With Black Friday fast approaching (25th November) it is an appropriate time to look at one of the sectors that performs exceptionally well on this day, Electronics and Entertainment. Tech Radar reports that Black Friday 2016 is going to be the biggest day of spending of all time and predicts the Electronics sector to be a big winner once again.
The UK ticketing and attractions sector has seen strong growth this year, with inbound tourism from overseas up 8% for January – March versus 2015 (Travel Daily Media 2016), which is ahead of VisitBritain’s prediction of a 3.8% annual rise from last year. With tourism on the rise, London claims the top spot for all events not just in the UK but also in Europe, including both consumer and corporate events (Eventbrite 2016).
2016 has so far been a bumper year for sporting events with the Euro 2016, Rio Olympics and Six Nations Rugby all spanning February to August 2016. Whilst affecting predominantly outbound events, it is interesting to see how sectors perform seasonally by comparison and how events can drive performance for relating sectors such as travel. Ahead of the Russia vs. England Euro 2016 game, Marseille flights saw a 439% increase in internet searches (Sojern 2016). Focusing on just ticketing and tourism & attractions, we’ve compared January to August 2016 click and transaction shares by month in the below graphic against the Hotel & accommodation sector.
Having recently held our annual telecoms sector event Connect 2016 on 17th August, we’ve focused this month’s sector insights report on Telecoms, highlighting performance from our Broadband and Mobiles partners across the network. Broadband penetration rates across the UK are predicted to rise to 95% by 2020 (PWC 2016), and with several providers offering cheaper and quicker to install 4G mobile broadband options, traditional home broadband offerings may struggle in years to come, especially as 4G grows in availability (uSwitch 2016).
Introduction and Sector Overview
Like other sectors the travel industry was dominated by speculation about the effect of the EU Referendum in the run up to the vote in June. The subsequent decision to leave had an immediate impact on the industry with sterling dropping in value and the likes of Thomas Cook, EasyJet, On the Beach and Tui Group all suffering slumps in their share prices after the result. Prior to the result some UK travellers had sought to pre-empt the impact by panic-buying foreign currency in anticipation of an exit decision and many exchange retailers saw a spike in sales because of this. While the dramatic fall in the value of sterling against foreign currencies is expected to slow demand for holidays abroad this summer, inbound tourism from other countries (which was already strong) is expected to rise with the weak pound offering visitors to the UK better value for money. Many travel comparison sites are already reporting huge surges in holiday searches for the UK from global traffic.
In this report we’ve taken a look at the typical online sectors purchased in prior to Father’s Day, this year held on Sunday 19th June. Father’s Day is typically smaller than Mother’s Day, especially for online purchases, with consumers choosing clothing products (36%) as the most popular gift, 15% choosing alcoholic beverages and 12% experience days according to a 2015 Hermes survey (Retail Week). Father’s Day is on the rise though, with a 3% increase in 2015, raising participation in the event to 57% in the UK, compared to 65% for Mother’s Day (Forbes 2015). Customers also spend more online for Father’s Day than they do in store, up by nearly £6, according to Mintel research conducted two years ago (The Drum 2015).