POSITIONS
TRAVEL INDUSTRY
& CULTURAL ACTIVITIES
SALARY CHECKER – 2024/2025
C-SUITE & EXECUTIVE LEVELS
BAND A BAND B BAND C
Band A → ideal starting salary offer when stepping up into a position (market’s lowest range) Minimum experience in the position and still developing relevant skills.
Band B → salary offer sitting within the 50th percentile (market’s median range) The candidate has an average level of experience and has most of the necessary skills.
Band C → top end of salary offers for hiring or retaining individuals. Higher experience, superior skills, finer institutional/business knowledge and exceeding responsibilities. Market’s rarest resource and top talent’s worth according to market key factors and dynamics.
Bonus
In the United Kingdom, bonuses are additional payments made to employees beyond their fixed salary, often to reward performance, achievement of specific targets, or generally recognising significant contributions. These bonuses can be structured in various ways, such as:
Performance bonuses: based on individual, team, or company performance over a specific period. These bonuses are typically linked to key performance indicators (KPIs) or specific goals/targets and can be structured in various ways, depending on the company's policies and each employee's role.
Profit-sharing bonuses: they are a portion of the company's profits, aligning their interests with the company's success.
Proportion-based: percentage of profits set aside distributed among eligible employees. The percentage each employee receives may vary based on factors like tenure, job role, or level of responsibility
Fixed or variable rates: some companies may provide fixed percentages for each employee, while others use a variable rate based on performance or seniority.
Sign-on bonuses: addressed to new employees as an incentive to join the company.
Retention bonuses: to encourage employees to remain with the company during critical periods. Often structured as a lump sum or phased payments, with payouts tied to specific milestones or time frames (e.g., staying for a minimum of 6, 12, or 18 months). Conditional on the employee meeting agreed performance or attendance criteria during the retention period.
Holiday bonuses: given during festive seasons as a gesture of appreciation. These are not widely standardised in the UK, but some companies still choose to offer them as part of their employee engagement strategies.
Contractual/guaranteed vs. discretionary
Bonuses can be contractual (guaranteed) or discretionary. If a bonus is discretionary, employers must still act fairly and reasonably when deciding whether to pay it.
Pension contributions
Some employees opt to contribute their bonuses to pension schemes, which can offer tax advantages. However, this decision should be made based on individual financial circumstances and retirement planning goals
Taxation of bonuses
Bonuses are subject to Income Tax and National Insurance contributions (NICs) in the same manner as salaries.
The tax rate applied to bonuses depends on your total income for the tax year:
• Basic rate of 20%: for annual incomes between £12,571 and £50,270.
• Higher rate of 40%: for annual incomes between £50,271 and £150,000.
• Additional rate of 45%: for annual incomes over £150,000.
National Insurance contributions are also deducted from bonuses, with rates varying based on income levels.
It's important to note that receiving a substantial bonus can push a total income into a higher tax bracket, resulting in a higher tax rate on the bonus amount.
EQUITIES AND LONG-TERM INCENTIVE PLANS (LTIPs)
Equities and long-term incentive plans (LTIPs) are forms of compensation commonly offered in the UK, especially at senior or executive-level roles. They are designed to align employees' interests with the company's longterm success by offering them an ownership stake or other performancelinked rewards.
Equities (stock options, restricted shares)
Stock options
Employees are given the right to buy company shares at a set price after a vesting period. This option becomes valuable if the company's share price increases over time. Often structured with performance or timebased vesting conditions, incentivizing employees to stay with the company and contribute to its growth.
Restricted Stock Units (RSUs)
RSUs are company shares given to employees but subject to vesting conditions. Once vested, employees own the shares outright. RSUs are usually issued based on performance or tenure, with no purchase price required.
Taxation of equity compensation
• Stock Options: Taxed on the difference between the market value at exercise and the option price. Employees pay Income Tax and National Insurance (if applicable).
• RSUs: Taxed as income once they vest, based on the share value at that time. Further Capital Gains Tax (CGT) may apply on any increase in share value after vesting if the shares are sold later.
