Visitor Attractions - What Lies Next?

2021 was a record year for the UK visitor attraction market. However there have been multiple challenges this year with a very wet spring, exhausting summer heat and the alternative attractions of the Jubilee and Commonwealth Games in addition to the recovery of sports, shows and festival events. Whilst staycations remain strong in the UK, visitor attractions are experiencing lower trading than 2019 (on average by 30%) and with headlines about recession, increased fuel prices, and a cost of living crisis is there cause for concern?

A quick review of a Visit Britain survey from 2008 demonstrates the response from consumers the last time we had a recession:

• more thought given to money and expense;
• more research and investigation of internet sites and comparison sites before spend;
• general movement to looking for deals, and not wasting;
• groups most likely to cut back included families and under 35 year old’s, those least likely including empty nesters and 55 + year old’s;
• most affected were low value frequent purchases, whereas less than half (45%) were cutting back on holidays, breaks and day trips;
• a real sense that holidays are no longer a luxury but a necessity and become more important in times of difficulty;
• quality of experience becomes vital;
• likely to lead to a reduction in spontaneity of trips, reduction in frequency of trips and reduction in duration, to ensure those taken are quality.

All of these conclusions are likely to ring true again as we enter a difficult autumn. However, has the culture of the UK changed to solve some of these issues – or will more arise?

For visitor attractions, including those with an accommodation offering, there are still grounds for positivity. In order to weather the potential headwinds, operators will need to respond with more management efficiencies over the coming months and the year ahead.

In order to promote themselves in these difficult times, attractions need to ensure that they are able to keep up with the wants of their customer base. UK culture is changing with experiences being sought in preference to consumable goods and customers being more aware of their environmental footprint (some attractions, such as Blenheim Palace, have started measuring their carbon footprint and offering visitors the option to offset their journey) - operators need to be able to be flexible.

Considering consumer feedback is one of the ways that an operator may be able to do this, giving an opportunity to the operator to identify how to enhance their facilities to provide a better experience and to ensure that they stand out in a way which is stimulating, and grabs the eye spontaneously. Promotion of sustainable practices should convince the reader that there is no guilt barrier in undertaking the activity, whilst demonstrating value for money – in the wider context, this should support the ethos established in the Environment, Social and Governance agenda and an additional reason for the public to think beyond their own immediate needs.

The Museums Association has already published a statement about the cost of living crisis, noting its deep concerns regarding poorly paid workforces who will be impacted by inflation – taken together with rapidly increasing costs and the impact on visitor numbers this makes depressing reading for commercial operators. They suggest that museums with free entry or a year round pass or model may see an increase in use by the public, which was demonstrated back in 2009-2010, including a rise in subscriptions to the National Trust and English Heritage. Nonetheless research in the sector also suggests there remains demand for premium, quality offerings. The cost of living crisis will not affect all audiences equally.

Currently there seems limited hope that there will be government intervention or support for this sector (although lobbying for a reduced VAT rate continues) and therefore operators may be able to take lessons from the Covid-19 pandemic. In this difficult time, many operators scrutinized their costs as revenue fell, and service, quality and atmosphere at attractions became key. Equally, the comfort of knowing that value in this sector is a long term game, which considers the maintainable long term average of profitability and not the blips along the way should provide some reassurance.