Prepare your business for Olympic cash boost

With the London 2012 Olympics fast approaching, businesses and retailers throughout the UK are busy preparing for the huge surge in trade that the iconic Games are predicted to bring. While Visa continue to promote their dream of a “cashless Olympics”, we here at Cash-is-Cool see this vision as entirely unrealistic. While contactless technology may foisted on nonplussed consumers within the confines of the official Olympic venues, we predict that cash will come out as king throughout the majority of the UK.

Spectators from around the globe will descend on the Capital for the global sporting event which – it is hoped – will inject billions into the British economy. An independent report by Oxford Economics estimated that the visitors to London for the 2012 Games will include around 450,000 overnight stayers and 5.5 million day visitors. Some organisations believe this figure will be even higher.

It won’t just be London-based businesses that are likely to see a surge in tourist trade. Those situated outside of the Capital can also expect a dramatic rise in custom both in the lead-up to and during the Games. Visit Britain estimates that the UK should attract 30.7 million visitors in 2012, providing our economy with a £17.6 billion in the process, a large proportion of which will be spent by tourists visiting the UK post-Olympics hoping to visit the Games venues while avoiding the stifling summer crowds. Indeed, Sandie Dawe, CEO of Visit Britain, believes that over 50 per cent of tourist revenue is likely to be accrued post-Games, meaning the potential for increased profit will continue well into the autumn months.

So, how best to prepare your business for the sudden boom in tourist trade? We’ve put together some simple tips that we believe will enable all business owners to reap the numerous financial rewards that come with being part of the Olympic host nation.

• BEAT THE PARK PRICES FOR FOOD AND DRINK: Consumer demand is likely to see a real increase, as spectators and visitors and tourists stock up on convenience items such as bottled drinks and snacks. Those business owners with shops closer to the Olympic Park in particular are sure to see an influx in customers hoping to avoid the over-inflated prices found within the confines of the Park itself.

• STOCK UP ON CASH: With many tourists unable to use their foreign credit or debit cards in the UK, retailers should expect an increase in the number of cash-based transactions, particularly for low-price purchases such as food and drink. Business owners need to ensure that they are well-equipped to deal with what is likely to be a high increase in the amount of cash-based payments by stocking their tills with plenty of change.

• CASH ACCESS IS KEY: Similarly anyone heading to the Olympic venues will be eager to take cash with them and will be looking to make withdrawals from ATMs in the local area. Any businesses that provide ATMs onsite should be prepared for a spike in footfall, and those considering installing a cash machine in the coming months should move quickly to capitalise on the benefits of attracting extra Olympic business.

Many businesses in and around London are already taking full advantage of the boost in tourist trade - from drastic increases in hotel room prices and tours of the already-renowned Olympic Park venues to the sale of a wide variety of official merchandise - and there are many opportunities for independent retailers in the UK to reap many more benefits from the Games.

Visa are certain that the Olympic Games will be the defining event that highlights the importance of contactless card technology, however we argue that the 2012 Games will demonstrate the key significance of cash within our economy - particularly as many visitors to the Capital will find themselves unable to use their foreign cards with our machines. Don’t be left behind in the race for Olympic profit – join the cash revolution now!
 

Wednesday, 22nd February 2012

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