The Hospitality industry partially reopens and consumers go on a revenge – spending spree

The gradual easing of the Covid-19 restrictions and the hospitality sector partially reopening its doors after months of being shut is causing a surge in business.

The Hospitality industry partially reopens and consumers go on a revenge - spending spree

The Hospitality industry partially reopens and consumers go on a revenge - spending spree

The hospitality industry took a whacking and was hit the hardest by the global COVID-19 pandemic. The two lockdowns have brought immeasurable losses to the industry. The hospitality industry was forced to seek new and varied domestic segments and markets, focusing attention on promoting a safety-focused message in order to attract customers. Announcements of new and more dangerous variants of Covid-19 have only added to the struggles of this industry.

The gradual easing of the Covid-19 restrictions and the hospitality sector partially reopening its doors after months of being shut is causing a surge in business showing that consumer spending in hotels, restaurants and, pubs has increased dramatically in June. Customers are flocking to restaurants and pubs and are on a spending spree. After being cooped up for such a long time, customers are in a mad rush to dine out in a fancy restaurant with family or simply just grab a pint with their friends in a cozy pub. Reservations in restaurants are at an all-time high and the tills seem to be ringing incessantly.

According to a survey conducted, customers over the age of 65 recorded the biggest increase in hotel spending in June while those under the age of 25 recorded the smallest increase. The survey also noted that those under the age of 25 recorded the highest increase in spending in pubs while those between 35 and 44 recorded the smallest increase. Consumer spending is continuing to rise for restaurants that have reopened for outdoor dining as consumers prefer eating out to take-outs and ordering in food. Customers are choosing to use cards and digital wallets as compared to cash.

Even though COVID-19 will continue to shape the future of the hospitality sector, and it may very well take a long time for this industry to reach pre-pandemic profits, the trends seem to speak for themselves. There is a mutual need between businesses and consumers. This increase in consumer spending will be critical to the recovery of these businesses as we emerge from the pandemic and slowly return to normality.

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