Summer Holidays and Sunshine Set to Boost Hospitality Spending New Findings Show

Holidays and good weather poised to boost UK hospitality as consumers plan to spend more over the summer as long as the weather holds, according to new research from RSM UK’s Consumer Outlook.

RSM’s consumer survey found over half (53%) of those who plan to spend more on eating and drinking out will do so due to improved weather* and almost a third (31%) will increase spending due to holidays and taking time off over the summer.

This comes off the back of a World Cup tailwind where a quarter (25%) of consumers were planning to spend more to cheer on the home nations.

However, over a third (35%) expected to spend more due to increased prices, despite the temporary reduction in VAT for children’s activities and meals which was introduced as part of the Government’s Great British Summer Savings scheme.

Saxon Moseley, head of leisure and hospitality at RSM UK said: “The combination of warmer weather, summer holidays and major sporting events, such as the World Cup, are giving consumers a good reason to spend more on eating and drinking out – delivering a timely boost to UK hospitality during the summer months.

“However, it’s important to look beneath the headline figures. While many consumers are planning to spend more to socialise more, a significant proportion expect that increase to be driven by higher prices.

“The temporary VAT reduction on children’s activities and meals should provide some support for families looking for affordable days out, but consumer spending remains highly sensitive to both the notoriously unpredictable Great British weather and the wider cost-of-living backdrop.

“If the favourable weather conditions continue, then operators could see strong trading over the summer. However, this is expected to be a short-term boost as budget speculation and increased tensions in the Middle East dampen confidence and spending in the second half of the year. For now, operators need to make hay while the sun shines.