Hotels and accommodation

The UK hotels and accommodation sector faces unprecedented headwinds. After surviving oblivion during the pandemic with multiple lockdowns and forced closures, the sector now faces a cost of living crisis caused by rampant inflation and rising energy costs.

Against all the odds, demand for UK holidays is increasing and slowly returning to 2019 levels. Business travel is more subdued in its recovery and it’s yet to be seen if corporate stays will go back to pre-pandemic levels.

In the UK, competition for talent and increased wages are bringing added pressure to profitability. However, the sector continues to build back better and generate new ideas around employee incentives and benefits to retain talent.

Despite the challenges, well-funded and successful operators will be investing in data analytics and technology, both front and back of house, and meaningfully addressing their sustainability credentials.