News & Press Releases
The Westminster Collection Reveals How the Credit Crunch is Affecting its Member’s Businesses
08/08/2008
Members of The Westminster Collection, comprising 20 prestigious venues, hotels and hospitality facilities in Westminster have responded to a questionnaire asking them to comment on the current economic situation and how this is affecting their businesses, both short and long term.Overall, the members were clear that their main business was holding firm. However, there are some signs of ancillary costs, such as catering, hospitality and add-on services being squeezed or restricted. Greater innovation is being applied to pricing and packages to remain flexible and ahead of the market conditions. There was also evidence that short-notice booking is increasingly becoming standard practice, making forecasting and budgeting more difficult to achieve with accuracy.
Adele Summers, Venue & Marketing Director at One Queen Anne’s Gate commented, "Fortunately, we have still managed to enjoy fruitful recent months. Clients have reacted positively to our cost-reduction initiatives, indicating that price is increasingly at the forefront of factors when a client is considering a venue. We have yet to suffer any major impact due to the current economic climate because we have been alert and prepared. Yet any stronger storm can only be weathered as best possible by continuing innovative measures to hopefully counter any anticipated turbulence and always ensure we fly as high as possible."
Lin Kennedy, Palace Manager, The Banqueting House, Whitehall said, ”On the question of business – bookings at Banqueting House are currently healthier than they have been for the last two years and it is looking as if we will achieve target before Christmas.”
Alastair Betty, Event Co-ordinator at One Birdcage Walk added, “We are hitting and exceeding our targets in terms of room hire, but falling short of catering. We feel confident we can continue strongly with room hire over the next 12 months, but that the catering spend may remain lower, in line with current economic uncertainty.”
Sarah McQueen, Sales & Development Manager, Savoy Place said, “With regard to the current financial climate I have felt that the volume of business has not been affected, in fact the number of last minute bookings has increased. However, they are always looking for the best ‘deal’ possible i.e. what discount can be offered for room hire, catering and audio visual equipment. This has affected mainly our catering spend per head which has decreased. I have felt that the majority of meetings and event organizers need to be seen to get the best available financial offering. With this in mind we are being very cautious with 2009 budgeting.”
Maugie Lyons, Acting managing Director from the Royal Horticultural Halls said, “We haven’t seen any effects of the credit crunch thus far. Our business tends to be long term, with bookings made well in advance. Some clients may want more value for money and are driving a harder bargain, but that is just good business sense.”
Catherine Hutchings, Sales Manager, Churchill Museum and Cabinet War Rooms said, “Customers are obviously being cautious with their money and what they are spending it on. We are still taking regular enquiries although these tend to be more short lead. We think the situation will stabilise but customers are wary, at present, of committing their money and having budgets 'signed off' too far in advance. On the positive side, our Christmas pipeline is strong and some key nights are booked up.”
Simon McGrath, Events Manager, LEWIS Media Centre said, “The credit crunch has failed to reduce the number of incoming calls and enquiries we receive. In fact, we’ve actually seen an increased number of forward bookings for 2009, and we’re busier now than last year. However, events organisers do need to take note of the economic conditions, and be more savvy with their budgets. Keeping a close eye on catering costs, for example, can make a crucial difference.”
René Dee, Chairman of The Westminster Collection commented, “The above comments reflect the case that business that has been already booked for this year has, by and large, not felt the affects of the ‘Credit Crunch’ but that the signs are clear that, in 2009 and perhaps beyond, budgets will be tighter, bookings will have shorter lead-in times, targets will be more difficult to determine in advance and venues are going to have to be more innovative in their future marketing and pricing. However, Westminster remains a hugely buoyant and leading business tourism community. I am very confident that our members will not be adversely affected in the same way that others may be.”
