Person of the Week

Gareth Williams, Skyscanner

The Chief Executive of this online travel search engine, which provides instant online comparison on flight prices for more than 670,000 routes on more than 600 airlines, has reported an increase in revenue from £3.5m to £9m this week. This Edinburgh based business, which also employs 10 people in Poland, stated that "There is still a huge appetite for travel but people are looking to do it more economically." Two-thirds of business is generated outside the UK and Gareth said that there was considerable scope for consolidation in the industry, particularly in Europe; the business is also keen to increase its activities in North America, which currently accounts for only 5% of turnover.

Quote of the Week

"Middle management are putting their finger up to corporate players and
walking away."

EP Entrepreneurs Forum, see full report tmorrow...

Facts of the week

Fast-food outlets increase by 8% in UK's 10 largest cities

…and the real growth has been in chains perceived to offer a healthy eating image

• A survey of 705 town centres showed that Subway, the UK's largest fast-food operator, grew its number of outlets by 25.9% to 734 in 2009, Domino’s by 19.8% to 260 and EAT by 17.8% to 86 in 2009.
• However, the report showed that established operators such as McDonalds, Burger King and Wimpy all reduced their number of stores, with KFC the only exception.
• The Local Data Company believes that falling commercial property prices and increased availability of sites have driven opportunities in areas with high footfall.
• Whilst a Subway representative said that "(Trading) is not breaking any records but it is not causing us any problems. There has been trading down from restaurants to QSRs (quick service restaurants)", the company has stated that it was still hopeful of having 2010 outlets by 2010.
• However, Matthew Hopkinson from the Local Data Company said that he believed convenience and demand for food-on-the go are more powerful forces than healthy eating when explaining the growth, adding that 10% of the 250,000 outlets it tracks now a fast-food outlet or coffee shop.

Source: independent.co.uk

Location is the most critical factor for hospitality businesses

Bob Cotton Chief Executive, British Hospitality Association made a keynote speech at the 2009 British Association of Hospitality Accountants (BAHA) Conference.

Amongst last week's variety of speeches held at the event, Bob provided a reflective summary of the current trading environment and future opportunities. The major points he made were:

• Looking back at the past twelve months, Bob stated that he believed the industry had almost gone full circle and that location had become the most critical factor for business.
• The market remained extremely sensitive to particular issues, such as the exit of Middle Eastern markets from London to return home for Ramadan.
• There were essentially five distinct economies (Central London; Edge of London; Regional Cities; Rural and Regional Places; and Thames Valley) within the UK at present, and each presented their own opportunities and challenges.

The main worry at present is that companies cut investment in their product
and training. Bob recalled Denis Hearn's advice at the Master Innholders
Conference earlier this year:

• focus on busy times, not quiet times - it is easier to generate more
  revenue
• loyal customers are your most important

Bob stressed that as businesses adapted to the fact that primary business was no longer the corporate market; the industry would face reality check as these customers want good value and good service, so the need to develop skills and training was vital as a new approach was needed.

Click here for the full report

Article of the week

EP Condense is EP's weekly e-newsletter. But did you know that EP is also a bimonthly magazine available via subscription? Our Article of the Week provides a sample of what we have featured in past issue.

This week we feature a story from of EP archives. It is a special feature entitled "Is Africa ready to enjoy a Golden Age in the 21st Century?" EP spoke with Peter de Costa, former Senior Communications Advisor to Africa to the UN, and his wife Ciru Mwaura to discuss their views on this question. They have many years experience of working in Africa on the development of tourism throughout the continent.