Catering to the over 65s: a £16 billion untapped opportunity for the UK Hospitality and Leisure sector

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New research by Barclays shows that the over 65s added £37 billion*(2) to the UK economy through spending on the Hospitality & Leisure sector in the last year. This contribution equates to over a third (36%) more than the average consumer and 27% higher than the 35 – 54 year olds who are the second biggest spending generation.Despite this, the An ageing population: the untapped potential for hospitality and leisure businesses report from Barclays Corporate Banking, reveals that the UK Hospitality & Leisure Sector has missed out on at least a further £16 billion in additional revenues by underestimating the spending power of the older generation in the last year.

Sector must innovate and re-focus to capitalise
Just 5% of businesses within the sector see the “overlooked generation” (those aged 65 and over) as the most important demographic in terms of sales and revenue for their company. In fact only one in five businesses (22%) ranked over 65s in their top three target age groups. While a significant number of Hotel and Travel businesses are alert to the fact that the over 65s spend more per customer than any other group (38% and 44% respectively), more than a third (37%) of businesses in the sector perceive 34-44 year olds as their priority target market, despite these consumers spending less money on average.

Furthermore, more than three quarters of businesses (76%) have no plans to introduce products or services that specifically targets the over 65s. Of these, 37% have not even considered targeting this age group and 28% see little financial opportunity in catering to them.

Without action, this missed opportunity is only set to increase in line with the UK’s ageing population. The total annual spend of over 65s could grow to at least £57 billion by 2025*(3), based on the projected 34% growth in the population of over 65s. This could be even higher considering the increased mobility and active lifestyles the over 65s are now living.

Mike Saul, Head of Hospitality and Leisure at Barclays, said: “It is clear from the Report that the over 65 age group is a huge and untapped opportunity for the Hospitality and Leisure Sector with the UK. There appears to be a gulf between the perception and reality of the spending power of over 65s. By not fully focusing on the needs of this generation, and the revenue growth opportunity they represent, businesses may risk missing out on their share of £16 billion this year alone.

“We have found that almost two-fifths of businesses in the sector expect that the proportion of their turnover generated by over 65s will increase over the next five years. Yet more needs to be done to start planning and accommodating for the currently ‘overlooked generation’. By investment in targeting these customers now, businesses can pre-empt the effects of an ageing population, ensuring they are able to meet and capitalise on the increasing demand.”

Continued on page two…

Daniel Fountain / 29.04.2015

Editor, Hotel Designs

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Fun fact: I’m usually the person friends rely on to organise trips, schedules, and group plans.

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Fun fact: People tell Sienna she gives off Bridget Jones vibes, and she loves to bake, always making sure there are shortbreads floating around the office

Work highlights: Sienna joined Forum Events & Media Group while studying Communications and Media, starting in the sales team where she managed and helped launch the first the PA Life Leading Venues of London SHOWCASE, where she built relationships with luxury venues across the capital. Drawn to the stories behind these spaces, she naturally transitioned into the editorial team, creating social media and editorial content. Upon graduating in June 2026, she is excited to be joining as Assistant Editor for Hotel Designs and SPACE.

Fun fact: When not working, Jess can usually be found tending to her kitchen garden in the Sussex countryside or foraging for herbs in the nearby woods. A keen grower, she recently studied a RHS Level 2 Diploma in the Principles of Horticulture during her spare time.

Work highlights: Jess joined SPACE magazine in 2022 and has since progressed from Assistant Editor to Editor. During this time, she has worked across many aspects of the publication – from shaping editorial strategy and overseeing operations to contributing to art direction and representing the brand on stage at industry events including Surface Design Show and WOW!house.

Alongside her role at SPACE, Jess has built a creative career spanning the arts, culture, design and travel sectors. Prior to joining the magazine, she spent more than a decade in the commercial art industry, in artist liaison, gallery management, and curating collections for the hospitality sector across hotels and cruise ships. During this time, she also worked on freelance projects as a writer, photographer, and creative content producer.
 
Jess studied photojournalism at London College of Communication and the Danish School of Media and Journalism and holds a first-class BA (Hons) in Culture, Criticism and Curation from Central Saint Martins.

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Work highlights: Katy has been with Hotel Designs since the beginning, way back in 2015 when Forum Events & Media Group acquired the brand.

During this time, she has fostered many meaningful relationships with clients from across the hospitality spectrum, as well as playing a pivotal role in the launch of The Brit List Awards, Hotel Designs MEET UPs, client-led roundtables and panel talks, brand and website redesigns, HD Wellness Sets, DESIGN POD podcast, Hotel Designs LIVE panel talk series, Accessible Design Talks and more. Katy is always on the lookout for the next opportunity to help grow the Hotel Designs brand even further.
 
Most recently Katy has stepped in to the role of Publisher at SPACE magazine, the printed bi-monthly publication focused on hotel design, architecture, and development.

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