Rail strikes: hospitality bookings cancelled rather than postponed

Hospitality customers are outright cancelling rather than rebooking plans disrupted by rail strikes due to uncertainty over future industrial action, MPs have been told.

UKHospitality chief executive Kate Nicholls said there been a “significant loss of confidence” in the ability for people to plan their journeys and warned hospitality was seen as "collateral damange" in the ongoing disupte.

She estimated restaurants, pubs, hotels, and cafes had lost around £3b in revenue since transport strike action began last year.

Nicholls said: “Customers got very used to, during the pandemic, postponing a trip, and postponing a weekend activity rather than cancelling it. We are actually seeing full cancellations coming through now.”

UKHospitality members in central London, Manchester and Birmingham saw an 80% drop in business during strike days, with bookings cancelled rather than deferred, Nicholls added.

She said around 60% of the hospitality sector in rural areas of Scotland and Wales had temporarily closed over Christmas rather than try to trade due to the impact of industrial action.

Network Rail members this week voted to accept a pay deal that would amount to a 9% pay increase over two years.

The RMT has suspended strike action scheduled for 30 March March 30 and 1 April.

Nicholls appeared before the Transport Select Committee on Wednesday (22 March) and was asked about government plans to introduce a bill to enforce minimum service levels for some sectors during strike action.

She said UKHospitality was “agnostic” about the bill but called for better industrial relations so that strike action or having to impose minimum service levels could ultimately be avoided.

“I think both the unions and ministers have described my industry [hospitality] as collateral damage,” Nicholls said. “That is a huge amount of collateral damage that the economy can ill-afford to lose at this present moment of time.”

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