Recession - How The Hotel Industry Was Hit And How It Is Recovering In our current age of time, the sun and plants on the planet are not the only things vital to our survival. Economics, business, have all become living entities, compliments of the human mind. They are now a direct influence to our lives. Which is why when an event which affects our economy or business occurs, such as recession, we fall into turmoil and panic as our livelihood is in danger. The recent recession of 2009 was dubbed to be the worst recession in a lot of places. This recession even broke the world's most unbreakable economy, when the world witnessed the United States getting affected by the recession. The recession is so great that even Britain has dubbed it the worst recession they had ever experienced, surpassing even the famous "Great Depression" back in the 1930's. All businesses big and small were affected by this recession badly, but the industry getting affected the worst is probably the lodging industry. This is because the logic is that people are cutting back on traveling and are staying at home and saving more now. Thus cutting the demand for the lodging industry. Due to the recession, hotels are losing a lot of their business travelers whom are reevaluating their travel plans, and some swapping their overseas meetings with cheaper alternatives such as video conferencing. On a brighter note, despite being in a time of recession, most leisure travelers have not changed or dismiss their intention to travel. This factor however is proven to be insufficient as most hotels are still facing major problems. This spiral downfall of economics has caused most hotel managements to take instant measures to ease the wounds inflicted on their business, and try various methods in hopes of keeping their business afloat. The typical approach would be to go through a retrenchment process. But businesses today have a lot of other more tactful ways to overcome business problems such as recession. Such as: Slashing Rates - This very debatable method is one of the more common methods to be administered by the hotel industry. It involves slashing the rates of their accommodations to rake more customers. However the downfall of this method is that, even though the customers are more inclined to come, the cost of maintaining the room and providing for the customer would mostly cost more, and eventually lead the hotel making a worst loss compared to when they had fewer customers but maintained their rates. Government Support - Some hotels are lucky enough to gain the support of the government and stay alive during this time of crisis. In fact hotels such as the ones in Pretoria South, South Africa, are actually reporting improvements to their business due to government intervention. Sales and Marketing - This is a very common method used by all businesses, regardless of the presence of a recession. This strategy has actually been a key player in keeping most lodging businesses afloat as they strengthen the desire of the people whom want to travel, to get away from all the stress. Especially in this time of crisis, most people would have set their priorities to decreasing their stress levels first before any other luxury. In conclusion, the recession has had devastating effects on the hotel industry. But given the time to heal and the economy to make a comeback. The Hotel industry should be making it just fine.
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