New research from VodafoneThree has revealed SMEs (Small & Medium Sized Enterprises) powering the UK’s tourism industry are missing out on more than £1.5bn of potential earnings due to poor connectivity.
Almost three quarters (74%) of tourism-related SMEs, which includes hotels, restaurants and gift shops, reported a financial boost this summer as more Brits chose to holiday closer to home. However, a fifth (19%) believe poor connectivity prevented them from fully capitalising.
Of those surveyed, one in three (33%) felt enhanced connectivity would help them grow their eCommerce, from improving online shopping options to adding services like click-and-collect.
Four in ten (41%) would enhance their Wi-Fi, making it easier for their customers to stay connected, while three in ten (30%) would explore AI tools for customer support. This could include virtual help to answer questions faster and automated responses to common enquiries.
Social media topped the SME wish list with 43% wanting to use it more if they had better connectivity.
Tracey Toulmin, who runs Bryn Woodlands House in Colwyn Bay, North Wales uses Instagram and Facebook to promote her guesthouse and the local area.
She comments: “As a small business, social media has been key to getting our name out there, we’ve had people join in when we go ‘live’ from across the UK, America, even Australia.
“Posting daily about our guesthouse while we are out and about in our local area has boosted engagement and bookings, with guests discovering us through social media. Good mobile connectivity isn’t just nice to have – it’s what turns posts into bookings and followers into guests.”
The £1.5bn potential revenue boost would be felt across 50 UK staycation hotspots*, including Brighton, Tenby and Whitby if connectivity improved.
Retailers serving the tourist industry could increase their annual revenue by £900m, while food and drink SMEs could pocket £400m thanks to better connectivity.
The new research comes as VodafoneThree begins expanding network access across the UK using innovative ‘Multi Operator Core Network’ (MOCN) technology, allowing Vodafone and Three customers to use each other’s networks, at no extra cost.
Where activated, customer devices will automatically connect to the best coverage available – whether that’s on the Vodafone or Three network. This effectively gives customers access to two networks, delivering improved coverage, reliability, and speed when using 4G and 5G.
Andrea Donà, Chief Network Officer at VodafoneThree, comments: “We know that tourism plays a critical role in boosting local economies across the UK, with improved connectivity accelerating their growth to the tune of £1.5bn a year.
“That’s why VodafoneThree is investing £11 billion to build a network that provides reliable, quality connectivity to all corners of the UK. Our initial sites have been carefully selected to deliver the greatest benefit to customers, particularly in rural and coastal areas where demand surges during the summer months. This means smoother streaming and quicker downloads for consumers, as well as equal access to digital tools to boost productivity and growth for local businesses.”