Transport Strikes Hit London & The Hospitality Yet Again
London’s hospitality sector, already reeling from a series of walkouts by ASLEF and TSSA members in April, faces further challenges with a new wave of proposed strikes in May. ASLEF train drivers across the UK have announced a rolling programme of strikes planned from 7th May to 9th May together with drivers not working overtime from 6th to 11th May; impacting the May Bank Holiday.
The ongoing wave of transport strikes in London has cast a shadow over the city’s usually bustling hospitality industry; a sector that is vital to the recovery of the UK’s economy (and a key driver of job growth, with 3.5 million people now employed in hospitality; the third-largest employer in the UK.) With commuters and tourists facing disruptions on buses, tubes, and trains; restaurants, cafes, and hotels are reporting a significant decline in consumer numbers as a wave of uncertainty hits the capital and its growth sectors once again.
The strikes, which began in 2022 and have continued throughout 2024, have had a significant impact on hospitality businesses across the UK. According to UKHospitality, the industry has already lost close to £750 million in trade due to strike action in 2024 alone. Looking at the bigger picture, the cumulative total since the dispute began is estimated to be a staggering £5 billion.
The Easter weekend, a crucial opportunity for many hospitality businesses to recoup some of the losses incurred earlier in the year, saw lost sales of up to £387 million. Now another Bank Holiday will be severely impacted.
“There is never a good time for strikes,” said Kate Nicholls, Chief Executive of UKHospitality, “but this disruption will be particularly damaging. Families looking to enjoy the holidays will now find plans disrupted and hospitality businesses trying to generate much-needed sales will see customer numbers dwindle.”
Reflecting on the impact, Tony Matharu, owner of the Blue Orchid Hospitality, a collection of independent hotels, suites, residences, apartments and state-of-the-art venue spaces in central London, stated “The uncertainty caused by the strikes, leads customers to cancel bookings, even if their trains are still running, out of fear of being stranded. We’ve had cancellations worth more than £500,000 resulting from one set of threatened strikes. Even if the proposed strikes are subsequently cancelled the damage is done: events are cancelled and workers find alternatives to commuting to their workplaces. While some may rebook, others who had been travelling for specific events that are not being rescheduled will not. The hospitality industry, previously disproportionately impacted by the COVID-19 pandemic, are continually being faced with obstacles, and suffer as collateral damage in this dispute. If this continues, it could prove fatal for some of those trying to recover after several ruinous years. We should be supporting the industry that offers world-class experiences, employs millions of people and places billions of pounds into the economy.”
Tony Matharu further commented: “Extraordinary efforts have been made by some hospitality providers to encourage workers, visitors and investors back into to the capital to re-animate central London and to protect jobs – including and particularly transport providers. ASLEF and TSSA should recognise that their jobs and livelihoods are interdependent on those in the hospitality sector who provide services to those who travel into and out of London.”
Despite challenges, including those posed by the pandemic, the sector remains crucial to the nation’s finances, still contributing £54 billion in tax receipts in 2022, alongside £20 billion in exports and £7 billion in business investment, highlighting the industry’s resilience and its potential for continued growth in the UK economy.
A report by UKHospitality suggests that with the right support, the sector could add £29 billion to the economy and create 500,000 new jobs by 2027.
These strikes coincide with broader concerns about the economic repercussions for London, with predictions suggesting a potential blow of £100 million per day to the city’s economy during the week-long Tube strikes. Analysis by The British Retail Consortium indicated that disruptions to Tube services could hinder commuter, leisure, and tourist traffic, posing further challenges for businesses already grappling with economic uncertainties.
Central London Alliance (CLA) is calling on both politicians and rail operators to find a swift resolution to the dispute. London and its businesses rely on a mobile population and this dispute has already gone on for far too long. CLA urges all parties to urgently get back round the table to negotiate. A solution that brings ongoing disruption to an end will be good for everyone, including ASLEF and TSSA members