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The leisure and travel franchises in the UK are enjoying continued growth even though pressures on disposable incomes are rising. Despite that many negative factors have been closely correlated to the performance of the leisure and travel franchise industry, UK consumers continue to increase spending in both sectors.
In the UK we are facing many uncertainties that are shifting consumer confidence and market performance across many industries. Despite this, leisure and travel franchises have continued to see a year-on-year increase in spending across the majority of categories. According to Deloitte's industry reports on the leisure and travel market, the biggest winners since Q3 last year have been:
With the disturbing world events we are seeing today and the falling value of the sterling, it is forecasted the we shall see a rise in domestic travel within the UK. To the surprise of some, this hasn’t appeared to come at the expense of travelling overseas. With big cost items such as holidays still experiencing year-on-year growth, consumers are choosing to prioritise travelling over other discretionary purchases.
Leisure and travel franchises are enjoying this growth mainly due to the continued interest from 18-34 year old’s that refuse to cut back on spending for items such as culture, entertainment and holidays. To the surprise of many UK consumers, holidays are still performing well and are expected to see continued growth. We are expected to see the highest rate increase across all categories for spending on holidays compared Q1 last year.
The trends that are impacting the leisure and travel franchise market are both positive and negative. We are expected to experience an increase in travel prices and interest rates which will result in higher levels of personal debt and lower spending on discretionary purchases. Even though this looks like it would negatively impact leisure and travel franchises, it is forecasted that most categories within this industry will continue to stay strong or even Improve.
This is happening due to UK consumers deciding that they would rather use what disposable income they have on leisure and travel activities over other discretionary purchases. However, with lower disposable incomes, UK consumers are shifting towards lower cost holiday locations and/or hotels to ensure they still enjoy travelling each year whilst fitting it in their budget.
GDPR and Brexit are two topics that will impact most UK industries and the leisure and travel franchise market will be no different. GDPR is creating the need for travel franchises to update and improve their current methods for the collecting and sharing of data. Whilst Brexit will impact the movement of people and aircraft. Both will require franchise owners to review their current methods of working and forecasting but depending on the Brexit agreement signed, the outcome may not have a massive effect for this market.
Starting a new franchise opportunity requires a certain mindset as even though you have the benefit of a tried and tested model, it will be hard work where you need to drive yourself to see success. Due to the large number of leisure and travel franchises in the UK, there is also high variance in what would be the perfect franchisee. We have compared many franchises in this industry to collaborate the most common and sought-after traits for a leisure or travel franchisee. The common ideal traits for a franchisee are:
The reason why many people are interested in the leisure and travel franchise market is due to the flexibility and rewards possible from this industry. The minimum investment cost for these franchises range massively but they do offer a great return on investment. What makes them different from most industries is that many offer flexible working conditions, such as:
The other perks that are driving aspiring franchisees to apply to leisure or travel franchises are:
If this sounds like something that would interest you, then you should take a closer look at the Industry - Leisure & Travel Franchises UK