New hospitality business owners are being encouraged to offer additional services to customers.

The Cumberland Building Society warns that those entering the industry will face challenges such as rising costs, staff shortages, the cost-of-living crisis, and increasing demand for unique experiences.

The Cumberland suggests that new business owners in the sector should add extra services to attract customers.

They also stressed the importance of thorough preparation, detailed business plans, and careful location selection for new businesses.

Alasdair Swan, head of commercial at The Cumberland, said: "Starting a new hospitality venture is both an exciting and daunting prospect.

"The number of decisions to be made - whether it is choosing the right location, securing a financing package, or managing operations - can be overwhelming.

"Prospective business owners should conduct comprehensive market research to understand the demand for their product offering in a chosen location, to gauge what type of hospitality experience potential guests visiting the area want, and also what type of visitors a business wants to attract.

"A well-chosen site can make a huge difference to profitability, with proximity to transport links, local attractions, and other amenities all influencing a venues desirability for customers."

The building society also emphasised the role of lenders with expertise in the hospitality market, noting how they can assist businesses in launching new ventures and identifying potential opportunities.

Mr Swan said: "Lenders who understand the hospitality market in different regions can support businesses in this regard, ensuring that new hospitality owners get their offering right.

"It means that they can identify the best locations, tailor their business strategy to regional trends, and navigate the specific regulatory and planning requirements in these areas."

By doing this, new owners can cater to a variety of guests, including business travellers, vacationing families, local trade, or eco-conscious tourists.

Mr Swan added: "Customers are increasingly looking to squeeze as much value as possible out of their experiences as they look beyond traditional comfort and services.

"They are expecting more.

"They want thoughtful touches which make a visit memorable, such as personalised amenities, eco-conscious practices, and curated local experiences that reflect a community’s authentic culture.

"By focusing on added benefits, attention to detail, and customised services, businesses in the hospitality sector can enhance customer satisfaction, create lasting impressions, and stand out in a competitive market."