Fewer Visits, Longer Stays: Hospitality Holds Firm as Inflation Pressures Bite

The Oxford Partnership’s latest Market Watch report, produced in collaboration with Vianet, shows that while the UK’s hospitality sector has settled into a steadier rhythm after the summer surge, inflation continues to squeeze real-term growth.

In September, the number of open outlets edged down to 99,691 (-0.3% vs August), yet those that remained open saw occupancy rise +1.3% and average dwell times reach 142 minutes. Consumers are visiting less often but staying longer and spending more, though spend per head increases (+0.9% on drink and +1.6% on food) continue to lag behind the Bank of England’s inflation forecast of 4.0% for the same period.

Category performance reflected a selective consumer mindset. World Lager remained the best-performing lager category (+3.3% over the last four weeks), followed by a steady showing from Premium Lager (+0.5%). Stout was September’s standout performer, surging +8.8% month-on-month, reinforcing the appeal of trusted, heritage-led brands.

Across the regions, the pattern is clear: fewer venues, longer visits, and higher spend per head. London, the East Midlands and the East of England all reported dwell time increases of more than 10%, signalling that consumers are valuing hospitality occasions more, even as the overall estate contracts.

Alison Jordan, CEO of The Oxford Partnership, commented: “What we’re seeing now is a more measured, experience-led recovery. Consumers are going out less frequently, but when they do, they’re making it count, staying longer, trading up, and choosing quality over quantity. Operators have shown incredible tenacity, maintaining opening hours and service standards despite intense cost pressures. The coming Budget is a critical moment; stability on business rates and taxation could be the difference between steady progress and another wave of closures.”

Despite the tightening outlet base, operators continue to protect trading availability, with the average hospitality venue open 64.6 hours per week, unchanged year on year.

As the industry heads toward the crucial Christmas trading period, The Oxford Partnership notes that true recovery depends on real-term growth catching up with inflation, underpinned by government measures that support reinvestment and job retention.