UK Hospitality Trends 2025: Key Insights & Strategies

UK Hospitality Trend 2025: A sector facing a mix of both promise and pressure. While tourist numbers are rebounding and premium experiences are thriving, rising costs and closures are creating a challenging environment for many businesses.

At Everett King, we work closely with hospitality and general business clients to navigate these market shifts supporting them in cutting costs, maximising profitability, and identify new opportunities for growth.

If you’re in hospitality, or run any business facing similar pressures, understanding these emerging trends could help you stay competitive.

1. The Tough Reality: Rising Costs & Shrinking Footprint

Recent data paints a stark picture:

• The UK hospitality sector has already lost 84,000 jobs since October 2024, and this could rise to 200,000 by March 2026 without intervention.

• Licensed premises continue to close at two per day, making the sector 14.2% smaller than pre-pandemic levels.

Key cost pressures include:

• Higher wage costs—the National Minimum Wage rose by 6.7% this year.

• Food price inflation—squeezing margins for restaurants, cafes, and bars.

• Utility and supply costs—especially for energy-intensive operations like hotels and catering.

For many, these pressures aren’t just eating into profits—they’re threatening survival.

2. Reasons for Optimism: Tourism & Targeted Investment

It’s not all bad news. UK Hospitality trends in 2025 have pointed to strong opportunities for well-positioned businesses:

• Inbound tourism is forecast to reach 99% of pre-COVID levels this year, driven by overseas visitors taking advantage of the weaker pound. Visit Britain to read further.

• Hotel investment remains active, with £1.6 billion in UK hotel acquisitions in the first half of 2025.

• Average Daily Rates (ADR) in many hotels/hostels are still growing, even where occupancy is under pressure.

Hospitality businesses that can attract international visitors, group bookings, and higher-value guests are best placed to benefit.

3. The Trends Shaping the Future

a. Group & Corporate Travel Are Back
Urban destinations are seeing strong growth in group bookings for events, conferences, and leisure trips. If you can market packages to corporate clients or group organisers, now’s the time.

b. The Rise of ‘Bleisure’ Travel
Business travellers are increasingly adding leisure days to their trips, bringing family or friends. Flexible packages, extended-stay offers, and city-plus-countryside experiences are in demand.

c. Wellness & Lifestyle Integration
Luxury and experiential hospitality is booming. From wellness retreats to branded retail partnerships, guests want more than a room—they want an experience that matches their lifestyle.

d. Multigenerational Travel
Families are booking for grandparents, parents, and children together. Accommodation and services that cater to all ages have a competitive advantage.

4. Strategic Action Points for Hospitality & Beyond

Whether you run a hotel, restaurant, or general business, these strategies can help:

• Optimise Your Digital Presence
  Invest in SEO so travellers and customers find you first. Use search terms like “UK hospitality trends 2025”, “luxury hospitality experiences”, and “group travel packages UK”.

• Target High-Value Customers
  Focus on international visitors, corporate travel organisers, and niche experience seekers willing to pay for quality.

• Adapt Your Offering
  Introduce wellness services, local partnerships, or family-friendly options to meet emerging demand.

• Control Costs with Smarter Operations
  Use financial analysis, dynamic pricing, and efficient supply chain management to offset rising expenses.

At Everett King, we help clients not only survive these shifts—but capitalise on them.