Page 36 - December 2021 / January 2022

RLI INDUSTRY INSIGHT

2021: A Year in Review

Richard Hurd-Wood, CEO of Virgin Experience Days takes some time out of his schedule to
discuss 2021 and how the past 12 months have been for the experience sector and what the
next 12 months might look like.
2021 started without the usual festivities that welcome most spend grow for the first time since the pandemic began, signalling the
New Years in. After the broken promise of a Christmas with friends rising popularity of UK staycations and growing consumer confidence
and family, the New Year began in much the same way that 2020 as the population regained more and more freedoms.
ended: with many isolated from loved ones. Covid-19 cases spiked Q3: Summer Of Freedom
and hospitalisations reached record highs in January as the UK was With all restrictions now removed and Covid case-levels mostly
plunged into another strict lockdown. remaining low as the UK progressed its vaccine rollout among
However, the 2021 lockdown was different. The vaccine rollout younger demographics, consumer confidence grew apace.
was on the horizon, with the promise of better times ahead under In February, the Bank of England’s Chief Economist predicted that
the government’s roadmap. After a Christmas experience most UK households would amass ‘accidental savings’ of £250bn by July
wouldn’t want to repeat, people were eager to re-connect with loved and, like a ‘coiled spring’, would be ready to spend again with the
ones. Without doubt the easing of restrictions over the subsequent hospitality and tourism sector among the primary beneficiaries.
months shaped a resurgent year for the experience economy. Buoyed by major sporting events and the summer holidays,
Although some hospitality and tourism businesses sadly succumbed consumer confidence surpassed pre-pandemic levels for consecutive
to the financial pressures of the pandemic, many survived and went on months in August, according to data from research company GfK.
to make a success of the sector’s impressive recovery and the public’s The results of the survey, which tracks consumers’ sureness in
appetite to create ‘new memories’ and support small businesses as their personal finances, reflects the pent-up savings and increased
they did it. 2021 has shown the incredible resilience of the nation’s consumer spend.
small businesses, from cookery schools and microbreweries to Q4: The Festive Feeling Returns
flight schools. Consumer confidence has remained high this Autumn and Winter,
Q1: The Lockdown and the sector has been resilient in the face of rising cases. However
With strict lockdown measures still in place, experience providers new challenges have emerged in the shape of ongoing driver and
remained resilient in a challenging market, showing dynamism and stock shortages, as growing global demand has put a strain on supply
creativity to pivot their offering and focus people on better times chains and led to rising inflation.
ahead. A mix of tangible gifts, virtual experiences such as online Despite this, the sector can be optimistic for a far more successful
escape rooms and home learning courses, including photography and Christmas this year than 2020, with consumers eager to make up for
cocktail making, remained popular. lost time and enjoy a first festive season without restrictions in two
Businesses also had to manage their customer services carefully years. To capitalise, businesses in the sector are advised to reassure
to survive, providing extensions on experiences where possible in customers by adapting their venues to the post-pandemic world,
case of a pandemic-related cancellation. Offering flexibility helped ensuring they are as Covid-safe as possible without impacting on the
to keep consumers engaged and gave them confidence to continue quality of the experience. The gifting sector has always been resilient,
purchasing traditional experiences. but consumers are demonstrating a sustained appetite for diverse
On 22nd February 2020, the government gave specific dates for experiences – from dining out to spa breaks.
its four-step roadmap to ease restrictions across England, starting 2022 and Beyond
on 12th April and ending in June. We saw an immediate impact in The start of 2022 promises to be very different for the leisure
consumer confidence and the experience sector’s recovery: retail and gifting sector than the start of this year, and businesses can
sales rose by 5.4 per cent in March, supporting a record quarterly remain hopeful that the momentum gained throughout 2021 can
rise in consumer confidence in the first three months of 2021, be maintained. Although the threat of lockdowns appears to have
according to the Deloitte Consumer Tracker - a sign of more positive subsided, new challenges await. Businesses have shown extraordinary

days ahead. innovation and flexibility to adapt successfully and thrive. The
Q2: The Light At The End Of The Tunnel experiences of the pandemic can ensure they make as much and
By Q2 2021, consumers were desperately seeking escapism from more of a success of the New Year as they have this year.
the drudgery of lockdown and were eager to support local businesses
and rediscover experiences with friends and family – even if under
slightly different circumstances than normal.
This pent-up demand saw significant consumer spending rises once
restrictions lifted. According to data from Barclaycard, consumer
spending grew 0.4 per cent in April compared to the same period
in 2019, rising to a 7.6 per cent increase in May, and an 11.1 per
cent increase in June. The incremental increases in spending month-
on-month demonstrate the economic impact of the lockdown as
restrictions were gradually eased.
By June, fuel, hotels, resorts and accommodation all saw consumer

36 RETAIL & LEISURE INTERNATIONAL DECEMBER 2021 / JANUARY 2022