Month: January 2023

A short survey was undertaken between 6^th-12^th January 2023 in order to ascertain occupancy levels over the last few months, and to see how bookings are looking for the year ahead. This provides us with a good indication of how healthy the sector is looking and what the key challenges are. Of 597 respondents, 62% were ASSC members.

Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, said:

“Our latest survey has laid bare the dire state of affairs our sector finds itself in. Occupancy levels and forward bookings in the self-catering sector are markedly down with a combined 65% of respondents noting that bookings were significantly lower or slightly lower than the equivalent period last year.

Unsurprisingly, with finances being stretched by the cost of living crisis, and the continuing uncertainty over the impact of the onerous licensing scheme, more than half of respondents were not very optimistic about the future of their businesses. Rest assured, the ASSC will continue to fight for our members and look forward to better days ahead.“

OCCUPANCY TO DATE

• Between January and March 2023, average occupancy is at 24% across those businesses that are open;
• Between April and June, based on existing bookings to date, average occupancy is 32%;
• Between July and September average occupancy is just 31%.

COMPARISON WITH 2022

Looking at January – March 2023 bookings, 61% respondents note that the season is worse or much worse (28% much worse) than the same period in 2022.

In overall terms, when describing how the anticipated 2023 season is looking so far compared to 2022, 64% respondents note that the season is worse or much worse (25% much worse).

BOOKINGS

• In comparison to last year 43% say their bookings for the next three months are substantially lower than last year with a further 22% saying bookings are slightly lower
• In comparison to last year 41% say their bookings are substantially lower for the next six months with a further 28% saying they are slightly lower.

OTHER CONCERNS IN THE SECTOR

• 91% continue to be concerned about the impact of STL licensing (69% very concerned)
• 86% concerned about lack of consumer confidence to book holidays (47% very concerned)
• 89% concerned about the very cost of doing business (41% very concerned)

BUSINESS CONFIDENCE

How confident do you feel about the performance of your business in the next 0-3 months:

• 53% not very optimistic (27% remaining neutral)

How confident do you feel about the performance of your business in the next 3-6 months:

• 43% not very optimistic (26% remaining neutral)
• 6% are very optimistic

How confident do you feel about the performance of your business in the next 12 months:

• 50% not very optimistic (17% not optimistic at all)
• 27% remain neutral
• Just 2% are very optimistic

How confident do you feel about the performance of your business in the next 24 months:

• 51% not very optimistic (22% not optimistic at all)
• 32% remain neutral
• 2% are very optimistic

Comments and Key Concerns Highlighted:

• “New licensing, significant ferry disruption”
• “The new licensing. Not pushing advertising as I was unsure I’d be able to afford to apply for the licence and didn’t want to have to then cancel guests. Cost of living crisis, for everyone including guests. Covid.”
• “Fear of unknown re energy hikes. Negative press re strikes, lack of staff in local restaurants and hotels, mortgage interest rates. Await and see mentality even for regulars not committing until they understand the burden on income and expenses.”
• “High Energy Costs. Brexit and impending licence……….”
• “Cost of running the business and the onerous amount of time to deal with STL, and the rising cost of living – which for a single flat that sleeps two leaves a slimmer margin for profit – is it worth the hassle?”
• “Pressures on customers’ disposable income.”
• “Guests! Customers not spending on rural Scottish island self-catering holiday and it’s expensive to travel, unreliable CalMac ferries, unreliable cost of living impact”