A new market report by analyst Plimsoll has highlighted that confidence is beginning to return to the hospitality sector across the UK, with over half of businesses reporting a rise in sales and profits in the past 24 months.
The report reveals that 52 per cent of firms saw their sales increase over the last two years, marking an average rise of 2.2 per cent. If anything, 4.5 per cent of the companies enjoyed a healthy boost of eight per cent in sales. It is hoped that this confidence will now translate into the generation of hospitality jobs.
David Pattison, Plimsoll’s senior analyst, said: “It really is essential that businesses look for areas of growth in the market and see how they can keep up with the leaders. These 45 trail-blazing firms are heading-up the new direction of the market and the other companies will take note of those 45 companies. With salaries up and gross margins down, it’s clear as costs grow then sales need to follow suit.”
These figures correlate with a separate report by analyst EY, which in its 'Global Hospitality Insights Top Thoughts for 2014' predicted great things for the sector, especially among hotels. EY stated that, in particular, millennials and Chinese travellers would be the ones who would drive this growth. While around 40 per cent of the former has not entered full-time employment yet, they still represent a third of all business travel expenses, with this set to rise to half the market by 2020. This has forced hotel managers to customise their services for this generation, in the form of offering in-room tablets and booking applications on smartphones.
The Plimsoll results are based on a sample of 1,000 hospitality firms across the UK.
Berkeley Scott is a specialist recruitment agency providing hospitality employment solutions.