Hospitality SMEs expect revenue to soar 21% in Q2 as restrictions continue
Monday, May 17, 2021
With lockdown restrictions being relaxed for UK retailers, SMEs expect sales to rise 9.8 per cent this quarter, while the hospitality sector will grow by 21 per cent under a new analysis by Barclaycard Payments.
This is an increase of 79 points from a low in Q2 2020 and means that SMEs have reverted to the pre-pandemic mood of 110 points that they were last at in February 2020.
Barclaycard's survey of more than 670 executives in UK SMEs showed that almost a quarter of hospitality and leisure SMEs expect strong demand in the coming months.
More than half-a-million SMEs, 51 percent, expect receipts to rise by May 17th, when the next stage of restrictions are lifted.
Barclaycard Payments Data showed that pubs, restaurants and bars got off to a good start, processing 105% more payments over the last week of April than what occurred the first week before the ban was lifted on April 12.
More than a quarter (29%) of the hotel business and leisure industry forecast increased demand between now and 21st June when most restrictions should be lifted compared to pre-crisis levels.
This is because customers are less likely to go overseas (79%), demand for months of lockdown (66%) and visiting restaurants to connect with family and friends (65%) are waning.
Catering and leisure facilities that are booking are currently only half booked (49%) of their capacity and more than one in three (35%) expect their clients to book at least five days ahead to secure a mid-June reservation.