Obviously, every business is different, but public holidays generally impact companies in one way or another. There are both positive and negative effects which depend on the industry and nature of the business, but in this article, we will discuss the overall affects these days have on businesses.
How Do Public Holidays Affect Businesses?
Reduced Productivity
On public holidays, many employees take time off work to spend time with family and friends. This can result in reduced productivity and slower business operations. This impact is more significant for businesses that rely heavily on a workforce, such as manufacturing or retail.
Increased Costs
For businesses that remain open on public holidays, additional staffing and overtime costs can increase operational expenses. In addition, many businesses may offer holiday pay or other benefits to employees who work on these days. With special occasions occurring on bank holiday weekends too, like the King’s coronation or Queen’s jubilee, there may be extra costs spent on decorations or other incentives and events held because of this.
Increased Sales
Some businesses may experience an increase in sales on public holidays, especially those in the tourism and hospitality industries. Many people have time off work and use this opportunity to travel, dine out, or attend events. Businesses that stay open on these days may experience extra footfall on these days too which create new potential opportunities.
More Marketing Opportunities
Public holidays can also provide marketing opportunities for businesses. Companies can create holiday-themed promotions and advertising campaigns to attract customers, such as discounts, loyalty rewards or new products.
Disruptions to Supply Chain
Unfortunately, businesses that rely on the delivery of goods and services may be impacted by the disrupted supply chain. Many transportation services, including shipping and logistics, may have reduced availability or increased costs during public holidays.
Overall, the impact on businesses can vary depending on the industry, location, and nature of the business. It’s essential for companies to plan ahead and take measures to mitigate any negative impacts while capitalising on any potential opportunities.
Photo Credit: Chris Boland