Possible CintingenciesEssay title: Possible CintingenciesPossible contingencies scenariosWorld affairs e.g. September 11th, tsunami, terrorist attacks on England.Likely consequencesA predicted drop in numbers of overseas customers due to safety fears of travel and different countries.Degree of riskHigh; could potentially destroy the peak in numbers during main holiday seasons.Risk strategy to prevent crisisLower prices to keep customers interested, increase security in order to bring back customers.Likely outcome for budget hotelsBudget Hotels have continued to go from strength to strength and are one of the few hotel sectors to have seen numbers rise. With average room occupancy at 75.5% in 2006 (caterer and hotelkeeper) and budget hotel rooms in the UK, broke the 1billion pound mark for the first time, this shows that the “budget hotel market in the UK is able to withstand pressure caused by external factors such as terrorist attacks” (Ben Walker)
Possible contingencies scenariosBad weatherLikely consequencesAs a result of global warming, the British climate is constantly changing, with summers ranging from heat waves (2003) to the wettest summer on record (2007)
Degree of riskModerate; with the British climate being very unpredictable and budget hotels available all across Europe, people may choose a holiday in warmer climates and avoid holiday in the UK, so that they can ensure a holiday in the climate that they want
Risk strategy to prevent crisisOffer activities that are not reliant on weatherLikely outcome for budget hotelsThe UK budget market continued to grow and the budget hotel market was able to withstand external factors including bad weather (Ben WalkerPossible contingencies scenariosA continuing decline in the number of 25-34 year olds using budget hotels since 2002Likely consequencesA gap in the budget market, that has potential to stop the budget market from expanding further because this is one of the highest spending marketsDegree of riskHigh; this could be a serious issue for the industry, however experts predict an increase in the numbers of customers in this age range.Risk strategy to prevent crisisMake
Banking has emerged as a central risk. As a result, banks are often asked to reduce their lending and lend in short supply, which can become a major issue for UK banks.This could not be further from the truth than the extent of the financial crisis in 2008. In a post titled Banks have to reduce their lendingThe UK’s economy had a bad run of bad money from 2008 to 2010, as banks borrowed $14bn in a short period of time to avoid default, with little impact on the broader economy. While the UK has been heavily reliant on banks over the same period, recent government measures have encouraged banks to look for new ways to offset lower credit that would otherwise be offset by increased demand. For instance, by 2012 UK banks now had a record $1 trillion of debt. By some estimates, as a result of Brexit, demand for our banks has increased, so as to compensate for the lack of bank lending that was a part of the overall financial crisis that wiped out financial capital and economic growth.UK consumers’ debt is up 14 percent in 2016 compared to year-to-date. It’s important to note that the UK economy has not recovered since the Great Recession, the housing crash, and the general bust. As much as 2.3 million people have disappeared since 2008, leaving just over half the labour force and nearly 4 million full-time workers in the UK economy.A strong housing market to help support businesses and households in the long runThe UK is currently recovering from a housing affordability crisis over the last two decades. The current level of accommodation provided by the government, and from the new housing fund, may not have been sufficient to support the population in the long term.As already discussed, the government is unable to raise the income threshold from £1,500 a year to £2,400 for new homes, which is one of the best selling housing policies made by the European Commission. While we may not know yet how this will be different during the next few years, it appears that it now could be, at least for families and businesses of all sizes.In response to the housing crisis in 2008, Chancellor George Osborne pledged to raise incomes for every family in the UK by 3.5 per cent by 2020, to help offset the growing number of low-income families that have to stay in the country. However, his promise is being challenged by some voters. They accuse the Chancellor of leaving people at the mercy of some of the most wealthy in the UK (such as the prime minister), saying that the Chancellor was using too many government handouts as ‘back-loading’ of cash.To say that Osborne and the Tories are putting the poorest people on government handouts would be an understatement. This creates the appearance of being a government that seeks to improve society. It has clearly been an attempt by the Tories to divert attention from real economic problems. It