Patryk Luszcz, UK Regional Director for Profitroom, the award-winning booking platform, is concerned that yesterday’s UK Budget will not provide the support independent hoteliers, and the wider supply chain, needs.
Patryk says: “The Autumn Budget was an opportunity for the government to support software companies who champion innovation and growth in struggling industries like the hospitality sector.
“UK Hospitality has highlighted that the hospitality industry is paying as much as 75% of pre-tax profit – the highest tax paid by a sector in the economy. With limited tax reforms expected, they warn that there will be further job losses within the sector and we have already seen 89,000 hospitality job losses following the 2024 budget.
“Also UK Hospitality’s survey found that tax rises in 2025 have caused businesses to dramatically cut their workforces, with three-quarters of business operating at or below 85% of required capacity. Hospitality businesses who are struggling with capacity and operational demands can turn to tech-led solutions to manage their workflows.
“Hoteliers say that business rates relief is vital, highlighting how independent hoteliers are struggling to absorb sudden hikes in business rates and energy prices. Reform would strengthen revenue management, allow room for long-term planning and free up hoteliers to reinvest in their staff and marketing, boosting profitability across the sector.
“A tourist tax may seem like a simple solution for boosting revenue, but in truth it could weaken the very hospitality and tourism sectors that help drive our economy.
“With operating costs already at exceptionally high levels, introducing yet another fee will burden both visitors and local businesses. This is a decision that will ultimately cause more harm than good. In fact it could cost the public £518 million.
“Inevitably, this will require hotels to be more creative and more aggressive in acquiring business from international markets. This shift will have a direct impact on the total cost of acquisition – an essential indicator of a hotelier’s success – and will ultimately influence overall profitability in an increasingly challenging economic environment.
“While we are broadly supportive of the announcement of apprenticeship schemes for the under 25s, which could benefit the recruitment strategies of hotels, this is against the backdrop of substantial rises in National Living Wage and Minimum Wage.
“As a forward thinking tech business we welcome the Chancellor’s plans for two AI hubs in Wales UK businesses are increasingly focusing on their future by incorporating automation and AI across more areas of their operations.
“The lack of productivity growth in our economy has become a critical issue and improving access to modern technology across all sectors will undoubtedly have a positive impact on long-term productivity and prosperity.
“It is essential for our industry to embrace opportunities in this space, ensuring we can streamline operations and enhance the use of technology throughout hospitality businesses across the UK.”
For hospitality operators, the comments underline the cumulative impact of tax rises, business rates, wage increases and proposed tourist taxes on margins and employment. At the same time, they highlight a growing expectation that hotels will accelerate adoption of tech-led solutions, automation and AI to protect profitability and manage capacity in a low-support policy environment.
Tags: Patryk Luszcz, Profitroom