Table of Contents
Issues in the Market
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- Main issues:
- Definition
- Abbreviations
Future Opportunities
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- Tuning in to older consumers
- The demise of mass marketing?
Market in Brief
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- Value slips in 2009 but still a near-£70 billion industry
- Pubs/bars, restaurants and gambling dominate
- Cultural leisure outperforms the rest of the market…
- … while family leisure struggles as secondary spend takes a hit
- GDP and consumer confidence recoveries falter?
- The shadow of unemployment still looms
- Recession increases emphasis on value
- Population trends to benefit youth-oriented leisure most
- Legislative burden grows…
- … as overheads increase adds to operators’ worries
- Private equity – the rise and fall…
- … as pre-packs and debt-for-equity swaps become more prevalent
Internal Market Environment
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- Key points
- Trends in leisure participation
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- Figure 1: Trends in leisure activities, 2005-09
- Eating out retains appeal
- Cinema prospers in recession
- Pub/bar drinking on the wane
- Theatres and concert-going boosted
- Culture on the up
- Theme parks continue to expand appeal
- Clubbing loses its shine
- Leisure centres serving youth and families
- TV boosts zoos and wildlife parks
- Live sports slide
- Tenpin hit by downturn
- Young affluent profile for health clubs
- Legislation and regulation
- Planning
- Out-of-town developments slow to a trickle
- Town centres greater efficiency…
- … but don’t suit everybody
- Overhead increases
- Staff
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- Figure 2: Trends in the National Minimum Wage compared to the retail price index, 2004-09
- Food and utilities
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- Figure 3: Trends in food prices compared to all retail prices*, 2004-09
- Figure 4: Trends in utility prices* paid by non-domestic consumers, 2004-09
- Business development trends
- The rise of private equity
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- Figure 5: Examples of private equity ownership in the leisure industry, December 2009
- Sale and leaseback popularity on the wane
- The rise of the phoenix or ‘pre-pack’ from the ashes…
- … while debt-for-equity swaps give lenders unwelcome exposure to the leisure industry
Broader Market Environment
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- Key points
- The ‘R’ word
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- Figure 6: Trends in selected areas of discretionary expenditure, at current and constant prices, 1989-94
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- Figure 7: Trends in quarterly GDP change, 2004-09
- Figure 8: GDP, PDI, consumer expenditure and savings, at constant 2004 prices, 2004-14
- Consumer confidence dips again after recent increases
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- Figure 9: Trends in consumer confidence, 2008-09
- Unemployment plays on consumers’ minds
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- Figure 10: UK unemployment rates (seasonally adjusted), 2004-09
- Figure 11: UK unemployment rates, by age band (seasonally adjusted), June-August 2009
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- Figure 12: Agreement with statements about changes in employment situation in past year, July 2009
- Recession increases emphasis on value but service quality still paramount
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- Figure 13: Agreement with statements about impact of recession on leisure behaviour, July 2009
- Population trends set to benefit youth-oriented leisure most
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- Figure 14: Trends in the age structure of the UK population, by gender, 2004-14
- Figure 15: Forecast adult population trends, by lifestage, 2004-14
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- Figure 16: Forecast adult population trends, by socio-economic group, 2004-14
- Figure 17: UK household sizes, 2004-14
Market Size and Segmentation
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- Key points
- Industry value slips in 2009
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- Figure 18: Value of the UK leisure* business, 2004-09
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- Figure 19: Trends in value of UK leisure business, 2004-09
- Pubs and restaurants dominate
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- Figure 20: Value of the UK leisure* business, by segment, 2004-09
- Gambling now part of mainstream
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- Figure 21: Value of the UK leisure* business, by segment, 2009
- The winners and losers: long-term
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- Figure 22: Growth rates for leisure* industry sectors, 2004-09
- The winners and losers: short-term
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- Figure 23: Growth rates for leisure* industry sectors, 2008-09
Companies and Products
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- Key points
- Major players
- Luminar Group Holdings plc
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- Figure 24: Luminar Group Holdings plc – financials, 2005-09
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- Figure 25: Luminar Group Holdings plc, sales by brands, 2007/08 and 2008/09
- Merlin Entertainments Group Ltd
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- Figure 26: Merlin Entertainments – key financials 2007-08
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- Figure 27: Merlin Entertainments revenue and visits, by business segment, 2007 and 2008
- Odeon Cinemas
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- Figure 28: Odeon and UCI cinemas group – key financials 2004-08
- The Rank Group plc
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- Figure 29: The Rank Group – key financials 2004-08
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- Figure 30: Performance of The Rank Group’s businesses in the UK, 2008
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- Figure 31: Performance of The Rank Group and its businesses in the UK, H1 2009
- Tate Gallery
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- Figure 32: Tate Gallery – key financials 2005-09
- Virgin Active
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- Figure 33: Virgin Active – key financials 2004-08
- JD Wetherspoon plc
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- Figure 34: JD Wetherspoon plc – key financials 2005-09^
- Whitbread plc
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- Figure 35: Whitbread plc – pub restaurant key financials 2005/06-2008/09
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- Figure 36: Costa Coffee – key financials 2004/05-2008/09
- Zoological Society of London
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- Figure 37: ZSL Group – key financials 2004-08
Leisure Participation
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- Key points
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- Figure 38: Frequency of activities at leisure time, July 2009
- A nation of Lotto players
- Eating and drinking feature heavily in leisure portfolios
- Video games: An opportunity for leisure operators?
