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Stuart Gentle Publisher at Onrec

Which Industries are Booming in the UK?

As the economy reopens following the coronavirus pandemic, certain industries are experiencing a boom.

Some of these are industries which flourished during the pandemic and facilitated the “new normal”. Others are undergoing a comeback as the world returns to normal and people look forward to in-person experiences once again.

Budget hotels 

The budget hotel industry suffered substantial losses during the pandemic as travel plans were put on hold and holidays were cancelled time and time again. Now that people are travelling again, the budget hotel industry is booming, both with domestic and international travellers. The revenue growth between 2022 and 2023 is expected to be 148.7% as travel to the UK continues to grow (source: Maritime Apartments).

Edtech

Edtech has been one of the saviours of the pandemic allowing students across the country to continue their school studies during lockdown and benefit from an engaging and interactive learning experience. Consequently, it is the second fastest-growing startup sector in the UK. Although the majority of students have now returned to schools, it seems that edtech and various resources still have a place in a post-pandemic world with many relying on digital tools or online tutoring to better their learning experience.

UK festivals

Festival season is back with many eager to get back to their muddy tents after two years without live music. The festival industry in the UK is a huge source of revenue with multiple festivals and live music events occurring annually in venues across the entire country. Revenue comes from multiple sources including not just festival tickets themselves but also on-site services such as food and beverage sales. As festivals return this year, many retailers and operators can expect to benefit from increased revenues. This boom for the festival industry will also lead to increased revenues for music agents, promotors, production services and those involved in the event management and organisation.

Airlines and airports

Now that people are travelling again, air travel is booming once more. Budget airlines, especially, are experiencing a comeback. Airline companies are benefiting not just from the revenue of low ticket fares but also from the additional services that passengers can pay for including baggage allowance, seat selection and on-board meals - all of which need to be purchased separately. The budget airlines sector is predominantly dominated by four operators in the UK and demand is high meaning that revenues can only expect to grow as Brits continue to quench their thirst for travel. Between 2022 and 2023 there is an expected revenue growth of 204.8% for budget airlines.

As a result, airports are also experiencing increased revenue, from a diverse range of revenue. With more and more domestic and international passengers travelling to and from British airports, consumers are spending increasingly more money on airport services including retail concessions and parking facilities.

Connectivity and Communication

Since the Covid-19 pandemic, people have needed to be better communicated, something starkly highlighted during the pandemic across the world. From better and faster internet to VoIP (voice over internet protocol), people have become better connected than ever before, with the likes of VoIP phone systems and VoIP solutions increasing in their popularity as the way we communicate is diversified like never before. 

Nightlife

The nightlife sector in the UK, namely bars and nightclubs, is experiencing a revival this year. After many nightclubs have been forced to close, not just due to the pandemic but also with operators struggling to keep up with challenging regulatory policies and licences, there are fewer clubs and bars available. However, that said, the sector is clearly benefiting from a pent-up consumer demand for going out including entry fees and drinks sales. After so long stuck indoors, it seems that many are keen to get back out there and are willing to spend more on a night out than they previously did.

UK cinemas

As we return to normality, there has also been an increased demand for cinema trips. The cinema industry includes indoor facilities but also open-air and pop-up cinemas across the country. Here, the revenue comes primarily from box office sales and the sale of blockbuster films. However, food and beverage sales and screen advertising are also hugely important revenue streams for the cinema industry.