Covid: Omicron fears cause wave of hotel cancellations

Fears about the Omicron Covid variant have led to a raft of cancellations at hotels, with many customers changing their Christmas plans.

Best Western GB, which runs 300 UK hotels, told the BBC that around three-quarters of its hotels had experienced event and room booking cancellations.

Uncertainty over the Omicron variant has added to safety concerns over large gatherings of people.

It has also led to the tightening of rules on travel.

Jonathan Fletcher, who manages a Best Western hotel in Dorset called The Grange, says customers have been phoning all week cancelling meals and parties.

"This Saturday night, we were supposed to have 100 people eating in our restaurant. Now there'll only be 12," he says

"One local business cancelled because they'd been told by head office not to gather in groups larger than 20 people. Overall, 268 people were booked in for Christmas parties this week. Now we're down to 130."

Mr Fletcher says people are also cancelling overnight stays.

"We were full for four nights this week, but 35% of our rooms have now been cancelled and we're not receiving bookings to replace them.

"Corporate guests who were coming from abroad have also been cancelling", he adds

He says the cancellations will cost him, and his staff, a lot of money

"We've already placed orders from suppliers, we've spent a fortune on redecorating the hotel for the Christmas season", he says.

"If this continues, financially, we'd almost be better off in lockdown and having furlough back," he adds

Cancellations have also been reported by the Arora Group, which is the largest private owner and operator of hotels in the UK.

"It's been a rollercoaster ride," said Surinder Arora, the group's founder and chairman.

"Guests who are flying out of the country normally tend to spend a night with us, especially on early morning flights, now a lot of those are being cancelled."

Earlier this week, the government introduced new rules for travel, with every person entering the UK now required to take a PCR test.

There are also signs that bookings beyond Christmas are being affected.

The Arora Group said some business customers were considering pulling out of events in the new year.

"We had large corporates who had bookings in January, who are now saying: 'Actually we many want to push it back to later in the year'," Mr Arora said.

But trade body UKHospitality, which represents hotels and B&Bs, said that while members were reporting some cancellations, most bookings are robust.

"Anecdotally, some members are seeing cancellation rates of around 10%, so it seems most people are planning to go ahead."

Victoria Erasmus owns a rural hotel in Inverness, Scotland called Glen Mhor and her guests are predominantly from the UK. She remains optimistic about the festive period.

"We've haven't had cancellations yet but we've had a few say they are unsure. It's all been last minute bookings so people are waiting to see what's happening this Christmas," she said.

"Covid and all the latest variants make it really difficult to plan ahead."

Best Western's chief executive Tim Rumney has called for clarity on what people should be doing.

"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," he said.

"My fear is the damage is already done, and this festive period will need to be written off like last Christmas."