Discounting F&B or providing offers to consumers can be detrimental to hoteliers unless done strategically, said experts.
At the advisory panel meeting for the Hotelier Middle East: Great GM Debate, the topic of discounting in hotel F&B was long discussed.
Jumeirah Beach Hotel general manager Sven Wiedenhaupt first raised the issue when he pointed out that hoteliers should be promoting quality of service, rather than offers - and plans to stop discounts in a couple of his restaurants. He further commented: " I don’t like that we’re constantly exclusively promoting discounts rather than the quality of the experience. I’ve never seen it in a market like this."
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Agreeing with his was Address Boulevard Dubai general manager Pascal Dupuis, who said that has been his strategy from the start. He said: "We will not go for happy hours, ladies night. You come to the bar for quality and service and experience. I tell you, it works because the quality of the people who come, they spend. But it has to be done from the beginning."
However, The Palazzo Versace Dubai general manager Sandra Tikal said there was value to be found in services like The Entertainer, especially for newer or standalone brands. She commented: "As a newer hotel, there is value in the Entertainer. I’m astounded by the discounting in this region, but to use The Entertainer because every single person seems to have it and to get awareness for your business does work. If you manage it, you can switch them out anytime. But to introduce venues to new people and a new location, that Entertainer is unbelievable if it’s done strategically."
Since using the app for the hotel's F&B, Tikal has seen a rise in repeat guests - even without the offers.
Pierre Delfau, the general manager of Southern Sun Abu Dhabi, also shared his success story with the brunch at The Foundry, which initially found success with The Entertainer, and then weaned customers off the discount offer. "The key was to get the footfall to start with and then wean them off. As soon as we were in with a particular community, they started talking about our produce and coming back," he said.
However he cautioned: "The region is bound to carry on using these services, especially now. And when you have big brands advertising in The Entertainer, you think, ‘what must I do?’."
Read the full report from the advisory panel roundtable in the July 2017 issue of Hotelier Middle East.