Hospitality & Leisure: Competing for growth in a recovering market
The Hospitality and Leisure sector is emerging from a turbulent period, but continues to face challenges with public spending cuts and inflation maintaining the pressure on the labour market and consumer disposable income. Long term shrinkage of the pub industry accelerated in the recession, with particular pain felt by wet-led and tenanted pubs. Whilst the London hotel market has remained relatively resilient the provincial market has seen significant revenue reductions and growth remains slow. The advance of digital technology within the gaming sector is forcing traditional operators to raise their game to compete effectively. Longer term recovery needs to be company led, but favourable consumer trends towards leisure travel and eating out and the prospect of global consolidation in gaming suggests there are opportunities for the strongest players.
EY has an unrivalled client base across this sector where we continue to help businesses respond to unprecedented challenges. During 2011 we expect business focus to turn again to growth, with high performing operators significantly ahead of their competitors in four key areas: customer reach, operational agility, cost competitiveness and stakeholder confidence.