Hospitality Sector Set For £12.6bn Christmas Boost

The hospitality industry is set to see festive sales rise 2.8% this year as inflation and price hikes push up spending.

New research by the UK’s most-trusted discount site, VoucherCodes.co.uk, reveals UK consumers are forecast to spend £12.6bn over the December Christmas period in 2025- that’s £0.3bn more than last year (£12.9bn).

However, the rise in total sales comes with a catch. Although 39.57 million people are expected to visit a hospitality venue this year, the figure represents a 1.5% drop from the 40.17 million recorded in 2024.

With the cost of living continuing to eat into consumer wallets, 32% of people say they will celebrate at home this year and a further 43% say they plan to visit fewer hospitality venues than last year due to budget restraints. As a result, rather than a growth in visitors or purchase volume, the increase in total sales is primarily a result of inflation and a rise in hospitality prices.

Whilst some consumers are cutting back, one-third will visit a hospitality venue over the festive season (32%). As a family friendly option, Christmas markets will be the most popular choice with 12.83 million people expected to visit at least once. Restaurants (9.78m), pubs (9.11m), and bars (4.29m) will also be popular options.

Moji Oshisanya, Chief Commercial Officer at VoucherCodes.co.uk, adds:
“It’s a mixed bag for the hospitality sector this year. Whilst, it’s great news that overall sales will be up, the economic uncertainty in the UK is sadly having a knock-on impact on the number of visitors – this continues the pattern we’ve been seeing over the last couple of years.

“Whilst it’s tempting for pubs and restaurants to raise prices to maximise revenue over the Christmas period, this could have a negative impact on sales. Consumers are looking for savings more than ever, and with competition especially fierce at Christmas, venues need to take into account consumer sentiment and budget restraints. Offering genuine value to customers in the form of festive menus, discounts for group booking or deals will help to encourage people through your doors and dissuade them from at-home celebrations.”