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“Cutting standard rates, even in a recession, is tantamount to throwing business away” says Peter Darnell, managing director of Chartridge Conference Company. “It always amazes me that whenever there’s a downturn in the economy, so many businesses, particularly those in the hospitality sector, seem to think that customers are solely driven by cost. Their first reaction is to slash prices in an attempt to retain business volume and market share, yet this inevitably results in lost business.”

This view was reflected by Hospitality Association’s Chief Executive, Bob Cotton, in a recent interview on Radio 4’s ‘The World at One’. Cotton commented, “Over the last year, there has been quite a significant reduction in hotel prices. The rates have come down and people have kept up volume to an extent, but at a much lower rate, so on average hotels have been taking 10-15% less in cash than they would like to.”

According to Darnell, running a successful and profitable business in the leisure sector isn’t easy at the best of times, but in a climate of recession, lack of credit and postal strikes, the focus should be on adding value, building customer loyalty and stimulating fresh business, not giving it away out of desperation.

Chartridge Conference Company took a more forward looking stance; they not only held their charges but invested in additional customer service and sales skills training throughout the company. As a result there have been measurable benefits in both areas. Customer satisfaction increased from 84% to 94% in just six months, and even with aggressive price cutting by local hotels, The Beeches in Birmingham exceeded sales targets by more than 10% in Q2, and bookings are on line to meet target for Q4.

“Our customer research clearly shows that even when times are hard, superior service and quality food are the key drivers in customer loyalty, while cost is a secondary issue.” added Darnell. “You don’t have to be a high flying FD to appreciate that if you cut rates by 15%, you need to increase volume by 20% just to mark time. What makes it even worse is that when the economy recovers, customers forget why you reduced your rates. Reverting to your original charges is then perceived as an unjustified increase, and customer loyalty flies out the window. By taking a positive stance at CCC, we’re in a very good position to continue our growth when the economy recovers”

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More about Chartridge Conference Company The Chartridge Conference Company provides five dedicated conference and meeting venues located in the Home Counties and West Midlands. All CCC venues are set in out-of-the-ordinary locations, that provide the perfect secluded environment for meetings. All venues provide the highest standards of fully equipped training facilities in rooms that are bright, inviting and adaptable with on-site technical support. Superb food is created with care and flair by dedicated chefs, and when the learning is over, delegates can relax in style in beautiful and peaceful surroundings. The ethos of CCC is to successfully combine total professionalism, excellent value in a friendly relaxing environment. CCC is a member of MIA and Conference Centres of Excellence.

For further information about Chartridge Conference Company visit www.chartridge.co.uk