Travel Weekly’s Lucy Huxley says shrewd business management will be more important than ever amid April hikes
An increasingly common refrain in work, leisure or family life is how time seems to pass in the blink of an eye in our digitally connected 24/7 world. It feels like only yesterday that we were packing away the Christmas decorations, yet suddenly the first quarter of the year is drawing to a close.
This period is always a key staging post for businesses, as one financial year comes to an end and another begins. But it has been a particular focal point for many since last October, when the government confirmed a hike in national insurance contributions for employers alongside a rise in the minimum wage.
The impact on firms’ finances was easy to calculate, and many owners and directors in the travel sector raised concerns about the challenges of contending with an unwanted spike in costs while still navigating the road to sustained post‑pandemic stability. Now, with the five months since the Budget having flown by, those owners and directors will have their business planning put to the test as the cost increases come to bear. After an overwhelmingly upbeat and remarkably settled industry landscape in recent years, pressure on both corporate and household budgets continues to increase, offering twin challenges for travel firms.
The outlook is still positive for most well-run businesses, and if the pandemic taught us anything, it is that the travel sector is resilient and resourceful. But with the costs figures on companies’ P&Ls about to swell, prudent business management is going to be more important than ever.
Comment originally from Travel Weekly, March 20 edition