Drink Sales in Hotels Poised for Growth

Hotel and lodging operators are optimistic about the future of spirits, wine and beer sales in their locations, according to Technomic’s recently released BarTAB Report.

Hotels account for 10.1 percent of total on-premise food and beverage sales, and the segment’s food and beverage sales are projected to grow 4.4 percent in 2014. Adult beverages are increasingly important to hotels, many of which are focusing on their bar and beverage programs.
“A number of hotel and lodging operations such as Fairmont, Marriott and Kimpton now offer unique drink menus including signature cocktails along with extensive spirits, wine and beer selections. It’s clear some hotels are prioritizing adult beverages as a way to differentiate their properties and drive traffic and sales,” says Donna Hood Crecca, Senior Director at Technomic.
The hotel and lodging segment generates 7.0 percent of on-premise spirits sales, 7.2 percent of beer and 16.0 percent of wine sales. More hotel operators foresee growth in beer and spirits sales at their bars and restaurants than do operators in any other segment. Some key insights about hotels and adult beverages, according to BarTAB, include:

  • Half (50 percent) of hotel and lodging operators say their alcohol beverage programs have grown in 2013, compared to 41 percent of all other operators.
  • A greater proportion of 21- to 34-year-old consumers (33 percent) visit hotels or other lodging establishments once a month or more often, compared to just 14 percent of consumers age 35 and older.
  • Overall, 37 percent of on-premise operators anticipate spirits sales will grow in 2014. Lodging operators were most optimistic (47 percent).

“Hotel operators see opportunity in adult beverages,” observes David Henkes, Vice President at Technomic and leader of its Adult Beverage Practice. “A creative and operationally-sound drink program executed across the various outlets of a hotel property can add both value and enhanced experience elements for guests, as well as high-profit sales, all of which are particularly important in this challenging environment.” 
The 2013 BarTAB Report is part of Technomic’s Trends in Adult Beverage series, and provides in-depth volume and sales information on adult beverages in the on-premise channel, including performance metrics on categories, brands and on-premise segments, as well as menu trends, consumer and operator insights and projections, all presented with expert analysis.
To purchase or learn more about BarTAB, BeerTAB, WineTAB and SpiritsTAB, as well as other industry reports and services for adult beverage suppliers and operators, including the online DRINK database, please visit Technomic or contact one of the individuals listed below.
Press Inquiries: Donna Hood Crecca, 631-265-3839, or dcrecca@technomic.com
Purchasing Details: Patrick Noone, 312-506-3852, or pnoone@technomic.com