There’s an interesting new posting on Evanomics, the blog written by the BBC’s economics editor, Evan Davis.
Evan is on a mission to help the masses “understand the world, using the tool kit of economics”. On this occasion, the concept of value engineering comes under his scrutiny.
The reason I flag this up is because, to support his explanation of the term, Davis uses the case study of Travelodge, whose website sums up for its guests the company’s commitment to providing quality accommodation at an affordable price point, thus:
Pay for things you don’t want? That’s crazy!
True to form, Davis’ blog presents a clear explanation of the economics behind the budget hotel chain’s decision not to offer free in-room toiletries and piles of freshly-laundered towels – before going on to consider value in more general terms.
It’s an interesting read, and a food for thought for any hospitality managers needing to juggle cost versus benefit.