Friday 26 September 2008

Staying competitive and profitable in 2009

Next year will be difficult for many and as a result tourism businesses may suffer if they fail to react quickly to the changing needs of visitors. In addition to our own thoughts, we have spoken to a variety of leading tourism businesses and organisations from across the region and asked their views and tips on securing business in 2009.

This year continues to see the fall-out and consequences of the credit crunch, high oil prices and growing inflationary pressures. This has resulted in falling stock markets, increased uncertainty over employment, growing worries about future pension values and even people starting to become concerned about the security of their savings. The impact of this has been in a significant and growing, reduction in the confidence of our customers. Combined with this, your business costs have increased rapidly and to top it all we have seen unsettled weather throughout 2008 and a very poor summer.

2009 is not going to be any easier, especially in terms of encouraging visitors to return. However the Euro exchange rates, increased air taxes, and the recent travel company collapses may, if not should, help domestic tourism. Therefore, we should all do all we can and not rely on external factors to deliver business.
South West Tourism will shift emphasis of the regional marketing campaign to focus on the early spring and main spring periods, combined with an element of support for the main summer season. In the past we have solely concentrated on out off season promotion, but following two poor summers, now is the time to act to build summer trade for 2009.

Top Tips:
  • Promote ‘good value’ or ‘added value’ breaks and holidays (as opposed to discounting).
    - Consider splitting weeks in the main season - offering 3-4 day blocks as many may still want a break but might be reluctant to pay for a whole week- Offer guided tours - Offer incentives to visitors who book early – or early bird prices - Offer a free bus service / taxi service- Provide bike hire - Provide various activities or create themes to differentiate your business. - Plus many other ideas you may have
  • Intelligent menu planning. Next year’s visitors will be looking for value when choosing food and drink and few will be in the position to spend as freely as they have in recent years, on highly priced menu options. Businesses could therefore benefit substantially by putting affordable lower price, but good quality, options on the menu. With careful planning this can still give the same or similar profit margins and keep people coming through your doors.
  • There are 1000s of free things to do on a South West break/holiday. B&B’s / hotels / holiday parks need to offer visitors more information about low cost or no cost activities as well as paid for activities in order to attract them to holiday in the region.
  • Plan your marketing and pricing around the school holidays - School holiday dates for 2009 & 2010.
  • Make sure your website is up-to-date, comprehensive and offers online booking. Eviivo provide an affordable way to increase the opportunity to generate more bookings: visit: http://www.eviivo.com/.
  • Check that webcams are kept clean. If you have access to a webcam then a dusty / dirty view could be the deciding factor for a visitor not to make a booking.
  • Monitor how well your business is currently performing: Speak with other businesses in the area, join local commercial groups and keep in touch with your Destination Management Organisation. Business Link also offer the following business health check tool
  • Find out what local business events are happening in your area.

2 comments:

Unknown said...

Staying competitive& profitable.I think the list of depressing possibles is negative thinking.We Brits must stop jumping on the band wagon.It seems many Brits who are doing very well feel they are missing out on depressing talk,so they join in as they think they should and create self depression.
I have been talking to several B&B's locally and along with ourselves they have had there best year ever.We have put rates up etc and they still keep coming...in fact most agree they have had all rooms full since March (7 days a week).
The phone has not stopped.Most guests saying:This year we are staying in the uk.We also have good bookings coming through now for November,December,January and Febuary.
Simply,good modern switched on businesses will let the panic talk ride over them,and enjoy the stay at home surge in customer thoughts
Cannot wait for next year...Bob from Dorset........

Anonymous said...

I agree that there is a lot of negative talk about, but there is a basis for it: less money.
Overall, I think that the really poor summer had a bigger impact than the crdit crunch - reading the figures I reckon that the increase in self catering / B&B is evenly balanced by the decreases suffered by camping and touring parks.
Equally, its interesting to note the increase to one set of visitor attractions is equalled by the decrease in another - would I be right in thinking that the increase was for dva's with indoor facilities, whilst the decrease was for outdoor facilities?
What we need is a nice warm summer, this year the weather was massive disappointment......many folks took the view it was so miserable in this country that they would go abroad regardless of the cost.
Our s/c occupancy rate was up, our income up slighty, and we have good forward bookings for 2009.
My targets for this winter are to improve the energy efficiency of the accomodation ie more insulation, low energy bulbs etc, and to try and get a grip of the utility bills !
Regards. Pete.