Claims in hotel and catering across the UK up 100% YoY in July 2024, according to Atradius data

One of the UK’s largest trade credit insurers, Atradius, has revealed that claims in the UK’s hotel and catering sector have increased by 100% in July 2024 compared to the same time in 2023. This development is a disappointing setback during the critical summer months, a pivotal period for UK tourism. However, with claims in the food and beverage sector declining by 75% in July 2024 compared to July 2023, it’s clear that the hospitality market is doing well which paints a promising picture for tourism across the country.

Tourism levels across the UK could continue to experience hardship after countries such as Australia, Sweden, Indonesia, Nigeria, the UAE, India, and Hong Kong issued travel warnings following the riots across the UK this August.

However, Atradius’ data on late and failed payment claims indicate that the hospitality market - including food and beverage and retail stores - overall, is performing well. This is in part to do with the rise of staycations with 42%[1] of Brits planning one this summer, and with domestic tourism expected to elevate the UK economy by more than £30.3 billion[2].

With an 80% decline in late and failed payments month-on-month from July 2024 compared to June 2024, and an overall 75% decline in claims compared to this time last year, the hospitality market is giving the UK economy a much-needed boost, especially through the food and beverage sector.

Despite the challenges, UK tourism is still on track for a strong economic summer, bolstered by key sporting and entertainment events such as Wimbledon, London Fashion Week, and Taylor Swift’s Eras World Tour. These attractions have significantly contributed to the 38.7 million[3] inbound visits to the UK recorded so far in 2024, highlighting the continued appeal of the UK as a premier leisure destination.

Faye Jones, tourism sector expert at Atradius UK, says: “As we progress through the summer season, our data shows that UK tourism has endured a difficult start. The ongoing cost-of-living crisis, political changes, and current events have resulted in many not knowing what’s next for the UK economy and so choosing to save money where they can. With the August riots creating an unsettling environment, it is important that hotel and hospitality businesses take appropriate safety precautions to reassure their customers and rebuild their revenue.

“The balance between affording necessities in our daily lives and enjoying the increased leisure activities over the summer means that it can be hard to predict how tourism and hospitality will fare over summer, a key trading period.

“However, adaptability shown by the hospitality sector, with the ongoing popularity of staycations, offers hope for its resilience, as there are still opportunities for those who are more agile and can adapt to market conditions.

“Trade credit insurance provides a crucial safety net, ensuring that suppliers in hotels, restaurants, and other hospitality and retail businesses are financially protected against potential losses that could arise from insolvency. Ultimately, in an industry where trust and reliability are paramount, trade credit insurance enhances the tourism and hospitality sector's resilience and ability to flourish in a competitive market.”