Luxury Hotels Refute Recession

In a most bizarre twist of fortunes it appears that many budget hotels are currently seeing a slow down in trade and yet up market venues are enjoying a boom. In times of recession and financial burden for many the budget hotel seemed the likely solution to continuing holidays and leisure breaks. The trend was that people were using these budget hotels as a means of getting away for a cheap holiday in the UK. Ideally placed in many easy to get to places and with no frills rooms the hotels offered an economically pleasing solution for cash strapped holiday makers. Basically you got what you paid for nothing more!

Conversely there is a chain of hotels in Yorkshire currently breaking the mould with the expansion and investment in luxury hotels for holiday makers in the North of England. The stream of thought seems to be that people who are struggling financially are eager to boost their confidence with a luxury break. Even if they have had to save up for the luxury break they feel a certain sense of reward and merit in the break from the everyday to a luxurious appointed resting place.


I think that there is still a place for the cheap and cheerful budget hotels, although there has been a downturn in customers. Whitbread noticed almost 1% downturn on like for like sales over the last 3 months with many cancelled rooms in the Premier Inn range. This has still been overall growth and I just think it's a matter of attracting customers with offers and extras. The budget range is pay for what you get and I do sometimes think that whilst it's financially beneficial customers still like added extras. I think it's easy to go too far the other way - you paid peanuts so you get a room that's dated and service that is shoddy. Some companies give off this feeling - I've stayed in quite a few budget hotels in certain chains and they made me feel cheap - not just the price.

As with most people If I had the choice I would prefer to stay in a luxurious hotel with great service and excellent food but the wallet won't always cover that so there is still room for all types of hotel accommodation. But companies should offer leisure breaks with great value for money but still good service - it's not difficult.  Lets face it people want good value for money not necessarily just cheap prices!

Pubs And Clubs Need To Become Community Orientated To Continue To Trade

Many villages and suburbs used to have a couple of small shops, a pub or two, a social club and a post office to look after communities needs. Now the local out of town supermarket can entice customers to buy everything they need  in one place. The post office has been closed down, likely too the local pub and if the social club still exists it's numbers have dwindled to a handful of hearty followers.

In this dire and dying community scene what can be done to ensure the continuance of the local pub or club? Well it's not all doom and gloom in fact a report released by Pub Is The Hub counselled pub landlords that they need to be a valid and vibrant part of the community in order to help their survival. Some pubs in villages or suburbs have diversified in their type of trade. Some have opened up small post office areas in the pub or set up lunch clubs for elderly residents and have found increased sales and footfall from the local community. It's about bringing groups of people together to boost the role of the pub within the local life of residents. The pub must prove valuable in a community that is struggling with the troubles of modern living.

Other schemes have included allotment clubs or diversifying to create meeting rooms and conference facilities to encourage new business. How much nicer it could be for delegates to turn up to a rural location to escape the hustle and bustle of normal corporate life. Diversification is not a new idea look at any successful business and at some time it has had to adapt to stay afloat. Farming is one area in particular that has moved in this direction with successful farm shops, visitor attractions and holiday accommodation to name a few areas of expansion.

Pub Is The Hub is a non profit making organisation, which was initiated by HRH The Prince Of Wales in 2001. The organisation can offer many ideas and schemes for the evolution of a community led scheme to encourage the continuance of pubs in the community. They involve everyone including local authorities, breweries and the local community itself and even cover training and support for publicans.

In another note of positive community involvement I read news today that a social club in Preston has reopened it's doors after a 14 week refurbishment. The social club had suffered over the years and indeed closed in July 2011 due to lack of profits. The club has had a total facelift and is aimed at serving the locality. Featured cask ales and local sports tournaments have been introduced to encourage locals as well as tribute acts and special priced drinks for members. The local community has taken the club into their hearts and member numbers are almost at 600 to date. Again proof that if pubs and clubs are committed to serving the local community it can be a beneficial movement for all.

Retail Ecological Targets Achievable In Times Of Economic Downturn?

