The hospitality industry is one that has felt the effects of the global economic downturns in recent times. With hospitality businesses such as restaurants, hotels, and unique venues shutting down due to lack of patronage during economic crises, it’s clear that the industry is quite vulnerable to uncertain times. However, there is a part of the industry that has proven to be recession-proof, and that is events. In this blog post, we’ll explore why events are essential for hospitality businesses, especially during economic downturns.
Events Bring Revenue
When hosted in a restaurant, hotel or venue, events can bring in significant revenue. Events can come in various forms such as weddings, corporate events, parties, charity events, and more. By hosting an event, the hospitality business benefits financially from booking fees, room rental rates, food and beverage sales, and ancillary services such as decor and audiovisual services.
Diversification Of Income Streams
By holding events, hospitality businesses can diversify their income streams. This means that they are not entirely reliant on walk-in traffic or hotel bookings. Diversification of income streams also means a lower risk of revenue loss during uncertain times. Hosting an event can bring in a completely new segment of clients that may not have visited or used the hospitality business before, providing an opportunity to expand its customer base.
Events Promote Brand Awareness
By hosting events, hospitality businesses can attract new customers and create brand awareness. Events held in a restaurant, hotel, or unique venue can expose clients to the venue, allowing them to gain an insight into its style, ambiance, service, and offerings. Once clients realize the value that the business offers, they are likely to return as paying customers, increasing the likelihood of repeat business.
Events Drive Customer Loyalty
Events can lead to customer loyalty. By hosting events that appeal to clients, hospitality businesses can create a sense of community, loyalty, and engaged customers. Events serve as a platform for clients to come together and interact, leading to increased brand loyalty and customer retention. This can be especially important during times of economic crisis, as loyal customers are more likely to continue their patronage and keep the hospitality business afloat.
Showcase The Flexibility Of Businesses
Hospitality businesses that host events can showcase their ability to adapt and deliver solutions to satisfy the needs of their clients. Be it a last-minute change of plans or unforeseen circumstance, clients see how businesses react and adjust to the situation, providing an opportunity to showcase professionalism, adaptability, and customer-centric approach.
Events have proven to be recession-proof, providing revenue and diversification of income streams, increasing brand awareness and customer loyalty, whilst showcasing the value and flexibility of businesses. Hospitality businesses can create value by hosting events in their venues, and during times of economic downturn, this could prove to be essential to the business. For those in the hospitality industry, incorporating events as a solution in their business plan is an excellent opportunity to recession-proof their business.