Experiential leisure trends 2025: karaoke rooms take center stage

The experiential leisure sector is experiencing unprecedented growth, with UK brands expanding globally and investors pouring capital into innovative entertainment concepts. According to the Experiential Leisure Sector Report 2025 produced by Propel, the market has seen a remarkable 455% uptick in 'combo' attractions over the past five years, while 'solo' competitive socialising has grown by 162%.

The report highlights how competitive socialising and immersive leisure are redefining what it means to spend a night out. Karaoke rooms sit at the sweet spot of these two trends, combining competition, creativity, and immersive entertainment. This makes it perfectly aligned with the trends driving the sector's explosive growth — and platforms like Singa are powering its evolution.

The rise of experiential leisure

The foundation of today's experiential leisure boom can be traced back to Joseph Pine and James Gilmore's 1998 concept of the experience economy. They identified four key dimensions: entertainment, education, aesthetics, and escapism — arguing that businesses could stage experiences as their own form of economic offering. As Pine and Gilmore noted,

"Commodities are fungible, goods tangible, services intangible, and experiences memorable."

In 2025, this theory is fully realized: experiential leisure has become a cornerstone of hospitality growth. Several generational changes are accelerating this shift toward valuing experiences over possessions:

• Generational demand: Nearly half (48%) of young Europeans say they plan to tick off two or more “dream experiences” in 2025, prioritizing travel, food, and live events.
• Spending preferences: According to McKinsey, 52% of Gen Z say they splurge on experiences, compared with just 29% of baby boomers.
• Decline in alcohol-focused nights out: Lower alcohol consumption has changed the dynamic of socializing, making activity-driven venues more appealing.

Today’s consumers expect more than booze-fuelled bar nights. They want experiences that entertain, challenge, and immerse them — and private karaoke rooms deliver on all counts.

The competitive socialising explosion

Within experiential leisure, competitive socialising — activity-led nights out that combine play and hospitality — has emerged as a dominant force. The report notes that 30% of UK adults have visited a competitive socialising venue, and more than half of those who haven’t say they’re interested in doing so soon. Over a third (35%) of consumers going out for competitive socialising activities do so every week, following a surge in venue openings offering games like golf, darts, and arcade sports.

Growth has been dramatic:

• The number of 'combo' venues offering multiple activities under one roof grew by 455% in the past five years.
• 'Solo' concepts focused on one activity, like karaoke, also grew significantly — up 162% in recent years.

Karaoke rooms naturally fit into both models. They can thrive as a stand-alone concept or as part of a broader multi-activity venue, making them highly adaptable to operator strategies.

Savills expects to see more than 800 competitive socialising sites by 2029, having reported 40% growth in properties between 2018 and 2024.

This growth is being driven by several key factors:

Changing drinking habits fuel growth

One unexpected driver of competitive socialising's success has been falling alcohol consumption levels. As Juliette Keyte, marketing director at Red Engine (operators of Flight Club), explains:

"We see ourselves as - first and foremost - a bar. At least 25% of people come in just to drink, not to play, and that means not just alcohol, but healthier options and non-alcoholic drinks so that everyone feels they can come in and have a good time."

This shift toward more mindful drinking habits has created opportunities for venues that offer engaging activities alongside beverage service – exactly where karaoke excels.

Corporate market drives weekday revenue

The corporate market has become crucial for experiential leisure operators. Red Engine's Keyte notes:

"Where we have additional strength as a business is through our corporate offering, which we see during the week. With our games, you can have 12 to 16 people on one play space, getting involved, and people do cut loose as their competitive spirit comes out."

Karaoke rooms are ideally suited for corporate events, offering team-building experiences that break down barriers and create memorable shared moments.

Multi-generational appeal

Successful experiential leisure concepts appeal across age groups. As Keyte observes:

"If you come in on a Sunday, you'll see multi-generational families playing, and that's where having a mixed offering in a variety of ways for people to join you makes it more compelling."

Karaoke's universal appeal across generations makes it a perfect fit for this trend, attracting everyone from teenagers to grandparents.

The immersive leisure connection

Immersive leisure is another key theme in the 2025 report. Savills describes this segment as satisfying "all senses" and notes a "375% increase in funding in this subsector". From ABBA Voyage to Monopoly Lifesized, consumers are gravitating toward experiences that place them inside the story.

Much of immersive leisure "revolves around the arts (theatre, music etc), digitisation or bringing known TV, Film and Entertainment IP (intellectual property) to life." Karaoke naturally incorporates all these elements – it's fundamentally about music and performance, increasingly relies on digital technology, and allows customers to embody their favorite songs and artists.

