There is growing evidence that the credit crunch has taken effect on hotels in Edinburgh. Occupancy levels are down drastically and rates have started to follow. As each day goes by there is more and more bad news on the state of the economy. Its now the case that most commentators including the bank of England agree that UK is already in recession. In conditions like these hotels quickly feel the change in climate and begin to reduce rates to encourage bookings.
Edinburgh is the financial centre of Scotland and the UK’s second most important banking hub after London. With the near collapse of the banking system and a certain contraction in the sector the effect on hotels is swift. Those that have relied on bookings from this previously inflated area of the economy now scramble to diversify their visitor profiles.
Hotels can diversify their supply by working with new suppliers and exploring previously untapped markets. One such easy win may be the internet, believe it or not many hotels in Edinburgh have still not fully recognized the power of the web. Its low hanging fruit which will not stay unpicked for long so hotels would be advised to search out new internet suppliers as quickly as they possibly can and before their competitors do.
The quickest and most effective way for hotels to attract more bookings in tough times is simple if painful, reduce hotel rates and diversify supply to as many sectors as possible. Rates at hotels in Edinburgh are already some 20% down on the same time last year and this is only the beginning.
Many of us may remember the last recession and the effect it had on hotel prices. While its clear a recession is bad news to almost all of us, from the perspective of the traveller, an upside becomes obvious, there will soon be a great selection of available hotels of high quality at low rates, enjoy the value.
Hotel reservations agent for Edinburgh hotels
和 Royal Mile hotels
和 Princes street hotels
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