Hospitality Power Panel -15th May 2017 Samlesbury Hotel

Downtown’s hospitality power panel came together at the Samlesbury Hotel, Lancashire to identify burning issues in the hospitality sector and what opportunities we have in the industry, also how we can promote Lancashire, ensuring economic growth.

With the hospitality leaders in Lancashire all sat poised to discuss the issues they face every day and how to combat these, we were ready to begin, Ruth Conner from Marketing Lancashire was present to tell us all what was planned for Lancashire future so far and how the Hospitality industry is a main contributor to this development and growth project.

Downtowns own Roger Jonas was chairing the discussion, asking first of all, what have Marketing Lancashire achieved so far and the priorities that they have at the moment? Ruth’s main priority is taking Lancashire on to the main stage, making it the place to be for short breaks in the UK. She set out a goal of wanting the visitors to grow from 64 million to 70 million by 2020, not only for day visits, which is the most popular at the moment, with 77% of all visitors to Lancashire, only coming for a day out. Marketing Lancashire Key priority is to increase short breaks, focusing on two or three nights to ensure that Lancashire get their fair share of the wallet.

The main focus on achieving this, is to better represent the Heritage and Culture that Lancashire have to offer and the vast outside spaces we have to offer, marketing Lancashire as the great outdoors experience. We have already seen a 21% growth in visitors over the last 4 years, which has led to an 8% in economic growth which equals a ￡3.8 Billion to Lancashire. Ruth wants to see this grow and develop, with a mix of industry’s involved and all seeing the benefit.

Being sceptical over these substantial figures, it was asked how this was measured? Ruth responded that it is the same economic model used by Manchester, Liverpool and Cumbria and we can directly compare the areas. With Lancashire actually receiving 20 million more visitors than Cumbria, some may find it hard to believe as Cumbria has the popular Lake District, however Lancashire does have a few tricks up its sleeves, we just need to promote them more.

We can’t talk economic growth in the North without the mention of the Northern Powerhouse, now it was said that there have been some issues with the Northern Powerhouse in Lancashire and it may have stalled or not developed due to its full potential. The ousting of George Osborne has not helped and Lancashire are in need of direction with regards to the Northern Powerhouse. As a County we are wide spread and it can be difficult to get right people together to make a difference, however the hospitality industry are all in one room so specifically how will Lancashire Hospitality fair in the Northern Powerhouse?

The Northern Powerhouse is something you have to be involved in to see any change, with Ruth saying you have to be in it to win it. That it hasn’t always been a priority for some, but this needs to change. The Northern Powerhouse will be integral to Lancashire making a success with key areas being the quality of life, devolution of power, development of infrastructure and our international competitiveness. We need the Northern Powerhouse to act as a narrative and to help pull us all together to make a difference, having that to push our way to the front, so even if Northern Powerhouse doesn’t mean as much in Lancashire now, we can gather all the strands together to see it working to Lancashire benefit in the future. With the admin changes in Lancashire, we plan on embracing this change and continue to raise the profile of the area. One of the ways is to attend Transport for the North in June and be on the leader panel, the only way to make traction is to work together and be in the public eye.

For a first time in a long time, Lancashire is seeming more positive, having a ‘make it happen attitude’ However, is Lancashire infrastructure and rural spread an asset or an issue? The Lancashire people have always been grafters, we have a renewed swagger and a confidence in the area and what we produce. Partnering with Manchester in MIPIM, the World’s leading property market conference, will only benefit us. We have a complimentary relationship, with Manchester having a hold on professional services and Lancashire focus on Hospitality, we can help to portray a positive and cohesive United Kingdom. MIPIM attendance shows how far Lancashire has come and what an asset we can be, involving ourselves in Key development areas and production. At the last MIPIM even Gary Neville admitted that people might want to work in Manchester, but they want to live in Lancashire. This can show we are a major strategic site, with opportunities to do major business.

With regards to MIPIM it was asked if we will have our own delegation and the answer was very positive. Yes, we can have our own delegation and became part of the international trade market. However, we will get out of it, what we put in. Manchester get a lot out of MIPIM as they put the effort in, with one of the best stands and bringing there all. Members of the property market were happy that Lancashire were there, we need to make sure that they know the value of working with Lancashire and get more of the private sector working with us to elevate our property development.

