New York Hilton's announcement to stop providing Room Service has generated a lot of media and social media attention. While I do not have all the facts pertaining to Hiltons decision and do not necessarily agree, I certainly give them credit for making this bold move.
While I do not have all the facts pertaining to Hilton’s decision and do not necessarily agree, I certainly give them credit for making this bold move.
Since the hotel industry in many aspects is a 'Me Too' industry and others are now bound to jump on the bandwagon, it makes sense to take a look at the actual Room Service performance numbers presented below by PKF.
As a hotel operator you know the operational challenges of providing Room Service - you want to provide a level of service that matches your hotels niche and image and at the same time be profitable.
A number of years back, I remember seeing the ‘Fying Kitchen’ at the Four Seasons Yorkville in Toronto and was very impressed. Four Seasons had developed a powerful and effective solution to delivering fast, high quality Room Service during peak breakfast hours.
Again, I don’t have all the facts, but am certain that this was not a profit center. I am also certain it resulted in very high guest satisfaction, which converted into repeat business and the ability to demand higher rates.
The Four Season scenario is not applicable to all segments, but clearly demonstrates that the ‘Room Service’ decision is beyond simple profit center numbers.
Having said that, markets and customer demands are changing as reflected by PKF’s numbers and it would be interesting to see these numbers by segment and possibly in correlation with GOP and market share.
However, before rushing out and doing a ‘Me Too’ above anything else, please do not forget to ask your customers. Not sure if Hilton did that!!!
Thomas Wahl is the founder of Nevistas, a leading online information and knowledge base for the hospitality & travel industries.
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