Crisis. Contained.

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Project Veritas

Hospitality Group | Discriminatory Practice and Reputational Exposure

Business Type:

Asset Management Firm

Sector:

Travel and leisure, specifically budget holiday parks and hotels

Annual Turnover:

£170m

Size:

Approximately 12,000 staff across multiple UK locations

Ownership Structure:

Privately owned, part of a wider hotel group

Regulated:

Not a regulated sector, but under scrutiny from the Equality and Human Rights Commission

Crisis Type:

Both internal and public-facing, with legal and reputational implications

Affected Areas:

Legal & Compliance, Regulatory Compliance, Litigation Risk, Governance & Leadership, Internal Accountability Structures, Communications & Reputation, Stakeholder Communications, Media & Public Relations, Internal Messaging & Staff Confidence, Brand or Reputational Harm

Crisis Trigger

What happened?

A whistleblower within the bookings team shared evidence with the press that certain Irish surnames were being used to filter and reject holiday bookings.

How quickly did it escalate?

Within 24 hours the story had reached national media. Within 48 hours, regulators had issued public statements. Campaign groups began calling for consumer boycotts and legal action.

Business areas affected?

Complexity and consequences

Internal weakness:

There was no formal crisis protocol in place. Senior leaders were slow to respond. Messaging was inconsistent and defensive. Legal teams advised caution, which led to public silence during the critical first wave of coverage.

External pressures:

The Equality and Human Rights Commission (EHRC) launched an immediate investigation. Advocacy groups and community leaders demanded accountability. Journalists continued to dig into wider operational practices across other properties.

Risk of Collapse?

Not financially, but reputational damage was severe and long-lasting. Relationships with key partners were strained. Staff at park level faced direct hostility.

What happened in reality

Previous role action:

One of Arx Nova’s founding team members led the crisis communications strategy from the inside. They advised leadership to take full responsibility and to issue a public apology without caveats. Internal messaging was aligned within 48 hours. A comms line was opened with campaign groups and the regulator to de-escalate tensions.

Actions taken:

  • Public statement issued confirming fault and commitment to review

  • Internal investigation initiated

  • Senior spokesperson briefed and media trained for broadcast interviews

  • Coordination with legal team to balance transparency and compliance

  • Anonymous whistleblowing channel launched to surface other issues proactively

Lessons learned:

In reputational crises involving discrimination, silence is not protection. Acting decisively builds a foundation for recovery. Integrated leadership across legal, comms and operational lines is the only way to contain impact.

How Arx Nova would approach it today

First 24 hours:

Deploy crisis lead and comms advisor. Secure full internal timeline and facts. Align board on tone and position. Draft and approve holding statement. Set up daily crisis cadence calls.

Deployment plan:

  • Crisis communications lead deployed immediately

  • Legal coordination partner briefed in first hour

  • Internal investigation advisor mobilised by end of day

  • Front-line staff briefing materials produced overnight

Disciplines involved:

Key decisions:

Admit responsibility. Define investigation scope. Begin outreach to affected stakeholders. Pause all outbound marketing. Establish a single point of contact for media and regulators.

Stakeholder alignment:

Provide the board with clear messaging options. Engage EHRC with full cooperation. Reassure staff that corrective action will follow. Build external trust through real transparency, not spin.

Outcome

Stabilisation achieved?

Yes. The immediate media firestorm was contained within one week. Further reputational decline was prevented through visible corrective action.

Reputational containment?

Coverage continued for several weeks but the business was no longer the centre of the story. Senior leadership were replaced and the brand began a slow recovery.

Financial impact:

Short-term booking volume dropped, but legal costs and brand damage were mitigated by fast response and clear accountability.

What changed?

New governance controls were introduced. A full review of booking systems and staff training was completed. The business retained its customer base but under closer public and regulatory scrutiny.

Key Takeaway Quote

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Crisis. Contained.