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The UK corporate hospitality market is concerned
with any event for the benefit of an organisation entertaining clients or staff
at the organisation's expense. Key Note estimates that the market grew by 9.7 percent
in 1997 to reach £620m.
Around 80 percent of corporate hospitality is for
employees. Employee-based corporate hospitality activities such as go-karting,
clay pigeon shooting and family days, account for more than 50 percent of the
corporate hospitality market for clients and employees. Many of these events
are organised directly by organisations without using the growing number of
corporate hospitality organisers. The other main product sectors of the
corporate hospitality industry are spectator sports, arts/culture and other
events.
The barriers to entry in the corporate hospitality industry
are low, and it attracts new entrants during growth phases. Although the
industry was slow to come out of the recession, 1996 marks a year of revival
for the corporate hospitality industry, as companies once more invested in
building relationships with clients and staff through corporate hospitality
events.
Unlike employee corporate hospitality, client corporate
hospitality is dominated by spectator sports. Key Note estimates that, in 1997,
around 80 percent of the £135m that organisations spent on client hospitality
was on spectator sports. Although international rugby matches are the most
popular sports matches for corporate hospitality, expenditure at football
matches is by far the largest sports subsector.
Although the total
industry is highly fragmented, the spectator sports sector for client
hospitality is showing signs of concentration. Many of the large spectator
events and tournaments are sponsored and incorporate official corporate
hospitality agents, such as Sportsworld PLC and Keith Prowse Corporate
Hospitality. Increasingly, the large corporate hospitality companies are
engaging in overseas events, as sponsorship of major sporting events becomes
more globalised. Nevertheless, the total turnover of Sportsworld PLC is less
than 5 percent of the total UK hospitality market.
Key Note estimates that
the UK market will grow by around a third between 1997 and the year 2001, to
reach a value of £810m. Similar growth in expenditure is expected for
spectator sports.
Text © 1998 Key Note
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Last updated by Duncan Nottage 5th March 1999