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Hotels in the Current Economic Climate

Is the economic downturn affecting hotel service?The global economy is at this moment experiencing a downward trend.  What impact does this have on the hospitality industry and on standards in hotels in particular?  With corporations cutting costs to their travel and expense budgets by downsizing the hotel or avoiding overnight stays altogether for their staff, this will be having a detrimental impact on the hotel industry.  Not only that, families on a tighter budget will be opting more for cheaper hotels, vacation rentals or camping, or even foregoing a vacation altogether.

Due to the economic recession, the standards in some hotels have dropped considerably with reports of basics, such as regular sheet and towel changing not being performed regularly, or too few staff to accommodate the needs of the hotels’ clientele.  Other reports have mentioned hotels in serious need of a total rejuvenation, but with money lacking, the hotels have had to put up with grubby furniture, fixtures and equipment.  All too often these hotels have taken extreme measures in reducing costs to avoid the threat of liquidation.

The good news is that many hotels out there are addressing this problem in other ways:  through sensible cost cutting measures that do not impact too much on the visitors’ stay or on the overall ambience of the hotel.  These hotels know how to avoid a drop in occupancy rates by enticing tourists and visitors with discount rates for rooms.  Many hotels are also delaying hotel renovations and refurbishments, waiting for a stronger economy, to focus on and expand on cutting edge amenities and top-notch rooms.

Jon Huser

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