HOSPITALITY
The growth of franchising has helped companies such as Hilton (above) expand
T
hirty years is a long time in the hospitality industry. Three significant changes during this period stand out. Standards have risen
hugely, the UK now has many more new hotels (well over 1,000 even since 2003), and it now boasts 140 Michelin-starred restaurants. In this mix, there have been a series of developments that have shaped, and continue to shape, the industry. The introduction of technology is making the industry far more efficient than ever before. Yield management systems are maximising income for major hotels and hotel brands, while hand-held wireless systems speed up the ordering and delivery of meals in restaurants. Few hotels would now survive without a website and the abil- ity to book accommodation online. The growth of franchised brands is changing the face of the sector – almost all new hotels being built today are branded and many are operated by franchisees, not hotel companies. This has enabled the likes of Hilton, InterContinental, Carlson and others to grow and expand without investing much, if any, of their own money.
BOB COTTON
Standards in the UK’s hotels and restaurants have risen massively over the past 30 years, says former CEO of the British Hospitality Association Bob Cotton OBE
Curiously enough, the one part of the industry that’s expanded hugely is the budget sector, where branding is key but franchising is practically non- existent – certainly with Premier Inn and Travelodge, which are building and operating their own properties in the UK without franchise help. The 52,000 rooms added in the budget market in the UK in the last eight years represent more than half the total number of new rooms brought on stream in that period. The budget sector is continuing to lead the way with 16,000 new rooms (at least) scheduled to open by 2012. We still have challenges to face – the skills shortage, for example, though we must take great heart in the number of top-flight young British chefs now running restaurants in the UK. We’ve never had such a stream of home grown talent in our restaurants before. But major economic events can conspire against us, as they did in the 1980s and 1990s and again in
ABOUT BOB COTTON Bob Cotton was CEO of the British Hospitality Association from January 2000 to July 2010. Prior to that he spent a year as tourism advisor to the Department for Culture Media and Sport. He is currently chair of the Hospitality Skills Academy. After graduating from the University of Surrey, Cotton joined Gardner Merchant (now Sodexo) in 1974 working for the company until 1998. He was appointed OBE in the 2003 New Year’s Honours List for services to the tourism and hospitality industry.
the last two years. The industry has survived the latter through good man- agement and creative marketing – and good luck. The value of the pound against the euro and the dollar helped us more through the recent recession than any action on our part. Throughout, standards have risen, but that’s not to deny there are plenty of independently owned and operated hotels and restaurants that need to refurbish and can’t afford to. The biggest challenge facing the
industry now is continued growth. The hotel and the restaurant sectors are keen to expand, and in fact, are doing so. But affordable investment funds are badly needed by many. Am I optimistic about the future?
Yes – very much so. The industry’s future is sound. The talent is there, so is the management expertise and the entrepreneurs who see the business opportunities. It just needs fewer regu- lations and more government support to really maximise its potential. David Cameron’s speech on tourism
last summer was welcome. His words now need to be followed by action. Tourism and government have muddled through together for the last 10 years. Surely we can do better in the next dec- ade, so the industry can be recognised for what it is: one of the country’s prin- cipal economic drivers. l
ISSUE 1 2011 © cybertrek 2011 Read Leisure Management online
leisuremanagement.co.uk/digital 43
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