It’s happening. Things are starting to slow down and return to normal in general. There are always outliers; of course, there are, and your property/business might be one of them. In that case, that’s great to hear. With the previous horrible period we have all had, one can’t begrudge positive outliers. But let’s be clear, the general market is returning to sensible levels. When I say sensible, I mean back to what everyone is used to. And yes, I do mean 2019 levels….yawn – oh, how I dislike that comparison, but I do get it. So maybe I need to get over myself and join the narrative.
As always, I bring you data. And, as the famous saying goes, “In God we trust, all others must provide data”.
So, what data am I referring to?:
- Sales booking levels are falling. That’s not necessarily alarming, but it is a trend. 4 months in a row, to be precise. And it will almost certainly be 5 months in a row because next month’s data will include August, and we all know what happens in August.
- Events. Currently, September events are sitting at 6.7 (average per venue per month). September 2019 was 7.5, so slightly behind, and we fully expect the September ’22 figures to be significantly higher than 6.7, what with all the short lead times, but just how much will be interesting. As for the rest of 2023…..that’s anyone’s guess.
- 2023. Those numbers are still scarily low. Again, on average. There’s probably enough backlog and pent-up demand that will carry the last 4 months of 2022 but Christmas Parties and 2023? I can’t really call it at this time. Scary.
- Price. Now hold tight. I’m going to hit you with some numbers. Prices are going up (shock):
- PPH = Price Per Head (Hire+F&B+Other)
- 2nd half of ’22, PPH rose by 6% compared to 1st half of ’22
- 1st half of ’23, PPH rose 27% compared to 2nd half of ’22
- 2nd half of ’23, PPH rose 30% compared to 1st half of ’23.
- PPH for the 2nd half of ’23 is 91% higher than the 1st half of ’22.
So 4 metrics to help you manage your growing list of challenges.
We’re on your side in this epic battle that doesn’t show any signs of abating.
But we all know that nothing grows in the comfort zone, and if this hospitality business was easy – everyone would be doing it.
We’re here for you – with the data to help you navigate the choppy waters, so please do reach out. Remember, we have the Freemium version all ready and waiting for you. And we can see into the future, so you can manage it.