Discounted entry fees fail to push up nightclub visits

The continuation of pre-loading before entering clubs, high-unemployment among the 18-24 age group and a 12 per cent decline in the number of students entering higher education are all thought to be factors contributing to the decline of the nightclub sector, which was valued at £1.3bn at the end of 2012.

According to Mintel's Nightclubs report, discounting entry fees at non-peak times is doing nothing to invigorate the sector.

The number of people visiting nightclubs once a year or more often is now 34 per cent compared with 39 per cent in 2011 and those who do visit are arriving later and later. Figures from Zolfo Cooper's Leisure Wallet Report 2012 says a quarter of nightclub-goers arrive after midnight while 9 per cent arrive before 10pm. 

Late night bars, live gigs​

In contrast, late-night pubs and bars which don't charge entry fees are attracting larger numbers of drinkers while clubs that offer food and ticket-only events such as live gigs and stand-up comedy are also doing well. 

Of the 1,366 nightclub-goers surveyed online about their experiences at nightclubs, 55 per cent said they had gone to listen to live music by a well-known or local band and 50 per cent had seen a tribute act perform live. Forty-three per cent had visited a separate restaurant area and experienced table service while 37 per cent went to a club to see stand-up comedy. The charts below show the gradual changes in nightclub visiting habits.

Paul Davies, senior leisure analyst at Mintel said nightclub operators were likely to face further pressure to draw in a wider demographic over the coming years as the number of 18 to 24-year-olds was likely to contract, unless they adapted to do so. 

"Clubs have a choice to make; stick to their core roots and retain a late night ‘drink and dance’ focus, or opt to twist and expand into the daytime market by adding food to the menu," he said. 

"Those that retain a clear club identity will attract a loyal base of customers who value an authentic experience, but admissions and spend per head could well decline as a culture of pre-loading continues to hurt the sector."