Possible Cintingencies

Possible contingencies scenarios World affairs e.g. September 11th, tsunami, terrorist attacks on England.

Likely consequences A predicted drop in numbers of overseas customers due to safety fears of travel and different countries.

Degree of risk High; could potentially destroy the peak in numbers during main holiday seasons.

Risk strategy to prevent crisis Lower prices to keep customers interested, increase security in order to bring back customers.

Likely outcome for budget hotels Budget Hotels have continued to go from strength to strength and are one of the few hotel sectors to have seen numbers rise. With average room occupancy at 75.5% in 2006 (caterer and hotelkeeper) and budget hotel rooms in the UK, broke the 1billion pound mark for the first time, this shows that the “budget hotel market in the UK is able to withstand pressure caused by external factors such as terrorist attacks” (Ben Walker)

Possible contingencies scenarios Bad weather

Likely consequences As a result of global warming, the British climate is constantly changing, with summers ranging from heat waves (2003) to the wettest summer on record (2007)

Degree of risk Moderate; with the British climate being very unpredictable and budget hotels available all across Europe, people may choose a holiday in warmer climates and avoid holiday in the UK, so that they can ensure a holiday in the climate that they want

Risk strategy to prevent crisis Offer activities that are not reliant on weather

Likely outcome for budget hotels The UK budget market continued to grow and the budget hotel market was able to withstand external factors including bad weather (Ben Walker

Possible contingencies scenarios A continuing decline in the number of 25-34 year olds using budget hotels since 2002

Likely consequences A gap in the budget market, that has potential to stop the budget market from expanding further because this is one of the highest spending markets

Degree of risk High; this could be a serious issue for the industry, however experts predict an increase in the numbers of customers in this age range.

Risk strategy to prevent crisis Make