The road to post pandemic recovery for the leisure and hospitality industry has been marked with significant obstacles and challenges. The recreation and culture sector appeared to have bounced back strongly, however, it’s likely to slow down in the near future.

Hospitality and travel are lagging, but an interstate boom provides a much needed optimism for the industry. As households break free from long term restrictions, domestic travel is getting busier and more flights are added on a regular basis.

The outlook is positive but it’s clear there is still a lot to be done. While recovery post pandemic is a complex process, it provides the industry with an opportunity to transform the way they do things so they can emerge stronger and fitter. From delivering on ESG commitments to building operational efficiencies, focusing on the customer and zeroing in on data – all are important factors in ensuring industry growth.

Our team of experienced hospitality & leisure professionals are here to help. We’ll work with you so you can bounce back and emerge stronger for sustainable growth. 

Opportunity to reset and reimagine

    Deliver on ESG commitments

    Today’s consumers are more environmentally savvy than ever before and only want to engage with likeminded brands and businesses. It’s been observed that climate change elements are affecting consumer spending on leisure and travel – as people look for carbon neutral ways to reduce their footprint. Companies with a robust Environmental, Social and Governance (ESG) strategy will benefit not only from a regulatory standpoint, but also from a competitive advantage standpoint.

    Focus on operating cost and supply chain efficiencies

    Tourism supply chains are complex and include accommodation services, transport, food, beverage and entertainment provision through to food production, waste disposal and the infrastructure of venues and services. In the post pandemic era, it’s vital to review and optimise hospitality procurement including sourcing, contract negotiation, payment terms, and end-of-life management. Automating the tracking process of industry wide concerns – such as minimising transaction fees and reducing contract risk – has been proven successful in minimising supply chain efficiencies.

    Invest in customer experience and demand

    Financial pressures are changing customers’ buying habits and the sector needs to respond to this with investments in value creation, packaging of services and leveraging promotional and pricing strategies to convert on consumer interest and demand. Pricing elasticity reviews against occupancy and sales/revenue forecasting are highly recommended to maintain sustained growth. Businesses relying on the interstate travel market will need to think outside the box as the relative price of international v. domestic will continue to be a key driver in customers’ decision making process.

    Leverage data for better decisions

    Predictive modelling, consumer personalisation and privacy, cyber management and increased digitisation and automation are part of the future of leisure and travel businesses. An ability to generate reliable data removes the need for guesswork and help companies with creating effective business strategies.

How we can help

At KPMG, we are a team of experienced Leisure & Hospitality professionals that help companies across the sector to meet the challenges of recovery. We tailor our services to your unique needs, thinking carefully about how recent changes have affected your business, working with you to help ensure stakeholder confidence through this dynamic phase, allowing you to emerge stronger and fitter for the future.

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