Term papers writing service


The economic crisis and hospitality industry in eu essay

The prime reason related with this is that the leisure and tourism get immediately and easily affected with the economic fluctuations going on in any country or location.

At the time of recession or the economic crisis, they would rather prefer to save their money for the unforeseen hard times that they might have to face in their future time to come. Thus they might consider saving their extra money for their basic necessities like shelter, food and other family requirements.

Although, this does not mean that people stop travelling completely but their frequency of travelling might get a bit down because of the economic fluctuation and the tourists and travellers might adapt the idea of spending bit less on travel than their planned expenditure. Experts state that the tourism and hospitality business that can adapt to the situation that they can provide the best quality of services and customer satisfaction on a tighter budget too can only survive at the time of economic crisis.

The economic crisis and hospitality industry in eu essay

Trevor J Ward, Managing Director, W Hospitality Group, told that there has been a loss of confidence in the whole banking system in Europe, which has reduced lending to businesses and individuals, and this reduction in credit is affecting businesses and consumers alike. The fall in the house prices has affected the other business activities and consumer spending too and it has in a way affected the European hotel industry. They have combined together 40 national hospitality associations in around 24 countries across Europe.

European hospitality industry comprises of almost 9.

Qualitative / Quantitative approach

Their motive of execution is to create more number of jobs for the European people and thus boost the economy of Europe by enabling the hotels, restaurants and cafes to create more job opportunities.

All the policies are made and implemented by HOTREC with the vision to encourage the creation of environment positive for the development of the hospitality sector. The Economic crisis and the hospitality industry The economic crisis has left no sector untouched and so the European hospitality industry is no less affected with this economic crisis.

There are various zones or segments of the tourism industry that has got badly hit with this crisis. It has directly affected the business travels which were quite frequent in Europe and was a key contributor in the profit earning of the European hotels and cafes but with this crisis the industry has seen tremendous fall down in the business travel of the people coming to Europe.

Not only the business travels, but the business events like the conferences, the presentations and the seminars which were quite in trend in Europe also got severely affected with the economic crisis and this again has brought the profitability graph of the European Hotels and cafes.

It is true that the although the industry has experienced a slowdown in the business travels and the business events, people are still trying to figure out the best deals in the lowest possible rates that fit to their budget and serve their purpose too as they are able to let their business function smoothly irrespective of this economic crisis.

They also try to find out the hotels which can provide them with the basic services without asking them to pay a hefty amount for their stay in the hotel. A study stated that out of many other reasons required to cope up with the effect of economic crisis in the hospitality industry in Europe the low cost of credit can be considered to be an effective step fighting against the crisis of funds and it is believed that the European commercial banks will be the most active type of lender in the European hospitality industry in the coming year as they will work towards lowering their cost of credit and thus it will be beneficial to the hospitality sector which is struggling due to the economic crisis.

  • For example, some hotels executed stiff cost control actions in addition to strengthened brand segmentation;
  • As such it is also referred to the Great Recession or the Long Recession;
  • Nonetheless, in qualitative study sampling aspects are also vital; including who and how many samples ought to be included;
  • Moreover, deductive study re-examines pre-existing data relevant to the topic under investigation;
  • Nevertheless, convenience sampling is performed randomly till it meets the necessary requirements of the study;
  • There are numerous approaches that can be used in any give study such as ethnography, survey, experiments, case study and action research.

Data about European Hospitality industry This question is of major concern that that how long will this economic crisis go and how will all the European sectors survive in this bad economy when the entire world is getting affected with this global economic crisis. Despite other sectors, the European hotel industry is getting severely hit with this crisis and this can be well understood by the data illustrated below.

The data reveals that the GDP rate will go down by 1. The data also describes that there has been a visible drop in the European economic sentiment indicator which is also an important reason of the low confidence in the European hospitality industry.

While it went down from 65. When the entire globe is suffering from this problem of recession and bad economy, Europe is also facing the hit back in the tourism industry.

