As a retailer at least partially dependant on tourism income, what can you expect this summer season? Let’s have a look!
To start with, international travel is increasingly back on the cards as Covid restrictions are widely pruned. For inbound tourism, VisitBritain has forecasted a 2022 increase to 21.1 million visits, accompanied by £16.9 billion in tourism spending. (That’s 52% and 59% of visits and spending from 2019.) Recovery finally seems to be picking up, with numbers anticipated to reach two thirds of pre-COVID levels by the end of the year.
Europe, North America and the Middle East are set to remain the biggest source of inbound visits, while Eastern Asia continues to lag behind.
The spend per visit may continue to remain higher than normal due to longer stays. The rise of slow travel and remote working are supporting this trend, in addition to inflation.
Apparently almost half of holidaymakers plan to continue staycations until the pandemic is over, or at least until the end 2022. With Gen Z (10 - 25-year-olds) spending close to £500 on an average staycation, and millennials following close behind, it’s definitely good news for small businesses.
However, a word of caution that rising domestic prices may deter some staycationers. With international travel opening up again, domestic tourists may have access to more competitive package holidays abroad. Outbound holiday operators could draw back customers rapidly.
Businesses should consider their location’s long-term attractiveness for domestic tourists, especially in more off-beat locations where they are unlikely to be entirely replaced by international visitors.
Popular tourist towns that have been inundated - like Bamburgh in England - indicate why staycationers are often keen to get off the beaten track to avoid crowds and queues. This has benefited local retailers that don’t usually see as much tourist income.
Retail businesses are a crucial part of destinations adapting to ensure that holiday makers enjoy and recommend the location, helping boost long-term popularity. Adapting stock offerings to meet the needs of tourists will help maximise opportunities. Understanding your audience demographic, their preferred price points and tastes will have a huge impact on sales. Experiment with your product offerings and analyse what sells well until you optimise your stock choices and displays. Domestic vs. international retail preferences can vary.
Sustainability is a noteworthy growing trend among staycationers particularly, who may more heavily prioritise minimising their carbon footprint by avoiding international travel. This extends to their retail purchase decisions too!
Since 1975, Keycraft has been supporting retailers with high quality and high profit toys. From plush soft toys to pocket money toys, we have innovative brands that appeal to both children and adults. We specialise in helping retailers better appeal to their primary visitor demographics, whether you want to attract more families, provide irresistible impulse gifts or the perfect trip memorabilia.
From colourful toys and realistic animal plushies to theatrical display stands that draw visitors in, we’ve helped multiple tourism-oriented businesses increase their retail revenue streams. Our Living Nature brand is also perfect for appealing to eco-conscious travellers, made with recycled plastic.
Discover more about how we help retailers increase tourism impulse purchases in our case studies. Or explore how our brands could support your success by getting in touch with our knowledgeable retail consultants any time!
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