Foreign Perspectives

Archive for the ‘Business’ Category

Last year managing the reservations coming in became an almost full-time job at times as we ran right through the summer with the rooms over-listed and bookings were coming in at a fair pace over most of that time.

With the economic mess around the world it’s quite a different picture this year. Bookings everywhere locally are well down and so it’s even more important to over-list the rooms but in addition there’s much more work to be done in adjusting the prices in an attempt to fill the rooms.

Unfortunately, there are practical limits to the amount of over-listing that can be done. Typically we list about twice the number of rooms that we actually have but going much beyond that drastically increases the chances of double bookings at the peak of the peak times which would create much more work in proportion to the income that they might bring in.

You might think that when I say “adjusting the prices” that I mean lowering them. However, we’ve found that raising the prices can bring in more bookings than lowering them does and, of course, it brings in a lot more money too. In fact, it’s really only worthwhile to lower the prices of the cheapest rooms as that means that you come up on top of some searches. What raising the price does is to improve the image of the place in the minds of potential guests. After all, arguably the only “real” way they have of judging the quality of a hotel is by the prices of the rooms; some hotels rely on that false perception quite a lot as I’m sure some of you will have already discovered.

So, in practice, what we’ve been doing this year is lowering the prices of the cheapest rooms and raising those of the more expensive ones. It’s not bringing in quite so much business as last year (there just aren’t as many people around) but it does seem to be improving the occupancy numbers.

In these days when virtually everyone books their accommodation online it’s particularly important to read the small-print regarding cancelling your trip or simply not turning up at all at your accommodation.

If you simply don’t turn up almost all hotels will charge you for the first night of your stay but some resort style hotels will charge you for the entire stay. In both cases this is a non-refundable charge.

However, you don’t necessarily need to pay it. In most cases, if you call the hotel a day in advance of your stay you’ll generally not have to pay anything further. Even cancelling the same day can sometimes save you money. For example, although we can charge for a noshow unless the reservation is cancelled a day in advance, in reality we waive this if we can get someone else for the room following the cancellation. Incidentally, it’s really not necessary for you to make up some excuse to explain your cancellation: hotels have heard them all before and it’ll make no difference as to whether or not they charge you.

Do watch any deposit payments that you’ve made though as in many instances these are kept by the reservation system that you used and are usually not refundable. If you find a hotel listed on a reservation system it’s usually worthwhile to contact them directly as this will save you the booking fee and you may get a discount too.

You might think that these “noshow” charges are just profiteering on the part of the hotel. They aren’t. Whenever you make a guaranteed reservation online the hotel is obliged to keep the room for you even if other people turn up asking for a room. In some cases we have turned away as many as a dozen couples looking for a room because our last room was subject to a guaranteed reservation only to find out that the people who’d booked it never turned up.

And a final plea… read the description of the hotel and particularly its location. Hotels are usually listed by “resort” which means that all hotels within about 25 miles of a city will come up as being attached to that city. This means that hotels well into the country are listed as associated with cities. Cancelling because you discover that a hotel you expected to be in the city centre is actually in the country doesn’t save a “noshow” charge if you only discover that when you arrive in the city.

The first time I came across ELQ (Equivalent and Lower Qualifications) was a year or two back when it was mentioned in one of the rare rallying cry type emails that come out from the Open University. What’s it all about? Well, basically the government are intending to drastically reduce funding to universities for those students who are studying for a qualification that is equal to or lower than one that they’ve already got. For example, if you already have a BA or BSc degree then if you sign up for another BA or BSc degree, even if it’s in a totally different subject, then you come under the ELQ rule.

In practical terms, the number of ELQ students is fairly low in most mainstream universities but it’s quite a different matter for the OU where many people start on a different degree for leisure purposes (the proportion of retired students is pretty high on some courses), to change career or to acquire a degree in a more relevant subject to their existing job. Thus, something that would largely have affected the night classes run by mainstream universities is going to affect the main business of the OU. Ironically it would appear that an excellent institution created by the Labour party way back in 1969 may well be killed off by the Labour party of 2009.

So how significant is this reduction in funding? Well, that’s the problem: nobody really knows for sure. Yes, there’s a figure for the reduction but the snag is that the reduction in funding is being met by an increase in course fees and nobody knows what impact that will have on the uptake of courses by students.