With private rooms, interactive technology, and customizable playlists, karaoke offers participants a safe and exciting stage to step into. Unlike one-off immersive theater shows, karaoke is endlessly repeatable, scalable, and refreshable — qualities that investors and operators value highly.

The corporate and family advantage

One standout insight from the Experiential Leisure Sector Report 2025 is the strong performance of corporate and family offerings. Activities that break the ice, encourage participation, and create shared memories resonate particularly well during team-building events and family outings.

Karaoke delivers exactly that. For companies, it’s a chance to get colleagues laughing, cheering, and bonding outside the office. For families, it’s an intergenerational activity that’s as fun for kids as it is for grandparents.

What investors want from experiential operators

Lisa Boden Shah, Partner at Edition Capital, provides insight into investor priorities: "The businesses that tend to attract capital are those with outstanding unit economics, healthy EBITDA margins, and a clear, credible plan for multi-site expansion." She highlights that:

"Competitive socialising is outperforming casual and fine dining - not just in revenue potential, but in the predictability and efficiency of its operating model."

Key factors investors look for include:

• Lower, more stable operating cost bases
• High levels of repeat visitors
• Venues that benefit from the shift from late-night to daytime activities
• Strong corporate booking potential
• Ability to appeal to families during off-peak times

Karaoke rooms tick every one of these boxes.

Technology as the game-changer

Ricard Beese, chief concept officer at We Do Play, emphasizes technology's critical role: "Looking ahead, technology will continue to be the cornerstone of innovation in this sector. The integration of adaptive tech — systems that respond dynamically to a player's skill level — can significantly enhance the experience."

However, he warns:

"The sophistication of the tech must be matched by its reliability. Today's consumers expect seamless interaction. If the technology is clunky or glitchy, the magic is lost."

This is where modern karaoke technology shines. Advanced systems can adapt to different skill levels, offer personalized song recommendations, and create seamless user experiences that keep customers engaged and coming back.

Speed to market matters

Beese emphasizes the importance of rapid expansion:

"In terms of location strategy, it's no longer just about who has the best concept, it's about who gets there first. The race for prime leisure space is heating up, and speed to market is critical."

This dynamic creates opportunities for karaoke operators, who can often launch venues more quickly and with lower setup costs than other experiential concepts — giving them a competitive advantage in the race for prime locations.

International expansion potential

The report highlights significant international expansion opportunities. Competitive socialising group Red Engine aims to operate 84 venues globally within five years, with franchise partners opening locations across the US, Australia, and other international markets.

Karaoke's universal appeal and relatively straightforward operational model make it ideal for international expansion, particularly when supported by reliable technology platforms that can adapt to local markets and languages.

Why karaoke rooms are positioned for long-term success

The report highlights several investor and operator priorities for experiential concepts. Modern karaoke rooms align with them perfectly:

• Repeatability: Unlike axe-throwing or escape rooms, private karaoke rooms don’t have a limited novelty factor. With endless song choices and new group dynamics each time, guests can return week after week for a fresh experience.
• High margins: Karaoke rooms maximize space utilization and often come with strong F&B sales.
• Low CapEx refresh cycles: Updating a karaoke offering is as simple as refreshing playlists or upgrading software — far less capital-intensive than rebuilding a mini-golf course.
• Cross-demographic appeal: Families, corporate teams, friend groups, and even solo singers all find karaoke approachable and fun.
• Scalability: Karaoke can succeed in intimate boutique venues or as part of international franchise models.

It’s no wonder that brands like Lucky Voice in the UK are investing millions in expansion.

Why Singa is the platform built for the future of karaoke

While the opportunity is clear, not all karaoke solutions are created equal. Singa sets itself apart with features that align directly with the future of experiential leisure:

• Licensed music catalog: Singa offers a fully licensed, constantly updated song library with over 100 000 hits — ensuring both legality and customer satisfaction.
• SaaS model: Unlike outdated hardware-based systems, Singa is software-driven. Venues get continuous updates, lower maintenance costs, and scalable solutions.
• Analytics and insights: Operators gain access to performance data, helping them understand customer behavior, popular songs, and room utilization.
• Integration-ready: Connect with your existing POS, booking systems, and customer management tools
• International scalability: Multi-language support and localized content libraries enable seamless global expansion.

Singa's technology aligns perfectly with what investors and operators are seeking: repeatability, high margins, low-CapEx refresh cycles, and broad appeal across corporate and family markets.

Don't let your karaoke business get left behind in the experiential leisure revolution. Contact Singa Business today to discover how we can help you create the memorable, technology-driven experiences that today's customers demand and investors reward.