Gen Z will party on despite rising costs
The sector report analysed the impact the cost-of-living crisis will have on UK’s late night leisure and hospitality industry.
More than a third (35%) of Brits said increased prices meant they would significantly reduce the amount they go out, as total night out spending rises to £73.36 from £68.03 in March.
What’s more, nearly half (46.4%) of respondents said they had a rough idea of how much they wanted to spend in total per month and 16.7% said they had a fixed amount in mind for the month that they didn’t exceed. More than two fifths (43.5%) identified pricing as one of the top factors to consider when deciding where to go on a night out.
Don't stop the music
However, Rekom UK’s spend per had has increased by 16.5% over the past three months. The survey showed students to be the highest demographic of society that go out two to three days a week (33.2%) compared to full time workers (18.7%). 18 to 24-year-olds are staying out the longest, with the data showing an average night out for a Brit lasts just under five hours.
Rekom UK chairman Peter Marks said: “Clearly people are starting to consider the impact the cost-of-living crisis will have on their social lives and are putting budgets in place when planning a night out. However, I have confidence in the fact that while financial behaviours are changing, social habits are not.
“We know that as a nightclub business, we will remain resilient if we continue to prioritise well-invested propositions that are good value and relevant to our target audience. Because of this, our nightclubs continue to see a strong surge in attendance.”
This aligns with the CGA Business Confidence survey, which reported younger consumers are the strongest returners to the sector, given they are less likely to be susceptible to higher energy consumption costs and have no major financial burdens like owning a property.
Saving money
When it comes to cost-cutting, 18 to 24 year olds are adjusting their budgets mostly in how they prepare for a night out. 43.4% said they would pre-drink at home more, 38.2% will buy cheaper drinks to have at home at 29.4% will cut down on clothes shopping as well as hair and beauty treatments ahead of a night out.
The report also highlighted the average duration of a night out has increased to four hours 35 minutes from four hours 17 minutes in March 2022.
What’s more, women spend much longer than men on a late night out, at five hours 6 minutes versus four hours and 37 minutes, according to the data.
Furthermore, 66.8% said spending time with friends was the main reason consumers opted to go on a late night out.
Marks believed the survey was an “important reminder” that hospitality should prepare for consumer habits to change.
“It’s natural against the backdrop of a looming recession that people will choose to cut costs, but we must remember that people will always want to prioritise socialising with friends and come together to enjoy fun, shared experiences,” he said. “If we continue to foster that clear enthusiasm for a night out, we will evolve and become stronger for it.”