Employee share schemes
Some companies will offer tax-advantaged share schemes, such as Enterprise Management Incentives (EMIs) and Save As You Earn (SAYE), where tax reliefs may apply to encourage broad-based employee ownership.
Long-term incentive plans (LTIPS)
In the UK, LTIPs are performance-based rewards given to employees, typically as part of executive compensation packages, with payouts made over a period of three to five years.
Structure of LTIPs
Performance shares: employees are awarded shares based on meeting certain performance targets (e.g., revenue, profit margins) over a set period.
Performance cash: some LTIPs may offer cash payments instead of shares, linked to long-term performance metrics.
Vesting periods and conditions: LTIPs usually have multi-year vesting periods, with payouts contingent on achieving specific financial or operational milestones. Vesting conditions may include continued employment, making LTIPs a retention tool.
TaxationofLTIPs: LTIPs are subject to Income Tax and National Insurance on the payout (either shares or cash), calculated on the value at the time of vesting or payout. If shares are retained after vesting, any gain on subsequent sale is subject to Capital Gains Tax.
Deferral and clawback policies: LTIPs often include deferral provisions to align with long-term performance goals. Clawback clauses are also common, allowing the company to reclaim payouts if certain conditions are later unmet (e.g., financial misstatements or regulatory breaches).
Benefits of LTIPs for employees and employers: for employees, LTIPs provide significant earning potential tied to company performance, rewarding loyalty and long-term value creation. For employers, they align employee interests with shareholder goals, promoting retention and incentivizing strategic decisions that drive sustainable growth.
POSITIONS
C-SUITE
EXECUTIVES
HEADS OF DEPARTMENTS
OPERATIONS DIRECTORS
SENIOR MANAGEMENT
OPERATIONS MANAGERS
GENERAL MANAGERS
HEAD CHEFS
ASSISTANT GENETAL MANAGERS
BONUS
Between 40% to 60%
some high performing companies offer “high bonuses” ranging from 80% to 100%
large/top companies: 40% to 50% bonus + 40% equity
smaller/independent businesses: 25% to 35% bonus + variable equity %
25% to 30%, in general based on each department’s achievements
20% to 30%, based on annual company/sites results
10% to 30% depending on individual, company and specific site performances
18% to 25% depending on individual and site(s) performance (or as broad as company-wide)
from 12% to 18%, depending on sites and company turnover
high-turnover businesses: up to 20%
from 12% to 18%, depending on sites and company turnover
high-turnover businesses: up to 20%
8% to 12%*
* if applicable, as not all companies offer incentives for “junior” management
Prevalence, trends and financial impact
Entry levels and junior to mid-management positions
Prevalence and trends
According to the UK's Largest Hospitality Salary Survey 2024, conducted by Access Hospitality, the importance of bonuses and tips has seen a decline among hospitality employees.
In the survey, 73% of respondents considered bonuses and tips to be either very or quite important, a decrease from previous years. This shift indicates a growing emphasis on other benefits, such as mentoring and development opportunities, which have overtaken bonuses and tips in importance.
Financial impact
The same survey revealed that 41% of hospitality workers reported receiving no additional income from tips and bonuses, an increase from 25% in the previous year.
Additionally, 24% earned under £2,000 annually from these sources, while 15% received between £2,001 and £5,000. This data suggests a trend towards lower supplementary earnings from bonuses and tips within the sector.
Benefits
Legally mandated benefits
Minimum wage
Overtime
Retirement/pension scheme
Holiday entitlement
Holiday pay
Parental leave (paternity/maternity/adoption leave)
Antenatal care
Statutory sick pay
Extra benefits
While bonuses have traditionally been a component of compensation in the UK hospitality industry, recent trends indicate a shift towards valuing other benefits.
Employers should consider these evolving preferences when designing compensation packages to effectively motivate and retain their staff.
Private medical
Car allowance / company car
Bonus(es)
Pension schemes
Group life insurance/income protection
Cycle to work scheme
Fully/partial paid public transport
Sabbatical leave
Unlimited annual leave
Flexible working
Discount scheme
Mental health assistance
Financial planning help
Parental leave (above statutory)
Training and coaching sessions
Perks programmes
Gym membership
Wellbeing funds
Away days or team holidays