BAHA (the British Association of Hospitality Accountants) transformed itself into HOSPA ( the Hospitality Professionals Association) when it revealed its comprehensive re-branding back in September. HOSPACE 2011 was held 24 November at the Sofitel, Terminal 5, Heathrow and is the first Conference and IT Exhibition under the HOSPA banner.
And a very impressive event it was: the extensive schedule for the day required and achieved event management of a high order, and the intensive programme ‘worked’ delegates hard – for many, the end of day drinks reception heralded a welcome opportunity to relax!
New Approaches to a Bright Future?
HOSPACE 2011 was titled ‘New Approaches to a Bright Future?’, and opened with an Industry and Olympics Overview which effectively set the scene.
Noting the resilience of the hospitality sector over the last three years – only snow had severely dented performance – Peter Martin of the Peach Report pointed to the growth in the pub dining sector, intense competition amongst the casual dining operators – often utilising discount offers – and the necessity of ensuring that the overall ‘offer’ was right.
Sarah Duignan of STR Global examined the hotel sector, with London predictably leading the way with strong overall performance in both occupancy and rates – though the 11,000 rooms in development may cause pressures after 2012? – and the regions showing a weaker, more patchy picture which is likely to continue.
For Liz Hall of PricewaterhouseCoopers there are good causes for optimism, including the continuing corporate travel revival, holidays remaining a priority for many, and the Olympics and Diamond Jubilee in 2012.
On the downside, however, there is a new reality: consumers are under pressure, seeking value, looking for deals and the best price – asking for a discount is now the ‘norm’. And, there is the risk that companies will again cut back on corporate travel.
We now await the twin impacts of the UK Government’s economic policies, and of the Eurozone…
The Leader’s Panel
This next session looked at the Key issues, trends and developments facing Finance, Revenue Management and IT Professionals and the Panel (Robert Cook of Malmaison, Ufi Ibrahim of BHA, Richard Lewis of Best Western, Patrick Dempsey of Whitbread, Casey McDermott of IHG, and Paul Dukes of Kew Green) had great operational experience to call upon and many practical points to make, including
– The benefits of good branding are demonstrated by Best Western’s growth, as is focus on getting the product and services right. However, whilst short breaks business is up, venue business is still fragile.
– Growth in global tourism – up 7% last year – is encouraging, as is growth in business travel. The BRIC economies are positive for both inbound and outbound business. However, there are issues about UK competitiveness: costs, high VAT, air travel taxes, and what will happen to the £sterling?
– The impact of social media: social media and sites such as TripAdvisor have had and are having a significant impact. It’s essential to deliver what customers expect, especially at a time of shrinking incomes. Investment in employee training and development has therefore never been more important.
– Dynamic pricing systems are here to stay: get to grips with them.
– Acquisition and expansion opportunities will present themselves in recession: be aware.
– Invest in the quality and value of your ‘product’, including customer service. When spending is under pressure, perceived value becomes even more important to attracting and retaining business.
Hotel Finance – making design pay
This session took a look at how to make sure that capital expenditure – whether new projects or refurbishment – pays off.
Kiaran MacDonald at The Savoy, well chronicled in press and on TV, provided detailed insights into the trials, tribulations and eventual triumphs of the Savoy refurbishment programme, and pointed to the value of a strong, independent project manager. Also noted was the way in which consultants’ fees can escalate on building projects!
Matt Rosenberg of QMH Hotel Group explained the careful analysis that all proposed refurbishments undergo, including analysis of the benefits and payback on value engineering and design: replacing bathrooms, for example, is very expensive – can they be refurbished instead?
And Diane Scott of Lloyds Banking Group explored what makes a project a viable investment from the bank’s point of view, including the ability of a management team to ‘deliver’ the project on time and budget, the professional teams to be used, exposure to cost downsides – and upsides.
Logistics can play an important role in the viability of a project: can refurbishment, for example, be phased so that the hotel – or a large part of it – can continue to operate?
Investment in technology is potentially very major, but be careful to analyse carefully your market and what is required. The guest must be able to access (use) the technology, but leading-edge technology can quickly go out of date…
And much more…
Two further sessions provided valuable insights for delegates. New Technologies and the New Challenges for IT Professionals pointed at the rapid pace of change and guest requirements around internet access, wireless technology and the different ‘devices’ in use by guests worldwide: infrastructure and software must ensure ease of use, but hotels were cautioned against supplying the ‘hardware’ for guests.
And Rate Parity, Pricing and the Office of Fair Trading Investigation updated delegates on the possible outcomes of the OFT investigation.
Exhibitor presentations
The day concluded with multiple opportunities for delegates to attend presentations by the exhibitors at HOSPACE. These ranged across new technologies, challenges and applications, with the added benefit of being able to hear and join in to detailed questioning and exchanges of views.
In conclusion
HOSPACE was an intensive and wide-ranging day, ensuring that delegates benefited from both expertise and opinion across many of the key issues that affect working reality now and over the coming years.
Judging by the interest and engagement shown by delegates, and the buzz of conversation and networking at breaks and in seminars, delegates were both enjoying the programme and recording many action points to carry back to their own business. They will undoubtedly be better prepared to face the challenges – good and bad – of 2012.
To find out more about HOSPA, visit the website