What are staycations and why are they growing in popularity?

We all know what a vacation is, but do you know what staycations are? ‘Staycation’ is a combination of the words, ‘stay’ and ‘vacation’, meaning a vacation that stays in your home country instead of abroad.

The staycation concept has experienced strong growth in popularity, not just nationally but in a lot of other countries, due to COVID-19 travel restrictions and consumers’ safety concerns over travelling abroad. According to research, a large number of UK individuals still do not feel comfortable traveling abroad under the current global climate, even with vaccination roll-out and lifted restrictions. As a result, Brits have decided to enjoy staycations within the UK. Research shows that 4 in 5 people are planning a 2021 staycation in the UK.

How does the growing demand for staycations affect the hospitality industry?

The global pandemic crisis has undoubtedly caused significant damage to the economy. With international travel restrictions and various lockdowns in the UK, hospitality businesses have experienced a tough time. They were forced to remain shut, and demand drastically decreased which led to sharp decrease in revenue and therefore profit.

The increasing demand for staycations helped boost the local hospitality industry, helping to aid its recovery from the loss caused by the pandemic. This was particularly true for businesses located in tourist hotspots, such as Cornwall, London and the Lake District.

Furthermore, research predicts that rise in demand for staycations will continue in the future, indicating that income generated by local consumers will increase and take up most of the income proportion. Building on this, it can be suggested that the main demographic for staycations will be UK consumers, until foreigners feel comfortable travelling to the UK.

How is the hospitality industry responding to the trend?

In response to the market demand, hospitality businesses and travel agencies have created increasing numbers of staycation deals and packages.

The trend has also indirectly indicated consumer concern regarding the COVID-19 pandemic; therefore, businesses have begun adopting flexible and transparent cancellation policies to maximise customers’ confidence in booking staycations.

City corporate hotels are also focusing more on aesthetic pleasure to compete with hospitality businesses which offer outstanding decoration or scenery.

Get in touch with Posh Cockney today for more advice on how to utilise the staycation trend and improve your business performance during these difficult times.