Hospitality Leaders Hospitality Leaders Menu 0
Google Translate
Hospitality Industry News

Competing in the new normal

Profile Photo By: British Hospitality Association
March 15, 2013

Competing in the new normal

Picture1

RSM Tenon has conducted their fourth quarterly survey which provides a regular snapshot of business confidence across the Hospitality and Leisure (H&L) sector. In this issue we take a look at the outlook for 2013. For the UK?s H&L sector, the start of 2013 has been chillier than hoped in several respects. Not only has snow disrupted trading across the UK, but key economic forecasters now expect GDP growth to be smaller than hoped.

Click?HERE to download the report.

For the H&L sector, where growth often closely tracks overall GDP growth, the news is about as welcome as a cold Sunday lunch. In our survey just 23% of those polled think 2013 will be a turning point for the economy, while 37% disagree.
But such conditions are hardly new for the sector?s veterans. For many, economic uncertainty and volatility is now simply the ?new normal?, with management teams focussed on how to continue dealing with this.

Jamie Lamb, CFO of Kew Green notes ?The amount of distress in the marketplace throws up opportunities, and that?s why we?re picking up management contracts, because owners need the best returns on their assets, and they need the best people running them to achieve that.?

HIGHLIGHTS

  • Tough conditions are likely to continue a move towards brands and niches such as ?affordable quality?
  • 46% are optimistic about the year ahead, against 19% who are pessimistic
  • Looking back, 34% felt 2012 was worse than expected, with 26% thinking it was better than expected
  • 66% will focus on refreshing existing products and services as their primary growth strategy
  • 78% cite weak demand as the biggest challenge to 2013, followed by rising input costs (59%)
  • 76% expect costs of key inputs or suppliers to rise, while 60% say they will be forced to push up their own prices

Jonathan Perrin, Head of London Hospitality & Leisure at RSM Tenon notes ?Despite the lack of an obvious upcoming stimulus in the year ahead, nearly half (46%) of those surveyed remain confident about the overall outlook. Interestingly, one trend which has emerged over the last two quarters is a focus on refreshing existing products and services and investment in sales and marketing. What we are witnessing is, those that do invest, whether that be refurbishment or marketing, are seen to be the leaders in the market place.?

We hope you find the report both enjoyable and informative. If you wish to discuss any of the issues raised in the report, please contact Jonathan Perrin directly on 020 3075 2604.

Source: BHA

Suggested news

all access

Get full access to the hospitality industry news.

Sign up now. It’s free
Or import your details from