Hotels see mass cancellations due to ‘mixed messages’ on Omicron and socialising

Hotels are facing mass cancellations this December due to ‘mixed messages’ about socialising in light of the new Omicron coronavirus variant, a popular chain has claimed. 

The new threat has already had a ‘devastating’ impact on hospitality according to the BWH Hotel Group, with 72 per cent of its independently-run hotels reporting an increase in Christmas cancellations.

The group, which owns brands such as Best Western and WorldHotels Great Britain, said 89 per cent of its hotels were now concerned about the festive trading period.

A survey conducted by BWH on 1 December revealed that managers at more than two thirds of its hotels were concerned about business and guest confidence at the beginning of next year because of the new variant.

Hotel chains are warning they are losing a substantial number of bookings due to Omicron

Although the government has issued new guidance to work from home if possible, Christmas parties, overnight stays and socialising are still currently allowed under its Plan B rules. 

Covid passes will only be required for indoor events with more than 500 attendees.  

Tim Rumney, CEO of the BWH Hotel Group, said: ‘We have had a week of mixed messages about whether people should socialise or not, cancel parties or not, and small, independent businesses like our hotels are on the front line feeling the effects of that indecision.

‘My fear is the damage is already done and this festive period will need to be written off like last Christmas, which will be devastating for many small businesses who were hoping for a strong end to 2021, after the last two years of Covid interrupted trading.’

In addition, 70 per cent of its hotels had seen a decrease in bookings since the announcement of the new variant, with booking levels cited as hotels’ number one concern going into 2022.

Rumney added: ‘We need clarity from the top, not confusion between what the government is saying and what health chiefs are saying. These figures show the impact Omicron is already having on consumer confidence.

‘Businesses can’t plan properly, customers can’t plan properly. The curse of Covid Christmas past has returned to haunt us unfortunately.

‘Next year, hospitality needs to be top of the priority list for the government when it comes to support. 

‘An extension of reduction in VAT is vital to support small, independent businesses who once again are suffering, are struggling and worried about business levels, and need support to get through this pandemic.’

Other hotel firms said it was too soon to tell what the impact would be.  

Seven in 10 BWH hotels saw a decrease in bookings since the discovery of the new variant

A spokesperson for the online reservations platform Booking.com said: ‘It’s too early to assess the true impact of the new variant on bookings and cancellations. 

‘Our primary aim is to enable smooth and enjoyable travel experiences, so we strongly recommend opting for fully refundable policies in case of the need to cancel or reschedule. 

‘For those who feel confident about going ahead with bookings, we encourage everyone to continue following any local guidance.’ 

However, some chains were more optimistic about the impact Omicron would have on bookings. 

Travelodge told This is Money that its bookings into December were very strong, especially at weekends, and that these had continued to pick up in the run-up to Christmas.

Likewise, it claimed there had been no decline in the pace of bookings into January 2022 and beyond.

It added that unlike other hotel chains, it is not heavily involved in conferences, meetings and banquets where large groups gather, which it said was a possible reason for its more positive forecasts. 

A Travelodge spokesperson said: ‘We are seeing a strong level of leisure bookings across our 582 UK hotels in the lead up to Christmas.

‘Britons are looking forward to making the most of this festive season and are getting outdoors to experience what makes Britain so great at Christmas time.

‘Key destinations are historic UK cities dressed for the festive season that feature a Christmas market and are renowned as a top shopping and entertainment destination, such as Edinburgh, York, Leeds, Liverpool, Manchester, Birmingham, Bath and London.’ 

This post first appeared on Dailymail.co.uk