The number of UK small businesses catering for accommodation and food services has risen 17% since 2009 as appetite for staycations rises.
Research by Barclays shows that 77% of British adults have been on or are planning a staycation, with the combined spend estimated at £22.5bn every year.
The Barclays data reveals an average spend of £575 per party with men spending over 5% more than women, while those over 55+ budget £619 on average and are most likely to go away in September than any other month.
The seaside is the most popular type of staycation with 20 million or 52% heading to be beside the sea, followed by country breaks (45%). A city break is chosen by one in three (37%) while 27% want to spend holidays staying with friends and family. Caravanning is a popular UK holiday activity for one in five staycationers (17%) and is most popular with 18-34 year olds (20%) compared to 13% aged 55 and over.
The South West is the nation’s favourite staycation spot, with a third (31%) of holidaymakers heading to the region for their breaks. It is also the region with the highest turnover growth according to Barclays Business data. The influence of popular TV programmes such as Poldark and Broadchurch have helped to shine a spotlight on the region helping to boost tourism and business. What’s more, over half (55%) of those living in the South West stay in the region for their holiday, rather than travelling further afield. The next most popular regions people visit are Scotland (21%), and Wales (16%).
When choosing where to go, famous landmarks and attractions (41%) are the main draw for domestic tourists, followed by finding the best deal (39%) – despite having a bigger budget, men are more likely to hunt for a bargain than women. Other key factors when selecting UK holiday accommodation are recommendation from friends or family (38%), online reviews (36%) and transport links (33%).
Adam Rowse, head of business banking at Barclays said: “The staycation economy is a huge driver for businesses across the UK and with £22.5bn spent on average every year, this presents business owners and the tourism industry with an opportunity to plan ahead to make the most of the rise in domestic tourism. We have seen a number of businesses adapt and diversify to make the most of seasonal tourism particularly during summer months. Great British landmarks hold pride of place in the nation’s heart as drivers of regional tourism, while many accommodation businesses are catering for the nation’s appetite for more unusual places to rest their head, such as a yurt or camper van.”
With alternative accommodation on the rise, the findings also reveal three in five (64%) enjoy staying somewhere a bit more unusual than a traditional bed & breakfast or hotel. The most popular is a caravan or a tent, followed by a cabin and a canal boat; while a camper van also appeared in the top five. More quirky stays include a floating hotel or tree house.
