What’s the outlook for the leisure and hospitality sector in 2026?
The leisure and hospitality sector is extremely dynamic, with businesses heavily affected by uncontrollable external factors such as government policies and consumer trends. In 2025, we saw employers’ National Insurance contributions and the National Minimum Wage (NMW) rise, placing increasing financial pressures on businesses. The sector has also been adapting to the boom in technology and AI, which consumers are increasingly expecting to use to enhance their customer experience – and this is only the beginning of this trend. So, now we’re in 2026, what opportunities and challenges can we expect to see? And how can leisure and hospitality businesses prepare for these? Roads over runways According to Hilton’s 2026 Trends Report, road trips are leading future travel plans for Brits, with 61% planning to drive to their destination of choice in the next 12 months. This is largely driven by the cost-saving appeal, but many also value the spontaneity, being able to pack more items and the convenience of having their own car. This suggests that many people will be opting to holiday in the UK in 2026, rather than travelling abroad, which presents a great opportunity for leisure and hospitality businesses across the country. But where there are opportunities, there are also challenges, and businesses will need to be ready for increased demand. Making sure you have the resources to deliver your services during busy periods is vital, whether that’s by hiring more team members or increasing stock reserves. If you haven’t already, look at your budgets and forecasts for 2026 to make sure you have the reserves to invest in the resources you’ll need to keep up with this expected increase in demand. And don’t forget – competing businesses will also be taking advantage of this UK road trip trend, so put yourself ahead of the competition by diversifying your services and offering attractive incentives to customers. Whether it’s expanding your menu to offer regional dishes and drinks, or offering discounted rates for returning customers, having a strategy in place to draw customers in is key. The rise of technology We will undoubtedly see more technology woven into the leisure and hospitality sector in 2026, including the use of AI. An increasing number of travellers are already using generative AI for planning and booking their trips, and major leisure and tourism brands like Expedia and Booking.com are integrating tools like ChatGPT – so it’s never been easier for a robot to plan your holiday for you. In addition to this, the likes of online booking systems, digital check-in systems and apps that personalise guest experiences will only become more sophisticated in 2026, so leisure and hospitality businesses need to be on top of the latest tech to remain profitable. But the rise of technology and AI doesn’t come without its complications and challenges. It has been behind a growing number of travel scams in recent times, so businesses need to ensure these tools are being used securely and that cybersecurity is a priority. Some of the best ways to protect yourself are: set yourself a cybersecurity budget and invest in coverage that includes support for breach recovery; use multi-factor authentication wherever possible; update your software regularly; and train your team to spot scams. The more you can do to safeguard your business, the better. Changing fiscal policies The 2025 Autumn Budget saw the Chancellor announce a number of changes that will directly affect the leisure and hospitality sector this year. One of the more positive outcomes is the reform to business rates, which are set to fall for smaller, customer-facing businesses from April. A new banded multiplier system will replace the current approach, meaning that leisure and hospitality businesses with physical premises open to the public are likely to see some relief. But whilst businesses may be making cost savings when it comes to business rates, these newfound reserves are likely to be quickly spent elsewhere as a result of other Budget announcements. For example, the NMW and National Living Wage (NLW) will both be increasing in April, putting additional pressure on leisure and hospitality businesses – especially those that employ young people. Those that sell alcohol and milk-based drinks are also set to be hit by increased alcohol duty and sugar tax. Alcohol duty rates will increase to 3.66% in line with inflation, while sugar tax is being extended to milk-based drinks, including pre-packaged coffees and milkshakes. Businesses affected by this will need to consider how they fund this increased tax bill – either taking the hit themselves or passing the burden onto customers by increasing the cost of these items. With so many variables to consider for the year ahead, it’s never been more important for leisure and hospitality businesses to review their finances and ensure they’re well equipped for the year ahead. Duncan & Toplis provides accounting and business services specifically designed to support businesses in this sector, including budgeting, forecasting, payroll and tax planning. To find out more, visit www.duncantoplis.co.uk.
