism could be here to say with nearly half (45%) of consumers prioritising UK holidays over those abroad. The most popular destinations are the Lake District, the South West of England and the Scottish Highlands.

Barclays Corporate Banking estimates that, if a preference for UK holidays continues at the same rate in 2022, it will add up to £9.2bn to the domestic tourism market.

The report also shows that significant numbers of consumers are prioritising hospitality and leisure products that are offer health and wellbeing benefits, strong sustainability credentials, or which come with particularly strong safety and hygiene standards.

On average, consumers are prepared to pay 19.9% extra for healthier food and drink options, and 17.8% for holiday accommodation that includes health and wellbeing services such as a gym or spa. More than nine in ten (91%) of hospitality and leisure operators are now prioritising ‘healthy’ products among their portfolios.

While eating out or drinking, those aged 16 to 24 would be prepared to pay a premium of 35%, on average, for products with strong sustainability credentials. The average premium for 25-to-35-year-olds is 30%. Meanwhile, a sustainable holiday experience is worth 39% more to the youngest group, and 32% for 25s-to-35s.

Unsurprisingly, many consumers are expressing strong preferences for services that are safe and hygienic. In fact, customers would pay an extra 20%, on average, to eat and drink in venues with particularly strong standards. The 16-to-24 age group would pay an average of 39% extra, while those aged 25 to 35 would pay 33% more.

Mike Saul, Head of Hospitality and Leisure at Barclays Corporate Banking, commented:

“After a very difficult period for the hospitality sector, it is great to see how well the sector has bounced back. Our findings show an industry brimming with confidence and buoyed by surging revenues.

“However, it is also an industry that is undergoing a substantial amount of change – from the customers it serves to the products it sells. We have uncovered strong evidence that, particularly for younger customers, operators will need to place increased focus on healthy, sustainable and safe product ranges and to maintain investment in data and technology. Whilst the industry is navigating some short-term challenges around supply chains and labour shortages, operators that prioritise these areas will be an incredibly strong position for the long-term.”

Other findings from the Leisure Rediscovered report show that:

  • Tech is a firmly rooted part of the sector’s proposition: 36% of businesses are earning more from ecommerce than ever
  • Collaboration is one of the big success stories of the pandemic, with 88% of operators now joining forces with their local peers to share data and offer joint deals
  • 42% of spas are seeing more men come through their doors and more younger customers are using holiday lets (47%) and holiday parks (40%)
  • The lure of local hospitality is strong: 41% of consumers say they are now more drawn to go out for entertainment in their local neighbourhoods than further afield
  • The delivery boom has not subsided since the pandemic, with four in ten businesses reporting continued popularity of home delivery and click-and-collect services

 

About the author

Amy