In the wake of the pandemic, Americans grew more comfortable ordering food via mobile app. Hotels are now encouraging the habit.
Americans got more comfortable ordering online during the pandemic — and that cohort includes hotel guests.
According to a McKinsey & Co. report, theworth of the global food delivery market more than tripled between 2017 and 2021. In the U.S., in particular, the food delivery market more than doubled during the pandemic — quite the acceleration after historical annual growth of 8%.
Meanwhile, the rise in food delivery coincided with a decline in the popularity of hotel food and beverage offerings. In 2020, hotelfood and beverage department revenues declined by 72.5%, according to CBRE. Even after the worst of the pandemic passed, F&B revenues remained down, with CBRE estimating that 2022 annual F&B revenue would be 88.3% of 2019 levels, exacerbated by staffing difficulties and lowered guest demand.
“Americans became extremely comfortable during the pandemic about getting food delivered to them, and this has transferred its way into the hotel industry,” said Chip Rogers, American Hotel & Lodging Association president and CEO,speaking to Hotel Dive in April. At the time, Rogers noted that the number of hotels offering room service has shrunk considerably.
In short: Food delivery apps are filling in the gaps left by hotels’ shrinking food-and-beverage offerings. Rather than bemoan the decline in room service orders, hoteliers are offering ways to make guests’ ordering habits easy via partnerships with popular services like Grubhub and Uber Eats.
IHG Hotels & Resorts led the pack in 2017with its partnership with Grubhub. Wyndham Rewards followed in 2019 bypartnering with DoorDash. And in 2021, Hyattjoined forces with GoPuff to offer free deliveries of snacks and other convenience items.
What does that mean for the hotel kitchen? These Hotel Dive stories explore recent partnerships between hotel brands and food delivery apps.
Guests at participating hotels will be able to order from off-premise restaurants as third-party food delivery becomes increasingly popular at hotels.Read the full article➔
With the partnership, the hotel company aims to improve the guest experience at its Extended Stay and Simply Suites locations.Read the full article➔
The partnership gives Grubhub access to a new, captive consumer base, and enables Homewood Suites locations without dining to offer food from local restaurants.Read the full article➔
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When Oberg retires in March 2026, company veterans Jen Mason and Shawn Hill will take over as CFO and chief development officer, respectively.
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When Oberg retires in March 2026, company veterans Jen Mason and Shawn Hill will take over as CFO and chief development officer, respectively.