Hoteliers Face Energy Costs Fallout From Invasion of Ukraine
Inflation Will Undermine Discretionary Spending For Hotel Add-ons
It is impossible to find anyone who does not share shock and horror regarding events in Ukraine, but it is not the place of a humble hotel industry publication to add to the voices of opprobrium.
Worrying about issues such as the banning of Russian and Belarusian athletes from the Paralympic Winter Olympics, who owns Chelsea Football Club and increased energy costs might sound facile against the backdrop of what is happening in Ukraine.
Energy prices are hitting new heights, both because of a shortage of supply and because Russia is a major provider.
Before the Russian invasion, the United Kingdom’s energy regulator, the Office of Gas & Electricity Markets, known as Ofgem, announced on Feb. 3 that prices — the so-called Default Tariff Cap — would rise by 54% starting on April 1.
That is a severe climb, and a good percentage of the population will struggle to pay the increases, which are set to climb even further due to the unpleasantness in Ukraine.
