Total cost of rail strike in hospitality industry set to reach £2.5bn

The rail strikes will cost the industry a total of £2.5 billion, up from the initial projection of £1 billion, when industrial action began in June 2022.

"undoubtedly we will see more business failures" Kate Nicholls

The industrial action to take place this week will cost the industry a total of £200 million, while the pre-Christmas measures will cost the industry £1.5 billion in lost business, the BBC and UKHospitality reported.

The rail strikes cost bars, pubs, restaurants and hotels in Britain at least £1.5 billion in December, traditionally the most lucrative part of the day for the sector, coupled with the cost of living crisis, and are likely to lead to a 'huge swathe of businesses and jobs lost' industry federations warn.

UKHospitality principal Kate Nicholls said: "Hospitality is facing a New Year hangover as rail strikes delay the return to work and make our town and city centres ghost towns for yet another week. This piles further misery on commuters, visitors and tourists as well as hard pressed hospitality workers and businesses already vulnerable due to the loss of vital pre-Christmas sales.

Railway strikes could go on for months yet, warned the boss of the RMT union, launched its latest warning walkouts on Tuesday.

Operators have been hit hard by walkouts planned over the festive period, with some reporting they have been cancelled a fifth of their scheduled reservations.