1.
Will consumers have
more disposable
income next quarter?
Will big events, such as
the FIFA World Cup,
boost leisure spending
in Q2 2018?
Which leisure
categories will see the
highest increase in
expenditure?
Green shoots on the horizon?
© 2018 Deloitte LLP. All rights reserved.
Numerical values represent percentage points which reflect changes in responses from one quarter to the next.
-3
In-home
leisure
-4
Culture
and
entertain-
ment
-3
Drinking
in pubs/
bars
-2
Eating
out
-1
Drinking
in coffee
shops/
sandwich
shops
+2
Short
break
holidays
+3
Long
holidays
+1
Attending
live sports
events
-3
Other
leisure
-2
Betting
and
gaming
Leisure consumers
reported spending
more on…
Changeinyear
…but less on…
-1
Going to
the gym
or playing
sport
Watching the pennies
The year-on-year comparisons of the data show that consumers have indeed started to rein in on
their leisure expenditure, with all habitual leisure categories seeing a reduction. Spending on
culture and entertainment was down the most while eating and drinking out also decreased.
Nearly half (45 per cent) of the consumers who spent less on going out in Q1 2018 stated that
they did so because they could not afford it, suggesting these changes in spending are a result of
conscious downshifting. These demand issues pose an additional challenge to the struggling
restaurant chains that have been troubled by rising costs and oversupply in the market. Holidays,
however, continued to be the ‘sweet spot’ for consumers as spending both on short breaks and
long holidays was higher than this time last year.
No
change
In-home
leisure
-3
Culture
and
entertain-
ment
-5
Drinking
in pubs/
bars
-5
Eating
out
-1
Drinking
in coffee
shops/
sandwich
shops
-8
Short
break
holidays
-10
Long
holidays
+1
Attending
live sports
events
-4
Other
leisure
-1
Betting
and
gaming
Consumers expect to spend less
in the majority of categories…
Changeinyear
Apart from...
+1
Going to
the gym
or playing
sport
Spring showers?
Consumers plan to spend less money in almost all of the leisure categories in Q2 2018. Given that
they have just spent money on their holidays, they have little intention to spend more in the
coming months, leaving net spending on long breaks and short breaks significantly below the
level seen last year. Consumers also plan to reduce their spending on all habitual leisure activities,
with the exception of playing sports and attending their live sports events.
-8
In-home
leisure
-7
Culture
and
entertain-
ment
-6
Drinking
in pubs/
bars
-3
Eating
out
-1
Drinking
in coffee
shops/
sandwich
shops
+5
Short
break
holidays
+6
Long
holidays
+1
Attending
live sports
events
-3
Other
leisure
-1
Betting
and
gaming
Leisure consumers
reported spending
more on…
Changeinquarter
…but less on…
Easterly winds
In Q1 2018 consumers reported reducing their leisure spending in seven out of 11 categories.
Post-Christmas belt tightening as well as the weather disruption brought by the ‘Beast from the East’
affected spending on both high street based leisure activities, such as eating and drinking out, as well
as in-home leisure spending, such as takeaways. However, the cold spell prompted consumers to
dream of warmer days with more consumers booking and spending money on holidays.
Source: Deloitte
-12%
-11%
-10%
-9%
-8%
-7%
-6%
-5%
-4%
Deloitte consumer confidenceNet spending on leisure
Q1 2018Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016Q3 2016Q2 2016Q1 2016
Feeling good?
Leisure spending is a useful barometer of consumers’ confidence to spend disposable income. In
Q1 2018 for the first time the reported improvements in confidence are in contrast with their
more cautious leisure spending behaviour. This suggests that although they are more optimistic
about their lives, they are holding back. While the shift in spending is partly seasonal, it is an
indicator of the fragility of consumer confidence. It remains to be seen whether this is a
temporary lag in leisure spending or whether the divergence will continue?
Are consumers still feeling the pinch? Despite improving consumer
confidence in the first quarter of 2018, the latest data on leisure
spending suggests that it is under pressure. Although inflation is
starting to ease and wages continue to gradually climb, consumers
have reduced their spending on most leisure activities. This suggests
that as essentials take up a larger part of their income, consumers are
consciously re-evaluating and adjusting their discretionary spending.
Passion for leisure
UK Leisure Consumer – Q1 2018
Q1 2018