Matthew Maxwell, Amateo:
If you look at the statistics that are being generated by the industry right now, you looking at around, say in the middle section, 60-70% occupancy and in the five star chains, you're looking at probably even lower than that again. Look at the way in which they are addressing it, you're getting massive discounts in five star hotels in city centre properties, which clearly is a panic reaction to the situation that currently exists. You would also look at perhaps the Gulf War experience of ten years ago ad say that the industry is facing the same kind of catastrophe again and say well should they not have had contingency strategies in place which would enable them to battle against this sudden economic shock that they're facing into.

Presenter:
So you don't think they've done enough?

Matthew Maxwell:
I think there's a great deal of investment that needs to made now by the hospitality industry to ensure it's positioned to, number one, exploit its existing guest base and retain them and develop loyalty and, secondly, look at how it's going to acquire new guests and where they're going to get them from.

Presenter:
Well Grant, coming to you now, you were listening to what Matthew was saying, do you think he's got a point?

Grant Hearn, Hilton:
Well he might well have a point for other hotels, but certainly not for Hilton. I think that we have over years put a lot of investment into marketing programmes and into loyalty programmes. Hilton Honours is one of the most successful loyalty programmes in the industry today.

Presenter:
The real problem though is the American market because they're just not coming are they?

Grant Hearn:
Yes, I think Matthew is certainly right saying that September 11 made things worse, but we were already having a difficult time. This time last year we had petrol blockades, we had floods, problems with the railways, then we had foot and mouth, and then clearly the tragic events of September 11, so we've had a difficult time over the year as an industry and we have been adjusting as we go through the year.

Presenter:
So how full or empty or whatever are you at the moment?

Grant Hearn:
Well London for us in Hilton is running to about 70% occupancy.

Presenter:
And what would that be, say, compared to this time last year?

Grant Hearn:
Up to 20% down, we would normally expect to be in the high 80s, 90%.

Presenter:
Grant, you've had to make some redundancies already, why?

Grant Hearn:
As I said before, we were already having difficulties in terms of slow down in business due to those other factors. So it wasn't so much redundancies we were making, but we were actually through natural wastage, ie, when people left us, we weren't filling those jobs.

Presenter:
What about those hotel rooms now, this is what people want to know, we keep hearing these stories about prices being slashed. Could I come to you tomorrow and say right, you're offering me a room at let's just say theoretically at 250 , I'll give you 150, what are you going to say to me?

Grant Hearn:
I'm going to say to you I'm sure I can find you a hotel room in London with Hilton, we have twelve hotels I'm sure that for that price we find you a room which is an excellent room that suits your budget. What we're not into is haggling.

Presenter:
Why not, if you've got 70% occupancy, is it not better if someone comes to you and says look I can pay this much money, why not put these people in those empty rooms?

Grant Hearn:
Because that's not how we positioned Hilton, and that's not what we're looking to achieve in terms of haggling. If there's no price discretion in a marketplace, then this will be the way things continue for many years to come..

Presenter:
So no haggling at all?

Grant Hearn:
That's the Hilton prospect, yes, no haggling.

-ends-

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