BTG Advisory looks at rising consumer spending, notwithstanding the disruptive forces of political and economic uncertainty, and how technology is helping to meet the challenge of maintaining margins in a rapidly evolving environment.
Innovation is transforming the leisure and hospitality sector. The sharing economy has produced new business models that are enabled by sophisticated technology. These are broadening the marketplace, offering new services as well as new ways to buy and access them. They are also shifting customer expectations and purchasing patterns.
Although travel, hospitality and leisure are generally among the first sectors to be affected by political and economic uncertainty, in recent months the market has seen steady, continuous growth, notwithstanding the implications of Brexit and the election of the Trump administration in the US.
According to the British Hospitality Association (BHA), the UK hospitality industry is the sixth largest contributor to export earnings and fourth largest employer, accounting for 4.49 million people, or 10% of the workforce, and over 180,000 businesses.
ONS figures for the year ending March 2016 indicate that the people of Britain were spending more on restaurants and hotels, with households spending on average more than £45 a week for the first time in five years. This reflects the swing in household spending from goods to services and the cultural shift from products to customer experience.
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