How has the recession affected businesses?

The recession has affected any and all businesses in all industries, but it seems to have affected certain aspects of the hotel industry less then normal.  Though some may not have been hurt as bad, almost all businesses were hit negatively when it came to their balance sheets and how their profit margins were affected.

The two least hit areas of the hotel industry were the leisure and global wide companies.  This is extremely interesting since it is usually those in leisure that are hurt the worst.  So why would they do so well in such a bad economy?  It is simple, businesses don't need to travel nearly as much to do business anymore.  Because businesses can now host video conferences and basically have a virtual meeting anywhere in the world, they no longer need to travel to a country to do business.  Though they will have to travel a bit, because they of  the new technologies, they have been able to cut their travel budgets at extraordinary levels.

So why does the leisure aspects of hotels still attract such business?  It is actually less complicated then you would think, to go on a vacation, you need to go TO the vacation.  Although there isn't as much travel occurring, people still are which means they are forced to use the industry.  However, it is important to note that it is the lower priced leisure divisions that are able to maximize on this so much.

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