Cheap and cheerful doesn't work - even in a recession

What’s The Value of Good Design When Times Are Tough?  

Following research across a number of Conference Centres of Excellence members, Tony Matters of  Heterarchy has come to the conclusion that cheap and cheerful doesn't work - even in a recession
 

Times are tough, we all know that, but some conference venues are prospering while others struggle. Why? Who’s got the right formula? What actually wins business? And how can venues make the most of the return to better times?

The most obvious answer is price, price, price, and, with the rise of the online ‘comparison culture’, direct price comparison is much more commonplace. Certainly, clients are more demanding than ever: their budgets have been slashed, so they are demanding a four or five star experience at a three star price. But is that really the whole story?

Of course, everyone says that service and efficiency are also decisive factors: friendly smiles and well briefed staff should be second nature in the hospitality business - as should be making doubly sure AV equipment is working, decent coffee is being served, and there’s no scrimping on the biscuits!

Despite this, “there is an oversupply of mediocre venues,” says Anthony Lishman of Conference Centres of Excellence, “offering low rates and even lower levels of service, which, while seeming attractive at first, do not provide good value or a good experience for customers”.

So it seems that there are more fundamental issues, and when you talk to some of the largest, most prestigious and most successful conference industry leaders, most believe that long term success has to be built on much more than just price. So what do those leaders think makes a difference?

Alastair Stewart, Managing Director of the rapidly expanding etc.Venues brand, absolutely agrees. “First impressions” he says “are incredibly important. It’s what we call the ‘arrival experience’, and we really invest in getting it right”, Anthony Lishman, Executive Director of Conference Centres of Excellence, thinks that “particularly with training venues, poor environments have a huge impact on learning outcomes”.

Despite this, many venues seem to underestimate the importance of providing interiors that not only work for organisers and delegates, but also ‘feel right’. This is an almost indefinable quality, and is not just about the right colours and furniture styles. It’s about how the ‘space’ works and how it makes you feel. The best spaces inspire you, and you just know when it’s right - although it’s hard to put your finger on what it is when something is wrong. This is not simply some ‘arty’ attitude because it undoubtedly has a direct impact on winning – and losing – business.

Alastair Stewart has a very clear view that it’s these sorts of factors that drive their success: “we work hard to create a fantastic experience for our customers – above all, it should be fun. For us, interior design is vital - our whole approach is design led. Our venues are contemporary, fresh and designed to give our clients a thoroughly enjoyable experience”.

“What our designers have achieved for us is outstanding” says Managing Director John Carson. “It’s nothing like what we had anticipated – and so much better. They talk about inspirational spaces – and that’s exactly what they’ve designed. ”

So how can conference centres get inspirational spaces at ‘sensational’ prices? It’s all about working closely with clients, involving them, not keeping them ‘out’, of decisions. As John Carson, Managing Director of Ashorne Hill Management College, says “we began with quite an open brief, they intuitively understood what we were looking for - and wowed us with an exciting design proposal”.

“A full service Interior architect practice has the ability to assess the results not just on the grounds of artistic merit” or “inspirational” design, but on whether they improve the bottom line of the venue. We recognise this is not about “creativity”. It’s about what makes business sense – and that’s why we say that really inspirational design makes you money - not costs you money. Says Tony Matters of Heterarchy
Anthony Lishman says “our members recognise the fact that if you don’t invest in your venue you soon get left behind. In this Newsletter there are further examples of significant investment in development taking place across the group”

The problem for sub-standard venues relying on cheap deals is that there’s nowhere to go but down in price. They get a reputation for being cheap, not “good value”, and their perception in the market diminishes. Delegates just don’t want to go there – especially when everyone is so brand conscious these days. Customers are increasingly ‘choosy’ about their brands - whether it’s clothes, cars or conferences centres. Get the wrong brand reputation, and it can damage your revenues significantly - and take years to put right. Have no identity, and you get lost in the crowd completely.

Rather than getting it wrong, meetings and conference buyers increasingly choose nationally recognised brands, or highly respected local venues. For major national companies, that means they have to deliver at least as well as competitors, and for independent venues it means they have to up their game to national standards. What people remember and like about a brand is not usually the price, the service, or even the food. It’s that indefinable ‘impression’ of what it was like, and how they felt about being there. What good interior architecture should do is make those spaces as attractive as possible – for as little cost as possible.
Anthony Lishman says “our members recognise the fact that if you don’t invest in your venue you soon get left behind".