New hospitality businesses owners urged to place extra value in their offering
Those who are looking to start a new hospitality business in the UK are being encouraged to offer added-value services for customers, as they look to navigate current market challenges.
The call comes from The Cumberland Building Society, who said those who are new to the sector will face pressures such as rising costs, a shortage in well-trained staff, the cost-of-living crisis, and growing expectations from consumers for unique experiences.
The building society highlighted how thorough preparation to develop detailed business plans, as well as carrying out due diligence when sourcing a location for a new business, will give a strong foundation for future success.
Alasdair Swan, head of commercial, The Cumberland, said: “Starting a new hospitality venture is both an exciting and daunting prospect. The number of decisions to be made – whether it is choosing the right location, securing a financing package, or managing operations – can be overwhelming.
“Prospective business owners should conduct comprehensive market research to understand the demand for their product offering in a chosen location, to gauge what type of hospitality experience potential guests visiting the area want, and also what type of visitors a business wants to attract.
“A well-chosen site can make a huge difference to profitability, with proximity to transport links, local attractions, and other amenities all influencing a venues desirability for customers.”
The Cumberland highlighted how lenders who understand the hospitality market can support businesses on their new venture, helping them to identify potential opportunities.
“Lenders who understand the hospitality market in different regions can support businesses in this regard, ensuring that new hospitality owners get their offering right.” Alasdair said. “It means that they can identify the best locations, tailor their business strategy to regional trends, and navigate the specific regulatory and planning requirements in these areas.”
In doing so, new owners can appeal to the nuances between different guests, whether they be business travellers, vacationing families, local trade, or even eco-conscious tourists.
Alasdair added: “Customers are increasingly looking to squeeze as much value as possible out of their experiences as they look beyond traditional comfort and services.
“They are expecting more. They want thoughtful touches which make a visit memorable, such as personalised amenities, eco-conscious practices and curated local experiences that reflect a community’s authentic culture.
“By focusing on added benefits, attention to detail, and customised services, businesses in the hospitality sector can enhance customer satisfaction, create lasting impressions, and standout in a competitive market.”
