iDEAL Hospitality Partners Group evaluated hospitality industry lobby markets to determine ROI calculation methods and factors for profitability and overcoming supply chain issues
EVALUATION AREA OF STUDY: Lobby markets in branded and unbranded economy through luxury hotels
INCLUDED IN STUDY: Hotels, management companies and owner/operators
SUMMARY OF KEY FINDINGS:
- Allotment of labor time not sufficient for properly managing lobby market
- Markets are not well stocked
- Technology for self-guest checkout has quirks and limitations
- Calculating true profit margins is challenging
- Design, location and square footage of market is not always ideal and limits sales
RESULTS OVERVIEW:
- Lobby market is not on its own P&L in hotels and therefore costs and profits have not been identified clearly
- Many hotels are not optimizing square footage space and revenue
- Hoteliers are experts at managing hotel operations, but not at retail operations, which is key for lobby markets
- Identified 5 key metrics for profitable lobby markets