Corporate hospitality in times of an economic downturn

This study reports on how the corporate hospitality industry is affected by an economic downturn, via the example of the UK in 2008. Qualitative telephone interviews with corporate hospitality agencies, activity providers and caterers were carried out to examine how the downturn affected the profitability of the respondents’ companies and how they projected the future of the industry. Current trends such as the demand for more personalised, interactive and targeted events, and the increasing demand for ROI measurement were also examined. It was found that most agencies and activity providers are cautiously optimistic about the industry’s resilience to the downturn, whereas the caterers are most pessimistic. The findings also suggest that value for money is more important in an economic downturn, which requires flexibility on behalf of the intermediaries and suppliers. Several businesses have adopted innovative business practices to maintain profitability.