Indian Hospitality Sector Soon to Earn More Revenue from F&B Segment
As per the recent HVS-FHRAI report, the Indian hotel chains soon to generate more income from food and beverage sector (F&B) than room revenues. This is because F&B segment has been continually growing from the last five years, while accommodation revenue has been falling. Nowadays, people prefer restaurants to organize a party, whether it’s small or big, so that’s also one of the main reasons for increasing income.
Talking about last year, the revenue generated from F&B segment that includes banquet and restaurants has hiked to 42.6% against 36.6% in 2010-11. On the other hand, room incomes dropped to 50.9% in 2014-15 from 57.2% in 201-11. Mr. Dipak Haksar, Chief Executive of ITC Hotels and WelcomHotels stated,
“There has been a marked, double-digit growth in food and beverage revenues over the past couple of years. Within the F&B segment, banqueting is showing great potential, which is powered mainly by MICE and this has positively impacted our F&B revenues, boosting overall revenues at ITC Hotels”.
The main income of the hotels across the country has been generated from this segment, which contributes around 35-50% of overall revenues. Commented on this, Mr. Kapil Chopra, President of the Oberoi Group, said,
“For us, the ratio has moved from 35 to 40% on an overall basis. As more and more Indians start dining out, we believe that food and beverage will play a very important role going ahead. To give you an example, Indians only dine out twice a month while the Chinese are dining out 60 times a month”.
Therefore, the hotels are focusing and promoting their F&B through discounts and offer to maintain their topline. So, keeping this in mind, the new hotels in India are coming up with large meeting spaces and restaurants.
Indian Hospitality Sector Soon to Earn More Revenue from F&B Segment
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As per the recent HVS-FHRAI report, the Indian hotel chains soon to generate more income from food and beverage sector (F&B) than room revenues. This is because F&B segment has been continually growing from the last five years, while accommodation revenue has been falling. Nowadays, people prefer restaurants to organize a party, whether it’s small or big, so that’s also one of the main reasons for increasing income.
Talking about last year, the revenue generated from F&B segment that includes banquet and restaurants has hiked to 42.6% against 36.6% in 2010-11. On the other hand, room incomes dropped to 50.9% in 2014-15 from 57.2% in 201-11. Mr. Dipak Haksar, Chief Executive of ITC Hotels and WelcomHotels stated,
“There has been a marked, double-digit growth in food and beverage revenues over the past couple of years. Within the F&B segment, banqueting is showing great potential, which is powered mainly by MICE and this has positively impacted our F&B revenues, boosting overall revenues at ITC Hotels”.
The main income of the hotels across the country has been generated from this segment, which contributes around 35-50% of overall revenues. Commented on this, Mr. Kapil Chopra, President of the Oberoi Group, said,
“For us, the ratio has moved from 35 to 40% on an overall basis. As more and more Indians start dining out, we believe that food and beverage will play a very important role going ahead. To give you an example, Indians only dine out twice a month while the Chinese are dining out 60 times a month”.
Therefore, the hotels are focusing and promoting their F&B through discounts and offer to maintain their topline. So, keeping this in mind, the new hotels in India are coming up with large meeting spaces and restaurants.
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