There can be no question that 2020 has been a challenging year for everyone and non-more so than the Holiday, Hospitality, and Leisure sector.

Whilst we can see some positives, such as the +103% increase in UK travel searches and a 25% increase in bookings (Source Parkdean Resorts), site closures, cancellations, and the unknown, have left many with a significant hit of cash in the bank.

Businesses still need to retain completive advantages, and there are always projects that require investment and cannot be put off. When it comes to security and Technology, these areas have traditionally been seen as areas requiring larger one-off payments from the bank. However, this is not the case, and in days like these, being able to better manage cash in hand and control budgets and costs has never been so important.

Challenges facing Hospitality and Parks

  • Falling Revenues.
  • Less Cash in Bank.
  • Need to continue to invest.
  • Difficult to forecast revenue.
  • The continuing impact of COVID.

Overcoming Challenges

Whilst we cannot control the impact of the virus, help is available to help you deliver what is needed without breaking the bank. Over the last few years, everything has been moving to a monthly subscription service. Gone are the days of queuing at the Post Office to renew car tax, now you pay monthly by direct debit.

This same trend has weaved its way into businesses, and now many technologies and services can be bought without a high upfront cost.

Altering the way, you pay can have advantages. Services such as IT Hardware, Telephones, Servers, and Services have moved to a pay as you go or monthly services model. This change means you no longer have to see these as capital expenses needing large upfront investment and allow you to control costs with a monthly fee.

There has also been an increase in the leasing of IT hardware and systems, allowing businesses to retain cash in the bank or deliver improvements without the upfront investment.

Like other lease options, shifting the costs to third parties can allow you to deliver solutions that can not only save money but will enable you to budget effectively and grow and scale with predictable costs.

Becoming More Agile with Your Finances

From a financial point of view, changes made to the way your purchase can deliver several benefits. Moving costs into your operational expenditure may allow capital to be released for other areas of investment, which may also provide additional growth.

If you need computers or IT hardware, it is now common to be able to obtain these as a service (Product as a Service) PaaS. This means you can get the Technology you need when you need it for a monthly fee.

Also, with services such as Office 365, Cloud Services, PaaS, and Hosted Telephony, you can adapt and react to the market and scale services up and down. This makes you more agile and puts you in control of costs, only paying for what you need or use.

Whilst we hope for better days ahead, we need to look at ways to help our business deliver more, spend less, and control as best we can our costs and expenditure. With new ways of purchasing our Technology and Hardware, we can know with some certainty plan and predict what these are going to costs us over the coming months and years.

If you would like to discuss a project and discover how we can finance this, please get in touch with Lauren Sharples or Zoe Grant on 01723 866671