Restaurants Are More Important to Hotels Than Ever Before

Although food and beverage prices continue to rise, restaurants continue to be a significant source of revenue for hotels. Restaurants have always been an attractive amenity for hotel guests but with so many travelers wanting a more holistic experience today, restaurants have become a point of emphasis.

According to Hotel Management, “banquets and catering are the primary drivers for hotel programs, accounting for nearly 40 cents out of every dollar spent at hotels. Banquets and catering account for an even larger part of the overall revenue at upscale and luxury properties that cater to both personal and business events.”

That is just banquets and catering, not including the revenues from patrons getting room service or, more significantly, coming down to visit the restaurant itself.

Given the increasing popularity of Airbnb, this is good news for the hotel business. The average Airbnb host provides a bed, but typically not breakfast, let alone its own restaurant. This may be one of the reasons it does not seem to be having any actual effect on hotel revenues, even as the number of people renting through Airbnb is increasing. The presence of a restaurant can act as a draw for hotels feeling the pressure of a changing economic environment. It can provide a draw for events that need to be catered, such as conferences, weddings, or receptions—events which attract people to stay at the hotel itself.

For hotels to continue to complete, though, they will need to begin catering to the new demands emerging throughout the marketplace. Organic offerings, paying attention to food allergies, and especially providing local tastes are all ways to bring people in. Upscale dining seems to be a major draw at hotels, rather than more casual dining. The key is to provide patrons with an experience they cannot get anyplace else when they come to a given city.

The bottom line is that hotels with restaurants actually do very well. They are a major source of revenue, and they are likely helping to keep hotels competitive as the industry continues to evolve in the face of ongoing technological innovation.

Follow us on social media for the latest updates in B2B!

Image

Latest

grid expansion
Voices of ChargeExpo 2024: Lilypad EV Unites Grid Expansion with EV Charging for a Better User Experience
March 27, 2024

At ChargeExpo 2024, a pivotal discussion unfolded, shedding light on the integral relationship between grid expansion and the future of electric vehicle (EV) charging infrastructure. As electric vehicles continue to surge in popularity, the spotlight has turned to the supporting infrastructure, underscoring a critical challenge: the need for significant grid expansion to accommodate the […]

Read More
advanced battery technologies
Empowering a Greener Tomorrow: The Urgent Need for Enhanced Safety Protocols in the Electric Vehicles and Advanced Battery Technologies Sector
March 26, 2024

As the world gravitates toward cleaner energy solutions, electric vehicles (EVs) and advanced battery technologies stand at the forefront of this transformative journey. The shift towards electrification underscores a global commitment to reducing carbon emissions, with the EV market experiencing unprecedented growth​​. Innovations in battery technology, crucial for extending EV range and reducing costs, […]

Read More
Grid modernization
Grid Modernization is Bringing Utilities and Internet Providers to the Table. How Will Collaboration Shape the Grid?
March 26, 2024

The power grid is in for an exciting era of improvement as it embraces Industry 4.0 and mass digitalization. That doesn’t mean modernization isn’t a tough ride. As the grid grapples with blackouts and shut-offs, one thing is clear: The U.S. needs to modernize its aging grid and embrace technologies that make better use […]

Read More
Leverage AR & VR Technologies to Deepen Fan Engagement & Unlock Real-Time Marketing and Revenue Opportunities in Sports
March 26, 2024

Augmented reality (AR) and virtual reality (VR) technologies are opening up novel ways to enhance the fan experience, both in stadiums and from the comfort of one’s home. The release of Apple Vision Pro AR VR headsets has sparked debate on their potential impact on live sporting events. Critics question whether fans engrossed in […]

Read More