Author: Stewart Hindley

There’s no denying that COVID-19 has had a significant impact on all aspects of our lives. The majority of us have had to adapt to a new way of working, socialising, and travelling.

However, as the world starts to return to normal and restrictions are being lifted, all eyes are focused on the economy’s recovery, especially the hospitality sector which was hit the hardest.

Bars, restaurants, clubs, hotels, pubs, and other leisure facilities were all forced to close their doors, and unfortunately, many have not reopened them again despite the lifting of lockdown restrictions.

But what is the situation now and what challenges does the hospitality sector face post pandemic?

At the moment, data is indicating that consumer spending within hospitality sector started to increase from May 2021. However, this still remains at less than 70% of pre-pandemic spending levels. It’s clear there are still many challenges for the sector to overcome.

Difficulty finding hospitality industry staff

The double blow of Brexit and COVID-19 has had a devastating effect on all aspects of the hospitality sector, with many workers leaving the industry.

Pay, job security and job longevity have all played a role in causing many workers find work elsewhere, especially people that have had to re-evaluate their priorities. And so, despite warnings about a future recession with thousands of workers potentially set to lose their jobs, the hospitality sector has found it increasingly difficult to recruit.

This has forced the industry to re-evaluate its working conditions, incentivise job roles, optimise personal development and change the way the industry is viewed in order to attract new employees.

Retaining your existing workforce

Although attracting new employees is one of the biggest challenges the hospitality sector is facing at the moment, they are equally tasked with trying to retain their existing workforce.

After all, in the current climate, if you have a solid and hardworking workforce, you should do everything in your power to retain them. With this in mind, check in with your employees to make sure they feel happy, valued, and empowered at work. Listen to their concerns and address them where you can, especially as benefits and initiatives on wellbeing and mental health are incredibly important.

Increased business expenses

Higher fixed and variable expenses also continue to be a concern for the sector. In addition to this, increased hygiene costs and mandated restrictions are continuing to cost businesses both time and money.

As prices rise, businesses must increase their own costs in order to protect their profit margins.

Supply chain issues

Many products are in short supply, putting pressure on the supply chain and making it difficult for businesses to get hold of the stock and supplies they need to deliver their service.

Low occupancy, less travel

Although restrictions have been lifted, many people are still incredibly apprehensive about eating out and travelling, meaning many hospitality businesses are still experiencing extremely low occupancy levels.

With this in mind, many businesses are having to focus on getting customers back through their doors through marketing, social media, promotions and other methods.

Despite the effects of COVID-19, some hospitality businesses are still thriving. If you’re looking to take your first steps on the commercial property market, or you’re planning on selling your property and looking to secure hospitality finance, we can help you find the best deals around.  Get in touch to discuss your property finance needs.

COVID-19 has had a huge impact on the hospitality industry, with much of the sector being completely shut down for significant periods during the past two years.

However, as the world slowly but surely opens up again, the hospitality sector is recovering well, with people beginning to travel again and meeting up with family and friends.

And with the speed of recovery on track to return to pre-pandemic levels this year, there’s a lot for the hospitality industry to look forward to in the Summer Season 2022.

So, what can you expect from the industry this year? We’ve rounded up our top hospitality industry predictions.

Holistic hospitality

Holistic hospitality is set to be huge in 2022, with more people than ever before prioritising their health and wellbeing. As a result, the wellness industry is booming, especially spas and hotels with spa facilities.

At the same time, there’s also a growing demand for health diagnostic technology and bespoke treatment plans that tackle a wide range of health concerns including emotional balance, healing, stress management, mindfulness and better sleep.

Personal experience

Having not been able to enjoy much of the hospitality for some time now, guests want to feel extra special, whether they’re dining out or staying in a hotel. Creating a personal guest experience can really help to ensure that your guests have a memorable experience when they stay or dine with you.

Tactics that many establishments are already using include personally greeting guests and sending personalised offers and emails to customers. Technological platforms such as CRM (customer relationship management) and CEM (customer experience management) are set to become even more crucial, allowing businesses in the hospitality industry to create one-to-one interactions with guests at scale.

Digital experiences

Technology is a huge part of our everyday lives, with many of us using our mobile phones and other devices to communicate, shop, bank and much more. And, during the pandemic, technology played an even more central role in our lives, with many customer-facing services becoming contactless.

So it’s not surprising that this year, apps that allow guests to control all elements of the guest cycle experience are set to be huge. Customer-facing services, such as mobile check-in, contactless payments, voice control and biometrics, will continue to be digitalised and facial and fingerprint recognition will also be introduced for improved convenience.

Technology is evolving fast, and businesses in the hospitality sector will need to keep up.

Unique travel

Customers are now demanding unique experiences across all aspects of the hospitality sector. For example, record numbers of travellers are now seeking lavish experiences that add an exciting and memorable dimension to their trip.

As a result, there has been a stark increase in travellers looking for niche properties, luxurious relaxation retreats, adventurous holidays and extraordinary hotels.

Lower corporate demand for travel

Although travel for leisure is predicted to rise again this year, business travel is unlikely to see the same recovery. In fact, according to The Global Business Travel Association, business travel spending isn’t expected to return to pre-pandemic levels until 2025.

As a result, hotels will need to adapt their offerings to cater to leisure travellers, particularly domestic travellers.

How we can help

If you’re considering buying a commercial hotel property, it’s important to speak to someone experienced in the sector to ensure that you are aware of all the funding options available to you. Get in touch to speak to one of our skilled and experienced team. We are always on hand to answer any of your queries regarding commercial mortgages.