Like most corners of the economy, the UK leisure sector is under pressure from rising living costs. As people cut back on non-essential purchases to keep budgets in check, spending on everything from days out and entertainment to fitness and self-care comes under scrutiny for the chop.
Most people are loath to cut out leisure activities completely. But in the current climate, they are not going to spend money just for the sake of it. They want full value from however much they allocate to spending on leisure and entertainment.
This is shaping a couple of key trends in the leisure industry. First, there’s been a clear shift to what observers call the ‘experience economy’, or people looking to focus spending on memorable, often social experiences rather than just buying ‘things’.
A good example of this in action is the rise in so-called ‘competitive socialising’, or game-focused leisure activities for groups. Covering everything from renewed interest in traditional ‘pub games’ like darts and shuffleboard to escape rooms, sports simulators and game show-themed experiences, the number of venues offering these kinds of activities is growing rapidly across the UK.
A similar trend sees people prioritising leisure activities that have additional benefits, such as health and well-being or education and self-improvement. Bucking the trend across many leisure sub-sectors, gym memberships are at a record high, while swimming pools, spas, wellness centres and retreats are all enjoying similar surges in popularity. Classes are also growing in popularity, opening up new avenues for traditional leisure venues like museums and galleries to explore.
Taking the opportunity
For leisure operators, maintaining your appeal going forward isn’t just a case of pivoting to activities that tap into demand for more socialising and health benefits. Whatever you offer, it’s a case of making the experience attractive, memorable, and above all, good value.
The squeeze on people’s finances means decisions on leisure spending will inevitably be made through a value lens, even when sought-after additional benefits are offered. Operators should make sure that is reflected in their pricing and retention strategies. Discount-based loyalty rewards are likely to carry more appeal than VIP memberships that add additional perks for a premium price, for example.
Another consideration is how much consumers value digitised experiences and the convenience and autonomy they bring. Smoothing the path through the administrative parts of the customer journey is just as important as instilling a tech-powered wow-factor (and yes, immersive ‘extended reality’ or XR experiences using the likes of VR and AR is a hot trend in the leisure sector in its own right).
Take bookings and payments, for example. Not being able to get the slot you want at peak times, or long queues at an attraction, remain a major pain point for consumers in the leisure sector. Mobile bookings quite literally put control into the palm of people’s hands, as well making the process as simple and transparent as possible. For loyalty members, it could be as simple as a one-step tap in response to an email or app notification that a favourite slot is filling up.
But in the omnichannel world we live in, walk-up business still matters in the leisure sector, and a pre-booking-only policy risks losing business. Using kiosks to offer digital bookings on premise is a smart move, one because it lets you use a single integrated booking system for consistency, and two because it gives customers the same autonomy and control. Psychologically, there’s something much more satisfying about choosing from a list of available slots than there is being told your requested time isn’t available, either in person or on the phone. And even if you are fully booked up at any given time, you can offer customers real-time alerts in the event of any cancellations.
In summary, as cost pressures, consumer expectations and on-trend new entrants make the leisure industry ever more competitive, the operators that win the battle for word-of-mouth buzz and strong customer retention will be those that blend great value propositions with smart service and standout experiences.