Andrew Grieve says independent accommodation providers can profit from uncertain economic circumstances this year.
With the pound sinking to record lows against the euro over the last few weeks, independent UK hospitality providers are set to benefit from consumers feeling the pinch of travelling abroad to Europe this year.
The weakness of the pound means that consumers are in for a nasty shock when they calculate the increased costs of a European holiday. Last summer £1 would be worth roughly €1.47, now £1 has tumbled in value to a record low of €1.25 meaning that European travellers will be getting less for each pound that they spend.
A €1000 European holiday last summer would have cost a British family £680 - with the falling exchange rate, that same holiday would cost £800 today. As a result many families will be holidaying in the UK this year and the independent hospitality sector will be a major beneficiary.
The altered exchange rates also offer great value holidays to European tourists wanting to visit Britain this year. The British hospitality sector is likely to see a significant upturn in custom from the continent this summer. A good proportion of these tourists will be coming to the UK for the first time, having been dissuaded previously by an exchange rate that made Britain seem expensive to them.
Problems capturing extra trade
The first port of call for the majority of people who are unfamiliar with booking a British holiday will be the internet. Many holiday seekers surfing the web will not be looking for accommodation with a chain hotel, something that is associated with business more than leisure.
But finding a suitable looking traditional hotel, guesthouse or inn to book online is not always an easy task, particularly for those based on the continent. Chain hotels have the upper hand because they have the finances and marketing expertise to ensure a highly visible web presence that takes direct customer bookings from those who would prefer to stay elsewhere very often.
Many smaller hospitality providers are just not in a position to commission an attractive looking bookings-led website, let alone keep it updated or ensure that it retains a high visibility profile on the internet. It’s a catch 22 situation despite forecasts from leading industry research groups that indicate that by 2010 half of all the holiday bookings made will be online.