MARKET INSIGHT

Hotel Beverage Study 2020

In the last issue, Supper presented the findings of a Nielsen CGA research report examining the hotel guest and how the pandemic has impacted their dining and imbibing behaviour. In this second instalment, we take a closer look at the drinks brands and categories consumers are likely to opt for when visiting hotels over the next 12 months.

As the hospitality sector continues to grapple with the effects of the pandemic, opportunities for the alcohol industry are increasingly likely to be found in hotel’s contactless drinking environments including grab-and-go, mini-bars and room service – in line with consumer expectations around adherence to social distancing and health and safety measures. At the same time, traditional hotel earners such as restaurants, bars and conferencing will still play an important role.

In light of Covid-19 and as many major hotel chains begin to adapt to the ‘new normal’, Nielsen CGA has conducted a survey with a nationally representative sample of 5,000 consumers, gleaning insight into the impact of the pandemic on the hotel sector and its supply chain. Revealing when visitors are likely to begin travelling again, and what and where they are drinking within hotels, the report touches upon several key areas including shifting guest expectations with regards to hygiene protocols, the services being utilised, consumption behaviour and the brands and categories guests are choosing to drink.

Armed with this information, the report empowers retailers, distributors, suppliers and hoteliers to make strategic, data-driven decisions as they navigate the post-pandemic landscape and expand into a reimagined hospitality space.

THE FUTURE OF HOTEL VISITS

Data indicates that those visiting on business are more engaged with alcohol than leisure guests and are more likely to stay on site for drinking and dining. Factors related to the risk of Covid-19 were found to be more important for those on holiday, while convenience, such as contactless ordering are more important to those on business.

32% 57% 57%

OF BUSINESS GUESTS TEND TO VISIT THE HOTEL RESTAURANT / BAR RATHER THAN THOSE OUTSIDE THE HOTEL

OF LEISURE CONSUMERS RATED COVID-19 SECURE HYGIENE PRACTICES AS VERY IMPORTANT WHEN VISITING HOTELS

FEEL COMFORTABLE VISITING A HOTEL IN THE NEXT 12 MONTHS FOR A CONFERENCE / CELEBRATION FUNCTION

HOTEL F&B OPTIONS

Hotel food and drink options will continue to compete with restaurants and bars found outside the property. Therefore, the drinking and dining strategy needs to ensure quality options capture consumers accordingly.

7% SAID THAT THEY DON’T VISIT RESTAURANTS / BARS WHEN STAYING OVERNIGHT AT A HOTEL

21% SAID THEY TEND TO VISIT THE HOTEL RESTAURANTS / BARS RATHER THAN VISIT THOSE OUTSIDE OF THE HOTEL

47% SAID THEY TEND TO VISIT BOTH THE HOTEL RESTAURANTS / BARS AND RESTAURANTS / BARS OUTSIDE OF THE HOTEL

25% SAID THEY TEND TO VISIT THE RESTAURANTS / BARS OUTSIDE OF THE HOTEL

FACTORS FOR COMFORT WHEN VISITING A HOTEL BAR OR RESTAURANT

When hosting business / leisure functions, the survey asked participants what the most important factor for comfort was when using dining amenities:

Outdoor seating areas

Fewer tables / patrons in venue to accommodate social distancing Venue staff wearing mask / gloves

Additional hygiene programmes in venues Temperature checks of all attendees before entry

Visors / face masks available for use while in the venue Availability of paper / single-use menus Contactless / cashless payment options Availability of disposable / single-use glassware

51% 51% 51% 49% 41% 40% 35% 31% 30%

DRINK STRATEGY AND GROWTH OPPORTUNITIES

Despite Nielsen CGA finding that drink assortments are being refined and reduced in traditional consumption zones, these drinking and dining amenities will remain important to the overall drink strategy for brands and hotel chains. Across these amenities, price and the availability of premium products remains important to consumers, while data drawn from the use of contactless services demonstrates the opportunity to increase alcoholic offerings in previously untapped hotel spaces.

Restaurants

As the most popular amenity in hotels, data shows that restaurants are a key area to engage consumers with alcoholic drinks. Led by beer, wine and cocktails, other less developed drinks categories represent significant opportunity for increased engagement. The early evening is the most important time and the report suggests that any drinks offering should factor in the food avaliable. Premium brands also rank highly when compared to other areas.

Bar / Lounge

As is the case in restaurants, beer is the most important drink category, while wine is less important compared to spirit-based drinks. The top opportunity is for hard seltzers and given their wider appeal to on premise, the report suggests that these drinks should be first in mind for any menu updates. The late evening is more popular for this amenity and premium brands rank higher here than in other areas, at a similar rate to hotel restaurants.

Room Service

When using room service, the top category is soft / energy drinks, however improving the beer and hard seltzer offering could bring the biggest increases in engagement with alcohol at this amenity area. The report highlights that early evening and late evening are equally important for this amenity area, while other dayparts such as brunch and the late night present an opportunity for additional catering.

3in 5

49% 52%

CONSUMERS WOULD PURCHASE ALCOHOLIC DRINKS FROM HOTEL RESTAURANTS AT LEAST MOST OF THE TIME

SAID PRICE WAS THE MOST IMPORTANT FACTOR WHEN PURCHASING ALCOHOL IN HOTEL RESTAURANTS

OF CONSUMERS WOULD BE LIKELY TO PAY EXTRA FOR A BETTER QUALITY DRINK IN HOTEL RESTAURANTS

46% 58%

ENGAGEMENT WITH ALCOHOLIC DRNKS IS HIGH WITHIN HOTEL BARS / LOUNGES WITH OVER 70% DRINKING THEM FREQUENTLY

STATE HAPPY HOUR / SPECIAL OFFERS AND DISCOUNTS AS VERT IMPORTANT WHEN PURCHASING ALCOHOLIC DRINKS IN A HOTEL BAR / LOUNGE

OF CONSUMERS WOULD BE LIKELY TO PAY EXTRA FOR A BETTER QUALITY DRINK IN A HOTEL BAR / LOUNGE

49% 58%

OF CONSUMERS FREQUENTLY PURCHASE ALCOHOLIC DRINKS WHEN USING ROOM SERVICE

STATED PRICE AS BEING VERY IMPORTANT WHEN PURCHASING ALCOHOLIC DRINKS FROM THIS AMMENITY

OF CONSUMERS WOULD BE LIKELY TO PAY EXTRA FOR A BETTER QUALITY DRINK FROM ROOM SERVICE

These pages feature extracts from Nielsen CGA’s Hotel Beverage Report, published in September 2020. To learn more about the Hotel Beverage Study 2020, email hello@nielsencga.com. Quote code HOTELS2020 for an exclusive discount on the full report. www.nielsencga.com