Zero-hours contracts benefiting hospitality sector, says survey

By MHA Moore and Smalley

07 Aug 2014

Around one third of staff working in guest houses, hotels, restaurants and pubs are now employed on zero hours contracts, according to a survey of the region’s leisure and tourism businesses.

Despite the flexibility this arrangement offers employers, well over 60% of these staff regularly work 20 hours or more – with more than three quarters of these routinely employed for 40 hours per week, according to the latest MHA Leisure & Tourism Survey.

The annual survey, compiled in conjunction with Lancashire-based accountancy and business advisory firm Moore and Smalley, one of nine MHA members, paints a picture of an industry starting to benefit from an upturn in trading conditions.

More than half (56%) of those surveyed reported improved profitability in the last 12 months and 58% predicted that 2014 will be better still. However, 50% cited turnover either stagnant or growing by less than 5% over the last 12 months.

Judith Dugdale, head of the leisure and tourism team at Moore and Smalley, said: “The travel and tourism sector is emerging from a sustained period of low growth, but with discretionary spending improving across the economy as a whole, the hope is that – weather permitting – the year ahead will see the return of profitability capable of supporting future investment plans.”

“One indicator of this growing confidence is the number of employees working extended hours on zero hours contracts. This sector was always going to be an adopter of this employment option, but the numbers working what might be considered a ‘standard’ working week suggest that this arrangement is working for both parties.”

Almost a quarter of the operators covered by the survey look set to increase investment this year in premises refurbishment, while 16% will be spending more on marketing – particularly social media – to support business development. Online bookings increased for 62% of respondents in the last 12 months, although 46% still say they see little or no benefit in engagement with Facebook and Twitter. Those that are active use social networks for loyalty schemes, responding to customer queries and brand building.

“For a sector so reliant upon personal service and positive communication, there is perhaps a surprising reluctance among a significant minority to embrace the social media era, particularly when the volume of bookings being made online is increasing year-on-year,” says Judith.

This sector is also focused on the green agenda, with 82% having environmental policies in place. That said, the vast majority said they had no plans to introduce energy efficiency measures such as solar arrays or biomass boilers – and 40% were not even aware of the tax breaks offered for such investments.

“It is certainly worth operators noting that with the increased Annual Investment Allowance now standing at £500,000 until December 2015, this could be a good time for companies to think seriously about capital expenditure,” said Judith. “Not only will this provide financial benefit – it will also enhance the brand appeal to consumers who are becoming increasingly conscious of environmental issues.”

Latest news

1

Supermarket stays put in blow to town's £250m masterplan Blackburn Aerial

Supermarket stays put in blow to town's £250m masterplan

28 Mar 2024

2

Modern Milkman acquires American counterpart article placeholder listing image

Modern Milkman acquires American counterpart

28 Mar 2024

3

Tips for surviving Lancashire's pothole plague

Tips for surviving Lancashire's pothole plague

28 Mar 2024

4

The Pikes wines launched to support Lake District mountain rescue THE PIKES BLOG BANNER.jpg.jpg

The Pikes wines launched to support Lake District mountain rescue

28 Mar 2024

5

Fundraising success sees Stanley Women compete in Dallas Cup The Accrington Stanley Under 18s team which are currently in Dallas.jpg.jpg

Fundraising success sees Stanley Women compete in Dallas Cup

28 Mar 2024

Hwc 2024 Email Signature 980x120
Background image for hub sign up block

LBV Hub

Reach 50,000 members of the Lancashire business community

Post your news
Post your events
Post your offers
Company profile
Social reach
Magazine coverage
Sign-up
Events
Health and Wellbeing Conference 2024
Hwc 2024 Social Media 1200px 1
Networking
23 Apr 2024

Health and Wellbeing Conference 2024

Crow Wood Hotel, Burnley , BB12 0RT

08:30 - 13:00

Business Networking in Preston - BNI Brunch
EVENT LISTING SIZING Brunch .png.png
LBV Hub Networking
29 Mar 2024

Business Networking in Preston - BNI Brunch

Samlesbury Preston Hotel, Preston New Road, Preston, PR5 0UL

09:30 - 11:00

Business Networking in Blackburn - BNI Infinity
EVENT LISTING BNI Infinity.png.png
LBV Hub Networking
29 Mar 2024

Business Networking in Blackburn - BNI Infinity

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:30 - 08:30

Business Networking in Chorley - BNI Endeavour
EVENT LISTING SIZING Endeavour.png.png
LBV Hub Networking
02 Apr 2024

Business Networking in Chorley - BNI Endeavour

Oak Royal, Bury Lane, Chorley, PR6 8SW

06:30 - 08:30

Business Networking in Blackburn - BNI Vista
EVENT LISTING SIZING Vista.png.png
LBV Hub Networking
02 Apr 2024

Business Networking in Blackburn - BNI Vista

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:45 - 08:30

Business Networking in Preston - BNI Diamond
EVENT LISTING BNI Diamond.png.png
LBV Hub Networking
03 Apr 2024

Business Networking in Preston - BNI Diamond

The Marriot Hotel, Garstang Road, Broughton, PR3 5JB

07:15 - 09:00

Business Networking in Lancaster - Eden Business Network
EVENT LISTING Eden Business Network.png.png
LBV Hub Networking
03 Apr 2024

Business Networking in Lancaster - Eden Business Network

The Borough, 3 Dalton Square, Lancaster, LA1 1PP

18:30 - 20:30

Business Networking in Accrington - BNI Zeus
EVENT LISTING SIZING Zeus.png.png
LBV Hub Networking
03 Apr 2024

Business Networking in Accrington - BNI Zeus

The Mill House, Corn Mill Yard, Accrington, BB5 5HX

06:45 - 08:30

Business Networking in Burnley - BNI Kudos
EVENT LISTING BNI Kudos.png.png
LBV Hub Networking
04 Apr 2024

Business Networking in Burnley - BNI Kudos

Prairie Sports Village, Windemere Avenue, Burnley, BB10 2FU

06:45 - 08:30

Business Networking in Lancaster - BNI Castle
EVENT LISTING BNI Castle.png.png
LBV Hub Networking
04 Apr 2024

Business Networking in Lancaster - BNI Castle

Vale of Lune RUFC, Powder House Lane, Lancaster, LA1 2TT

06:45 - 08:30

Business Networking in Blackburn - BNI Infinity
EVENT LISTING BNI Infinity.png.png
LBV Hub Networking
05 Apr 2024

Business Networking in Blackburn - BNI Infinity

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:30 - 08:30

Business Networking in Preston - BNI Brunch
EVENT LISTING SIZING Brunch .png.png
LBV Hub Networking
05 Apr 2024

Business Networking in Preston - BNI Brunch

Samlesbury Preston Hotel, Preston New Road, Preston, PR5 0UL

09:30 - 11:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more Lbv115 Online Graphic
Subscribe now

Weekly news bulletin