The rail strikes have cost bars, pubs, restaurants and hotels in the UK at least £1.5bn in December alone and – coupled with the cost of living crisis – will result in a “huge swathe of businesses and jobs lost”, industry bodies have warned.
Kate Nicholls, the chief executive of UKHospitality, said the financial impact of train strikes on the sector was worse than expected, resulting in a “perfect storm” for businesses battling soaring energy bills and inflation that meant “undoubtedly we will see more business failures” in the next three months. Michael Kill, the chief executive of the Night Time Industries Association (NTIA), said: “Industrial action and cost inflation pressures have decimated trade across the night-time economy, with many hugely concerned that New Year’s Eve and New Year’s Day will be further impacted by train strikes.” Nicholls said the recent transport strikes caused a wave of cancellations of planned Christmas parties and dinners during the week of 12 December. UKHospitality had estimated a £1.5bn hit from the strikes across December and January but it now says recent industrial action resulted in losses of that magnitude being racked up in the past month alone.
The NTIA has predicted the loss in trade to its members will be even higher, at £2bn. Its boss said many businesses lost up to 50% of revenues during the key festive period, which they were relying heavily on to see them through early 2023, traditionally a quieter period.