You would have to have been living on the moon if you didn’t know the UK economy had been sluggish for several years
London, United Kingdom (PRWEB UK) 15 March 2013
Shoppers and savers are said to be the ones worst hit by Britain's loss of its AAA status. The loss of the credit rating is said to reflect the challenges the country’s economy still faces. The downturn has hit pretty much every sector; the travel industry hasn’t escaped. Inevitably it will be businesses that have stood the test of time that will survive.
You would have to have been living on the moon if you didn’t know the UK economy had been sluggish for several years. For the business traveller market this has been filtered down through reduced budgets, fewer business travellers and firms looking to relocate. The credit rating is a mark of trust and confidence in the British economy. Ironically, however, its reduction might affect the politicians and younger brands who don’t have the resources or confidence to combat bad news. For businesses who’ve survived a downturn before, however, they know how to take on the challenge and survive again.
The reduction of the AAA credit rating and the impact it will have on the economy has been widely discussed in the media. In the City the fear has been a hit on the currency markets; if the pound falls it becomes less attractive to do business in London and the UK. For other commentators it is the interests of savers who still face low interest rates and not much return for their money as well as shoppers who rely on the same thing to keep prices relatively low.
Yet the biggest impact the downgrade has is on confidence. For the country’s economy confidence is important, particularly on the back of a recession. Business is crying out for a return to prosperity and to put the downturn behind them. The downgrading of the country’s credit rating suggests there’s still a way to go yet.
So how do established brands ride the wave? Working in the relocation and business travel sector there’s an understanding there is less money going around. It becomes harder for providers to win the reducing number of business. Yet again it all comes down to confidence. A brand like Clarendon Serviced Apartments has stood the test of time for 25 years. That means withstanding economic instability and downturns. Younger companies who might be trying to appeal to the same business market might find it harder to weather the storm. Clarendon has shown resilience in providing high quality apartments in central locations in London, like The City, Canary Wharf and the West End, for a quarter of a century. Business travellers are the same as other consumers, when times are tough they tend to go with brands they can trust and that they know well. Brands who aren’t sure how to respond to a loss of confidence in the economy can lose their heads. Older and more established companies tend to keep theirs a little better, understanding that it’s best to work with a client’s challenges, rather than against them.
As the business travel sector waits for the economy to pick itself up after this latest setback, it is more established companies that will be confident of still being able to forge a way ahead.