income and more free time, the older demographic (65+) is spending more than ... Search Engine Optimisation; however, wi
An ageing population The untapped potential for hospitality and leisure businesses
Contents 3
Section one: Introduction
12 Section three: The North West
4 5 6 7
UK consumer behaviour
13 Operators’ attitudes: The North West 14 Building relationships: The North West 15 Future plans for the North West
8
Section two: The sector’s perspective
Consumer attitudes Consumer loyalty The customer journey
9 Operators’ attitudes 10 Building relationships with consumers 11 Future plans for the sector
16 Section four: Strategies for success 17 Case study: Premier Inn 18 Key takeaways 19 About the author
Critical has taken every reasonable care in the preparation of the content of this research. All information that it contains is provided in good faith. We make no representations or warranties about the information provided through this research. Critical accepts no liability whatsoever for any for errors or omissions nor for any direct, indirect, special or other consequential loss or damage of whatever kind, resulting from whatever cause, through the use of any information obtained either directly or indirectly from this research.
2 of 19
Section one: Introduction Across the UK, a large opportunity exists for hospitality and leisure businesses to target consumers aged over 65; however, at present, much of this potential remains untapped. Expectations of businesses and consumers
Understanding the demographics
One fifth of UK income in the hospitality and leisure industry is generated from the over 65s; yet, only 5% of businesses operating within the sector consider over 65s to be their most important demographic in terms of revenue, with many focusing on 35-44 year olds instead.
Those aged 18-34 rated products and services highest, while consumers aged 55 and over provided the lowest ratings. Products and services that are tailored to a specific age group received lower ratings, with the older age groups again marking these services lower.
65+
This age group is spending more than others across a broad range of UK hospitality and leisure services.
Despite this contradiction, one quarter of businesses recognise that the proportion of turnover received from over 65s has increased in the last five years and 86% expect their turnover amongst this age group to increase or remain the same. Evidence suggests that with high levels of disposable income and more free time, the older demographic (65+) is spending more than other age groups across a broad range of UK hospitality and leisure services.
It is encouraging to read that 94% of businesses believe they are engaged or highly engaged with the over 65s; however, in light of the above consumer statistics, it appears there is still some work to be done by hospitality and leisure businesses hoping to fully benefit from the power of the ‘Grey Pound’.
The digital revolution There is clear evidence that consumers across all age groups are using digital channels more than they were five years ago to search for information about the products and services in the sector.
Companies are using digital media more than they did five years ago, mainly via social media, their own websites and Search Engine Optimisation; however, with those aged 65 years and over more likely to access traditional channels than other age groups – including editorial placements and print advertising – the sector’s digital revolution may be moving too quickly for its more senior audience. Our research covers a sample of 564 UK hospitality and leisure businesses across leisure, food and drink, travel, hotels and professional sports, as well as 1,100 consumers of varying ages, incomes and geographies across the UK. By exploring the thoughts of customers and businesses alike, we hope to highlight the industry’s attitudes towards different audience demographics and demonstrate how hospitality and leisure operators can find opportunities to target their markets more effectively.
Internet search engines and online customer reviews have seen the highest level of growth, whilst in-shop travel agents and traditional TV and print advertising have experienced the least.
Mike Saul Head of Hospitality and Leisure
3 of 19
UK consumer behaviour The average consumer spends £2,486 on hospitality and leisure services per annum. In 2014, those aged over 65 spent significantly more than any other age group, with an average expenditure of £3,372. Perhaps unsurprisingly, meals from restaurants and bars are the most frequent services purchased in 2014 by all age groups. The oldest consumer group spends the most on all frequently used services, particularly when it comes to international holidays, whilst middle-aged consumers tend to spend more on professional sport, UK holidays, the gym and theme parks – the latter perhaps, a result of this age group being most likely to have small children.
Our youngest age group is using a diverse range of services, with particularly high usage of services such as UK holidays (36%), health clubs (36%), theme parks (33%) and golf clubs (12% – only 7% for 65+). Interestingly, consumers over 65 years old show significantly less interest in professional sports, with only 17% engaging with this sub-sector in 2014, as opposed to 32% of 18-34 year olds.
Average expenditure (£) on hospitality and leisure services in 2014 by age group
Average expenditure (£) per person on each service in 2014 by age group, of those using each service Age 18-34
Age 35-54
Age 55-64
Age 65 and over
353
466
499
556
76
105
111
133
507
640
545
878
1,672
3,187
3,438
5,419
Watched professional sport
147
276
202
173
UK holiday
275
563
523
527
Health club or gym
188
378
367
284
Gambled (high street or online)
248
515
292*
578*
Visited a theme park
97
231
99*
396*
Paid to play golf
61
182
160
423
125
256
109
216
Bought food from a restaurant/bar
1,626
Visited cinema or theatre
3,372
UK hotel Booked a holiday abroad using a UK travel operator
Hospitality and leisure
2,469 Age 18-34
Age 35-54
Age 55-64
Age 65 and over
2,664
Other activity
?
*Warning low base size (
