With Food and Beverage Costs Soaring, All-Inclusive Plans Are Better Value Than EverJanuary 3, 2018
To say that 2017 was a strong year for hotels and resorts is an understatement. Fueled by year-over-year growth across all revenue departments, total profit figures at full-service U.S. hotels peaked in the fourth quarter of 2017 at about $120 per available room, according to a poll by industry research firm HotStats. That represents a profit increase of nine percent versus Q4 of 2016.
First, not only did average room rates go up considerably, but hotels in most destinations also saw higher occupancy rates. This combination brought an increase in revenue per available room (RevPAR) of more than four percent. And in addition to solid guestroom revenue, U.S. full-service hotels recorded increases in non-guestroom revenues in Q4 of 2017, including a rise in food and beverage revenue of more than 11 percent versus Q4 of 2016.
For most meeting, convention and incentive planners, this is a truly alarming figure—no organization allots an additional 11 percent year-over-year for food and beverage at their events. As a result, many business events must now make compromises in food variety, quantity and quality.
One exception: Meetings and incentives that take place at all-inclusive properties, such as the Hard Rock Hotels located on the Caribbean and Pacific Coasts of Mexico and in the Dominican Republic, don’t have to compromise. With all food and beverage incorporated into the total per-person cost of a multi-day event at these Hard Rock Hotels, planners don’t have to worry about limiting the food and beverage options their attendees can have, or how much they can have at each meal or break.
Especially because the local farm-to-table movement is so strong right now across meetings and incentives—and is a more-expensive option in most U.S. destinations—the all-inclusive plans at our Mexican and Dominican Hard Rock Hotels allow event organizers to choose local produce, meats, fish and other items but still remain within budget. In other words, attendees can get the local experience and flavor of the chosen destination, which adds to the quality of a business event, and at no additional cost.
To learn more about the possibilities of all-inclusive plans (which include meeting breaks as well), simply visit http://www.aicmeetings.com and click on the “Hard Rock Hotels” tab.
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