What do hotels, restaurants, resorts and destinations have to contend with?
Every new year brings its own set of obstacles.
2025 is bound to be no exception to that.
And the hospitality industry has plenty to consider.
While recovery following the COVID-19 pandemic and the lockdowns has been steady, businesses aren’t out of the woods yet.
There’s always something for owners and managers to consider.
This piece will look at the main challenges hospitality businesses from restaurants and hotels to spas and tour operators face this coming year.
We hope you can identify the biggest threats facing your own company and take proactive steps to minimise their impact in 2025 and beyond.
Talent gaps
Hospitality has long struggled with a high employee turnover rate. Estimates put it anywhere from twice the national average to 5-8 times higher!
That means that many businesses have something of a revolving door when it comes to staff.
And that can make it very difficult to ensure you maintain a skilled team that can delight your customers. Bridging talent gaps in your organisation is imperative.
Optimising your hiring, onboarding, and training is critical to get employees in the door and up to speed as quickly as possible.
Cost of living crisis
Prices have risen across the board, and the effect on the hospitality industry can be clearly seen. Not only are their own costs increasing, but consumers have less money to spend on luxuries like holidays and eating out.
As a result, businesses must truly stand out to earn customer loyalty and repeat business. Their offering must make financial sense to consumers and be seen as good value.
Prices have had to go up and this will make customers wary. Some businesses have found success in opening fewer days of the week to counter their rising costs, and committing to delivering great experiences to their patrons on the days they are open.
Changing your working pattern can feel daunting, but with a smart shift scheduling solution made for the hospitality industry, you can make adjustments with ease.
Reputation maintenance
In this digital, connected age, it can only take one bad experience for a business’s reputation to suffer. The age of reviews, of social media rants, and of ‘viral’ complaints means that hospitality businesses need to be very careful in how they manage unhappy customers.
Make sure to respond to negative reviews in a professional and measured way. Stick to the facts, offer apologies and retribution if needed, and avoid getting dragged into a war of words.
Soliciting positive feedback from your satisfied customers is just as important. One bad review can be ignored if there are plenty more good ones! Offering incentives like discounts is a great way to ensure positive reviews and may even lead to repeat business as well.
Cybersecurity
No one is safe from virtual threats. And since hospitality businesses often handle extensive guest data, they can be prime targets for malicious attacks. Investing in cybersecurity will keep your organisation running smoothly and avoid unplanned outages.
What’s more, minimising the risk of reputational damage following a breach can often be worth its weight in gold. Ensure you are compliant and up to date with regulation to keep on the right side of the law and away from the clutches of cybercriminals.
The green factor
Sustainability is a more pressing issue than ever. More and more consumers are making choices based on the environmental credentials of the brands and businesses they interact with.
Hotels and restaurants in particular are often very high volume users of water and electricity, so looking at sustainable solutions, from water recycling to heat pumps, can not only cut costs but convince customers that you are doing your bit for the planet.
Hotels are commonly offering guests the option of how often to change their towels and installing light circuits that only operate when rooms are occupied. We expect more innovations are just around the corner.
We hope these tips help you prepare your business for a successful year ahead in the hospitality industry.