The hospitality sector continues to struggle with the effects of the recession, with many operators lowering prices to try and attract customers.

According to TRI Hospitality, occupancy at UK hotels continued to fall during the five first months of 2009 by 3.7 per cent. More worryingly, however, the rate of RevPAR plummeted by 11.8 per cent during the same period.

The decline in RevPAR is due mainly to operators slashing prices and many opting to offer "second night free"-type promotions.

The trend of cutting prices is most evident in London. Figures from PKF Hotel Consultancy show that a 7.3 per cent fall in average room rates (from £125 in May 2008 to £116 in May 2009) ensured that occupancy actually remained stagnant rather than fall.

Restaurants too, are feeling the pinch, with high-end eateries suffering the most.

Large chains which rely on volume are coping better as they are able to organise high-profile marketing campaigns based on reduced offers, such as two-for-one deals and free offers on bottles of wine.

The practice of discounted meals has clearly been noticed by consumers, as a recent survey by Moneysupermarket revealed that more than a quarter (26 per cent) of Britons will only go to restaurants if they have a money-off voucher, while more than 40 per cent use a restaurant voucher once a month.