A recent survey from Experience Oxfordshire indicates that the sector is balancing various issues that impact its sustainable growth.
75% of respondents said that overall business performance had improved in 2024 (a 5% drop in positivity, however, compared to the previous year’s survey). 68% reported an increase in visitor numbers, but 20% of operators saw a drop when compared to 2023.
Although 27% were cautious or concerned regarding business performance in the current year, 70% of respondents expect their business to perform well. 65% of respondents said that the current state of the UK economy negatively impacts their business, with 30% saying it was neither helping nor hindering.
In particular, businesses expressed concern about consumers with less disposable income and their own increased operating costs; steps taken to mitigate the latter include increasing prices, delaying investment, building or maintenance works, and seeking additional income through diversification. 27% have also reduced staffing levels, with only 3% expressing concern over staff recruitment and retention.
Consumer booking behaviours established during the global pandemic have become the standard, with 50% of businesses stating that the current lead-in time was under four weeks and a further 14% of businesses reported the majority of their bookings were made within seven days of arrival. Over half of businesses said that three-quarters of of visitors pre-book products and experiences.
When asked which interventions would help their business development, operators looked for a reduction in VAT, business rates, national insurance, and the provision of sector-specific development grants.
At the destination level, as in previous years, there was strong support for marketing investment, the use of marketing platforms to build relationships with visitors to encourage repeat trips, and the benefit of high-quality, year-round experiences to be enjoyed by visitors and the local community.
Hayley Beer-Gamage, CEO of Experience Oxfordshire commented, “Our annual survey gives us the opportunity to gather information from a cross-section of businesses operating within the county’s visitor economy and these results underline the key challenges facing these businesses today. Despite the fact that many saw an increase in visitor numbers and business performance last year, there is still widespread concern relating to rising operating costs. The measures being put in place to balance the books include a pause on investment, a trend we have seen for the last three years, and a worrying reduction in staffing levels. If continued longer term, these trends can lead to a decrease in customer satisfaction and enjoyment.
“Oxfordshire has more to offer visitors than many destinations, and this benefits us by attracting both domestic and international visitors. The global tourism marketplace, however, is highly competitive so it’s essential that, despite the difficult operating environment, businesses maintain high standards of visitor welcome and experience. Experience Oxfordshire works with some 200 partners spanning the county’s visitor economy and we know the excellent quality of experience on offer here. As VisitBritain’s marketing partner we will be using all opportunities available to us this year to encourage key influencers at home and overseas to include Oxfordshire in their tour programmes, conference schedules and travel communications.”
Click here to find out more about Experience Oxfordshire.
