Five-star chains react to the recession
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The recession has been particularly brutal for five-star hotel brands. Heavily reliant on high spending business travellers, they have been hit by the financial crisis as bankers and the investment community has severely curtailed their travels and high end meetings have been reduced. In addition, public and governmental pressure around the world has meant that corporations are wary about using five-star hotel brands. In recent interviews with both Four Seasons and Ritz-Carlton, it’s clear that both brands have thought deeply not only about the current situation, but where they will be in several years time. The message from both is clear: “We represent value for money”.
Christopher Norton is regional vice president and general manager of the Four Seasons Paris, George V. He says that Four Seasons hotels will not be discounting to “chase after the market and try and buy market share”.
“It’s important that you manage your business differently, and you have to be smarter, and that’s healthy”, says Norton. “But it would be a mistake to try and reposition the hotel. You can’t discount your way out of a recession. You win by holding rate and providing value, whatever the value is to your customer.”
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