A survey conducted by Deloitte and Touche on the European hotels revealed that the occupancy rate of rooms in the hotels of Europe went down from 69. Although all the major cities of Europe have suffered due to this crisis but the most badly affected cities are Rome, Dublin and Prague.

The study also stated that to fight against this crisis and still not completely go away with their idea of going on holidays, they would rather do little bit of adjustments and comprises to fit the holiday budget to their pocket. Economic Crisis with low confidence The Economic crisis when followed with the lowering of confidence in any sector becomes a reason of great concern and worry for the government of any nation and the situations like this needs an immediate attention and plan of action as if it is not dealt in time it may lead to adverse consequences for the economy of any nation.

The economic crisis and Hospitality Industry in EU Essay

Such thing was experienced by the European hospitality industry in the year 2009. Majority of the participants of the survey did not expect the European hospitality industry to come back to its original state until year 2011.

And there is a widespread risk of bankruptcy for European hotel chains. They mentioned this to be a very strong reason to put a negative impact on the European hospitality industry. Recovery Plans of European Hospitality Industry It is a fact that the European hospitality industry, along with the other sectors has suffered major setbacks in the year 2009 due to the economic crisis and this can be well described and understood by the data gathered by DLA Piper 2009, Europe Hospitality Outlook survey.

European tourism sector has faced a lot of obstacles till the time it has reached the 21st Century and developed such face of tourism for the entire world.

The recovery plan to successfully face the problem of economic crisis has been divided into a few segments or divisions so as to leave no stone unturned to fight with this scenario and bring back the economy to its stable state.

  1. Statistics from 2000 and 2002 indicate that growth in occupancy was only experienced in budget hotels. In a slow down economy and particularly in the period of a recession, most hotel businesses have to deal with the declining demand and thus search for opportunities to cut their costs.
  2. Cornell Hotel and Restaurant Administration Quarterly.
  3. It is possible that in the near future the low budget and the 3 and 4 star hotels would be promoted, particularly before large global events like the Olympic Games in Sochi and London. How to cite this page Choose cite format.
  4. Trends and Issues in Global Tourism 2009.
  5. At the macro economic level indicators show the optimistic trends and the markets of expanding countries are becoming strongest.

It was segmented as 1. Recovery at EU level 2.

How to cite this page

Recovery at National Level We will discuss in brief the steps and measures taken at both the levels to beat the Economic crisis. Recovery at EU level The European government considered dealing with the economic crisis quite seriously and so they planned the various meetings of the EU heads of State. They all mutually agreed upon following three lines of actions so as to come out of this situation. First one was to promote the financial stability in such a way that the confidence level of the people gets a boost again on the government along with the European Economy which is badly affected with the economic crisis.

Second plan of action was to get the real economy to the shape where it was earlier, and third one was the most important one. It was to stay tightly united to fight against the crisis and to work together at the global level.

Introduction

The third measure sounded bit simple to sate but it was the most effective plan of action to get out of such a critical situation. Several measures were taken by the Government at the EU level out of which one measure specifically taken by the EU state with regards to the hospitality industry was to change the existing VAT Rate system. The new provision stated that all the member states will be granted the permission to apply for a reduced VAT Rate for the restaurant services.

The current provision had this option to only 11 members so now this will be applicable to all the member states in EU. How to cite this page Choose cite format:

  • Some buyers of the hotel services have been unaffected by the financial crisis and will still be capable to use hospitality services;
  • Deductive study on the other hand, involves does not depend on personal assessment to affirmations of the general pattern;
  • The hotel industry is starting to see a revival but this seems to be a slow procedure, which might take several years to come back to its earlier market position FutureWatch 2010; Mintel International Group Limited, 2009;
  • For example, some hotels executed stiff cost control actions in addition to strengthened brand segmentation;
  • Rural tourism and hospitality economic crisis and marketing argument essay development of tourism industry continues and there are no crisis in the industry.