Dec
10
At last! Somebody who tells it like it is.
You can say what you like about accountants, but at least some of them are getting people used to the idea that the current economic malaise might not be as much of a "short dip" as a "deep trough".
PKF in the USA are forecasting 60% occupancy for Florida hotels in 2009. PWC are talking about 70% occupancy for London hotels.
The first step in preparing yourself for what may be about to hit in 2009, is to recognise it for what it is.
Serious.
However, it is not the end of the world.
People will still go on holiday.
People will still stay in hotels.
* people will still go out to eat.
How will you make sure they choose to do these things at your hotel?
You can say what you like about accountants, but at least some of them are getting people used to the idea that the current economic malaise might not be as much of a "short dip" as a "deep trough".
PKF in the USA are forecasting 60% occupancy for Florida hotels in 2009. PWC are talking about 70% occupancy for London hotels.
The first step in preparing yourself for what may be about to hit in 2009, is to recognise it for what it is.
Serious.
However, it is not the end of the world.
People will still go on holiday.
People will still stay in hotels.
* people will still go out to eat.
How will you make sure they choose to do these things at your hotel?
You see, I'm not convinced that discounting per se is the answer. In fact, I would consel against overt discounting - it's often difficult to get your prices back up again.
What people will be looking for is value. "Good" value is when the perception of experience received is greater than the expectation of the experience for the price paid for it.
Cheap hotels (the lodges and inns of this world) usually have a good value perception with customers. They're not paying very much (usually) and their expectation isn't very high. It takes a lot to go wrong before they're disappointed. Most people aren't bowled over by their experience, but then they're not expecting to be.
Luxury hotels will find people moving towards them from the mid-market hotels. Trying to balance prices with value is easier if you've got a really nice hotel with really good service. People will pay a small premium to experience this and even in times of hardship, people do like to treat themselves.
I'm not sure I'd want to have a mid-market 3 star hotel going into 2009. I think the world will be a tough place for you guys: the budget boys will squeeze you on price while the four star players will squeeze you on value. Mind you, has it not been that way for decades? Probably, but it may come into sharp focus for 2009.
Marketing is the answer. A pal of mine is studying marketing in England and was moaning about having to do "situational analysis". She used the phrase "it's boring" quite a lot.
It's not boring - it is hard work. It's not a waste of time, it is absolutely crucial.
This is the sort of analysis you might recognise by the acronyms SWOT and PEST. There's another one now called PESTEL.
These things are of value to your business. The insight you can gain from doing them properly could make the difference between 2009 being gloomy or being disasterous.
How else are you going to work out where the value really lies?
What people will be looking for is value. "Good" value is when the perception of experience received is greater than the expectation of the experience for the price paid for it.
Cheap hotels (the lodges and inns of this world) usually have a good value perception with customers. They're not paying very much (usually) and their expectation isn't very high. It takes a lot to go wrong before they're disappointed. Most people aren't bowled over by their experience, but then they're not expecting to be.
Luxury hotels will find people moving towards them from the mid-market hotels. Trying to balance prices with value is easier if you've got a really nice hotel with really good service. People will pay a small premium to experience this and even in times of hardship, people do like to treat themselves.
I'm not sure I'd want to have a mid-market 3 star hotel going into 2009. I think the world will be a tough place for you guys: the budget boys will squeeze you on price while the four star players will squeeze you on value. Mind you, has it not been that way for decades? Probably, but it may come into sharp focus for 2009.
Marketing is the answer. A pal of mine is studying marketing in England and was moaning about having to do "situational analysis". She used the phrase "it's boring" quite a lot.
It's not boring - it is hard work. It's not a waste of time, it is absolutely crucial.
This is the sort of analysis you might recognise by the acronyms SWOT and PEST. There's another one now called PESTEL.
These things are of value to your business. The insight you can gain from doing them properly could make the difference between 2009 being gloomy or being disasterous.
How else are you going to work out where the value really lies?
0 Trackbacks