 Closures, job cuts, diminishing bookings… fear not, there are shades of light among the gloom. Hospitality & Events North reports.
The daily reports of financial woes and predications of even tougher times ahead are certainly harsh realities of our times but that doesn’t mean the industry has to sit and wait for the economic situation to act out its domino-effect worst. For the most part, the hospitality and events industry appears to have reacted in the best way it knows how, to move forward by seeking out creative and practical solutions. One example is Formby Hall Golf Resort & Spa in Merseyside which has managed to secure new business since it launched last year. This is despite the fact that corporate golf days are a key part of its business, a particular area were budgets are seemingly being tightened as companies look to scale back and avoid appearing overtly extravagant. Tim Cowell, Business Development Manager, explains how the venue came to a long-term solution rather than a short-term fix: “We made the decision to incentivise the price and not to cut it. We did not want to devalue a product that is unarguably world-class…we have sourced ways to add more value to the experience. Providing specialised events that do not encroach on business hours, yet ensure the corporate’s potential client will still participate.” As a result, Formby Hall has experienced growth in the weekend and after-work market. “We have to be more innovative marketers and as a complete resort destination we have to ensure cross-selling is our utmost priority. We’re not just selling rounds of golf or hotel bedrooms, we’re selling an experience and have to evolve with our customers’ needs.”
More so than ever before, the two-way relationship between suppliers and clients is paramount in ensuring both needs are met as Chartridge Conference Company, which is currently investing £400,000 in a refurbishment programme across its five venues, observed: “In a recession, organisational business strategy has to change to meet new customer demands, competition, economic and market changes. Every member of the team understands the need to cutback on waste, improve productivity, and fight for every piece of business. Our continued success relies on our ability to ensure that we work together with our clients to meet these changing needs so we can continue to grow and prosper,” said Peter Darnell, Managing Director.
Let’s not forget the industry’s support network and pro-active measures, such as the Meetings Industry Association (MIA) which gave its members a Recession Survival Kit this past December. It included various discounts and free advice, including discounts to a sales training programme to help beat the credit crunch, a free website evaluation and a free energy survey. On the current state of play for the meetings industry and ways in which venues and services can stay strong, Nick Milne, MIA Council Chairman, told HEN: "We are hearing that many members are experiencing a reduction in enquiries and lead-times. Late lead enquiries where they can be satisfied have resulted in strong business for some. The emphasis has to be upon thinking smarter and faster, being able to react quickly to the market drivers so that when opportunities present themselves, our members are able to react and take full advantage. Sensible cost control alongside innovative marketing initiatives are the order of the day."
Being on the button and ready to seek out new opportunities is key. Focus Hotels Management Ltd (as reported in this issue) clearly demonstrated this vision when it took over 10 hotels from a company that had gone into administration earlier this year and has plans to take the business forward. Chief Executive Peter Cashman commented: “We believe that there is a strong opening in the current market for quality mid-market hotels offering value and excellent service.”
Undoubtedly, in these uncertain times it’s important more than ever for businesses to keep communication channels open and motivation levels up. Inspirational speaker Jim Lawless has witnessed the changing tide at first hand and is positive about the steps being taken and the opportunities for venues and services: “A lot of conferences are being postponed until the next financial year but the encouraging sign is that companies are still pushing their message, leadership and energy forward, but through different channels, such as internal roadshows, their intranet, and video and audio channels. I think this opens up possibilities for venues and conference providers but they need to be more aggressive in their marketing and competitive in their pricing to attract clients.” |
