Blog / October 6, 2022
Boost Revenue & Retention with F&B
With the pandemic in the rearview, food and beverage (F&B) outlets are making a comeback. In fact, F&B revenues are expected to grow 5.6% in 2022 and jump even higher to 11.9% in 2023.
Historically, F&B outlets have been an overlooked revenue source for hotel brands. But with the right strategies in place, outlets can become a mechanism for driving revenue year-round, from locals and travelers alike.
Why F&B Outlets Are Crucial to the Guest Experience
The data shows that F&B programs can make or break guest decisions on where to spend time and dollars. SevenRooms’ Checking in for F&B Report, featuring data obtained in partnership with polling firm YouGov, illuminates some of these preferences:
- One in three Americans think a hotel with great F&B options is more memorable than one without.
- Thirty-five percent prefer hotels with multiple dining options, and twenty-seven percent want restaurants and bars that are open late.
- Thirty-two percent of Americans are more likely to book a hotel stay if offered rewards that could be redeemed at the hotel bar or restaurant.
- Thirty-six percent of travelers are more likely to book at a familiar hotel brand in multiple locations if their loyalty program makes it easy to redeem loyalty points.
- Twenty-nine percent of travelers expect their personal preferences to be seamlessly and easily communicated between hotel properties.
F&B Data Yields a Complete Picture of Guest Spend
In hotels, F&B outlets are often operated separately and in siloes from the room side of the business, with different managers and disparate tech systems never designed to integrate. However, focusing on providing guest experiences solely in rooms and amenities means missing out on a huge opportunity to drive revenue and retention for the brand through F&B.
As data becomes the most valuable asset for hospitality businesses, the status quo is changing – room data and F&B data have to live side by side to deliver the consistent, holistic experience guests crave (and expect).
F&B data complements data stored in a hotel CRM, building out a complete 360° profile of a guest, and helping hotels discover preferences and tailor experiences in remarkable ways. Plus, integrated datasets allow hoteliers to leverage the F&B touchpoint —a remarkable opportunity to build a human relationship and gather data that unlocks personalized service, marketing, and offers at scale.
How to Use F&B Data to Drive Revenue & Retention
Personalize the in-service experience
Personalized, memorable experiences are the key to creating loyal customers. Imagine the impact of having a nut-free menu ready for a traveler with an allergy, a nut-free mini bar setup upon arrival to their room, and an acknowledgement from the staff to make them feel safe and cared for. That’s the kind of experience that creates a brand loyal guest with a higher lifetime value.
See which booking channels are performing
F&B data illuminates a complete view of each guest’s spend, revealing their true value. And that comprehensive view is the only way to assess the profitability of OTAs, GDS systems, and your other booking channels. Some channels may deliver guests whose only spend is the cheapest room, whereas others drive those who spend on upgrades, premium rooms, amenities, and your F&B outlets.
Forecast with more data
Your FP&A (financial planning & analysis) and revenue management benefit from having quality spend data to work with. Armed with this data, you can mirror revenue management tactics used in room bookings, like predicting seasonality and improving lead time.
Drive repeat business with locals
F&B outlets provide a great mechanism for bringing in revenue independent from the volatile nature of travel demand. Our four-step formula for driving revenue from locals is simple:
- Create a buzzy experience to bring locals in & gather your guest data
- Utilize that data to personalize their experience (allergies and favorite drinks)
- Grab their interest (and repeat visits) with targeted marketing
- Personalize their stay across cities and properties
Leverage smart marketing
In the era of Amazon and Netflix, we all expect tailored online experiences. Naturally, conversions rise when you can offer existing guests promotions & packages they’re likely to purchase. But your macro marketing will also improve when trends and opportunities are uncovered.
For example, if you notice a trend in your F&B data — like Friday date night guests order bottles of wine instead of by the glass, your marketing team can quickly create a targeted promotion. Maybe they offer a free dessert with a wine purchase of at least $50 to promote to your wine drinkers, Friday regulars, or two-guest room reservation guests.
You can also use guest data to send trigger-based, personalized promotions sure to convert through marketing automation. For example, you could send a “we miss you” email to a local diner two months after their last visit, cross-promote a sister property in a guest’s home city, or send an F&B credit offer to an out-of-town customer on their next hotel stay. The possibilities are endless.
Food and Beverage outlets are a powerful asset for hotel brands, and F&B data is the key to turning these amenities from an afterthought to a revenue and loyalty-building machine. SevenRooms can help hotel operators unlock the revenue potential of their F&B outlets – schedule a demo today to learn how.