Hospitality Suppliers have been affected by the recent economic downturn as much as the next industry sector. The question is "how do they survive"?
Industry research shows that a significant proportion of business has shifted from luxury five-star companies and hotel chains to three and four-star companies. You can also get the best services in the hospitality industry by browsing to www.hospitality-style.co.za
This is apparently because many hotels and guesthouses serve a large number of business users, such as sales representatives and for business conferences.
When businesses tighten their budgets, they send their employees to stay at three and four-star companies as 5 stars that are considered luxury. This shift must represent an increase in demand for hotel supply by smaller companies.
Now it is clear small hotels etc. will not have the same budget size as big hotel chains and five-star companies for their guest facilities so adjustments are needed.
This also means that hospitality suppliers supplying especially luxury guest facilities at luxury prices have not yet gained access to the same level of demand as they have ever experienced.
The solution to this problem is to meet the demand where it is falling and this means hospitality suppliers need to offer price and product budgets.
This does not mean that hospitality suppliers must compromise significantly in the quality of goods, it just means that less focus must be placed on luxury and deterioration and more focus on offering value for money. Another thing that comes out of the window with luxury is choice.
Again this does not mean that there should be no choice at all, it means that there must be a limited choice that offers a variety of goods from the middle to low budget.