Strength of operations is best forged through adversity

Pick up a copy of most travel trade titles these days and you would be forgiven for thinking the sky is falling on our heads.

Occupancies are falling, rates are being slashed, jobs are being cut and entire companies are doomed.

In some cases these facts are true - occupancies are down, rates are being discounted and some jobs are being made redundant.

But the second half of the comparison often neglects to mention the mitigating circumstances that these slides are often from record-setting heights.

In other words, occupancy may have slumped by 20%, but if you were doing high 80s or 90s beforehand you are still achieving figures that many hoteliers in other global markets would only dream of.

Nevertheless, a 20% slump is still a 20% slump and the nature of the industry means that a fall in occupancy is often accompanied by a fall in rates (the simple economics of supply and demand) and a corresponding exacerbated drop in RevPAR.

The sky is not falling, it is merely darkening for a difficult year - or maybe years - ahead.

So, where does it leave the Middle East's hotel industry in early 2009?

Friedrich Nietzsche is often quoted as saying that which does not kill us makes us stronger.

In other words, the true strength of your operations and brand are far more likely to be demonstrated in times of adversity rather than prosperity.

This is the message from many top hoteliers who have been through these sorts of situations before. There is not a lot of doubt that the market will bounce back - the fact that it is down at the moment is mere proof to its cyclical nature - and when it does you must make sure that your hotel is in a better position to tackle the competition than ever before.

What better time to engage in renovations than when a floor can be easily removed from the inventory? What better time to involve your staff in training programmes than when their job demands are reduced?

And for those operators that have not got the tried-and-tested big brand names to fall back on, don't despair. Good companies and good ideas will survive and thrive in bad times as well as good.

These times are a challenge, but they also present opportunities.

In this respect Hotelier Middle East is ready to stand by and support the industry. Our website - www.hoteliermiddleeast.com - is growing from strength to strength with new content added daily.

Remember to check regularly for all the latest news and analysis.

Chris Jackson is the senior editor of Hotelier Middle East.

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM