Leisure and Wellbeing
Leisure and Wellbeing Market Overview
The leisure industry is an extremely diverse sector of the economy, which is dominated by conventional uses of time such as hobbies, in-home entertainment, sports, cinema and all types of hospitality.
Many factors play in the economy of the industry, some being the increase in numbers of cash rich and time poor people, increases in the numbers of people within the 'grey market' band (over 55's) and an increase in people's personal disposable income (PDI).
Most, if not all, the businesses in this sector are people-orientated, with large staff numbers and people participation. Customer service and care are primary in this industry and this is what often differentiates competition.
It should be noted that the leisure industry is one of the first sectors to suffer any effects on the economy. Spending on luxury items or activities, which for many include leisure pursuits, is the first to be hit in any recession.
Hospitality
Over the past 23 years the hospitality sector has been badly hit by the combined effects of the global recession, the effects of September 11th 2001, the foot and mouth outbreak and the Iraq war.
However, with the help of marketing investment by the British Government and the British Travel Association, the current business numbers are predicted to remain static.
Start-up costs within this sector can be extremely high. A new restaurant for example, can have a large initial cost layout, due to the fixtures and fittings within. It can also be a highly risky industry, as customers are extremely fickle, craving continuous innovation, and new 'fads' can come and go in a very short period of time.
This sub-sector is highly dependent upon tourism, disposable income and the economy in general.
Sport and Health & Fitness
People desire healthier lifestyles and the health and fitness sector is a booming industry, with over 6000 health and fitness clubs (a majority of which are chains) across the UK.
Currently the UK has over 2.4 million members in private health and fitness clubs. Due to an increase in health awareness in the UK, many more people have said they would like to use one, but do not at the moment. This eagerness is helping to fuel an increase in business numbers.
Further, as the population becomes more 'cash rich and time poor', people want to make the most of their spare time.
A majority of UK adults claim to participate in some form of sport on a regular basis, with almost a fifth of the population exercising once a week.
Insurance concerns in this sector are liability led, mainly concerning sporting injuries.
Health and Wellbeing
The health and wellbeing sub sector is not as dependent upon the state of the economy, although donations to charities can be directly affected.
Numbers involved in the health businesses have seen a reduction in recent years, many due to mergers and acquisitions.
Care homes have been especially affected by recent Government legislation, introducing stricter working practices. Many have not been able to enforce these practices and therefore have had to close. Lack of Government funding has also had a negative impact.
The alternative therapy market has grown significantly, with surgery practices now also employing osteopaths, masseurs and homoeopathists as an alternative to standard medicines.
Other
This sub-sector can include a very wide range of activities, ranging from home entertainment, hobbies and pastimes and the Arts.
Home entertainment includes such activities as reading, gardening, PC use, audio and visual. In general this whole area is expanding due to the advancement, falling costs and availability of technology (e.g., surround sound entertainment systems and DVD's) and also due to the increased costs of leisure activities outside the home.
In summary
The leisure industry as a whole is in good shape, with the UK population spending more on their leisure time than ever before. However, the industry is very reliant on personal disposable income. Consequently, business activity can be affected at any time by a change (or perceived change) in the economic climate, for example a rise in (say) unemployment will have a clear effect but an individual's fear of losing their job will also affect their leisure spending - even if the reality of unemployment doesn't arise.
The industry is expanding in the number of activities available at any one time, due to the constantly demanding and fickle nature of the population. This in turn causes problems for businesses who need to be constantly ahead of the competition with innovative ideas, in order to retain their customer base.
Whilst the number of businesses within the well-being sector are reducing due to mergers and acquisitions, they are offering a wider variety of services, including alternative therapies. Care homes for the elderly are currently in turmoil due to the amount of new legislation being imposed, but the remaining businesses will be stronger and larger as a result.
