BarclaysBarclaysJune 13, 2016
main-photo-3-1024x683.jpg

10min3301
  • By improving how customer feedback is used, the UK hospitality & leisure industry could boost the UK economy by £3.2bn over the course of the next decade
  • Managing customer feedback will become increasingly important. 59% of consumers say that online feedback already helps them in determining where they visit and 45% are more likely to leave a review today compared to 18 months ago
  • Younger consumers use reviews the most, with 70% of millennials saying that they play a role in their decision making
  • Businesses value feedback with nearly 60% reporting a boost to trade as a result of feedback left by customers

Improving how the UK hospitality and leisure sector manages and responds to customer feedback could contribute an additional £3.2bn to the UK economy over the course of the next decade finds the Barclays Feedback Economy report. A more successful hospitality and leisure sector has the potential to add an extra £2bn to the UK economy with the impact on the sector’s large supply chain contributing a further £1.2bn.

This economic benefit will be achieved by improving how businesses such as hotels, bars, restaurants, travel businesses, health spas, sports clubs and cinemas monitor, manage and respond to customer feedback. Putting processes in place to better manage customer feedback will create a more responsive sector, attracting more overseas tourists and encouraging domestic visitors to stay longer and spend more, increasing spend per head and benefitting the sector’s wide supply chain.

Mike Saul, Head of Hospitality and Leisure at Barclays, said:

“The rise of feedback sites has been a disruptive force within the hospitality industry over the past decade. Our research reveals that those working in the UK hospitality and leisure industry feel that these faster, easier and simpler feedback mechanisms are a good thing for the industry – resulting in more agile businesses better able to serve the evolving needs of consumers.

“However, there is even more that the hospitality industry can do to capitalise on this opportunity. Our research shows that being more responsive to customer feedback could increase the value of the UK hospitality and leisure industry to the wider economy by more than £3 billion over the next decade.” 

Leaving feedback – a growing trend

UK consumers are more likely to use and leave feedback than ever before. Barclays’ survey reveals that three fifths (59%) of UK consumers state that reading other people’s reviews plays an important role in helping them decide where to visit or stay. This rises to 70% amongst 25-34 year olds.

Millennials are also significantly more likely to cite online customer reviews as being very important in determining which hospitality and leisure services to use. Close to a third (29%) of 18-24s and (27%) of 25-44s rated online reviews as one of the three most important factors influencing their decision on where to stay – alongside more traditional factors such as value for money and customer service, as opposed to 18% of the over 65s.

In addition, nearly half (45%) of all British consumers are more likely to leave a review today than just 18 months ago, citing factors such as ease of access through smartphones (42%) or awareness of the importance of reviews (33%). This means that businesses need to put processes in place to avoid being left behind by customer expectations over time.

Businesses see the value of feedback

A majority (82%) of the hospitality industry say that feedback has been beneficial for their business and two thirds (68%) think it has been beneficial for the sector as a whole.
Businesses also believe that feedback is leading to more trade – 57% are able to explicitly credit online customer feedback with increasing trade, reporting an average 12% improvement in customer numbers over the past 18 months.
Businesses are deriving a range of benefits from online feedback such as more repeat business (63%) or the identification of issues within the business (61%). However, the majority (63%) of businesses are not currently managing feedback in the long term or maintaining records in a formal Customer Relationship Management system.
Moreover, two thirds of the hospitality and leisure industry (66%) expect the importance of online feedback websites to increase over the next 18 months. In response, 73% of businesses plan to make changes over the next five years. More than a quarter (27%) will be investing in specialist staff training to manage customer feedback, close to a quarter (22%) expect to appoint a dedicated staff member or team and 13% anticipate working with an external consultancy or specialist feedback management agency.

TripAdvisor is the most relevant

Our survey of those working within the hospitality and leisure industry revealed that overall, TripAdvisor was seen to be the most relevant online feedback site, with 60% of respondents citing the website as being relevant to their business.

The traditional route of professional reviews in guidebooks is in decline, seen as relevant by less than one quarter of the sector (23%). Professional reviews by newspapers and magazines fare better, rated as relevant by a third (33%) of the sector, rising to nearly half of bars and pubs (46%).

Intermediary sites such as Booking.com and OpenTable are also already seen as increasingly important in driving trade, with a majority (67%) of all hotels and B&Bs and 28% of restaurants rating these sites as relevant to their business. By contrast health and beauty spas are more likely to cite reviews placed directly on their own website (57%) or on Google (43%) rather than to third party websites as helping to drive customers to their businesses.

Notes

Research method

The Barclays Feedback Economy report was produced by Barclays in collaboration with economics consultancy Development Economics and a bespoke survey on UK consumer and B2B attitudes towards customer feedback by Opinium Research. The report is based on a proprietary economic model to provide a perspective on the potential benefits of the UK hospitality and leisure industry increasing investment into the management of online feedback above current predicted levels of investment.

