Costs are up, staffing is harder than it used to be, and guest expectations have shifted. For hotels, pubs, guesthouses, and other accommodation businesses and hospitality venues, day-to-day operations are taking more effort and more money to keep steady. Brexit and the pandemic didn’t just cause temporary disruption – they set in motion long term changes to the landscape that are creating new challenges.
If things feel tight, that’s because they are. A lot of hospitality businesses are working through the same pressures right now. Let’s take a look at the biggest frustrations:
Problem: Staff Shortages
Staffing is one of the biggest issues affecting hospitality right now. During the pandemic, large numbers of experienced workers left the industry. When restrictions eased, many did not return, and Brexit has made recruitment from overseas much more difficult. The result is a workforce gap that still hasn’t closed. Hospitality now accounts for 53% of all job losses in the UK, with 89,000 jobs lost between 2024–2025. There are over 130,000 vacancies across the sector; 48% higher than pre-COVID.
Kate Nicholls, Chair of UKHospitality, put it plainly: “A third of businesses are cutting opening hours, and one in eight are closing sites.” It’s not that the demand isn’t there; it’s that businesses don’t have the staff to meet it. Constant turnover means constantly retraining, and constant pressure on the people who do remain.
Solution: Invest in retention
The reality is that hiring isn’t the core challenge – keeping people is. When staff feel supported, valued, and given a path to progress, they are far more likely to stay. That might mean offering clearer training and growth routes, offering better staff benefits, or improving rota stability to avoid burnout. If cash flow is tight, even small quality-of-work improvements can make a big difference. And if payroll pressure is what’s holding you back, short-term loans can help you keep the staff you trust.
Problem: Reliance on Online Reviews
Online reviews carry real weight in hospitality. In fact, 81% of travellers admit to checking reviews before booking accommodation. It’s not that reviews themselves are a challenge; it’s that there’s an imbalance. When guests have a good stay, many simply leave and move on. When something goes wrong, they’re far more likely to post about it.
Studies show that guests are more likely to leave a review after a bad experience than a good one. So even though the 2023 Digital Markets, Competition and Consumer Bill cracked down on fake reviews, emotionally charged real ones still shape perception, and perception drives bookers… or deters them.
Solution: Shape your own story
If you want more positive reviews, ask for them. Outright. Most guests won’t think about leaving one unless they’re prompted. A quick mention at checkout or a short follow-up message can be powerful. When a negative review does come in, answer it openly and honestly. Address what happened and say what you’ve done about it. People don’t expect perfection – they just want to see that you pay attention and don’t disappear once they’ve checked out.
Problem: High Commission Fees from OTAs
Online travel agents like Booking.com and Expedia can fill rooms… but at a cost that continues to rise. Since 2015, OTA commissions have increased by 45% as a share of guest-paid revenue, meaning businesses are now paying significantly more just to get in front of customers’ eyes. Large chains can usually absorb this hit, but smaller venues often can’t. It becomes a struggle between visibility and profitability.
The same is true for restaurants using delivery apps like Deliveroo and Uber Eats. They may bring in orders, but at a price.
Solution: Focus on direct channels
You don’t have to stop using OTAs or delivery apps, but relying on them for most of your bookings gets expensive. The aim is to encourage guests to book directly. That doesn’t need to be complicated. Offer something that only comes with a direct booking – a later checkout, a small welcome drink, a loyalty card, or a repeat-stay perk. It just needs to be something guests can recognise as a better deal than going through a third-party.
Problem: Pressure to Offer ‘Experiences’
The hospitality sector isn’t just about accommodation anymore. Guests are looking for more. They want experiences, not stays. Whether it’s contactless check-in, curated local activity guides, eco-friendly amenities, stylish spaces that are ‘Instagram ready’, or always-on AI concierge support, the expectation is to provide something memorable. And while these touches strengthen loyalty and drive reputation, they also require time, money, equipment, training, and partnerships. That pressure can feel overwhelming, especially for smaller or family-run properties.
Solution: Start small
The most successful guest experiences aren’t the flashiest; they’re the ones that are the most authentic. Instead of trying to overhaul everything, all at once, identify what guests already appreciate and build on that. If visitors always comment on the view, create small sunrise or sunset moments. If guests are curious about the local area, curate your knowledge into a personalised map or recommend hidden spots visitors wouldn’t find alone. Innovation doesn’t need to mean expensive renovations.
We’re Here to Help
Hotels, pubs, and other hospitality venues are expected to offer more than they used to, while dealing with higher costs and fewer staff. Extra touches, better service, and a stronger identity all take time and money, and most places are already stretched. Without some spare cash to work with, it can be difficult to keep up.
Punk Business Loans is here to help. If you need space to stabilise staffing, refresh your offer, reduce OTA dependency, or strengthen the guest experience, apply now. No credit checks. No corporate forms. No endless waiting. No complicated jargon. Just straightforward access to a working capital loan to help you keep moving forward. What have you got to lose?
