Inflation and cost pressures are more pronounced in the United Kingdom than in the United States or other parts of Europe, and hoteliers are feeling the strain, especially hotel owners.
In the latest figures from the U.K. government’s Office For National Statistics, inflation rose 7.8% year over year in April, up from 6.2% in March. The inflationary increase is the highest level since the ONS began compiling data in 2006.
Additional pressures include labor shortages and higher wages, exacerbated by the closing of staffing opportunities from the European Union, and the U.K.’s currency, the pound sterling, weakening against major currencies such as the U.S. dollar.
Kate Nicholls, chief executive officer of UKHospitality, said she is seeing price hikes and cost pressures across the board.
“Unfortunately, emerging from the pandemic has proved … tough. We are facing massive increases in costs, a dip in consumer confidence and a severely disrupted labor market,” Nicholls said.