John Cradden looks at some of the most resilient strategies hospitality providers can follow to guide them through periods of volatility.
Building resilience into a sector that is more exposed than most to the ups and downs of seasonality and the vagaries of economic growth – not to mention the recent existential crisis brought about by Covid 19 – has undoubtedly become a key focus in recent years for the hospitality business.
The good news is that the sector is entering the peak 2026 season on the back of steady demand supported by more air access, strong overseas visitor spending and resilient domestic tourism, according to the latest Bank of Ireland sectoral analysis.
“Anecdotal evidence abounds of customer frustration with finding basic information online about your business”
There remains pressure on the labour side, with the post-pandemic momentum that built up in terms of rebuilding the workforce levelling off last year, according to a 2025 report by Fáilte Ireland.
The latest Labour Force Survey data from the Central Statistics Office also shows that employment across the hospitality sector fell by nearly 17,000 to 169,600 in the year to the first quarter of 2026.
Add to this concerns about employment rights and high levels of stress and burnout, highlighted by a recent survey of hospitality workers by the University of Galway, although the same survey did highlight positive attitudes towards work and strong confidence in skills.
So what are the strategies employed by the most resilient hospitality operators that guide them through times of uncertainty and volatility?
Staff retention
While the situation regarding recruitment and retention of staff has improved since 2021, they remain crucial as part of a core strategy for building resilience, especially keeping good staff. Fáilte Ireland recommended focusing on greater investment in skills, communicating clearly and consistently, and prioritising employee development at all levels in order to “future-proof” tourism.
Prioritise local first
The resilience of domestic tourism serves as a reminder that building a strong local customer base first should come first before focusing on tourists from further afield, particularly for operators based outside of the main tourism centres. This can offset the quieter periods during the winter as well as risks of weather fluctuations, economic downturns, exchange rate changes and international travel shocks.
Building this domestic base requires engagement with the local community,
hosting events, delivering consistent quality and finding ways to remain relevant throughout the year. It also comes from supporting local sports clubs, festivals, charities, schools and cultural events.
Manage costs
While their outlook remains positive this year, hoteliers are concerned about rising business costs from payroll, energy, food inflation, VAT changes and increase increases, making good financial discipline a must. This means having a good handle on what margins each product generates, the busiest and weakest periods and labour costs.
Sell experiences
As our focus on the ‘experience economy’ revealed, focusing more on selling experiences rather than products or services is an effective way to adding value without adding cost. This can be as simple as improving your guest welcome experience to passing on local tips to finding opportunities to tell the story or history behind your business in an engaging way.
Build digital visibility
Anecdotal evidence abounds of customer frustration with finding basic information online about your business. This might include simple stuff like your opening hours, online booking facilities, updated menus, mobile-friendly websites, and clear directions to the destination, so it pays to focus on your digital visibility.
Build multiple revenue streams
This is one of the oldest tricks in the book regarding building resilience in the hospitality business, but diversification remains hugely relevant. For hotels and pubs an experience-led strategy will help build opportunities from targeting weddings, entertainment and corporate events business, particularly if you can have outdoor spaces that you can use during the warmer months of the year.
Embrace sustainability that saves money
Research and evidence from Fáilte Ireland shows that sustainability initiatives that are practical rather than promotional, such as reducing energy consumption, water usage and carbon emissions, have led to annual savings of around €35,000 on average.
Think long term
Think long-term sustainability rather than short term gains. After all, many of Ireland’s most successful hospitality businesses are family-owned and in existence over many years, even decades. Their focus is on cultivating and protecting their reputation, building strong relationships with both suppliers and the local community, maintaining staff loyalty by looking after them, and staying focused on providing a quality guest experience.
Hospitality industry resources
Check out resources for hospitality sector operators from Skillnet Ireland, Fáilte Ireland, the National Enterprise Hub, Tourism Ireland and TU Dublin.
Top image: Armada Hotel, Co Clare
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