Fragmentation and roll-up
Highly fragmented segments, and scope for incumbents and sponsors to consolidate.
Sector 05 / Consumer and leisure
Travel, tourism and entertainment, where demand is seasonal and capital is lumpy.
Fragmented segments, a consolidation opportunity, and a more subdued near-term outlook.
Sector overview
Fragmented segments, and room for consolidation.
The consumer and leisure sectors comprise a broad group of segments, from travel and tourism attractions through to indoor leisure facilities. These segments tend to be fragmented, which presents opportunities for larger incumbents and financial sponsors to consolidate, through roll-up strategies.
The market has been shaped by the broader trend to digitisation, both through a more personalised customer experience and through social channels used for acquisition and continuing engagement. ESG is another key driver, and matters most to younger customers.
The market grew strongly in recent years, as households allocated a greater share of their budgets to leisure following Covid. Rising interest rates and core inflation are expected to press on disposable incomes, so the outlook is likely to be more subdued. Businesses able to turn customer insight into compelling value for money propositions are best placed to ride out near-term pressure.
Market forces
The conditions to plan against.
A softer outlook does not close the consolidation window. It changes what a buyer can afford to pay for it.
Digitisation of the experience
Personalisation in the customer journey, and social channels used for acquisition and re-engagement.
ESG expectations
An increasingly important driver, and one that weighs most with younger customers.
Value for money under pressure
Rates and core inflation squeezing disposable income, and a more subdued outlook with it.
AI in discovery and booking
Customers turning to AI assistants to plan trips and book experiences, which may weaken the pull of intermediary platforms, and operators applying the same tools to pricing, rostering and personalised offers.
Selected client examples
Due diligence, market assessment and post-merger integration for leisure businesses.
Named clients are withheld. Each of these ran with a small, senior team working alongside the client’s own people.
Due diligence
ANZ motor home holiday rentals
Commercial due diligence and post-acquisition strategy support.
- Successful integration of the acquired business
- Developed brand, product, channel and pricing strategies
- On track to generate significant returns to investors
Market assessment
Leading international gaming company
International market assessment and regional expansion strategy.
- Developed a predictive model of potential profitability by location
- Identified prospective regions to underpin a European expansion strategy
Integration
NSW Government leisure facility
Post-merger integration and strategy development.
- Supported the successful integration of two high-profile Sydney leisure destinations
- Developed a clear medium-term strategy and provided initial execution support
Starting a conversation
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A 30 minute discussion. We review your current strategy process and identify near-term execution opportunities.
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