In an industry that accounts for more than 10% of the workforce in the United Kingdom and employing more than 3.2 million people, there are bound to be challenges in any year. Bear in mind that according to ukhospitality.org, there are more than 700 companies that account for this massive workforce. The hospitality industry accounts for 5% of the GDP as well as 6% of all total businesses. However, in today’s hi-tech culture, there are new challenges which must be faced if these businesses are to survive. Let’s look at 3 of the key challenges the UK hospitality industry must address in 2020.
1. Operating Costs
While keeping operating costs low to increase profitability is an ongoing issue, it is even a greater challenge today with costs rising at record levels. A large part of this is due to the ever rising costs of energy production largely based on geopolitical factors and a dwindling supply of natural resources. However, some utility providers can offer highly competitive pricing due to green energy production, among other factors. The hospitality industry would be well advised to work with sites like Utility Bidder to find cost effective pricing to keep operating costs lower, therefore, raising profitability.
2. Cyber Security
This is a huge concern for almost every industry because it only takes one breach to bring a business to financial ruin. Not only is the business’s data at risk, but all those clients who have listed all their key personal or corporate information are at risk as well. Although it may seem as though the cost of high levels of cyber security is high, the cost of being bankrupt is even higher. According to a report released in the end of May, a major data breach was found among some of the globe’s largest hotel chains, and it is yet unclear just how many were negatively impacted.
3. Mobile Searches & Bookings
It is now common knowledge that more people search for new businesses using mobile phones, and so a huge amount of emphasis has been placed on making websites responsive/mobile-friendly. These are simply key terms, meaning websites can be viewed and navigated easily on any mobile device with typically tiny screens. Since the average user now searches for restaurants and hotels from their mobile device, it stands to reason that your website should cater to this crowd. However, it doesn’t end there. It also means targeting the mobile user with marketing techniques that will place your business highly in the SERPs (Search Engine Results Pages).
So then, as you can see, the key challenges within the hotel industry rely heavily on technology, and if you hope to survive our growing dependence on this very same technology, it means making an investment in your company’s future. Whether you are a large 5-Star hotel or a small pub in the West End of London, you can be sure that most new customers will find you online. Why not use technology to help you find competitive prices as well as reaching a greater audience? These are the challenges the hospitality industry must meet in 2020 if it is to survive.