Within the restaurants and bars sector, we believe that, while consumers may reduce
spend, they will be reticent to trade down on quality. Many will instead reduce the frequency
of meals and drinks out of home, rather than diminishing the quality of the experience,
focusing on special occasions, especially for consumers in lower income brackets.
Consumers also told us that they spent far less in 2023 on travel and holidays than they
did in 2022, despite our World In Motion travel study from Q1 2023 suggesting a more
bullish approach to spend in this category this year. For example, 40% of UK respondents
indicated they would spend more in 2023 (only 9% indicated less). However, our latest
data indicates that 44% actually spent less vs. 2022, while only 20% increased spending.
The data also anticipates a further net spend reduction in travel in 2024. 35% of
all consumers plan to spend less on travel than they did this year, with 26% expecting
to spend more.
For those who say they'll spend less next year travelling, we believe cutbacks will take
two key forms - the number of trips per year and the distance travelled. However, as with
restaurants and bars, when respondents do travel, they may sacrifice frequency but will
not compromise on quality.
This is important because operators must build and promote a clear identity to offer
a high-quality experience or great value for money - those in the squeezed middle are
unlikely to benefit as customers prefer to double down on dependable operators rather
than trade down.
3.17%
13.91%
40.42%
22.91%
19.59%
4.22%
18.10%
47.73%
20.38%
9.57%
8.29%
19.72%
47.78%
18.05%
6.16%
Do you plan to spend 'less', 'the same' or 'more' in the following shopping areas next year?
PLANNED 2024 LEISURE SPEND ACROSS INCOME
CATEGORIES: Out-of-home entertainment | Home entertaiment | Restaurants and bars | Travel and holidays
Low income Medium income High income
Much less Less The same More Much more
While frequency of spend may suffer,
consumers will still be less willing to trade down
or compromise on precious occasion- and
experience-driven moments."
- BEATRIX MORATH, GLOBAL CO-LEADER, EMERGING INDUSTRIES
The Critical Consumer 2024 12