Added-value tactic to beat slump

UK hoteliers are already taking steps to tackle the recession that is forecast for 1999, according to an industry consultant.

But BDO Hospitality Consulting believes hoteliers will spurn the price-cutting spiral experienced during the economic slump of the early 1990s and instead try to increase business through added-value packages.

BDO's predictions are not based on a formal survey but are an "informed opinion" culled from field research towards the end of 1998, said joint managing director Jonathan Langston.

If recession does start to bite this year, BDO expects the tactic of throwing in something extra for a fixed cost to boost income from the corporate market. Langston believes hoteliers will opt for this strategy to bolster bedroom, conference suite and training room bookings as companies clamp down on their travel and training budgets.

An economic slump would also answer industry questions on how recession-proof the budget branded sector is, and how far midmarket hotels would lose out to budget and upmarket businesses, said Langston.