Hotel appetite for room profits not shared by food, beverages
Room revenues from US hotels are seeing strong increases that are not matched by food and beverage sales, according to a new study.
“Growth in hotel food and beverage sales, while improving, lacked the same kind of sizzle” as room rates, said the 2005 edition of Trends in the Hotel Industry published by PFK Hospitality Research.
“In 2004, hotel food and beverage revenues grew 6.7%,” said R. Mark Woodworth, executive managing director of Atlanta-based PFK-HR. That fell short of the 8.6% growth in room revenues, he added.
The report said the growth in food and beverage revenues appears to be driven more by increased guest and customer counts, as opposed to increases in pricing.
The report said that with the proliferation of limited-service and all-suite hotels, more travelers have become accustomed to complimentary breakfast and cocktail receptions.
“These expectations have become so prevalent that an increasing number of full-service, resort and convention hotels are now offering complimentary food and beverages as part of special packages,” it said.
The amount of money US hotels spent on complimentary food and beverages increased 13.1% last year over 2003.
“Stale donuts just don’t cut it anymore,” said Mr Woodworth.
Report by David Wilkening
David
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