The report is based on modelling the economic contribution of the hospitality and leisure sector to the wider economy through Gross Value Added (GVA). The key findings within the report are based on a scenario which assumes continued increase in the use of feedback websites by consumers and a matching rise in the management of feedback by business, resulting in a more responsive sector, better aligned to customer expectations.

The research is supplemented by insight from Opinium Research into attitudes by UK adults (18+) and B2B decision makers in the hospitality and leisure industry. The total sample size was 2006 UK consumers and 541 B2B decision makers. Consumer fieldwork was undertaken between the 19th of February and 22nd of February, B2B decision maker fieldwork was undertaken between the 19th of February and the 16th of March 2016. Fieldwork for both studies was conducted online. 

Interesting links:




Inform. Inspire. Include.
A free way to improve your business.

Customer Experience Magazine is the online magazine packed full of industry news, blogs, features, reports, case studies, video bites and international stories all focusing on customer experience.


CONTACT US

CALL US ANYTIME


UK Trademark UK00002648900

EUIPO Trademark 018131832

Contact Information

For article submissions:
Editor
Paul Ainsworth
paul@cxm.co.uk

For general inquiries, advertising and partnership information:
aleksandar@awardsinternational.com
Tel: 0207 1932 428

For Masterclass enquiries:
vuk@awardsinternational.com
Tel: +44 20 86385584

Customer Experience Magazine Limited
Company number: 12450532
International House, 24 Holborn Viaduct,
United Kingdom, London, England, EC1A 2BN

JOBS IN CUSTOMER SUPPORT

Find a job in customer support with Jobsora


Newsletter


cbd oil: cbd studies alice cbd is cbd oil legal in nebraska 2018 cbd oil for pain super chill cbd tattoo parlour sydney cbd cbd magazine cbd concentrate oil how long does it take cbd to kick in is cbd oil legal in iowa pure cbd oil oregon cbd antibiotics cbd dealer does cvs sell cbd etsy cbd salve wild cbd oil fabric stores in sydney cbd amazon renewed thc or cbd for pain the night we met lyrics buy marijuana oil cbd feel like purekana phone number one med store reviews cbd oil minot nd cbd thc oil where to buy cbs this morning cbd oil rainbow study cbd oil cause constipation to me meaning cbd oil and copd does it help high cbd cannabis strains seeds cacao cbd oil coconut oil depression treatment make your own cbd oil soy lecithin miracle cbd gummy bears

vape: vape bundles ecigarettes kits vape mods for beginners uwell valyrian replacement coil pack us vape diy vapour shops near me mechanical vape mod geek vape mods jakes vape shop 311 vape pen vapor vault vaping is it bad 3m 6001 organic vapor cartridge what vaping does to your lungs pax vapor coupon code e cigarette marketing strategy blu ecig makes me coigh uwell d1 vape coils how to refill juul pods with vape juice vaporesso express x vaping backpack box mod cheap vaping causes heartburn voopoo drag stuck on temperature vape tanks top fill wooden mods ijust mod sigelei fuchai vape geekvape aegis x mod halo vape pen crown v2 coils uwell crown 3 valerian buy tfv12 smok big baby beast kit smok r80 review allstar vape review

weight loss: weight loss journal ideas earheart healthy weight loss cost constipation and weight loss body girdle for weight loss apple cider pills for weight loss calculate dead weight loss weight loss communities weight loss the office good weight loss drinks pop weight loss does linzess cause weight loss weight loss motivation boards worthy weight loss grams of protein for weight loss diuretic pills weight loss strattera weight loss stories is weight loss surgery for me quiz strong girl weight loss reviews best sweetener for weight loss rage x diet pills reviews thyroid diet plan for weight loss pre workout drink for weight loss cake boss weight loss cannabinoids and weight loss rihanna weight loss diet red fire weight loss pills velocity weight loss pills reviews b12 shots vs pills for weight loss diet pills morbidly obese quick weight loss tips easy ways to lose weight without pills best diet for pcos weight loss saffron pills to lose weight all natural diet pills best fat burning pills for females suppress hunger pills

male enhancement: male sex drive pills cant get hard before sex drugs for sex low libido icd 10 marijuana impotency how to get bigger penis naturally active ingredient in viagra and cialis pimples on penile shaft penis enlargment without pills vesele reviews how to get your penis longer does jelqing work before and after penus pills teen male penis trojan thunder prescription depression pills best mens supplements pimple near penis horse penis size the best male enhancement at gnc is viagra covered by medicare us penis average arginine erection lack of desire extenz commercial ladies sex free sample extenze young man sex wellbutrin sr real penis images guaranteed orgasm pills for cold rash on my dick estrogen and sex drive testosterone boosting foods list vyvanse erectile dysfunction