Holiday park operators in Wales are preparing for significant cost increases as changes to employer National Insurance contributions and the National Living Wage take effect in April.
These adjustments are expected to impact operational expenses, particularly in housekeeping services, a key area for maintaining guest satisfaction and operational efficiency.
The Class 1 National Insurance secondary threshold will decrease from £9,100 to £5,000, while the main rate will rise from 13.8% to 15%.
Simultaneously, the National Living Wage for employees over 21 will increase from £11.44 per hour to £12.21 per hour, marking a 6.7% rise.
According to research by the Godfrey Group, a holiday park housekeeping provider with UK-wide coverage and a strategic partner of Hoseasons, these changes will substantially increase labor costs.
For an employee on a typical 16-hour per week contract, the employer National Insurance adjustment will add £715.56 in costs per year, while the wage increase will contribute an additional £640.64.
Employer pension contributions will also rise, bringing the total cost increase per employee to £1,360.96 annually.
These rising costs directly affect the price of cleaning accommodations.
Godfrey Group estimates that the cost to clean a typical holiday park unit will increase by £4.91 per clean, excluding expenses related to supervisors, linen logistics, management, cleaning supplies, and other operational necessities.
Comparative analysis from Godfrey Group suggests that in-house cleaning operations could cost holiday park operators £52.96 per two-bedroom unit from April, whereas outsourcing to a specialized provider like Godfrey Group could reduce this cost to £44.92 per clean.
Andrew Godfrey, managing director of the Godfrey Group, highlighted the financial strain this will place on operators.
“The changes to National Insurance and the National Living Wage will put a further squeeze on already hard-pressed holiday park operators,” he said in a report by Wales247.
“Our research highlights that the cost of employing a cleaner to clean a unit will increase by £4.91 from April. This doesn’t include the myriad of other costs that are involved in holiday park housekeeping.”
With seasonal fluctuations in occupancy, labor costs remain a challenge for operators who must balance quality and efficiency.
Many businesses in the sector are evaluating cost-effective solutions such as outsourcing housekeeping services to mitigate rising expenses while maintaining service standards.
“Godfrey Group is finding more and more operators, of all sizes, are choosing to outsource their housekeeping with a typical saving of over £8 per unit per clean,” Godfrey said.
“In the case of some holiday park operators with multiple sites, we are enabling them to save hundreds of thousands of pounds a year.”
As the industry adjusts to these economic pressures, holiday park operators may need to reassess their staffing models, pricing strategies, and operational efficiencies to remain competitive and financially sustainable in the evolving business landscape.
