Hotels in Birmingham need to drop prices and think of more eye-catching marketing schemes if they are to survive the credit crunch, a leisure industry expert has said.
Alistair Pritchard, head of Deloitte’s Tourism, Hospitality and Leisure practice in the Midlands, said Birmingham hotels needed to up their game in order to compete in an increasingly competitive and challenging marketplace.
He said: “The forthcoming months are expected to be very challenging for the UK’s hotel sector as the affects of the credit crunch start to bite. Hoteliers will therefore need to focus on innovative marketing and competitive pricing to see them through what many people expect will be a tough end to 2008 and an even tougher 2009.
“Hoteliers need to consider how they will respond if consumer spending tightens further and the use of revenue management tools will become increasingly important. Creating new ways of attracting guests is now more important than ever and incentives that will boost occupancy, such as a package to include dinner or spa treatments, for example, may work out to be a better strategic option.”
Mr Pritchard’s warning came after the release of Deloitte’s latest Hotel Benchmark Survey, which claimed Birmingham’s hotel industry put in a distinctly average performance in the year to September when compared to other major UK cities.
The results of the survey show that revenue per available room in Birmingham was just £45, a slight fall per cent since the survey was last conducted.
Hotel occupancy was 65.5 per cent, with the average cost of a room in the city just £68.