Retail stores face the challenge of meeting many targets, not only sales but 'green' targets, too. Latest reports show that most shops and stores are failing to meet the pledges that were set up to reduce packaging and product wastage in Britain in the supply chain itself.  Albeit voluntary targets set in place by the British Retail Consortium these goals are seen as relevant to some modern consumers who will often be led by retailers who are seen to be doing their bit for the current ecological climate. This can often be a selling point for larger retailers who signed up as part of the pledge. 

There are some sensible solutions addressing issues such as the nonsensical de-selection of odd shaped fruits and vegetables. Now that EU rules have relaxed some supermarkets have taken this concern on board and are offering smaller or odd shaped vegetables as part of a cheaper pack. Personally I prefer carrots that look as if they’ve just been pulled out of the ground than ones that are manufactured to look a certain ‘carrot’ shape anyway.

The main concerns from the BRC report were that retail companies were not on target for reducing waste in the supply chain and only achieved 0.4% of the 5% required for improvement. I wonder if cost implications were a relevant part of this failure. Retail stores are being hit hard and are struggling to stay afloat and so to add another strata of investment may be just a little too much at the moment. Clearly companies need to meet their ecological targets but they must also continue trading if those practices are to be carried into the future with successful companies. With this in mind Tesco have recently announced that they are to discontinue adding a ‘Carbon Footprint’ guide to their packaging, purely due to time and costs restraints. So in reality although retail is being hit hard by the economics of the country savvy companies will still push to raise their 'green' credentials but it will have to be in a cost effective way. Again smaller retailers probably find it cost prohibitive to fight alongside the big boys but can still do their bit economically and ecologically.

One area that does enrage me is the lip service paid to issues such as carrier bags. The large supermarkets were all fired up to eliminate the use of plastic carrier bags within the store. Some shops even offered free replacement of bags for life when they became useless or gave ‘green’ points for use of your own shopping bag. I think that may well have run out of steam – yes they have less bags on the cash desk itself but what is one of the first questions you’re asked as you pile out your shopping? “Do you need a carrier bag?” So much for re-educating the shopper – I still think we should have to pay for carrier bags like you used to years ago – paying for a bag makes it seem less essential somehow!

I think that manufacturers and wholesalers have to take a share of the problem,too and start making goods with less packaging and wasteful wrapping to ensure that retailers can reach their targets with waste reduction. It can be done – look at Cadburys Easter eggs. In the past the amount of packaging for a small chocolate egg and a bag of sweets was outrageous and yet in recent years they have  managed to reach up to 68% less packaging on the same product range. So let’s hope that clever thinking, financial management and improvement of ‘green’ issues can also be a sales point for retail stores into the future.

Increase In Sales For Hospitality Outlets

It's great to see a success for once rise up out of the gloom of the battered and deflated hospitality industry. Retail has suffered this last year but pubs, clubs and restaurants have been blighted for a longer term than high street stores. And so it was with hope that I read an article on Big Hospitality website yesterday.

It states that sales were up just under 10% this year on a like for like basis, which may not seem a lot but when you've struggled with the economic downturn, dwindling visitors and increased costs it puts hope in your heart. It seems that the milder weather has played a part in boosting sales this year over 2010 as visitors have been able to get out and about and enjoy visits to pubs and restaurants. I remember last year we took the family for a meal during the thaw in December and the pub staff were lamenting the loss of diners over Christmas. One can only imagine the frustration and financial loss of business during such an event. Normally Christmas is a busy time so publicans and restaurateurs would stock up ready for the Christmas trade and party season and so to receive very little return for the hard work and money invested would be devastating.

This rise in sales doesn’t necessarily mean that hospitality and catering outlets are in the clear yet – there’s still a long way to go but it does show promise. The weather is not the only reason companies have traded up it’s also to do with the canny and persistent use of discounting and offers available. Most restaurants and takeaways are now issuing discounted menus and drinks throughout the year and pubs are looking to give a more rounded service to customers, too. Indeed many in house canteens in workplaces and schools are struggling to compete for trade when there are so many more appetising offers accessible.

I think that we as consumers have become used to having good value for money in all areas of our purchasing and whilst we may have less money in our pocket we still want to treat ourselves to nights out and some R&R. It’s very rare for people to miss out on a holiday or a night out even when money is tight – it’s just that the venue they choice has to be more suited to the budget.

