Why leisure operators should go premium
Higher income households spend almost three times more on recreation, culture, restaurants and hotels than those in lower income groups.
The 50% highest earning households in the UK spend on average £165 per week on recreation, leisure, restaurants and hotels compared to £57 per week from households in the lowest 50% income brackets. This increase is higher than similar comparisons for food, clothing or alcoholic drink, where top income groups only spend double compared to lower income segments (ONS).
Three quarters of spend on leisure activities is likely to come from higher income households. Leisure operators who offer a premium experience are more likely to appeal to this audience and this type of customer also has the funds to ‘trade up’ for the right service offer.
Add to this the trend of saving up for the weekend – when consumers are living on tight budgets during the week and then ‘treat’ themselves to premium experiences on the weekend and it is easy to see why leisure operators who offer premium experiences are more likely to be successful in the long term.