Plucking some figures out of the air might give some idea of the impact though. At the moment the OU charges around £10 per point degree courses thus overall a 360 point honours degree costs about £3,600 or around £600 a year on average spread over the typical six years of their courses. Depending on the subject that you do residential schools may increase that to more like £4,600 so say £800/year on average.

However, were the university to double those fees which some would say seems likely, what would happen? Would people find it so easy to justify £1,600 a year over six years? The snag is that it’s not quite so simple as that because there are a lot of quite major universities around the world offering distance learning in similar ranges of courses. Whilst an overall cost for a degree of under £5,000 is quite a bargain generally, that’s not the case were the overall cost to be twice that.

Already discussions are ongoing in the university as to what to do. For example, the science faculty seems likely to drop all but one of its named degrees and is looking for ways to drastically cut the cost of running the residential schools. Whereas right now you can do degrees in physics, chemistry, biology, geology, life sciences and natural sciences in the future there might only be the option to do just “science” albeit with at least some of the currently existing degree programmes continuing to exist as strands within that. Although as they say most of those named degrees were only introduced in 2003 taking them out just six years later seems rather a rapid move on the part of the OU. I’m quite sure that I’m not the only one of their students who ruminated over doing a degree with them for a number of years before actually getting around to it.

Now whilst they argue that they need to drop the residential courses because they don’t make any money on them, they’re in this situation largely because they separated out the residential courses from the courses to which they were originally linked. For example, S103 included a residential whereas S104, its replacement, has SXR103 as a separate residential course. Thanks to the way that most companies sponsoring students on courses work the non-compulsory nature of SXR103 means that fewer people will get funding to go on it.

That’s just the science faculty too. Other faculties attract more hobby students and could see substantial number of courses needing to be dropped if the prices go up too much. For example, how would the various history courses fare at double their current cost? Yes, many of them sound fascinating (and are on my own short list) but realistically I’d have thought that they’re more likely to be done by the retired hobby student population (who tend to get much better marks than the rest of us) and so could be more price sensitive than other more employment oriented courses.

Supposedly none of this affects us students registered for the courses with addresses in Northern Ireland. Not yet, anyway. I imagine that it’s none too ethical but presumably the OU could just supply all students with an NI forwarding address and thus continue to claim the full funding. I wonder if anyone’s floated that suggestion yet?

Although you’d expect that most holiday accommodation would be completely full over the majority of the peak summer that’s not always the case.

For instance, whilst we’re expecting to be close to full capacity over the period, in fact we had several days last week when we were completely empty. How come? Well, what happens is that the place fills up completely at the weekend relatively early in the year which in turn means that people who are looking for a longer holiday often can’t get booked in if it crosses the weekend.

Now, in principle, we could block out a few rooms over the weekends for those longer holidays but then that’s taking the risk that those blocked out rooms wouldn’t fill at all. In practical terms it’s quite difficult to do that blocking out anyway as many online reservation sites don’t allow for that to be done, or at least not in a way that saves those rooms for longer bookings.

Thanks to the free wifi service offered in McDonalds it seems to be attracting an increasing number of itinerant bloggers.

Almost every time we’ve been in lately (and, yes, we’re one of that band of McD bloggers whilst we wait for our ADSL connection) we’ve seen someone whipping out the laptop in a relatively quiet part of the restaurant. Thus far, our record is four separate surfers but I’m sure that’s a record that’ll soon be broken.

It’s not really surprising that they’re attracting these folk: after all that word “free” is quite a pull. What is more surprising though is that the majority of these people are lugging around full size laptops rather than running with the likes of my trusty Aspire One. After all, at under £200 for quite a usable machine it’s not out of the question to buy one pretty much just for the holidays and these days you can even get them “free” with some broadband packages.

Is it a worthwhile marketing strategy for McD though? Well, in that the restaurants obviously need a connection of some sort for their credit card machines it’s largely a no-cost service for them so there’d appear to be no downside in offering it. Moreover, few of the itinerant surfers leave without buying something so it would appear to be all upside for McD at the moment. Whether that would continue to be the case were significant numbers of surfers to start using the stores is another matter. It certainly works fine if there are a handful of people using the service but if there were, say, 10 or more then a) the seats are going to be taken up and b) the service is going to slow down. Still, at the moment, it seems like a great idea.