What to do now they have big problems. There were 2 options:

help them or let them broke. All the banks are helped by the goverment. The goverment bought a lot of shares so the banks are saved. Slowly the banks are doing better, so now the banks can pay the goverment back. The dutch banks were in trouble aswell: De postbank,Fortis &  ABN Bank need help from the goverment.

Now is the economy grewing in holland and the banks changed there position on the current market. They changed the rules and products aswell so they are prepard there self for another cruch.

The only bank who is broke in Holland that is de DSB bank. but that was not directly the bad thing of the credit cruch. They made naughty deals with their clients.

In my next blog i will try to explain you what they changed

I was just talking about the hotel market the reason why is that i have experience to work in a hotel during a crunch. It is not nice to work during a crunch because you see a lot off colleagues/friends losing their job with on your mind that they have a wife and childeren. Im happy that I finished my internship and that the cruch is almost gone.

The hotel market is not the only one who had a hard period. What do you think of the finance sector.

Now i will tell you something about the finance sector after the credit crunch.

The credit crucnh started with the problems in the finance sector. The clients of the bank were spending a lot of money but couldn't pay the money back. So the banks were losing their money but they had still to pay people. 

In the USA there was one bank called Lehmann Brothers couldn't pay there bills to clients who gave the Lehmann Brothers money to make investments. and was the first bank who was broke. After that moment world wide there were banks who had problems with the cash flow. All the banks were losing money like water and in a high speed the banks were broke of in very big problems.

The most important thing for a hotel are the guests. if the guest are not comming anymore you can close the hotel very soon. The reason that they introduce the guest satisfaction program is to be up to date what is going on in the mind of the guests.

When the guests are leaving the hotel they will get a from with a internet adress were the can fill out a form about there experiences with the hotel. For the hotel is it really nice to know how the staff is working and were they have to do improvements.
The hotels who have had this program before the credit cruch started didn´t lose a lot of money during the crunch because the knew already al the wishes from the guests in house and they did a lot with al the information. ( The browns hotel was useing this program before the cruch the guests said that if the crunch is comming to the UK the prices should go down and they changed the prices with the result the room occupancy during the credit crunch was still above the 80%)

an other part of the program was the goldmember point card. If you are staying you could be a member of the hotel. for every night you are saying in the hotel you get points. if yiou have more than 500 points you can earn prices. and by 1000 etc.. aswell

The hotels who survived this part of the crisis are really busy to develop a new strategy who is strong enough to survive a crisis again without losing a lot of money.
Most of the hotels pretend that the guest is the number one but i can tell you the guest is always number 2. The managers are checking first what the revenue is and after that they check the guest statisfaction.

If you want to change your strategy you have to think about the 5p's + 1 S

•  Place


•  Price


•  Promotion


•  Product


•  Personality


• Staff

Most of the time you are not going to change the place because when you opened the hotel you should have checked the place already so in this case it is not really important.

But the Price is really important for a new strategy. Before the crisis you had a lot of business guest in the hotel and they don't care about the price because the company will pay everything. So they will work more with travel agencies, online prices and a daily price. the

( daily price is depending of the occupancy of the hotel / and the price of the hotels in the same area)No more week prices. Offcourse the hotel wants to have companies but not like before. For example the crew of Air France / KLM was sleeping in the hotel for a price  £40 a night included breakfast. But this was a very good deal because they booked 300 rooms a week. But some other companies are comming just once a month and the had to pay more. Before the crunch they had to pay 40 aswell. So that changed.

The promotion: after the crunch the hotel was supporting a theatre show in London. The name is wicked. in the weekend most of the time the hotel was not fully booked. The hotel made a deal with travel agency expedia.com + apollo theater. The guests of the travel agencies will sleep in the hotel and buy the tickets for 1/2 price in the hotel. so was the hotel in the occupancy in the weekend more than 78,7% that is quite okay for a hotel during the weekends. (staff is working/rooms are sold)

product: the product is important aswell. in a 5star hotel the guest expect good quality of food and beverages. So the product didn't change a lot but the hotel is looking for cheaper suppliers with the same products.

personality the personality of the hotel changed aswell. instead of the big hotel in the centre they changed it to a nice family hotel in the weekends and during the week in a nice meeting place for business guets. The bar changed as well instead of serving just hotel guest the are serving now just 'normal' people

Staff.  before the credit crucnh the staffcosts were 46,7% sales volume. that was to high. No they are not giving new staff directly a contract. So you are starting like ambulatory. If you doing well the manager can make the decision to give you a full time contract.

