According to a recent study, four in ten individuals intend to reduce their spending on social activities this festive season, due to ongoing strains on household budgets.

Out of the 1,000 consumers who took part in the survey by RSM UK, 41% are contemplating scaling back on social engagements during the 2023 Christmas period; this could pose a significant challenge for the hospitality sector, particularly during its peak season. Notably, 'at-home' entertaining is gaining traction, with Christmas dinners (25%), home-based food and drink (24%), and presents (23%) emerging as the primary areas where consumers plan to allocate more of their spending.

Paul Newman, head of leisure and hospitality at RSM UK, said:

"December is such a key trading month for hospitality but economic headwinds are dampening festive plans.

Cuts to corporate funded Christmas parties combined with consumers switching focus to a wholesome 'at home' Christmas could see spending in pubs and restaurant hit hard this year."

RSM UK also emphasised the repercussions of transport strikes on the sector in the previous year and cautioned that a recurrence is a distinct possibility. A spokesperson commented:

"Transport strikes cost bars, pubs, restaurants and hotels in the UK an estimated £1.5bn in December alone last year and proved to be the final "nail in the coffin" for many businesses still reeling after Covid.

A festive trading period free of travel disruptions is critical if businesses are to survive through the quieter trading months of 2024."

In November, the Government declared its intention to implement fresh regulations establishing minimum service levels. This move aims to alleviate disruptions and guarantee the continuity of public services in the event of strikes.