Many retail stores who offer high end consumer goods are finding an increase in sales and it’s all about frivolity and liberty for certain consumers – Waitrose reported that luxury toiletries sales were up by 22% this year. There tends to be a desire for the finer things in life when people are surrounded by doom and gloom. Hospitality may find that this trend shifts to the catering sector and that more people will be looking for an upmarket experience if they deem to leave their homes and have an agreeable night out. I think the keyword that will keep the hospitality businesses buoyant is ‘value for money’ this year. That may mean vouchers for family dining or a drink and meal deal or even the happy hour of yesteryear. More upmarket hospitality outlets will need to ensure that the menu offers something enticingly special or they will need to allow for frivolity and luxury with services and décor. I know a local hotel that is offering to arrange collection in a limousine and a champagne reception for Valentines’ day diners just to add a little gaiety and glitz. Here’s to a prosperous year for all hospitality and catering outlets.

Retail Battle Of Economics

I hate to be a gloom mongerer - I am naturally a positive person and I urge other people to see the cup as half full. However, when every day seems to throw up another struggling business to wash it's woes in public I fear for the recovery of an economy, which is in downturn. Recession, downturn, monetary problems - it all amounts to the same thing it isn't working - something is massively broken. I always think that if you are a business struggling to make a profit but others in your sector are thriving it's a matter of diversifying your trade or market share and moving forward. The depressing thing is that when lots of other businesses in your market share are also struggling it's time to feel worried. This morning I read news  about Bonmarche and Peacocks two high street clothing stores who approach administration due to lack of funding options and no buyer as yet in sight. They are just the top of a long list of retail stores that have crumbled under the strain of economics. Should we be worried that our high street will soon be devoid of life and those long trading companies and familiar names will disappear forever?

I know everything at the moment gets blamed on the recession and a lot of high street retail stores are suffering due to people's lack of money, but it sets me to wondering is it all to do with the recession or is that just like blaming everything on an omnipresent known cause? I look at my local Peacocks store - over the years they have changed from being a competitively priced store with a home range and middle of the road clothing for kids and adults. The metamorphic refurbishment turned this family orientated store into a shiny outlet with lots of fashion posters, sleek fittings and trendy kid’s clothes. The prices remained reasonable for a while but then prices started to hike up and these did not reflect the quality of the clothing on offer. Could it be that Peacocks moved away from their core market and tried to enrapture a customer who wanted modern fashion at lower costs but lost sight of what value for money their old ranges were?

Large out of town supermarkets are also another trigger to the high street’s demise. Many stores are open 24 hours throughout the year (even during bank holidays) offering free parking, convenient loading and even a café for supper when you’ve finished shopping. The alternative for many is to bustle into the local town centre pay a large amount of money for 3 hours parking and run the gauntlet of nonchalant retail staff and supposed special offers. So to the superstore we go and there we can pick up a pair of work trousers, have our eyes tested and buy a bit of chicken for dinner. We may also renew the car insurance and pick up a new credit card whilst waiting for our photos to be printed. If we pay a bit more than normal it’s just part of the convenience of having it all under one roof – or is it? Supermarket chains have weaned consumers away from the high street and are now in full command of these wondrous ships of enterprise!

Retail in general is a victim of its own desire to be all encompassing and ubiquitous and I'm not sure what the answer is - can we stop some retail businesses being greedy? Can allegiances be formed between independents to make a stronger stand? Perhaps free parking on certain days, more short stay convenient parking and more genuine money saving offers (don't get me started on the monthly 'sales' we have to endure) from retail and shopping centres would benefit retailers. Retailers could offer reciprocal special deals like a free coffee from a local cafe and a discount for a local store combined. I also think that retail stores need to understand that customers are savvy - we know that the 'special offer' they show is not really saving money or the 'everything must go' is just stores offloading their junk it is patronising to think otherwise! Consumers want real value for money and value added when they visit a shop so friendly staff, a clean tidy store and a good range of value for money items is essential. Dare I say - back to basics?