The hotel is developping a new guest satisfaction i will tell you more about it and why they doing it.

One of the most largest branches is the Hotel branch.

The hotel were I did mine 10 months during internship in the centre of London is 95% of the week fully booked with buisiness guests. That was really nice for the hotel and the hotel chain. But that was the situation before the credit crunch started.

15 September 2008 the credit crunch started, So everybody was in shock. The ´city´was in panic, beacuse everbody knew the economy will fell down a lot. In the first month of the crunch the hotel was doing well if you compare it with the other hotels in London. But the recession for the hotel started in the begin of november the occupancy of the hotel was under the 70% so that meant we are losing a lot of money.

There was just one solution to safe the hotel and that was dismiss a lot of staff. They started on the management level to reduce it to 4managers instead of 8. All the staff with 0 hours contracts are dismissed as well. So the full time staff had to made more hours.  
But the biggest problem was to pay the suppliers. The hotel were i did mine internship was very happy to make a deal with the suppliers to pay every month 40% instead of the 80% so there was money to pay the staff and everything.

In 2008 there were around the 1000 hotels in london now in 2010 there are still 821 hotels so that means 179 hotels are broke.

The problem in Holland was the same or even worse. In holland Goldon Tullip got broke. That was for the dutch economy not good because the had around the 2000 employees. But the goldon tullip group found a few rich guys who would like it to build this company up again. So now i would like to tell you more about the new strategies of the hotel market after the credit crunch

in my last blog i told you that the marketing strategy of the big hotels are really bad. In the period that the economy was doing very well the big hotels spend money like water.

the hotels spend the money because the occupancy was always around the 96,7% for a big hotel is that quite good. the money what they spend was directly back.

Nobody was thinking about a recession. most of the guests in a 5star hotel are business guests so the prices were really high if you compare it to another hotel. when the credit crunch starts the occupancy felt down to 60% or even less.  Now everybody saw that the strategy of the hotels are not good. because the business guest are not comming anymore. so there was no money comming in. But the hotels had still to pay the staff, suppliers and all there promotion actions from big events.

Why the strategy was not good. the price is to high and the hotel had just one target: Business guests.

The tourists doesn't feel the recession yet so the hotel should had make promotion for that kind of guests aswell. for example if you support a big theatre show you could make an action to stay in the hotel and get tickets for 1/2 price. The hotels didn't do that so that is  one of the reasons that the hotels are not fully booked.

In me next blog i will try to explain you what's happend whit the hotel branch.

In my first blog i showed you how to recognise a credit crunch. I showed aswell the characterzise of the credit crunch.

In this blog i will explain you the problems during and after a credit crunch.
First of all i will tell you the problems during the credit crunch.

The problems are inextricably linked to money creation through debt. This is one explanation. Money in the current financial system through the government created and distributed in - as many people think - but only by banks. Every time someone is a loan or mortgage, with a touch of a computer button, money created from nothing.

The government can get money in two ways: through tax collection and by borrowing. The state itself can not create money in circulation. In short, money is created only by incurring debt. Money is debt. This produces a paradox. When all companies, individuals and governments would repay their debts tomorrow (which sounds very positive) would at that time no money there.

the problems after the credit crucnh are very important as well. After the credit crucnh a lot of people doesn´t have a job. But they have still to pay their rent,  insurance and their social taxes.Most of the people are not in the position to pay everything before the deadline and they have to borrow more and more money of the banks.

for the hospitality was this credit crunch disastrous, because the big hotels groups they made a lot of investment in new projects.
The marketing stategy for the hotels are really weak at this moment. In my next blog i will tell you why this strategies are bad.

Thank you!

Signification of the term ´credit crunch´