“‘Chrimbo Limbo’: The Dead Zone Costing Restaurants And Hotels A Fortune”

As UK inflation shows signs of easing, consumer confidence might be beginning to stabilise, but spending remains highly selective.

For the hospitality sector, this creates a significant opportunity during the period between Christmas and New Year, often referred to as “Chrimbo Limbo”, when people have more time, fewer commitments and greater openness to low-pressure indulgence.

According to VisitEngland, 31% of UK adults definitely plan to take an overnight trip between Christmas and New Year, with a further 17% undecided, representing a sizeable pool of consumers still open to persuasion. Those travelling expect to stay an average of 4.1 nights, with 42% planning trips specifically during the Christmas–New Year window.

Hotels stand to benefit most from this behaviour. The data shows 51% of festive travellers plan to stay in a hotel, while demand is skewed towards urban destinations, with 47% opting for city or large-town breaks rather than countryside trips.

This demand is already translating into bookings. Hotel Management Network figures show reservations for 28–31 December are up 18% year-on-year, with guests staying 8% longer on average, suggesting travellers are settling into the period rather than treating it as a stopover.

Crucially, spending during Chrimbo Limbo is being driven by perceived value rather than discounting. SiteMinder’s Changing Traveller Report 2025 found that 87% of travellers are willing to pay more for upgrades, such as breakfast or better room views, while 80% actively seek on-site experiences, reinforcing the opportunity for venues to package add-ons rather than reduce rates.

This comes despite ongoing cost-of-living pressures. VoucherCodes.co.uk forecasts £12.6bn in consumer spending over the December Christmas period, up £0.3bn year-on-year. However, while 39.57 million people are expected to visit a hospitality venue, this represents a 1.5% decline compared to 2024, highlighting the need for businesses to offer clear value to attract footfall.

As Emma Jones, at Custard, explains:
“Even as inflation eases, consumers are still highly considered in how they spend. They want experiences that feel genuinely worth the money. Chrimbo Limbo is a rare window where people have time, flexibility and permission to indulge — but venues needto meet that mindset with value-led experiences, not blanket discounts.”

For operators, this means recognising that Chrimbo Limbo demand differs from Christmas Day. Consumers are less interested in formality and more drawn to relaxed dining, flexible check-outs and social experiences that feel special without feeling expensive.

When approached strategically, Chrimbo Limbo can deliver more than short-term revenue. It offers hospitality businesses the chance to extend stays, increase on-site spend and build brand loyalty. In doing so, this turns an often-overlooked trading period into one of the most commercially effective weeks of the festive calendar.