New Victory Leisure Homes lodge has the wow factor
Victory Leisure Homes has launched a ‘game-changing’ holiday home designed to inject a wow factor into the marketplace. The Lakewood Lodge is the most innovative product in the company’s 10-year history, combining Victory’s renowned build quality with pioneering manufacturing techniques and higher quality materials. The holiday home’s innovative design and contemporary layout are the result of extensive consultation with Victory’s customers, to create a product with a more robust and domestic feel. The Lakewood Lodge, which was officially unveiled at the Caravan, Camping and Motorhome Show 2020, has been designed to meet the changing needs of the holiday home and lodge market by placing a strong emphasis on comfort and luxury. Managing Director, Gary Corlyon, said the model features a range of new-to-market manufacturing techniques devised and perfected by Victory Leisure Homes. These include: Beadless internal wall system. The internal walls in the Lakewood Lodge feature the first truly beadless system to be developed for holiday homes, utilising flush-fitting panels butt joint wrapped wallboard. This produces a high-quality finish to the interior, unmatched by any other model presently on the market, and the thicker internal walls – 38mm – bring greater robustness and thermal efficiency. Virtual beadless ceiling The virtual beadless ceiling has been designed to match the walls, giving a much higher-quality interior finish. This has been achieved via tongue and groove jointing. Replacing chipboard flooring with a composite OSB board with high comprehensive strength insulation. This brings added strength to the flooring, as well as much greater thermal efficiency. Despite these market-leading construction improvements, Gary said the most noticeable difference in the Lakewood Lodge is the contemporary interior and layout, designed to attract a new type of customer discovering holiday home living for the first time. The model also has a striking glass front which produces an airy feel and allows spectacular views of the holiday home’s surroundings. Staycationers demand luxury living Gary said: “The trend for staycations is only going to increase, particularly as people are more conscious about the environmental impact of flying, so a new type of holidaymaker, eager to embrace the holiday home living, is starting to emerge. “These might be young families or professional couples who enjoy the outdoors and staying in off-the-beaten-track locations. “One thing they all have in common, however, is the expectation of high-quality accommodation, with comfort and luxury that surpasses their own home. “That is what we have created in the Lakewood Lodge. We have worked closely with our customers to design a product with real wow factor that will meet the changing demands of the marketplace. “We believe the Lakewood Lodge is a game-changer for the industry.” Gary added that with the new model, Victory Leisure Homes is pushing to become one of the most innovative manufacturers in the holiday home and lodge sector. To facilitate this, the company has appointed a new senior management team, new design team and overhauled its manufacturing processes. He said: “This model is a step-change for us; it heralds the future direction of Victory Leisure Homes. “But this is just the start. We’re going through a transformational process that will see us go from traditional and safe to contemporary, luxurious and innovative. “It is this step-change that will underpin future growth at Victory Leisure Homes.” Photos: Gary Corlyon, managing director of Victory Leisure Homes, and the new Lakewood Lodge holiday home.
Luxury accommodation – it’s time to bring the bling!
