Top Industries That Benefit from The Holiday Season
It feels more like the holiday season as we get closer to December. It is the time of the year when things feel more festive, people feel more relaxed, and holiday shopping is at an all-time high.
Customer buying behaviour changes around this time, as they typically purchase their Christmas gifts and holiday products/services around November. It is a crucial time for various businesses as they make most of their profit during November and December.
Holiday marketing is a vital influence during this time. Companies begin their holiday planning before November to ensure they can attract customers and promote their products. However, some industries benefit from the holiday season more than others.
In this article, we will point out the main industries that benefit from the holiday season and the industry risks that could arise.
Industries That Benefit from The Holiday Season
Is it even the holidays without gifts? As soon as Halloween ends, numerous people begin to plan their Christmas lists. A list of gifts for family and friends that they begin to buy in November. These gifts could be anything from toys, clothes to electronics. The retail industry, online and offline, greatly benefits from the holiday traditions.
Retail businesses compete to bring more customers to their shops or websites through discounts and holiday marketing techniques. Most retail businesses have more than a 20 % increase in sales during the holiday season. The retail industry includes any brand that sells products to customers through shops or e-commerce websites.
There is a higher chance of risks when there is an increase in product manufacturing, sales and customers in the store or online. These risks include product defects, public liability and cyber-attack claims.
Retail companies need product liability, public liability, and cyber insurance to cover possible risks and accidents. These policies are the main insurance to help recover from third-party risks and cyber-attacks. Retailer risks could occur to any retail business, no matter what they sell.
Food and drinks are a big part of every holiday, from Thanksgiving to Christmas and even New Year. Many families book their turkey and cases of alcohol weeks in advance to ensure they don’t miss out. All holiday food and drink purchases are great news for the F&B industry.
The F&B industry is one of the top industries to benefit from the holiday season. The industry includes food manufacturers, restaurants, bars, butchers and countless F&B brands. It is the ideal time for the industry to develop a holiday season product and apply promotions to increase sales.
For instance, during Christmas and New Year, most wine companies in the US make 69% more profit than other periods. However, with the increase in sales and customers, there can be an increase in product defects and public liability claims.
A consumer could sue an F&B company if they believe the product or the premises caused their illness, an injury or property damage. A liability risk could occur for any F&B business, which is why they need product liability and public liability insurance. Insurance will financially cover third-party claims that may arise during the holiday season.
Travelling is another huge factor in the holiday season. Many take advantage of the holidays to plan vacations or fly home to family. Cathay Pacific carried 801,088 passengers in December 2022 and expects to have more this year. The more people travelling worldwide, the better the travel industry does during the holiday season.
The travel industry includes airlines, hotels, travel agencies (including booking websites), and more. Any company in the industry understand the holidays are the busiest time of the year.
Travelling companies can deal with stress and problems during the holiday season. The common problems can include an increase in loss of baggage, overbooked hotels, cyber-attacks or any form of negligence. When the service causes a customer a sufficient financial loss, they resort to suing the travelling/tourism business.
Businesses in the travelling industry should ensure they have the proper protection to deal with possible holiday season lawsuits. The best protection is professional indemnity insurance to cover liability claims resulting from unforeseen service negligence. Most travel bookings occur online, so they need cyber insurance to help deal with the increase in cyber-attacks.
Customers expect a smooth vacation during the holiday season and will believe travelling companies are responsible when things go wrong.
There is always demand for Christmas movies during the holidays. Hence, there are a countless number of movies and shows released about the season. These movies aim to put their viewer in the holiday spirit and spread festive joy. The film industry is among the top industries that benefit from the holiday season.
These film projects begin shooting before the holidays and consist of cast members, crew and producers. Every film producer and filming company tries their best to release a holiday season movie or show to gain holiday profit.
However, while filming these projects, there is always a chance of filming accidents. These filming accidents include injuries, equipment damage or third-party claims. Any of these accidents can result in costly bills for the film producer and affect their budget.
The film industry needs insurance before starting the filming. Producers need film insurance to protect their holiday season movies from filming accidents. The insurance is the ideal financial protection to ensure the film finishes in time for the holiday release.
During the holiday season, there are several holiday risks that people fear. These risks result in a large amount of financial loss and stress. The personal risk associated with the holiday season consists of home damage during holiday parties, travelling risks or pet illness risks.
The insurance industry benefits from the rise in policies and demand for financial protection. In addition, many businesses purchase event insurance, and property insurance or renew their insurance around the holiday season. The rise in risk awareness is a great factor for the insurance industry and an opportunity to promote products.
Why Is Insurance Crucial During the Holiday Season?
As great as the holiday season is for consumers, it can be stressful for businesses. Every business must take advantage of the holiday season and customer behaviour. You can use the season to increase sales regardless of your business and industry. For instance, a spa can promote relaxation during the Christmas madness.
However, every industry should understand its risks during the season. Customers and sales increase comes with risks that can seriously harm a business. Risks could be due to product defects, service mistakes, negligence or accidental public damage. Companies must have the proper range of insurance to deal with possible risks and claims that follow.
Having the proper insurance portfolio ensures the company is covered from various risks. The policies will provide financial protection and peace of mind if things do go wrong during the policy period.
It’s time for every business to begin their holiday promotion and analyse their risk management strategies during this holiday season.