How important is F&B operation in the hotel industry? Empirical evidence in the U.S. market

Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/80847

Title:	How important is F&B operation in the hotel industry? Empirical evidence in the U.S. market
Authors:	Mun, SG Woo, L Paek, S
Issue Date:	Dec-2019
Source:	Tourism management, Dec. 2019, v. 75, p. 156-168
Abstract:	In full-service hotels, the increase in resource (i.e., salary in this study) of the F&B department relative to that of the rooms department had a positive effect on the rooms' operational performance indicators including ADR (average daily rate), RevPAR (revenue per available room), GOPPAR (gross operating profit per available room), and gross operating profit ratio of the rooms department. Although it did not increase the demands for rooms, the improved room price (i.e., ADR) had a positive impact on their room revenue, as a result. Among the three major categories of full-service hotels, the positive impact of F&B offering on operational performance was observed significantly in the upscale category such as increased occupancy, ADR, RevPAR, GOPPAR, and even gross operating profit ratio of the rooms department, but not in luxury and upper upscale categories. The findings indicate that there are substantial customers’ needs for F&B offering in upscale hotels.
Keywords:	Food and beverage operation Full-service hotels Limited-service hotels Upscale hotels Occupancy ADR RevPAR GOPPAR
Publisher:	Pergamon Press
Journal:	Tourism management
ISSN:	0261-5177
EISSN:	1879-3193
DOI:	10.1016/j.tourman.2019.03.010
Appears in Collections:	Journal/Magazine Article

Status	embargoed access
Embargo End Date	2022-12-31

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