- Cinema very popular but small proportion go regularly
- Accessibility the key for public leisure centres
- Cultural leisure is an occasional activity
- Live sport like Yorkie: Not for girls?
- Bingo’s narrow appeal
- Age: as an influence on leisure participation
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- Figure 39: Regular participation in leisure activities, by age, July 2009
- Figure 40: Most popular regular leisure activities, by other regular leisure activities, July 2009
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- Figure 41: Next most popular regular leisure activities, by regular leisure, July 2009
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- Figure 42: Other regular leisure, by regular leisure activities, July 2009
The Impact of the Recession on Leisure
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- Key points
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- Figure 43: Spending intentions towards leisure activities in coming year, July 2009
- Pubs/bars
- Restaurant or pub
- Cinema-going
- Public leisure centres
- Private health and fitness clubs
- Theatre-going
- Bingo
- Nightclubs
- Museums and galleries
- Live sports events
- Betting shops
- Lottery (Lotto)
- Video games
- Tenpin bowling
- Music concerts/festivals
- Zoos and wildlife parks
- Theme parks
Factors Influencing Leisure Choice
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- Key points
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- Figure 44: Factors influencing the choice of leisure venues visit regularly or occasionally, July 2009
- Choosing a restaurant or pub to eat in
- Choosing a pub/bar to drink in
- Choosing a cinema
- Choosing a public leisure centre
- Choosing a health and fitness club
- Choosing a theatre
- Choosing a bingo club
- Choosing a nightclub
- Choosing a cultural venue
- Choosing a live sporting event
- Choosing a betting shop
- Choosing the Lottery (Lotto)
- Choosing video games
- Choosing tenpin bowling
- Choosing music concert/festivals
- Choosing zoo/wildlife parks
- Choosing a theme park
Leisure Habits
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- Key points
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- Figure 45: Statements on leisure time and visiting leisure venues, July 2009
- An eye for a deal…
- … but customers still expect good service
- Brand values important for a third
- Spend, particularly secondary spend, being cut back
- Other recession-driven behaviours impacting on leisure
- Four in ten unaffected by recession
Leisure Targeting Opportunities
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- Key points
- Activities people have cut back on already
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- Figure 46: Spending intentions – number of leisure activities already cut back, July 2009
- Figure 47: Spending intentions – number of leisure activities already cut back, by type of activity, July 2009
- Target groups
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- Figure 48: Leisure industry target groups, July 2009
- Recession-hit (58% of internet users aged 16+ or 22.9. million adults)
- Recession-resistant (38% of internet users aged 16+ or 15.0 million adults)
- Disinterested (4% of internet users aged 16+ or 1.6 million adults)
- Recession-resistant most likely to eat out
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- Figure 49: Regular activities undertaken in leisure time, by target groups, July 2009
Appendix – Leisure Participation – Detailed Demographics
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- Figure 50: Most popular leisure activities, by demographics, 2009
- Figure 51: Other leisure activities, by demographics, 2009
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- Figure 52: Most popular regularly participated in activities, by demographics, July 2009
- Figure 53: Other regularly participated in activities, by demographics, July 2009
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- Figure 54: Least popular regularly participated in activities, by demographics, July 2009
- Figure 55: Most popular occasionally participated in activities by demographics, July 2009
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- Figure 56: Other occasionally participated in activities, by demographics, July 2009
- Figure 57: Least popular occasionally participated in activities, by demographics, July 2009
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- Figure 58: Least popular activities (not participated in during the last year), by demographics, July 2009
- Figure 59: Second least popular activities (not participated in during the last year), by demographics, July 2009
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- Figure 60: Third least popular activities (not participated in during the last year), by demographics, July 2009
- Figure 61: Leisure activities least likely to be participated in, by demographics, July 2009
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- Figure 62: Leisure activities second least likely to be participated in, by demographics, July 2009
- Figure 63: Leisure activities third least likely to be participated in, by demographics, July 2009
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Appendix – The Impact of the Recession on Leisure – Detailed Demographics
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- Figure 64: Spending intentions towards drinks in pubs/bar in the coming year, by demographic sub-group, July 2009
- Figure 65: Spending intentions towards eating out at a restaurant or pub in the coming year, by demographic sub-group, July 2009
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- Figure 66: Spending intentions towards going to cinema in the coming year, by demographic sub-group, July 2009
- Figure 67: Spending intentions towards using a public leisure centre in the coming year, by demographic sub-group, July 2009
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- Figure 68: Spending intentions towards using a private health and fitness club in the coming year, by demographic sub-group, July 2009
- Figure 69: Spending intentions towards going to the theatre in coming year, by demographic sub-group, July 2009