When it comes to the holiday park industry, accommodation is king – if your customers aren’t happy and comfortable in their surroundings, then why would they return? Parks are constantly investing in the best and most advanced accommodation available, from luxury safari tents to huge party palaces – and here editor Victoria Galligan takes a look at what’s going to boost booking numbers in 2020… Over the past two decades, the glamping phenomenon has taken the UK holiday industry to a whole new level. With glampsites competing to offer the most luxurious places to stay – albeit in the middle of a field, as visitors still want to experience that back-to-nature vibe! –a knock-on effect has been seen across the whole holiday industry. While there will always be a demand for budget accommodation, research has shown that the public are willing to pay more for luxury accommodation – coupled with a greater choice in locations, flexible booking options and top-notch on-site facilities. Holidays taken close to home, often for just one or two nights, are becoming increasing popular and have been labelled “bubble breaks”. Earlier this year, the UK Camping and Caravanning Alliance report Pitching the Value identified “attracting younger generation through product offering e.g. glamping and quality accommodation” as one of the main opportunities which the holiday industry could capitalise on. It also stated that the lack of variety available in high-quality accommodation was currently one of the industry’s weaknesses. Capitalising on the “bubble break” is vital for businesses – Sykes Cottages has done its own research on the rise in luxury breaks, reporting: “We’ve seen the popularity of luxury holiday homes go through the roof as Britons look for affordable, but indulgent, holidays closer to home – which is why we offer more than 1,000 properties with hot tubs and swimming pools across the UK. “Britons are seeking opportunities to staycation in weird and wonderful properties across the UK. We’ve got over 400 converted barns, 950 properties situated on a farm, 21 shepherd’s huts, 30 converted chapels or churches, six yurts and even one converted water tank and one converted railway carriage.” And with both spending figures and domestic trip numbers up, the staycation is proving it’s here to stay. In the first half of the year, Visit Britain reported a rise in domestic trips – up to 56.4million from January to June, a rise of 2% on the same period last year. Creating a luxury destination Away Resorts is one business which is leading the way in providing top-class facilities. It has completed two major refurbishment projects so far this year, at woodland retreat Sandy Balls Holiday Village, in the New Forest, and lakeside retreat Tattershall Lakes Country Park. The operator said the £10 million refurbishment at luxury forest destination Sandy Balls marked “the introduction of the most luxurious holiday lodges ever seen at a UK holiday park”. The range of new accommodation there includes the Knightwood, named after the largest oak tree in the New Forest. Carl Castledine, CEO of Away Resorts, said: “For those who – because of this uncertainty and travel to Europe this year – are looking to stay in the UK, but are used to luxury, we wanted to create an accommodation choice for our New Forest Holiday Village that was beautifully indulgent, and that would rival the most luxurious accommodation in European holiday villages. “So, we came up with the Knightwood – named after the largest and arguably most famous, oak tree in the New Forest. “The exterior to the holiday home features a hot tub, which is yours and yours alone; a heated outdoor seating area, where the evening can carry on long after the sun has dipped; and a dog shower for the family’s furry friend who may have got a little muddy on their walk through the Forest. And don’t forget the bike racks. “The interior is inspired by its forest surroundings with all of the fixtures, fittings and furniture having a wood-like feel; effectively bringing the outside in.” Away Resorts teamed up with holiday home manufacturer Willerby to create the Knightwood. Willerby product manager Phil Parks said: “The Knightwood really takes design and layout to the next level, this offered us the perfect opportunity to be creative and showcase what the Willerby team can do. “It is projects like this that have helped make Willerby synonymous with innovative design, stylish interiors, and above all, exceptional quality standards.” Meanwhile, Tattershall Lakes has seen the completion of a £5.25 million project. A new skyline bar, splash zone, beach and luxury accommodation were added. Paying a premium for luxury accommodation Luxury lodges have stepped up a gear for 2020. No longer content with a mere wooden roof over their heads, glampers want bling – and are willing to pay the premium. I caught up with LTF Pods at the Innovation Diversification event in South Wales in September and was blown away by the standards inside the pods – fitted kitchens and wet rooms are included so guests can avoid the wash-block trips and have the convenience of cooking too. Sofa beds and folding bunks provide solid sleeping arrangements and the décor inside and out makes the pods feel more like tiny cottages. New luxury lodge brand Eco-Signature is raising the bar – by quite a distance! Founder Karen Sheflin says the idea to ramp up the style factor was a no-brainer: “When we saw that demand for luxury holiday homes and lodges has risen by 39% and properties with hot tubs earn 54% more than that (not to mention that those with open fires boosts revenue by a further 14%), it was evident that a niche in the market exists that has yet to be regulated and needs to be developed. “Our vast experience in the hospitality industry led us to develop something that is the first of its kind. A sustainable, eco-luxury lodge with integrated advanced technology that is commercially viable and has been designed with a modern
