UK Hoteliers Feel Pressure To Raise Room Rates as Inflation Erodes Profitability
Banking Leader Asks UK Businesses Not To Pass Higher Costs On to Consumers
Amid high inflation and surging energy costs, United Kingdom government officials have asked business owners to not pass on higher costs to consumers. But members of the U.K. hospitality industry say that's asking too much of hotel owners and operators trying to run profitable businesses.
Amid high inflation and surging energy costs, United Kingdom government officials have asked business owners to not pass on higher costs to consumers. But members of the U.K. hospitality industry say that's asking too much of hotel owners and operators trying to run profitable businesses.
Steve Alton, CEO of the British Institute of Innkeeping, said his hotel, bar and restaurant members have all taken financial hits during the COVID-19 pandemic and in the first months of the inflation hike by waiting to raise prices, but they cannot continue to be the good guys forever.
Our members have been absorbing price increases in every area of their business for many months now, and the harsh reality for many is that they can no longer continue to do so,
he said.
Higher wages and continued inflation, especially in food and beverage, will result in many businesses facing imminent failure, Alton said. He added many businesses won't be able weather the financial challenges without raising prices.