The pandemic and subsequent lockdowns hurt a lot of businesses, but arguably those in the service economy took the biggest hit. All over the world, businesses within the service industry were left in the dark as COVID-19 swept the globe and kept businesses in a perpetual state of uncertainty for the better part of 2020.

Fast forward to 2021, and things are beginning to look up for businesses in the service economy. With over 1 billion people vaccinated, and the buzz of finally being allowed to leave the house for more than just essentials in the air, service businesses are now on their way to recovery. Though the experience may look a little different, from gas stations to libraries, gyms and fitness centers to pet services, there’s no denying that businesses have gone above and beyond to accommodate the new times and rules.

In this piece, we’re going to take a look at how the service economy is faring through the lens of location intelligence.

Let’s take a look at some consumer foot traffic from our Services category data from February 2020 until March 2021 to determine what is happening in the service economy. Keep in mind that this data provides a sample of how services are performing.

Perhaps unsurprisingly, gas stations still have the most consumer foot traffic, and libraries—with their digital check out options and new audiobook apps—have the least. As of March 2021, foot traffic to gas stations was 15% higher than pre-COVID levels. Foot traffic to gyms and fitness centers, however, remain 33% lower as more people opt for affordable, at-home workout options. 

Keep in mind that because different states have different restrictions in place, even today, the foot traffic data for gyms in Iowa may look very different from those in Denver where many restrictions are still in place. 

We can hypothesize that the more people feel safe, the more willing they will be to go out and spend their cash on services. Returning to normalcy in 2021 is important; for a lot of people, that means getting a quarantine haircut fixed or going back to the gym for the first time.

As people venture out, they will inevitably spend on more than just the service itself. Going to the gym often leads to a quick bite at the smoothie shop around the corner. For many service businesses, economic recovery goes hand-in-hand.

In 2021, understanding consumer foot traffic trends—no matter your industry—is key to moving forward in this new normal. The service economy is gradually coming back, but the question remains: is this the temporary result of vaccinations, stimulus checks, and pent-up demand, or is this upward trend here to stay?

Only time will tell—and foot traffic data, of course. 

For more information on location intelligence and how your business can benefit from it, speak with one of our experts today.