The Hotel industry is a cardinal portion of the cordial reception sector, chiefly oriented for the proviso of, adjustment, diversion and amusement. The hotel industry maintains the services and installations for the possible clients that are concern people, domestic and international tourers and single invitees. The large client base of this industry is the most of import portion of its success. The monetary value and the criterion of services and installations in the hotel industry vary as per the scope of services preferred by the clients. This industry requires an intense focal point on the services and installations offered to the clients, so that a positive image can be developed in the competitory market ( Rutherford & A ; Oaa‚¬a„?Fallon 2006 ) .

Alongside the hotels functioning upper category patronage, there are many average size hotels which offer about the same services and installations as the big hotels. Relatively, the services and installations are of lower criterion, as they are offered on cheaper rates. Medium size hotels besides attract many clients as they provide quality services, and maintain the adaptable installations and concentrating the housing related operations on the clients. They offer assorted installations such as amusement, bars, eating houses, handiness to internet, organizing societal maps, etc. The hotel suites are besides furnished with many installations as per the quality degree and criterion ( Medlik & A ; Ingram 2000 ) .

The economic recession, has adversely affected the concern position, operations and end product of many industries worldwide. The hotel industry has besides been influenced by the economic recession. The productiveness, profitableness and efficiency of many companies has been reduced significantly, which encouraged the companies towards cutting different disposal costs like concern meetings, conferences and events, high category concern travels and cut downing the labour force. All these cost economy activities have straight impacted on the travel industry and hotel industry. Since, the touristry industry straight influence the hotel industry, so during the economic recession the reduced figure of tourers and the diminution in the reaching of clients at the hotels has straight impacted the profitableness of the hotel industry ( Raymond 2001 ) . The hotel directions planned and re-developed the operations and strategic planning for their endurance in the market ( Peters & A ; Pikkemaat 2006 ) .

1.2 AIM

To analyze the impact of the economic recession on the hotel industry, along with the challenges faced, and schemes used by the hotels to last in the market.

1.3 Aim

The major aims of this research are to:

Determine the impact of consumer and client on the concern of the hotels, including the autumn in supplying the concern services and bargaining for rates.

Determine the realignment of the hotel industry, and its market sensitiveness, in the economic recession.

Analyse the fluctuation in the trueness of corporate client with big branded hotels.

Determine the chances created by recession for little hotels to affectively go concern hotels, as the concern clients prefer little hotel services, and competitory rates.

This survey investigates the impact of the economic recession on hotel industry. The research evaluates the factors which have affected the industry, with the aid of a instance survey of a ( Celtic Manor ) resort hotel in UK. It constructs an attempt to make full in the spread as non much of research has been done on the impact of recession on hotel industry, so far. It draws on old research from the writers worldwide, in the signifier of theory. This survey will besides associate the alterations experienced by the generic hotel industry, via the literature reappraisal, to the instance survey of the resort hotel. The purpose is to use the research literature and use the construct in the instance survey. The research methodological analysis used in the survey will be both the qualitative and quantitative methods of analysis. The consequences and decisions will show the nature and range of the appropriate and inappropriate alterations in schemes adopted by hotels.


The intent of this research is to analyze the state of affairss and conditions brought by recession to the hotel industry. Economic recession has hit many states worldwide, to different extents. As the hotel industry is an of import sector of the touristry industry and the market, so the hotels have besides faced many alterations of luck due to recession, and have had to do some alterations in their policies and schemes. It is because of this, the research worker decided to carry on research on this subject.

The present survey focuses on the schemes and executions made by The Celtic Manor Resort ( instance survey ) during the recession in UK. The ground of taking The Celtic Manor hotel for this survey is because the hotel is a convention Centre and a topographic point of leisure installations, which makes it an appropriate finish for corporate, tourers and leisure clients. Both these classs of clients have been affected by recession, so the research stresses the impact of recession on the concern of the hotels, consumer reaction and alterations adopted by hotels in footings of endurance in the market.

The following chapter ( context ) is about the consequence the recession on some of the strongest economic systems in the universe. The impact of recession on chosen economic systems will be discussed and so the treatment will go the base of the research. The literature reappraisal will turn to, in item, the alterations and challenges faced by the hotel industry. After analyzing the alterations in the policies and schemes in the instance survey, the research worker will so continue to critically associate the alterations in the instance survey utilizing the literature. This will so be followed by the findings & A ; analysis, decisions and recommendations of the research.


This survey is about recession and its impact on the corporate universe, the hotel industry consists of both big and little hotels. The hotel industry is an of import portion of the cordial reception industry which serves clients from different backgrounds, such as the corporate sector, domestic and international tourers, and single clients. These three classs of hotel clients have been affected by recession straight or indirectly, so the hotel industry has been affected by the recession. The importance of this research is to throw visible radiation on the deep impact of the recession on the hotel industry and the schemes used by them to last in the market. This research is besides of import to set up a nexus between the primary and secondary research informations. The research worker will carry on in-depth secondary research on the chosen subject and measure the issues associating to the survey. The point of views of cardinal writers will be considered and statements balanced in the instance of differing positions. The research worker will besides carry on primary research, wherein cardinal employees of The Celtic Manor Resort will be interviewed to acquire first manus information/data on the issues to be studied. The information gained as primary informations will be analysed and so a comparing of primary and secondary informations will be made to see whether or non the findings are in conformity with each other. In this manner the research worker will be able to better understand the effects of recession on the hotel industry and its surviving schemes.

This research may be utile to the undermentioned people and administrations:

First, the research worker will profit from this survey as it will assist him in analyzing the recession and its impact on the hotel industry and will heighten his apprehension of the subject by carry oning first manus primary research on a five star resort hotel. Second, the research may be good to other research workers desiring to analyze this subject. This survey will move as a secondary beginning of informations for the other research workers. Third, the administration on which the survey will be conducted that is The Gaelic Manor Hotel may utilize this survey for analyzing and comparing the success or failure of their schemes for the hereafter. This may farther move as a utile beginning of information for any alterations required in their several schemes and policies associating to the internal and external environment for concern development and growing. In this manner, the research survey should turn out to be good for other research workers and the administration. Last, the research may besides profit the educational institute where this survey will be submitted that is Newport Business School, where the survey may move as a beginning of secondary informations for other pupils.

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