Night time economy hit as more than a third of people cut back on nights out

The latest Rekom Night Index has revealed that since autumn 2022, 35% of respondents have cut back on the number of times they go on nights out, with half (50%) of those saying this was as a result of increased general living costs.

More expensive bills (43%) and the need to save any spare disposable income (33%) were also cited as a reason for cutting back on nights out.

Pricing remains the most important factor for consumers with key priorities when choosing a venue, according to the survey, including cheap or no entry fee (28%) and good value drinks (27%).

Data shows that in the same period, the average total spend on a night out has decreased by 0.2% to £74.78 with food spend increasing by 0.8% to £17.26.

Spending time with friends continues to be the most popular reason for going on a night out (61%). As socialising takes a hit, 18-24 year olds were the most affected, with 38% prioritising saving versus going out, compared to 21.7% in the over 55 category.

“Our Night Index continues to show that due to the challenging economic situation, young people are going out less and choosing more cost-effective ways of socialising as they look to save any spare cash they can for more pressing financial priorities such as rent or general living bills,” says Peter Marks, chairman of Rekom UK.

“This will have a knock-on effect for the whole of the night-time economy. You have to feel sorry in particular for students. Having had their studies disrupted by Covid 19, a return to normality should be what they were looking forward to. To then face a cost-of-living crisis and huge inflationary pressures when it’s ‘their time’ as young adults, is a real kick in the teeth.

“For those of us who were students once, we know that socialising and meeting new people is a really important part of going to university. We should take this survey as a warning to sit up and take note of what’s going on – we hope that these findings highlight to all those trading in the industry the importance of remaining flexible in responding to changes in consumer behaviours.

“People are predisposed to come together, have fun and spend time with friends – it’s up to us as an industry to ensure we provide the right environment and adapt our business model to enable that to happen.”