Profit warnings focus on sectors Q1 2021: FTSE Travel and Leisure

4 May 2021
EY UK
By EY UK

Multidisciplinary professional services organisation

Contributors

Alan Hudson,

 

Jon Morris,

 

Kirsten Tompkins,

 

Lisa Ashe,

 

Taylor Dewar

4 May 2021
Related topics Strategy and Transactions
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Accelerated change  

Almost four in five FTSE Travel and Leisure companies have issued a profit warning since the start of 2020. Warning levels have fallen since the shock of the first lockdown and the hospitality sector is looking ahead to opening up in 2021, but the restart isn’t without its challenges.

ey infographics for ftse aerospace and defense

Tough choices ahead

Travel and Leisure companies need to remain flexible and ready to reshape to meet new realities. Many companies will face tough choices as they adapt and position themselves for the recovery. 

Despite the initially chilly weather, consumers responded to outdoor hospitality very positively, which shows that there is significant pent-up consumer demand. But most restaurants and bars have been unable to open in this first stage — due to lack of outside space — whilst hotels and nightclubs remain mostly closed. Businesses are also facing higher labour costs, given the additional need to check-in individual customers and to provide table, rather than at-the-bar service.

There are also question marks around the long-term viability of some sites, even when they can fully open. Travel and hospitality companies need to remain flexible and ready to reshape to meet new realities. Many companies will face tough choices as they adapt and position themselves for the recovery.

Register to download our Profit Warnings Q1 2021 report

With thanks to Christian Mole, EY UK&I Hospitality and Leisure Leader for his contribution.

Summary

Every quarter, we provide the latest sector insights from our Profit Warnings analysis, delving deep into two specific sectors and the challenges facing companies and stakeholders alike.  

For Q1 2021, we look at the FTSE Aerospace and Defense sector as well as the FTSE Travel and Leisure, analysing the headwinds facing both.

About this article

EY UK
By EY UK

Multidisciplinary professional services organisation

Contributors

Alan Hudson,

 

Jon Morris,

 

Kirsten Tompkins,

 

Lisa Ashe,

 

Taylor Dewar

Related topics Strategy and Transactions
Upvote
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