Services industries in the UK, from banks to hotels, shrank by a record amount in September 2008.The Chartered Institute of Purchasing and Supply?s (CIPS) services index which measures overall activity for the industry, was down from 49.2 in August to 46 in September.1 CIPS has commented that hotels and restaurants were among those areas worst hit as customers reined in their spending.

No hotel business is likely to be immune to the effects of an economic recession and although this time it may be different in terms of the unprecedented circumstances that are driving the slowdown, businesses still need to ensure they address key fundamental priorities such as a hands on approach to cash management, taking stakeholders with them and managing the cost base.

In a second article from its edition of Hospitality Directions Europe, November 2008 PriceWaterhouseCoopers present the results of its experience and research during past recessions, what?s different this time and what owners and operators can do to protect themselves in such a volatile and unpredictable market.

Dowload the full article "Hotels: Managing in a downturn" (PDF 244KB)