Thursday, June 18, 2009

Looking out for yourself today has consequences

I was told this morning a story about one of the best known deluxe hotels in Scotland that during the recent downturn took the position of holding prices steady. That is an admirable strategy but time has, I believe, led them to rethink some of this pricing. The hotel in question has laid off various personnel to recognize a noticeable downturn in business. As a result of events completely outwith our control 90 days ago we had the need to place approximately 80 bednights (plus two dinners at approx $80/person) with a hotel in Scotland. Given various considerations we opted for this property. It made sense on a variety of levels and for our clients it will be a fine experience.

We recently asked for one room to be provided for a staff member travelling with the group. The hotel reverted with a rate of over $300 per night, but promised "the best available room"!

Our group shall remain in their property but their attitude has badly damaged my view of their facility. One of the things I have noted during the last 9 months has been the willingness of people to work together, to help each other. Moving forward, this hotel will never know how much business I shall quietly redirect to suppliers that can equally deliver a fine experience for our clients...and on balance are more appropriate & professional to deal with.

Surviving these times is incredibly challenging and tiresome but there is no easy solution. We have developed tremendous working relationships with a group of suppliers who "get it". Everyone is working harder for less money....margins are tightened but there is still business to be had.

In the last 4 weeks we have seen the trend of late bookings as we never saw before...clients booking on a Tuesday for a Saturday departure! The one part of the story that is slightly worrisome is the weakening dollar...we hope the trend will stop and the currencies stabilize as this is a tough time to increase prices. As a company we guarantee the US dollar price at the time of deposit...as a result, given various incentives and supplier considerations, this is an opportune time to plan travel, even if it is for 2010....but not to the unnamed hotel!

1 comment:

Anonymous said...

Glad to see you actively writing these post again Gordon. Articles are timely, relevant and honest!