Circumstances (namely Brexit, Covid and the cost of living crisis) over the last few years have led to a transformation of the hospitality industry like no other. Businesses have had to adapt to survive, coming up with innovative ways to combat recruitment challenges, changes in consumer spending and rising costs.

And like in any other sector, hospitality businesses must keep on top of the latest industry trends in order to stand out from the competition, streamline their operations and maximise profitability.

At VenueScanner, we are uniquely positioned to understand exactly what is going on in the sector. Not only does data from our platform tell us what types of events people are booking, in which locations and at which venues, but we also speak to event planners and venue hosts day in day out about the issues they are facing, advising on how they can use technology to overcome those challenges.

Here’s what our data and our customers are telling us…..

Trends Impacting the UK’s Hospitality Sector

The Rise of ChatGPT

It’s hard to ignore this one. You can’t open your social media or look at a news site without seeing a story about ChatGPT and other systems which use artificial intelligence (AI) to mimic human conversations.

Technology like ChatGPT is set to revolutionise the industry, improving customer service, driving efficiencies, streamlining communication and reducing costs. It can also integrate with marketing tools to drive targeted campaigns and messaging which are more effective because they are based on actual data.

Of course there are challenges when it comes to integration, personalisation and accuracy, but the opportunities for improved customer service, efficiency and cost savings are endless when it comes to ChatGPT.

Highly Targeted Marketing

Every hospitality business is feeling the effects of rising interest rates, soaring energy prices and inflation. It’s impacting their bottom line like nothing else before just at a time they had started to recover from the pandemic.

This means venues are having to monitor their spending more than ever and streamline their marketing activity to focus only on events that will generate higher revenue to cover their increasing costs.

A Shift in Demand

Given we are seeing a decline in consumer spending, especially in mid-range bars, pubs, restaurants and hotels, our data shows there is a huge opportunity for UK venues to diversify their space for B2B offerings to increase footfall and fill their downtime.

For example, with an increase in remote first businesses, we are seeing a lot more companies looking for affordable meeting and hot desking spaces for their teams to get together in person. Pubs, bars and coffee shops offer up a perfect solution for this.

The increase in flexi working has also given rise to more demand for company offsites from businesses who understand the need to get their teams together on a regular basis given they are no longer sitting next to each other day to day. This represents another huge opportunity for UK event venues, hotels and even pubs, bars and restaurants to diversify their revenue streams by marketing themselves as great away day locations and tapping into this rapidly expanding market.

Sustainability

Besides just being the right thing to do, being sustainable is not just good for the environment, it’s good for business.

Today’s consumers want to buy from ethical businesses that follow environmental, social and cultural best practice. An overwhelming majority of millennials and gen zers will pay more for products (and services) that don’t harm the environment, deplete natural resources, or negatively impact the lives of people or wildlife. And equally, they want to work for companies that do the same.

In an age of reduced consumer spending and recruitment challenges, hospitality businesses that can make sustainability a core part of their business strategy will be able to attract more loyal customers, and more motivated and engaged employees.

To the Future

Despite the extensive challenges facing the UK’s hospitality sector, technology adoption, diversification, and sustainable business practice offer up opportunities for growth.

Venues that can adapt their spaces to accommodate flexible working and the rise in company away days, that can take advantage of ChatGPT to streamline operations and maximise efficiencies and stand out as a truly sustainable business will emerge from this challenging time stronger and more profitable as a result.