Strategic target customers of food and beverage offerings in full-service hotels: Outside-hotel customers

• Published in: International journal of hospitality management 2022-04, Vol.102, p.103159, Article 103159
• Main Authors: Mun, Sung Gyun, Park, Eunhye Olivia, Woo, Linda
• Format: Article
• Language: English
• Subjects: Gastronomic experience; Hotel F&B offerings; Hotel operating performance; In-house guests; Outside-hotel customers
• ISSN: 0278-4319; 1873-4693
• DOI: 10.1016/j.ijhm.2022.103159

A strategic focus by full-service hotels to attract outside-hotel (i.e., non-hotel) customers significantly improves their operating performance in both the food and beverage (F&B) department and the rooms department. In these aspects, a full-service hotel’s unique gastronomic resources should be considered important attributes for attracting niche gourmet tourists and developing a strategic competitive advantage. Targeting outside-hotel customers can also be beneficial for generating additional cash flow and improving gastronomic brand awareness. Therefore, most full-service hotels should substantially redefine their F&B offerings and target customers, as focusing heavily on in-house guests is not an effective business strategy but rather a waste of costly resources. Full-service hotels should proactively expand their F&B offerings to local residents and compete with independent local F&B premises in various business aspects. •Attracting more outside-hotel customers improves hotels’ operating profitability.•The positive effect is larger in luxury hotels than in lower level hotels.•The price change in the F&B offerings is not a moderator of the relationship.•Hotels need to develop F&B services as a diversification strategy.•Strategic F&B offerings to outside-hotel customers are essential for future growth.