With news cycles moving faster than ever, it’s inevitable that some of the most important industry developments slip through the cracks. Yet in a year as turbulent yet dynamic as 2025, shaped by economic pressures, evolving guest expectations and renewed investor activity, staying on top of change is essential for operators, marketers, and communicators alike.
Here is Custard’s round-up of five must-read stories that shed light on where hospitality stands as we exit 2025.
Hospitality sector set for 12.6bn Christmas boost
One of Q4’s standout stories comes from research by Voucherscodes.co.uk, which forecasts that UK hospitality is set to generate an impressive £12.6 billion over Christmas, a 2.8% increase on last year. This growth highlights the sector’s resilience and ability to deliver strong results even in a changing consumer landscape.
While total visits are expected to settle slightly below last year’s levels, hospitality businesses are still seeing healthy revenue thanks to strategic pricing, premium experiences and a seasonal shift in how people choose to celebrate.
Many Brits are embracing more meaningful, home-based festivities, with 32% planning gatherings at home, yet they continue to support the sector by visiting venues more intentionally and opting for higher-quality, sometimes pricier, experiences.
With consumers prioritising value, experience, and special occasions, the industry is well-positioned to capitalise on concentrated demand and deliver another successful festive season.
For operators, the challenge is clear: prices must reflect rising costs, but value must remain compelling. Above all, creating memorable guest experiences is crucial. After all, Christmas is a time for good cheer, and happy guests are the best ambassadors for your brand.
You can read the full story shared by Caterer Licensee Hotelier News here.
European hospitality deals on the rise, as selectivity pays off
After a period of uncertainty, European hospitality investment is gaining momentum according to the head of JLL’s Global Hotel Desk. Reported by Hospitality Investor, the past year has seen a rise in deals driven not by indiscriminate capital chasing any available asset, but by more strategic, highly selective investment approaches.
Private equity remains a major player, but high-net-worth individuals and global investors are increasingly active, too. London continues to attract strong interest, while Mediterranean and resort destinations are benefiting from renewed focus on leisure-led revenue models. Investors are paying particular attention to opportunities where they can add value, whether through asset repositioning, sustainability improvements, or enhanced operational efficiency.
For hospitality businesses this shows real appetite that expansion is possible, even in a difficult market, if the idea and passion is there, then so is the investment.
You can read the full story shared by Hospitality Investor here.
Higher-level apprenticeship funding to be scrapped as focus shifts to under-22s
The BBC reported earlier this year that from January 2026, public funding for Level 7 (master’s-level) apprenticeships in England will be limited to apprentices aged 16 to 21 (plus care leavers or those with an Education, Health and Care Plan under 25), under updated DfE rules.
This reflects a broader policy shift, as the government aims to “rebalance” the levy toward younger entrants to the workforce rather than older employees seeking upskilling. Current Level 7 apprentices in training will continue to receive funding, but future access will be restricted—raising questions for industries where master’s-level apprenticeships have become a pathway into senior roles.
For hoteliers and event venues, this shift means it’s more important than ever to consider how your organisation is perceived by tomorrow’s talent. If apprenticeships are increasingly targeted at younger people, you need to ensure your employer brand, culture and opportunities appeal to this audience. The BBC covering this news also demonstrates the nationwide interest and appetite for more stories around recruitment and how hospitality can make the most of new initiatives.
Now is the time to ensure your employer brand, culture, and opportunities appeal to the next generation of hospitality professionals.
You can read the full story shared by BBC here.
Using AI to meet customer expectations in the hospitality industry
Artificial intelligence continues to make headlines across sectors, and hospitality is no exception. Researchers at the Penn State School of Hospitality Management highlight a crucial point: AI isn’t about replacing human interaction, but enhancing it.
Using the well-established gap model, which measures the difference between guest expectations and actual experience, the researchers identify four key gaps where AI can help: listening, service performance, design, and communication. Practical examples include AI-assisted analysis of guest feedback, demand forecasting tools, and personalised messaging. Elsewhere, a study by University of Surrey has noted how the use of AI could stop hotels and restaurants wasting food, energy and the time of it’s talented teams.
The takeaway is clear. AI-driven enhancements are here to stay. Operators who embrace them can offer guests more personalised experiences while staying ahead of competitors.
You can read the full story shared by Penn State University here.
Looking Ahead: What 2026 Will Demand of Hospitality
Looking toward to 2026, analysts anticipate a landscape defined by tight margins, continuing cost pressures, and the need for smarter operational models. High energy costs, wage inflation, and supply chain volatility are set to remain part of the operating environment.
Yet the outlook isn’t all cautionary. Many experts forecast moderate RevPAR growth, improved investor confidence, and opportunities for brands that diversify their product mix — from extended-stay models to hybrid communal spaces.
As reported by Hospitality Net, PwC’s UK Hotels Forecast for 2025 – 2026 describes the market as showing ‘selective resilience’ heading into the new year – you can read more on the piece here.
Success will require strategy and communication working in tandem. Operators who rethink efficiency, empower their teams, embrace data-driven decision-making, and diversify revenue streams will set themselves apart in the year ahead.
At Custard, we see these trends shaping the hospitality sector firsthand, through the venues, hotels, and destinations we work with every day. By monitoring developments, interpreting the data, and translating insight into action, we help our clients stay ahead of the curve, ready to seize opportunities, navigate challenges, and create experiences that keep guests coming back.
If you want to ensure your brand is heard, your story stands out, and your business thrives in this fast-moving landscape, we’re here and ready to help you turn insight into impact.
