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Hospitality businesses overlook spending power of the older generation

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Hospitality & leisure businesses are missing out on at least £16 billion of extra revenues by underestimating the spending power of the older generation, says a report from Barclays Corporate Banking. Although 41 per cent of businesses in the sector in the East of England are expecting the over 65s to spend more in the next five years, more than half (59%) have no plans to introduce any products or services aimed at them. The report, An ageing population: the untapped potential for hospitality and leisure businesses , says the over 65s spend more on hospitality and leisure than any other generation, adding £37 billion to the UK economy. Jane Galvin, managing director, corporate banking at Barclays Eastern region, said: “There appears to be a gulf between the perception and reality of the spending power of over 65s.  By not fully focusing on the needs of this generation, and the revenue growth opportunity they represent, businesses may risk missing out on their share of £16 billion.

“In the East of England, we have found that 31% of businesses in the sector expect that the proportion of their turnover generated by over 65s will increase over the next five years. Yet very few businesses are planning to introduce any products or services aimed at the currently ‘overlooked generation’. By investing in targeting these customers now, businesses can pre-empt the effects of an ageing population, ensuring they are able to meet and capitalise on the increasing demand.”

Investment within the industry

The report also reveals that the vast majority of hospitality and leisure businesses in the East of England are planning to invest in their businesses in the next five years. Eight out of 10 businesses (83%) are planning to invest money in the next five years with 22% planning a major investment. However, only 13% of the planned investments will be used to meet the needs of the over 65s.

Research and booking: a digital pursuit

With less than one in 10 (8%) over 65s visiting travel agents in shops when looking for information on products and services, the use of digital tools is becoming increasingly important for over 65s planning their leisure time. When looking for information on products and services the first port of call for the over 65s is the internet. 58% of over 65s use search engines, 35% of them turn to online customer reviews and 15% use online travel agents.

Last Updated ( Friday, 25 November 2016 07:54 )