Pwc has published its latest report looking at the trends and outcomes that may impact the UK leisure and travel industry post the lockdown. The Where next for Travel and Leisure? report looks at some of the specific challenges facing the sector including falling sales, reduced spending and declining GDP.
Pwc has predicted that the variation in gross value added (GVA) will range from -14% to -32% in 2020, depending on the length of the lockdown, meaning the sector will suffer a greater impact than in most other sectors. In addition with many travel and leisure businesses operating on tight margins, a 10% to 20% drop in sales could have a significant impact, likely compounded by the added costs of cleaning, PPE and social distancing.
The report also looks at reopening, stating: “In many ways, reopening will be more challenging for businesses than the current lockdown. For many, it may prove easier to conserve cash while a business is closed. Operating models and propositions may also need to change in the short and medium term to optimise performance, making more use actions such as limiting menu options in food-to-go operations, to simplify kitchen processes, or reducing the destination/hotel coverage for OTAs to focus on marketing and contract negotiations on key areas.”