Finance industry new clampdown to benefit value-based brands?

Will Luxury’s loss be low-cost’s gain?

13 May 2014
Hotels and venues that trade on luxurious credentials may have to reconsider new target clients following tough new regulations set by the Financial Conduct Authority.

The new regulations, imposed only for the finance sector, ban overseas trips, extravagant food or drink, unnecessary overnight stays or anything other than events designed for business purposes.

The new regulations offer stark comparisons with current regulations seen in the Pharmaceutical Industries code of practice, mandating meetings must be held in appropriate venues conducive to the main purpose of the event, while hospitality must be strictly limited.
With a combined industry-wide travel spend of £3.9 Billion per year, modest and low-cost brands will no doubt be looking to take full advantage of new finance industry regulations, with attempts in tailoring available space to finance procurement to be a sure trend in the coming months.

Five-star establishments may have to convert lavish spa facilities aimed at bonus-day bankers into more reasonable meeting spaces in order to retain current business levels seen from the Finance Sector.

Could this be a first of many more industry-wide bans on travel extravagance and if so, could luxury brands compete with moderate brands focused on budgets, or will they have to change?
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