The hotel industry has witnessed unprecedented challenges in the wake of the COVID-19 pandemic. To navigate this new landscape, Australian Association (Vic) organized a Hotel Market and Economic Outlook event, featuring insights from industry experts.
While there's no doubt that the hospitality and hotel industry has had its fair share of challenges, insights from industry experts at a recent AA event in Melbourne shed light on the roads to recovery since 2019. One of the major topics of discussion revolved around the Food and Beverage (F&B) sector of hotels, where the decline in profit and decrease in customers became the focal point.
In this blog, we delve into these issues and explore potential solutions to revitalize F&B offerings in hotels.
The importance of Food & Beverage offerings in hotels has always been paramount. However, recent statistics show that F&B profits in hotels have dropped, contributing to around 12-15% of overall profits. This drop might result from various factors, including changing guest preferences, delivery services, and more. It emphasises the need for hotels to rethink their F&B strategies, get creative and pay close attention to market demand and trends.
Suggestions for 2024 Strategy:
Australians are known for their love of travel. Even in times of economic uncertainty, they prioritize holidays. Spending on tourism is witnessing a significant 10% increase compared to pre-pandemic figures. Hotels should capitalize on this by offering unique F&B experiences that cater to travelers' preferences, whether they are spenders seeking destination dining or savers looking for cost-effective meal options.
Suggestions for 2024 Strategy:
With the transformation of business travel towards sustainability and the blending of work and leisure trips, hotels should adapt their F&B services accordingly. Extended stays are becoming more common, and F&B outlets can offer flexible dining options that cater to both work and leisure guests.
Moreover, given the growing trend of eco-conscious travel, hotels can make strides in sustainability by sourcing locally, reducing food waste, and implementing eco-friendly practices in their F&B operations. This not only appeals to conscious travelers but can also lower costs and boost profits in the long run.
Suggestions for 2024 Strategy:
Cultural phenomena, like major concerts, notably Taylor Swift's ‘The Era’ tours heading to Aus in 2024, have a substantial impact on travel trends. Recognizing and harnessing the potential of such events can be greatly beneficial for businesses in the vicinity. Think about what special promotions you can market to get people in your door pre and post event.
Suggestions for 2024 Strategy:
In conclusion, the landscape of tourism, hospitality and travel is intricate, with various challenges and opportunities.
Embracing sustainability, offering innovative menus, and employing effective marketing strategies will further aid in revitalizing the industry. With dedication and creativity, hotels can navigate these challenging times and emerge stronger than ever in the post-COVID world.
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This blog has been written by Tia Kelly, Enterprise Customer Success Manager at HungryHungry.