In recent years, there has been a notable shift in the revenue dynamics of hotels in India, with bar sales gaining significant prominence alongside traditional food and beverage (F&B) outlets. This transformation is attributed to several factors, including the increasing importance of F&B in driving hotel revenue and the rise of bleisure travel or leisure travel. This blog explores the growing significance of F&B sales in the hotel business and how bar sales have emerged as key contributors to revenue growth.
Importance of F&B Sales in Hotels
F&B sales in hotels have evolved from being just an ancillary income stream to become a crucial driver of overall revenue. Hotels now consider the F&B side of the business as a customer acquisition channel. Positive dining experiences can significantly impact guests’ likelihood of choosing the same hotel for future stays, thereby bolstering room revenue as well. Hotel chains are experiencing a shift where F&B revenue is projected to surpass room revenue, thanks to the consistent growth of F&B sales in recent years.
Contribution of Bar Sales to F&B Revenue
Bar sales have become a substantial part of the F&B revenue in hotels across India. As leisure travel and bleisure travel have witnessed an upsurge, the demand for bars and lounges within hotels has increased. This trend has resulted in a spike in bar sales and their significant contribution to overall F&B revenue.
“Hotels are now recognizing the importance of revamping their existing bars to attract more guests and cater to the growing demand for elevated bar experiences.“
Revitalizing Bar Experiences
To capitalize on the increasing popularity of bar sales, hotels are investing in revamping their bar offerings. By creating inviting and engaging bar spaces, hotels aim to attract more guests and provide memorable experiences. Hotels are updating their menus with classic and speciality drinks and focusing on delivering exceptional service. Additionally, they are incorporating strategies to enhance the selection and quality of their F&B options to cater to guests’ preferences.
The Impact of Bleisure Travel
Bleisure travel, which combines business and leisure travel, has played a significant role in boosting bar sales in hotels. Business travellers, looking for opportunities to unwind after work, often seek out hotel bars and lounges. Additionally, leisure travellers also contribute to the demand for bar experiences within hotels. The trend of socializing and getting together with peers in eateries that offer unique ambience, entertainment, and a variety of food and beverages has positively influenced the growth of bar sales.
Even though the hotel bar segment has evolved over the years, there are challenges that hotels face in running a successful alcohol-serving outlet. Liquor pricing is one of them. Hotels must ensure that they have a sound alcohol pricing strategy in place.
Strategies that will help to boost bar sale
First and foremost, establishing a brand for the hotel bar is essential before implementing any sales-boosting strategies. Branding encompasses more than just a logo or visual element; it encompasses the entire customer experience, including interactions on social media, staff behaviour, and overall customer satisfaction. It is crucial to leverage all available avenues to create a brand and effectively communicate the hotel bar’s story to a wider audience.
“To increase bar sales, it is important to tap into the existing customer base. Previous customers who have ordered alcohol or visited the bar should be identified and segmented.“
Persuading these customers to make repeat purchases, potentially by offering discounts on drinks, can prove highly effective. Furthermore, providing a fantastic experience to returning guests fosters customer loyalty and advocacy, contributing to the growth of a reliable customer base.
Implementing interesting happy hour strategies can be a game-changer for hotel bars. Happy hours, where drinks are sold at reduced prices or even offered as complimentary, create additional value in the minds of customers, thereby increasing bar sales and overall hotel revenue. Reports indicate that happy hours are particularly busy periods for bars and restaurants serving alcohol, with customers tending to order and spend more when discounts are available. Thus, hotel bars that operate without a happy hour strategy are missing out on substantial business opportunities.
Building a community around the hotel bar can significantly enhance bar sales. Bars, pubs, and cafes often serve as spaces for community gatherings, acting as a “third place” between home and work. Capitalizing on this opportunity can foster brand loyalty, raise awareness, and contribute to overall success. For instance, creating a group or community of like-minded individuals who share a passion for beer can lead to increased patronage. Hosting small gatherings or events related to the bar’s offerings and inviting local artists to perform can also attract customers and generate interest.
The bar menu plays a crucial role in driving sales. When designing the menu, attention should be given to factors such as layout, pricing, drink selection, and snack options. Creativity should be employed in the menu design, using entertaining descriptions, puns, funny quotes, and playful names to entice customers. Pricing should strike a balance between affordability and profitability. Offering unique or exotic drinks can pique customers’ curiosity and demonstrate a commitment to providing the best selection. Complementing the drinks with appetizing snacks ensures a complete and satisfying experience.
Creating an appealing ambience is vital to attracting more customers to the bar. Design experts can assist in establishing an ambience that impresses guests, but there are several tips that can be implemented independently. Carefully selecting colours and lighting can influence customers’ appetites, with warm colours enhancing and cool colours suppressing it. Adding Instagram-worthy decor can encourage guests to share their experiences on social media, generating additional publicity. Music selection also affects the pace at which customers consume their drinks, with faster tempos potentially leading to higher turnover. Strategically arranging seating arrangements that make guests feel welcome and training staff to engage positively with customers contribute to an enjoyable atmosphere.
While implementing these strategies, it is crucial not to overlook the local community. Engaging with the neighbourhood through events or offering exclusive discounts, such as “buy one get one” deals on pitchers, can attract locals to the hotel bar. Establishing connections with the local community significantly increases the likelihood of selling more and fostering a loyal customer base.