February 4, 2010 in Blog by admin

Sudden lack of affluence in the Hotel Sector

It’s not fashionable to have a favourite economist, but I do. It’s JK Galbraith, and he has some useful lessons for the Hotel Sector right now.

From his 1958 book ‘ The Affluent Society’:

‘…we are guided, in part, by ideas that are relevant to another world, and as a further result, we do many things that are unnecessary, some that are unwise, and a few that are insane.’

He was talking about the way policy of the time was influenced by theories formulated at a time when poverty was widespread and how we needed to move on from this position or risk regressing.

It was true during the boom but in an evolved form.

The boom was inflationary: driven by banks that took ‘insane’ risks. The amount of activity in the property sector and an inflationary market meant outsourcing key functions was critical to rapid growth. Sustaining growth took precedence over building the right structures and pricing into the outsourcing agreements.

This means that there is scope for efficiencies and managers are performing supplier reviews, and doing what they can to bring costs down.

In this blog we’ll want to do our bit to update the ideas that are relied upon to make our decisions. There’s been a democratization of technology and it’s time to update the purchasing methods and thinking accordingly.

Vinyl Matt Media is an independent media company offering a number of niche services to the property sector, in the areas of Photography, Videography, Hotel Booking Engine, Publishing Services, Multilingual Site Hosting & Maintenance. We serve clients in UK & Irl, France, Belgium, Bosnia & Italy. Our services are offered as bundles or as individual offerings and we are happy to work clearly and transparently with existing vendors.

In the coming weeks we’ll be publishing a study of the top areas of waste that we have identified, so please subscribe for updates.

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