Prime Advantage Advisory
Prime Advantage Advisory
Sports and Hospitality
Sports and Hospitality – Sector Overview
The Sports and Hospitality industry is a broad category of fields within the service industry that includes lodging, event planning, theme parks, cruise lines, and additional fields within the tourism industry. The industry is a multi billion pound one that depends on the availability of leisure time and disposable income and includes enterprises that provide accommodation, meals and drinks in venues outside of the home.
The sector employs around 2.9million people, equivalent to 9% of total UK employment, and accounted for 17% of net employment growth in the UK between 2010 and 2014, becoming the fourth biggest industry in terms of employment and contributing £57 billion to UK GDP in 2014.
The industry faces challenges in attracting the limited disposable income of individuals, families and other groups. In what is a saturated market, gaining competitive advantage and offering a unique proposition to consumers is essential. Central to delivering unique propositions is the customer experience factor: customers will ‘vote with their feet’ when dissatisfied with the experience or quality on offer.
Delivering a quality experience can be a challenge in itself with high staff turnover leading to constant reinvestment in training front-line teams. For some, a career in hospitality is seen to be a ‘stopgap’ meaning that the attraction and retention of top talent is difficult, with major brands attracting such employees with their high levels of brand recognition and affinity. Investment in facilities, both front- and back-of-house, is essential in delivering services as often equipment, technology and infrastructure are at the heart of the core proposition and without such items, the capability to do business is reduced to near-zero.
The industry, however, has a number of opportunities upon which it can capitalise. Expanding traditional out of home business into ‘hybrid’ in-out opportunities is available to many providers, particularly in the restaurant business where takeaway has become as important a revenue stream as diners-in and is no longer the preserve of the local chip shop or kebab house!
Additionally, the maximisation of guest visits is a key opportunity for any sports and hospitality business: generating additional revenue through up-selling, cross-selling and future buy-in can add significantly to the top and bottom line results.
Consistent branding, promotion and standards across outlets is also important to ensuring that consumers in this arena feel ‘comfortable’ in spending their money in familiar outlets no matter where they are in the UK. Consistency in delivery is an important customer retention strategy.