CHICAGO, Jan. 31, 2018 /PRNewswire/ -- Recently completed Technomic research shows that the hotel food and beverage space continues to show growth, with overall consumer spending increasing 4.9% in 2017 and showing a robust 5.5% annual growth since 2011. Total spending by consumers within hotels, which includes all restaurants, bars and lounges, banquets and catering, room service, in-room minibars and other areas, totaled $48.7 billion in 2017. For 2018, Technomic is forecasting continued growth of 5% in consumer spending, as demand remains strong.
Local and regional offerings are more in demand. Featuring local products, including adult beverage brands, has helped hotels compete against restaurants in the area that may otherwise be more attractive to patrons
Hotels are reinventing themselves to focus on social and community spaces. Many new hotels are putting emphasis on flexible lobby and outdoor areas that can help boost social interaction
Operators place emphasis on upscale casual-dining experiences. Many hotels are offering upscale eateries to appeal to a wider array of patrons and to enhance the overall dining experience
Quotes: David Henkes, senior principal, Technomic (follow David on Twitter @DavidHenkes and email [email protected] to request an interview)
"Hotels use their food and beverage programs as competitive differentiators and are investing to drive unique guest experiences. As more options appear for consumers, not only in new and emerging types of hotel properties but also in alternative channels like Airbnb and VRBO, having a strong food and beverage program is more important than ever for continued hotel success."
"The hotel food and beverage segment remains an extremely attractive area for any supplier that can service the unique needs of these operators. Having a dedicated strategy that is driven by facts will help suppliers better navigate this attractive segment."
Banquets and catering are the primary drivers for hotel programs, accounting for nearly 40 cents out of every dollar spent at hotels, and account for an even larger part of the overall revenue at upscale and luxury properties that cater to both personal and business events. Other areas that are receiving more focus at hotels include grab-and-go areas, such as lobby pantries and kiosks; breakfast areas; bars/lounges; and preferred guest lounges that help create a unique amenity for higher-status guests. Traditional areas, such as minibars and room service, are being de-emphasized by many properties, and growth in these areas lags well below other parts of the hotel food and beverage program. In particular, breakfast remains a critical touchpoint for hotels and a daypart where hotels can reach more guests.
Technomic Inc., a Winsight company, delivers a 360-degree view of the food industry. It impacts growth and profitability for clients by providing consumer-grounded vision and channel-relevant strategic insights. Its services range from major research studies and management consulting solutions to online databases and simple fact-finding assignments. Its clients include food manufacturers and distributors, restaurants and retailers, other foodservice organizations, and various institutions aligned with the food industry. Visit Technomic at www.technomic.com.
About Winsight, LLC
Winsight LLC is a recognized leader in business-to-business media and information services for the convenience-retailing, foodservice and grocery industries. Winsight has an extensive media portfolio, including five publications: CSP, Restaurant Business, FoodService Director, Convenience Store Products and Winsight Grocery Business. Winsight also offers a suite of digital products, including websites, e-newsletters, webinars, video products, mobile and tablet apps, and custom marketing solutions. In addition to more than 12 major EduNetworking conferences and advisory meetings, Winsight also produces seven exclusive, large-scale executive-level conferences: Restaurant Leadership Conference, Global Restaurant Leadership Conference, Outlook Leadership Conference, Convenience Retailing University, FSTEC, MenuDirections and Restaurant Directions. In 2015, Winsight acquired Technomic Inc., a provider of primary and secondary market information and advisory services for the food industry. For more information on Winsight and its brands, go to www.winsightmedia.com.