Why the 2025 Budget Just Isn’t Enough for Hospitality

Rising labour costs, tax pressures, food and supplier inflation, and increasing guest expectations were already reshaping the industry. Operators were seeing more enquiries, later communication windows, and a surge in digital touchpoints all while staffing capacity remained flat or declined.
It was clear even then that hospitality was approaching a tipping point. Manual processes, shared inboxes, traditional CRMs and reactive admin simply weren’t built to handle the volume, speed and complexity of modern guest communication. The workload was already starting to outpace the tools available. That was the lightbulb moment: something had to change.
Fast-forward to today, and the 2025 Budget has confirmed it.

Everything the sector feared would intensify, has. The Budget landed last week, and operators are now facing immediate, tangible pressures, all hitting at the same inflection point:
• Minimum wage increases, particularly affecting zero-hour and event teams
• Business rates relief winding down from 2026
• Continued inflation on food, drink, utilities and supplier contracts

These aren’t theoretical numbers on a policy paper. They are real margins, real payrolls, and real decisions happening right now inside venues.

When we speak to venue owners, we all discuss the same challenges:
“Can you raise prices 20–30% to cover this new operational cost pressure?”
The answer remains consistent:
“No, Al customers won’t pay it, what do we do.”?
So, the solution cannot be just pricing. And it cannot be only operational tightening. We must innovate.
This Budget makes one reality unavoidable: The future of hospitality will be determined by how efficiently venues operate, not just how much they charge.

Guest demand is still strong. Weddings, corporate events and stays are resilient. What has changed is the expectation of speed and clarity, especially across digital channels. Enquiries arrive late at night, during weekends, and at peak service times. Teams are busiest when guests need answers most. If venues remain reliant on conventional processes, they risk falling behind as this new era of rising costs and growing guest expectations takes another bite at already tight margins. This is where innovation becomes essential. And this is where AIVA now plays a critical role, not as theoretical tech, but as a practical, present-day response to the Budget’s shortcomings.
AIVA takes on communication workloads automatically. It replies instantly, 24/7, 365 days a year. It captures leads, follows up consistently and keeps messaging accurate and on-brand without needing extra staff. It protects revenue that venues lose today simply because they cannot reply fast enough. Most importantly, AIVA creates capacity.
It gives teams breathing room. It restores balance, with operational cost saving. It makes guest experience the priority again.

The 2025 Budget made one thing clear: venues must evolve, innovate and embrace the future with a multi-tiered strategy. We built AIVA for this moment, to help venues operate at a higher standard even with more limited resources, rising costs and increasing guest expectations.
The AIVA Revolution was never just about technology. It has always been about redefining what is possible for hospitality, and as the industry adjusts to this new reality, that mission has never been more relevant. AIVA puts venues firmly back in the driving seat and elevates customer experience to where it belongs, at the centre of every decision. If you want to explore how AIVA can support your venue during this new era, our team is here to guide you, not just with software, but with operational insight and real-world hospitality knowledge.
Hospitality has always been strongest when it supports itself as a community. If you need perspective, advice or help, we’re here. Now is the time to shape the future of your business and we would love the opportunity to do that alongside you.