If you thought the recent oil spills in the Gulf Coasts will deter the tourists from visiting and holidaying in the beach region extending from Texas to Florida, then consider this: the recent slash in prices by major resorts in the region has led an increase in the number of tourists in the region.
Right now we can’t say for sure if the oil spills will leave a permanent dent on the beauty and impact of the region, especially the tourism in the Southeastern region. But as per the recent trend or going by the occupancy rate in the resorts and hotels in the first two weeks of May within 10 miles of Louisiana, Mississippi and Alabama, the decrease in price strategy is actually working. The occupancy rate has increased by more than a third as compared to last year during the same period.
The big explosion occurred off the coast of April 20 by an explosion at an oil rig leased by BP-PLC and 11 offshore workers were killed because of it off the Louisiana coast. It is somewhat considered as the worst oil spill in the US.
In spite of the tragic incident, the occupancy rates in the hotels and resorts increased due to a cut in the prices proved to be of great relief for the hotels and restaurants in the region. The data can be partly misleading as the year 2009 was considered the worst year for the hotels and restaurants in the region.
Previous Post : Hotel Industry Soaring Despite the Economic Slump
Thursday, June 17, 2010
Wednesday, May 19, 2010
Hotel Industry Soaring Despite the Economic Slump
With the ongoing economic slump hospitality industry is adversely hit. With high unemployment rate people are not spending much and are no way thinking about expensive wine and dine.
The credit available to people has also reduced which has led to a lot of expenditure cuts. The good news is a lot of Americans are still employed, most of them from upper middle class and are contributing towards hospitality industry by dinning out. A lot of people in this category are attracted towards the fast-casual restaurants as they offer quick service and are better than expensive fine dining restaurants.
The fast-casual restaurants have witnessed a growth of 4 to 5 percent. They provide customers with good quality food, great ambiance and service; this is what foodies need today. The high focus point remains the food but after that a lot of attention and efforts are diverted towards the other things. But now the hotel budgets have gone down as customers spending on food. People are willing to compromise on the ambiance but never on the food. If they want to eat edible food they can go for ready to eat canned food, they turn to restaurants in search of great food and nothing less. They give high emphasis on hygiene and comfort which automatically creates a feel good ambiance.
Now the industry is working hard to further fuel the growth.
Customer relationship is also an important factor that takes a restaurant far ahead of its competitors. Restaurants now give best treatments to their guests by giving complimentary drinks or discount coupons etc to loyal customers.
The restaurants are learning that spending a lot of money will not get them those customers but giving the guests what they demand will. The economic slump has taught a lot of lessons to the industry and is forcing the industry to think differently.
The credit available to people has also reduced which has led to a lot of expenditure cuts. The good news is a lot of Americans are still employed, most of them from upper middle class and are contributing towards hospitality industry by dinning out. A lot of people in this category are attracted towards the fast-casual restaurants as they offer quick service and are better than expensive fine dining restaurants.
The fast-casual restaurants have witnessed a growth of 4 to 5 percent. They provide customers with good quality food, great ambiance and service; this is what foodies need today. The high focus point remains the food but after that a lot of attention and efforts are diverted towards the other things. But now the hotel budgets have gone down as customers spending on food. People are willing to compromise on the ambiance but never on the food. If they want to eat edible food they can go for ready to eat canned food, they turn to restaurants in search of great food and nothing less. They give high emphasis on hygiene and comfort which automatically creates a feel good ambiance.
Now the industry is working hard to further fuel the growth.
Customer relationship is also an important factor that takes a restaurant far ahead of its competitors. Restaurants now give best treatments to their guests by giving complimentary drinks or discount coupons etc to loyal customers.
The restaurants are learning that spending a lot of money will not get them those customers but giving the guests what they demand will. The economic slump has taught a lot of lessons to the industry and is forcing the industry to think differently.
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