At GitGo, we are watching consumer sentiment closely, in particular that of the B2B small and mid-size companies, as this is our sweet spot of what we cover for our brand, chain and property partners.
JP Morgan recently released their annual Business Leaders Outlook report with some interesting results. 91% of mid-size businesses are experiencing inflation challenges. 45% of small businesses list inflation as a top challenge for 2023. This is up 20% from a year ago. Despite these challenges, small and mid-size company leaders are generally optimistic stating expected increase in revenues and profits in 2023. This article from Monitor Daily summarizes the report nicely.
Why does this matter to us as hoteliers?
With small and mid-size companies being much of what’s in your hotel’s backyard , we must pay attention to their intent and concerns surrounding the economy.
Utilize sales teams to keep a pulse on these mixed signals. Inflation is surely taking its toll on companies, but utilize a sound outreach strategy to determine how customers and potential customers are specifically responding.
At GitGo, we’re seeing companies unwilling to cut all travel as we’ve seen in past recessions because of the pent-up demand from the work-from-home environment. Executives are saying they need to meet face-to-face to get more accomplished, so they are taking a very strategic approach to travel and making it count. This is one example of an upside for the industry.
Synthesize Real-Time Feedback from Customers:
Your sales team must be engaging in conversation with existing and potential customers. This is no time to cut back on outreach or use the excuse that there is so much inbound that sellers have no time to engage for new business potential.
Your quickest source to understand emerging markets will come from a sound, consistent and effective new business development approach. Your new business development team should provide live, real-time insights based on engagement.