Following our introduction to Food and Beverage Department management in the previous article, today we will take a comprehensive look at a topic as important to a hotel as revenue generated by this department. Just like revenue from other hotel services, revenue from the Food and Beverage department helps increase TRevPar, especially in establishments that have placed a particular emphasis on this division.
Table of Contents
Food and Beverage department revenue: the base
There are numerous techniques for implementing cross-selling, upselling , and downselling strategies— which we’ll discuss shortly—that can increase revenue in the Food and Beverage department. But as always, it’s essential to start with the basics. Any establishment wishing to implement these strategies as part of its revenue management culture should begin by:
- Training: knowledge of our guests’ languages, accurate information about the food and beverage offerings and facilities at the hotel or resort, etc.
- Motivation and incentives.
- Involvement of the entire hotel team, not limited solely to Food and Beverage staff.
- Having the best possible support materials: we must pay the utmost attention to elements such as the beverage menu, the food menu, and information on digital displays (for example, televisions in high-traffic areas of the establishment), as they play a vital role.
The salesperson’s motivation, training, and skills are essential because, often, the customer’s needs aren’t real; they can be stimulated, allowing us to successfully apply the techniques we choose. Of course, none of the above is of any use if we haven’t first conducted an assessment aimed at getting to know our client by identifying their needs and preferences.
What do the terms “up-selling” and “cross-selling” mean?
Returning to some techniques that will help us increase revenue in our hotel’s Food and Beverage department, I propose that we focus on two: up-selling and cross-selling. Up-selling and cross-selling are essentially sales-boosting techniques in which a customer is offered a better or more sophisticated product or service than the one they have already purchased. It’s important to note that for the strategy to be successful, it must meet these minimum requirements:
- Find the product or service that best suits our customer; in other words, one that matches their profile.
- Pay special attention to choosing the right time to offer the product or service to the customer.
- The location must also be appropriate.
- And, of course, we must offer it at a fair price.
What benefits do these techniques offer us?
Beyond the objective increase in revenue for the Food and Beverage department, the proper implementation of these strategies as part of a revenue management culture in any tourism establishment creates a situation in which customers, the company, and employees all enjoy tangible and intangible benefits:
Client
After identifying the client’s needs, expectations, and preferences, we will be able to offer a personalized service and, therefore, one of higher quality.
Company
In this area, there are many benefits. For example, costs are optimized by increasing sales, since the fixed costs of these products or services are spread across more customers, thereby increasing operating profits.
Employees
In my experience, a good professional feels much more satisfied in their job when their clients are happy. In addition, incentive programs (which are not the same as motivation) will help increase their earnings.
Long-Term Strategy
That said, I would like to add that if these techniques are applied correctly, not only will TrevPAR improve, but we will also see a steady positive change in our quality metrics. Therefore, we must always consider the long-term revenue management strategy, keeping customer satisfaction as our guiding principle at all times. This is one of the best ways to build a loyal customer base for our hotel or resort.
The Importance of Personal Interaction
I wouldn’t want to conclude without emphasizing this point once again: having a team that is motivated, well-trained, and feels engaged and rewarded by their work is crucial for increasing the Food and Beverage department’s revenue. Let’s never forget that the best way to sell is still through direct interaction: people talking to other people. From IHCS Hotel Consulting With this article, we invite you to not hesitate to invest in getting to know your customers and in training your employees. Rest assured that, although implementing a revenue management strategy can be challenging at first, the benefits are numerous and will make the effort worthwhile. We hope you found this article interesting; if so, please feel free to share it and leave us your comments, opinions, or suggestions. We’ll close with this wise quote from Napoleon Bonaparte:
Success isn’t about always winning, but about never giving up.
Thank you very much, and see you next time!
