Zero-hours contracts benefiting hospitality sector, says survey

By MHA

07 Aug 2014

Website

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.”

Enjoyed this? Read more from MHA

Latest news

1

East Lancashire Chamber appoints new membership director Sarah Dean Profile

East Lancashire Chamber appoints new membership director

30 Sep 2026

2

Lancashire business leader calls for better engagement with family firms Neil Evans 2020 1200x800

Lancashire business leader calls for better engagement with family firms

30 Sep 2026

3

Optical group one of best managed in UK C220d0e1 0587 4ca3 Af39 D14997f24b35

Optical group one of best managed in UK

30 Sep 2026

4

Salad days as grower seals major £250m deal with Asda Asda Back British Grower With 250m Long Term Investment 1

Salad days as grower seals major £250m deal with Asda

29 Sep 2026

5

fulfilmentcrowd records 19 per cent EBITDA increase Fulfilmentcrowd

fulfilmentcrowd records 19 per cent EBITDA increase

29 Sep 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
All In One Network
LBV Website Events GraphicAll In One Network 15 Oct 2026

All In One Network

The Leisure Box, Northlight, Glen Way, Brierfield , BB9 5NH

14:00 - 16:00

Sub36 Awards 2026
Sub36 WW Logo720 16 Oct 2026

Sub36 Awards 2026

Park Hall Hotel & Spa, Chorley, PR7 5LP

18:30 - 00:30

LBV131 November/December Magazine Networking Event
LBV131 Magazine Launch Social720No Text 19 Nov 2026

LBV131 November/December Magazine Networking Event

Lancashire

08:30 - 10:30

Lancashire Business Day 2026
LBD26 WW Logo720 27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

Help to Grow: Management Course
Help To Grow 25 Sep 2026 - 15 Dec 2026

Help to Grow: Management Course

University of Lancashire, Preston, PR1 2HE

09:30 - 12:00

SheChain Live - Where Lancashire business meets opportunity
SheChain Live (3).png.png 01 Oct 2026 - 01 Oct 2026

SheChain Live - Where Lancashire business meets opportunity

Blackpool Conference Centre, Winter Gardens (Leopold Grove entrance), Blackpool, FY1 1HL

09:30 - 16:15

Breakfast Social and Coworking Day: October
Breakfast Social 01 Oct 2026

Breakfast Social and Coworking Day: October

Society1, 9-10 Cross Street, Preston, PR1 3LT

10:00 - 12:00

Chamber Breakfast Networking – October
Lancaster And Morecambe Logo 1 01 Oct 2026

Chamber Breakfast Networking – October

Unique Kidz Youth & Community Centre, Morecambe, LA4 4NW

08:00 - 10:00

Bay Hospitality Forum
Lancaster And Morecambe Logo 1 06 Oct 2026

Bay Hospitality Forum

Lancaster & Morecambe College, Employer Hub, Lancaster, LA1 2TZ

10:00 - 12:00

What did we get for the spend?
Door4 07 Oct 2026

What did we get for the spend?

Crow Wood Hotel & Spa, Burnley, BB12 0RT

09:00 - 12:00

Preston Tech Connection: The Tech Resistance
PTC Square Oct 900 X 900.png.png 07 Oct 2026 - 07 Oct 2026

Preston Tech Connection: The Tech Resistance

Society1, 9-10 Cross Street, Preston, PR1 3LT

18:00 - 19:30

Preston Tech Connection Coworking Day
PTC Coworking Day long banner Oct.png.png 15 Oct 2026 - 15 Oct 2026

Preston Tech Connection Coworking Day

Society1, 9-10 Cross Street, Preston, PR1 3LT

09:00 - 17:00

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 LBV129 Online Graphic
Subscribe now

Weekly news bulletin