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The perception of hotel restaurant prices is scaring off potential non-resident customers, according to the results of a recent survey we conducted. Our research revealed that nearly 50% of consumers believe hotel restaurant prices are too high to consider dining in as a non-resident - something hoteliers might want to address if they are keen to boost business and tap into this lucrative market.
The survey results effectively highlight the potential custom that hotels are missing out on, demonstrating that although 64% of respondents told us they eat out more than five times a month, only 15% would choose to dine in a hotel they are not staying in more than once a month.
We investigated further to find out if there were any other reasons that might be putting customers off dining at hotels. However, nothing came equal to the perception of expense. Lack of awareness of hotel dining options clearly wasn't an issue - 77% of respondents would expect their hotel restaurant to accept walk-in diners. Nor was the issue of a hotel restaurant being invisible from outside - only 7% of diners said this would put them off. In fact, consumers appear to hold hotel food in high regard with only 4% citing lack of choice on the menu as a reason not to visit and 14% citing poor quality food.
So, what does work for hotel restaurants when it comes to attracting non-resident diners? Our survey found that 37% of diners would visit a hotel specifically for food if the establishment had a great reputation and 27% if it was a special occasion. In light of these facts, it is clear that careful management of reputation; cultivation of positive word of mouth; and developing tailored offerings suitable for special occasions, as well as developing a hotel's restaurant as a stand-alone attraction, will all stand hoteliers in good stead.
As the hotel industry enjoys ever greater numbers of people choosing to dine out more frequently, it seems the hotel sector is missing out on attracting non-residents to its restaurants, with perceived price identified as the main reason. However, if it leverages its strong reputation well, our research demonstrates that this can attract customers and highlights the importance of promoting reputation and also generating positive word of mouth.
