With recent ONS figures showing that UK debt reached 100% of GDP, the highest level since 1961, new research has revealed the hospitality industry is among the sectors facing the biggest debt concerns this autumn.
As we enter the colder, quieter months for the hospitality industry leading up to the busy festive season, many businesses are facing tighter financial margins. But what impact does this have on firms and their staff?
The business experts at Sopro have analysed ONS data to reveal the industries most impacted by concerns about debt this autumn and offered tips on how businesses can overcome these challenges.
The industries with the biggest debt concerns this autumn:
|
Rank |
Industry |
Low confidence about meeting debt obligations |
|
1 |
Real estate activities |
9.7% |
|
2 |
Accommodation and food service activities |
8.6% |
|
3 |
Human health and social work activities |
7.2% |
|
4 |
Education |
4.2% |
|
5 |
Construction |
4.1% |
Accommodation and food service activities
Accommodation and food services came second, with 8.6% of businesses having low confidence about meeting their debt obligations. This could be due to the colder months signalling the rise of energy consumption and costs. As energy prices rise due to inflation, operational costs will likely soar for businesses in the sector. This can make it challenging for businesses to continue generating enough cash flow to meet their financial needs.
Further Study Insights:
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A third (33.3%) of accommodation and food services businesses are also facing increasing staffing costs, the highest rate of any industry. With Autumn marking the beginning of another busy season for the industry, demand for hospitality services increases during holidays like Halloween and Christmas. This means that businesses are required to hire additional, often temporary, staff at higher rates, adding to the already high financial burden of payroll.
Steve Harlow, Chief Sales Officer at Sopro, comments on how businesses can overcome the autumn slump:
“Businesses can survive the challenging autumn months by tightening their sales and marketing tactics to generate new business, keep customers engaged, and maintain a steady stream of sales to beat the financial downturn.
“Here’s how you can put these tactics into practice:
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Maximise Prospecting Efforts: “It’s wise to ramp up your prospecting and lead generation efforts as we enter the quieter months of the year to identify new potential clients and proactively drum up new business. These tactics employ targeted outbound marketing activities, such as emails, phone calls, and social media messaging.
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Analyse Your Sales Funnel: “Monitoring the success of your prospecting and lead generation efforts enables you to make swift adjustments for the best chance of successful conversions. Regularly evaluate your leads and customer experience to identify areas for improvement and modify your strategy accordingly.
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Adapt: “Embrace the seasonal shift and use it to your advantage, incorporating seasonal messaging and deals into your marketing and sales efforts to bolster interest.
“By fine tuning these tactics, you can draw in more customers and maintain stability, allowing you to navigate the autumn season with more confidence and success.”
Media Contact: Lowri Evans, lowri@digitaloft.co.uk
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