Hospitality and tourism operators are set for a Coronation mini-boom according to research from a top think tank.
JD Wetherspoon PLC (LSE:JDW), Whitbread PLC (LSE:WTB) and British Airways could all experience a significant sales lift during the three-day Coronation weekend that might even lay the foundation for a summer hospitality revival.
King Charles III’s Coronation provides an extra bank holiday weekend in May, with pubs given the green light to stay open till 1 am.
The Centre for Economics and Business Research (CEBR) predicts that £104mln extra will be spent in pubs over the Coronation weekend offering some relief to operators such as Wetherspoon that have experienced a challenging path post-Covid dealing with soaring input costs and consumer downtrading.
“The tourism sector is poised to reap the benefits too,” CEBR said.
Airlines like British Airways may already be feeling a boost as flight bookings for May from the US are 10% higher than in 2019, according to research from VisitBritain.
American tourists alone will spend £44mln in the UK during their visit to see the King crowned.
“Assuming that global visitors show as much interest in the Coronation as Americans, this figure would rise to £233 million,” the economic consultants added.
It’s not just airlines feeling the boost either.
Premier Inn owner Whitbread revealed that all its Westminster hotels sold out within 15 minutes of the Coronation date being set.
This is yet another push in the right direction for the company following impressive full-year results.
Shares in Whitbread have jumped more than 12% in the last month to reach 3,216p while British Airways owner International Consolidated Airlines Group SA (LSE:IAG) is up 5.6% in the same period.