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- Figure 70: Spending intentions towards going to a bingo hall in the coming year, by demographic sub-group, July 2009
- Figure 71: Spending intentions towards going to night club in the coming year, by demographic sub-group, July 2009
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- Figure 72: Spending intentions towards visiting a cultural venue in the coming year, by demographic sub-group, July 2009
- Figure 73: Spending intentions towards attending live sports events in coming year, by demographic sub-group, July 2009
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- Figure 74: Spending intentions towards going to a betting shop in the coming year, by demographic sub-group, July 2009
- Figure 75: Spending intentions towards playing Lotto in the coming year, by demographic sub-group, July 2009
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- Figure 76: Spending intentions towards playing video games in the coming year, by demographic sub-group, July 2009
- Figure 77: Spending intentions towards going to tenpin bowling in the coming year, by demographic sub-group, July 2009
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- Figure 78: Spending intentions towards going to music concerts/festivals in the coming year, by demographic sub-group, July 2009
- Figure 79: Spending intentions towards visiting a zoo/wildlife park in UK in the coming year, by demographic sub-group, July 2009
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- Figure 80: Spending intentions towards going to a theme park in the coming year, by demographic sub-group, July 2009
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Appendix – Factors Influencing Leisure Choice – Detailed Demographics
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- Figure 81: Factors influencing the choice of eating out at a restaurant or pub, by demographic sub-group, July 2009
- Figure 82: Factors influencing the choice of drinking in pubs/bar, by demographic sub-group, July 2009
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- Figure 83: Factors influencing the choice of going to the cinema, by demographic sub-group, July 2009
- Figure 84: Factors influencing the choice of using a public leisure centre, by demographic sub-group, July 2009
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- Figure 85: Factors influencing the choice of using a private health and fitness club, by demographic sub-group, July 2009
- Figure 86: Factors influencing the choice of going to the theatre, by demographic sub-group, July 2009
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- Figure 87: Factors influencing the choice of going to a bingo hall, by demographic sub-group, July 2009
- Figure 88: Factors influencing the choice of going to night club, by demographic sub-group, July 2009
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- Figure 89: Factors influencing the choice of visiting a cultural venue, by demographic sub-group, July 2009
- Figure 90: Factors influencing the choice of attending live sports events, by demographic sub-group, July 2009
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- Figure 91: Factors influencing the choice of going to a betting shop, by demographic sub-group, July 2009
- Figure 92: Factors influencing the choice of playing Lotto, by demographic sub-group, July 2009
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- Figure 93: Factors influencing the choice of playing video games, by demographic sub-group, July 2009
- Figure 94: Factors influencing the choice of going to tenpin bowling, by demographic sub-group, July 2009
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- Figure 95: Factors influencing the choice of going to music concerts/festivals, by demographic sub-group, July 2009
- Figure 96: Factors influencing the choice of visiting a zoo/wildlife park in the UK, by demographic sub-group, July 2009
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- Figure 97: Factors influencing the choice of going to a theme park, by demographic sub-group, July 2009
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Appendix – Leisure Habits – Detailed Demographics
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- Figure 98: Most popular statements on leisure time and visiting leisure venues, by demographic sub-group, July 2009
- Figure 99: Next most popular statements on leisure time and visiting leisure venues, by demographic sub-group, July 2009
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- Figure 100: Most popular statements on leisure time and visiting leisure venues, by regular leisure activities, July 2009
- Figure 101: Next most popular statements on leisure time and visiting leisure venues, by regular leisure activities, July 2009
- Figure 102: Other statements on leisure time and visiting leisure venues, by regular leisure activities, July 2009 (continued)
- Figure 103: Most popular statements on leisure time and visiting leisure venues, by occasional leisure activities, July 2009 (continued)
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- Figure 104: Next most popular statements on leisure time and visiting leisure venues, by occasional leisure activities, July 2009 (continued)
- Figure 105: Other statements on leisure time and visiting leisure venues, by occasional leisure activities, July 2009 (continued)
- Figure 106: Most popular statements on leisure time and visiting leisure venues, by activities at leisure time – not in last year, July 2009 (continued)
- Figure 107: Next most popular statements on leisure time and visiting leisure venues, by activities at leisure time – not in last year, July 2009 (continued)
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- Figure 108: Other statements on leisure time and visiting leisure venues, by activities at leisure time – not in last year, July 2009 (continued)
- Figure 109: Number of activities already cut back on, by demographics, July 2009
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Appendix – Leisure Targeting Opportunities
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- Figure 110: Statements on leisure time and visiting leisure venues, by target groups, July 2009
- Figure 111: Target groups, by demographic sub-group, July 2009
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