How Cumbria's hospitality businesses are adapting and finding new opportunities for growth
Scott McKerracher, Head of Commercial at The Cumberland
Cumbria's hospitality sector has always been one of the region's biggest strengths.
From guest houses and boutique hotels to pubs, restaurants and holiday lets, these businesses are not only a huge part of the local economy, they are also what make the county such a special place to visit.
Tourism contributes billions to Cumbria's economy every year and supports tens of thousands of jobs across the county. Latest figures from Cumbria Tourism show the region's visitor economy is worth around £4.6 billion and supports around 74,800 jobs, accounting for 28% of Cumbria's workforce.
Despite playing such an important role, hospitality businesses are facing a challenging environment. Rising costs, recruitment pressures and changing customer habits are forcing many operators to think differently about how they run and grow their businesses.
At The Cumberland, we work closely with hospitality businesses across Cumbria and beyond, and what's clear is that those adapting and staying close to what customers want are finding opportunities in tough conditions.
Cost pressure is one of the biggest challenges. Energy bills, food prices, staffing costs and wider inflation are squeezing margins at a time when customers are becoming more cautious. Recent KPMG research shows people are being more selective about where they spend.
However, visitor behaviour is changing in ways that bring real opportunity. Guests are looking for memorable experiences, personal touches and value for money. Businesses willing to diversify are already seeing this resonate. Themed weekends, partnerships with local tourism providers, walking and cycling packages, and experience-led stays that encourage return visits are all gaining traction.
Technology is playing a bigger role too. Digital tools and AI are helping businesses reduce admin, improve marketing and manage bookings more efficiently; freeing up time to focus on the guest experience.
Sue Grundy’s success with Brooklands Guest House in Penrith is a fantastic example of this. Winning Channel 4’s Four in a Bed brought deserved recognition, but behind it was a story of resilience, innovation and commercial pragmatism that delivered real value for guests.
Sustainability is a growing opportunity as well, with more visitors actively seeking environmentally conscious accommodation. Many businesses across Cumbria are already responding by improving energy efficiency, reducing waste and working more closely with local suppliers.
Adapting and investing for the future requires confidence and that's where strong financial partnerships matter. At The Cumberland, we've supported businesses including Brooklands Guest House, Wheatlands Lodge and Sunnyside Guest House through our relationship-led approach. Our dedicated Relationship Managers take time to understand each customer's ambitions and challenges, offering tailored guidance, local decision-making and ongoing support.
Despite the challenges, Cumbrian hospitality businesses are not just showing resilience, but a creativity which continues to position the area as one of the UK’s most popular destinations.
With clear demand for independent accommodation, outdoor experiences and authentic stays, those who continue to adapt, focus on customer experience, and embrace new opportunities will be best placed to thrive.