The leisure industry – including hospitality, tourism and recreation – is a broad category that is highly sensitive to economic cycles. This was made clear during the pandemic, when the entire sector came to a virtual standstill. But as normal service resumes, and with increasing demand for all-inclusive services, there is renewed interest in buying and selling companies in the sector.
Personal service and a pleasant experience are a big factor in the hospitality industry. The target group is very diverse and so are the needs and expectations of guests. Entrepreneurs in hospitality companies often use technology and data to meet these expectations, and key selling propositions such as corporate social responsibility and sustainability play a substantial role in building a commercial profile.
For leisure and hospitality companies, customer experience is absolutely key, nut entrepreneurs are now faced with the challenge of renewing their business models with limited capacity and more expensive staff. But using big data, deploying artificial intelligence, and scaling up all come naturally to the major players.
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Staff shortages in the leisure industry were an unfortunate consequence of the pandemic, but the removal of health restrictions has been a signal for entrepreneurs to renew the search for acquisitions and refresh their growth ambitions.
We’re seeing a degree of consolidation in the leisure industry, fuelled by new investors entering the market and others implementing a buy-and-build strategy by snapping up smaller companies. Consolidation is also evident on the supplier side of the market, as scale and efficiency become more important.
The success of tourism goes hand-in-hand with success in hospitality and recreation. The lines between these activities are becoming blurred and the battle for the tourist ‘dollar’ is getting more intense. We expect this trend to continue for the time being.
The end of pandemic restrictions was marked by an increase in the number of strategic acquisitions. The leisure industry is embracing the importance of online visibility, and we are noticing trends in scaling, diversification and chain formation.
There are plenty of good reasons to consider buying or selling a company in hospitality, recreation, or tourism. Perhaps you want to add a premium label to your current range. Or to acquire a company that will broaden your offer to the customer. Whatever your reason, we’ll be happy to guide you through the process.
Marktlink can help you realise your ambitions. Always committed, independent and professional, we have a large national and international network, and detailed knowledge of local markets. Our specialists will use their knowledge and experience proactively to help you find the right successor or to realise growth ambitions.
Contact us now for more information.