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The perplexing issue of inflation, Brexit and economic uncertainty on hiring for hotels.

The perplexing issue of inflation, Brexit and economic uncertainty on hiring for hotels.

The perplexing issue of inflation, Brexit and economic uncertainty on hiring for hotels.


Recent statistics show a positive trend in the hotel industry from record highs in daily rates in London to a 3.5% profit growth for North Western hoteliers. These statistics seem to have buried a lot of the worries about the UK leaving the European Union.


There has already been increased inflation which will put pressure on prices and therefore wages in the hotel industry which relies on low paid low skill workers in the day to day running of hospitality businesses.  Can the hospitality industry afford to increase wages in line with inflation triggered by Brexit?  At the moment it is only 1%, but if it continues to rise then it is a question that hotel owners will have to ask themselves.


On top of Brexit inflation, it seems the government is keen to continue to increase the minimum wage for over 25s. This will inevitably increase the cost of wages to hoteliers. Independent hoteliers will feel the pinch more as they struggle to keep margins high in the light of OTA (online travel agency) commissions and private marketing efforts. Therefore, we are forced to consider how this will impact hotel’s current business models. It is time for many hoteliers who rely on cheap labour to revaluate their business models and seek advice on how to review their staffing and revenue procedures.  At BrilliantHospitality we encourage reviewing accommodations providers position regularly and in the context of the current economic climate.


Moreover, if that wasn’t a big enough worry for hotel owners to grapple with the uncertainty of being able to hire an abundant young and diligent European workforce where their businesses face a skills gap.  Transient young workers have been an asset to many hotels, but the question of whether we stay in the Single Market allowing the free movement of people is unanswered. Is there about to be a shortage of unskilled workers that hospitality as an industry is reliant on? The shortage in staff will also put pressure on wages to increase which adds to this perplexing climate for hoteliers.


Overall, the hoteliers are about to enter unpredictable time in terms of how they hire people, who they hire and at what price? The implications for the quality of service and profits are large and only time will tell how this effects individual businesses.

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