Marketing to staycationers this summer

We all look forward to our summer holidays, don’t we? A nice city trip to mainland Europe, a warm beach resort in Spain or even just spending time with the family in the UK all sound nice. But with the current economic climate, can we still afford the same holidays as a couple of years ago?

Recent research we commissioned looked at the holiday and leisure habits of UK consumers. One of the most important outcomes was that Brits are drastically changing their summer holiday patterns, primarily due to the fact they have less to spend.

So what changes are we making?
The results show that 35% of Brits are not intending to take a summer holiday this year. Of the almost 65% who are taking a holiday, 15% are planning to take a ‘staycation’ and will holiday in the UK instead of abroad, and 10% plan to take shorter holidays, with others opting to cut back through all inclusive packages, flying budget airlines or staying in cheaper accommodation.

By trading expensive holidays abroad with more affordable UK-based breaks, consumers have more pocket money to spend domestically on leisure activities, accommodation and dining out.

Hi, sorry but do you accept vouchers?
The popularity of vouchers, discount programmes and money-saving websites is booming, driven by increasingly cost-conscious shoppers wanting to get the best deals. Big retailers and chains compete to catch our attention with their offers, and the stream of door-to-door flyers from local restaurants never ends.

However, only 29% of the 2,000+ consumers we polled said they use discount vouchers or codes before booking a leisure activity. This may suggest that people aren’t finding appropriate deals specific to their needs given we know consumers are cutting back on holiday and leisure spend.

What’s in it for marketers then?
According to 2013 Travelodge research, the staycation trend will reach record levels this year and will boost our economy by £12bn. This presents a huge opportunity for leisure and hospitality businesses to revitalise their strategies and appeal to UK-based holidaymakers in addition to their regular clientele.

This research also reveals that UK city breaks are set to be more popular this year than the traditional seaside holiday, with London stealing the top staycation destination position from Cornwall for the first time in five years.

So what should marketers do?
Our research found that found that 80% of people research their holidays online. Therefore, it’s key that UK leisure and hospitality businesses have a good web and social media presence.

As well as simply ensuring your business appears in search results, these digital channels provide an ideal way of reaching a wide audience with voucher codes or deals such as ‘2 for 1’. Offering promotions though partners like Groupon and Toptable is another effective way of reaching large numbers of potential new customers who may be planning to visit another part of the UK.

Traditional marketing remains important too and local businesses should ensure they have flyers at local tourism offices, are listed in directories, and have up to date signage.

By DMA guest blogger Guy Chiswick, Managing Director of Webloyalty UK & Ireland