Opening the questions to our hospitality power panel, to focus on priority issues in the hospitality sector, which can then be filtered and taken back to Marketing Lancashire for action. One of the first questions asked was what concerns are had over Brexit, towards the hospitality workforce? With Brexit still being negotiated and no information released as of yet, what does is mean for the hospitality sector as a whole? Ruth explained with the initial data we could see an increase in currency exchange rates, more UK residents are choosing ‘staycations’, going on domestic holidays, which could lead to more business for hotels in Lancashire. With regards to the employment, looking at school leavers and offering them apprenticeships, trying to make workers know that hospitality is a career and not just a summer holiday job or something you do to earn money whilst studying elsewhere. That there is progression opportunity and you can advance very quickly, being well paid at a young age. It was mentioned that the hospitality industry have received a bad reputation in the past, with zero hour contracts and working weeks ranging to 70 or 80 hours in some cases, now improvements have been made, with working weeks rarely going over 50 hours and designated weekends off, to entice British staff to enjoy working in the hospitality sector, that they can still have that work like balance. It has been said that negative aspects have been sensationalised, like the long working weeks or zero hour contracts, however with the working time directive, it has given a structure to the hospitality industry. However, they still need more staff, faster than they are available at the moment and teaching the staff the positives of a career in hospitality is key to keeping those staff. You do have the variety to change, from a chef to become a general manager and create your own career path, a consensus was we need a campaign to be able to tell the younger generations, who are just going to college and uni as they feel they should to get a career, that there is another path.

At the Samlesbury Hotel, they are doing this in house, with junior staff members being able to shadow and change department, sitting in on budget meetings and really getting a feel for what they can achieve in the hospitality industry if the stay and progress. An impressive figure is that 53 out of the current 58 employees have taken to this initiative and decided they want to see how other departments are run, seeing the value in the development opportunity. Lavender hotel group are also running something similar, with the director going into the departments and asking the staff how they do it, not telling them. This has led to staff morale increase and an understanding difficulties faced in each department.

A new threat to existing hospitality was also discussed, with the likes of Air B&B and homes away, raising concerns as they are taking a huge amount of potential turnover from hoteliers and could be getting the lion share of the new post Brexit staycation guests. Points such as the unregulated nature of air B&B, with no health and safety could make them less legitimate in the future, but for now their popularity seems to be growing. Could this be replicated by a hotel, with an air B&B convenience but hotel feel. With everything becoming digital now including shopping, banking and much more, can the hospitality industry change and adapt, but more importantly should it? When you go to a holiday inn, you can pay by credit card at a machine, receive your room card and in effect never have to deal with a human. However, is this what people want in Lancashire, where we are essentially all about the people, the friendly Lancashire faces to welcome the guests, with Oliver from Crowwood, even stating that his customers will ring to find out who is the receptionist on duty and specifically make bookings for when they are working. He then went on to say it is all about the experience for the customer and for that the right staff are needed. Use the skills the staff already have more, as a glass polisher could one day be a general manager, if they have the right attitude they will make. Following on from the point regarding digital becoming more involved in the check in procedure, we need to help the booking procedure. Too many times customers will use booking.com or laterooms, instead of coming directly to book on a hotels website. We need to make the process more streamlined. Marketing Lancashire have explained they will put links on their website that allows people to go directly to a hotel to book, they don’t want to become a booking agent or comparison site, but just offer the hotels a boost, and to help tell potential guests that these hotels are in a way, recommended by Marketing Lancashire. Still will this be enough? Booking.com take 15% so can we incentivise people to book directly? A free breakfast or something extra when they book direct.

The consensus for all the members of the hospitality industry that the main problem, is the skills gap. With chefs coming out of college and not even having knife skills needed or be able to cost a dish once it is made. They can’t rely on the colleges to train the students, they are having to do it themselves once the staff are employed. The best way to teach in hospitality, is to actually have the real life experience. Rather than spend 2 or 3 years in a class room, they can spend 2 or 3 years working in the hotel industry and start at the bottom and work up. However, a lot of students are set on a path of college, university, career and don’t see Hospitality as a promising career. The mind set needs to be changed. Ideas of academy’s where students can still get accreditations, but be taught in a more hands on manor or an apprenticeship scheme within the hotels that is more focused on practical skills. The students need to be given a chance and a mentor. What is the best way to deal with the hospitality skills gap?

Downtown will be continuing their discussions with the Hospitality sector as well as other industries at UCLAN during our skills summit, with members of Lancashire colleges and various business sectors. We want to tackle the skills problem through education and find a relevant curriculum that suits both the colleges and the businesses, by working together. 

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