In light of the announcement earlier this week that the New York Hilton Midtown is discontinuing its traditional room service, new data from PKF Hospitality Research showcases the decline of room service revenue in the U.S. since 2007.
PKF Hospitality Research said the data supports the view that today’s guests seem to prefer the “alternative contemporary” forms of F&B service (self-serve, casual coffee shop experience in the lobby, grab n’ go) versus the traditional hotel offerings of a three-meal, all-purpose restaurant and room service.
“If you added up all the direct costs of room service, it is probably not a profit center. However, it can be an important service when positioning your hotel in the market (i.e. required to be 5-star),” said Robert Mandelbaum, PKF Hospitality Research’s director of research information services.
However, PKF Hospitality Research said that in certain locations like airport hotels with people arriving at all hours, or hotels in isolated locations with few local restaurants, room service is a much more critical service.