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Read MoreWe were all hugely excited about Rishi Sunak's announcement yesterday slashing VAT on tourism and hospitality from 20% to 5% until January. But how are hotels going to react to it?
Common sense is still one of the most valuable skills in business, we need to think before we act.
The news is incredibly positive as it means thousands of jobs will be saved and hundreds of businesses will have a much better chance of surviving during the uncertain period we are about to enter.
The industry must continue to move as one, hotels and accommodation providers must remain more united than ever right now. Whatever we decide to do to boost bookings will have direct impact in our competition, the right decisions will mean the difference between survival and adminstration to smaller businesses.
The new 5% VAT allows larger hotels to slash their rates to attract more guests. Slashing your rates will mean smaller businesses near you will be unable to survive as they are unable to do the same. Slashing your rates means that you will receive a lot more bookings in the short term but have a negative effect in the long run because your guests will expect the rates to continue low after January. Slashing your rates means choosing to cut corners on other areas too, such as staff and quality, to maximise revenue. Slashing your rates means that you will not build much needed reserves.
What type of business do you choose to be?
We can choose to act as a group, as a united industry and go through the next few months together supporting one another or we can choose to guarantee better numbers to send to HQ overseas.
We can choose common sense and the future of our industry or we can choose the survival of the fittest.
This is not the time to slash rates, this is time to value and build a strong and more sustainable industry post COVID-19.
Food for thought by @EditorFiveStar
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